Lagunas Norte Mine, Alto Chicama, La Libertad, Peru, Map and News

Lagunas Norte is Barrick’s lowest cost operation and in 2009, the mine produced 1.0 million ounces of gold at total cash costs of $138 per ounce.

Explore the geometry of Lagunas Norte Mine. Click the figure below to see the interactive satellite map and news.

Zoom at: Lagunas Norte Gold Mine.

Peru's mega gold mines aren't so mega any longer

For years, Peru's gold production has been dominated by three mines, namely Yanacocha (NEM and BVN), Lagunas Norte (ABX) and Pierina (ABX). But that's changing fast, as these three charts show.

This shows output at Yanacocha:

This shows the combined outputs of the the two Barrick mines, Lagunas Norte (aka Alto Chicama) and Pierina:

And this one shows the percentage of the three mines' production to Peru's total monthly gold output.

The times they are a changin' and as we've recently seen, Peru is now far more dependent on the dirtiest and ugliest type of gold mining possible...and doesn't give a toss about it, either.

Barrick (ABX) in Peru: Where did all the production go?

The Peruvian Mining Ministry (MEM) monthly stats for metals production, August edition, came out today. Of course, Otto the wonk gets stuck into them straight away and notes this-n-that stuff (more tomorrow) but the shocker was Barrick's (ABX) production at its two Peruvian operations, Pierina and Alto Chicama (aka Lagunas Norte). Here's the chart:

 click to enlarge

As you can probably make out, production has fallen off a  veritable cliff. The two mines combined have been good for a typical 3m to 4m grams per month (3m g = 96,463 oz and 4m g = 128,617 oz) with the odd spike to up and over 5m grams. But the last two months?

July 2010= 2,106,735 grams (that's 67,741 ounces)

August 2010= 1,471,530 grams (that's 47,316 ounces)

Now we know there was a slowdown in production planned and expected at the two mines (getting long in the tooth type stuff, esp at Pierina), but nowhere near as sharp as this. I mean, in 2q10 the two mines produced a total of 9,621,095 grams (309,360 oz) and it'd need an incredible month of 6m g or so to catch up in September for that to be matched. Can't be done. Big production hole coming up, folks.

The Barrick ConfCall and results party is set for October 28th and you can bet yer tush that some pointed questions will be asked about the company's Peru operations on that day. DYODD, dude

Peru Mining Boom, Visit to Barrick Gold: Lagunas Norte and Pierina

German industry has increased its stake in the mining industry in South America. Peru is currently in the limelight. The nation is one of the largest producers worldwide for copper, silver, gold and zinc. Germany hopes to replace the US as the main supplier of machinery. The German embassy in Peru organises visits to mines for German businessmen and has set up a technological association of German companies.

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Peru Mining Boom

Barrick Gold: Lagunas Norte Mine. Video and News

Lagunas Norte is one of the few gold mines in the world to produce over one million ounces a year. The mine is located on the Alto Chicama property in north-central Peru,

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Barrick Gold: Lagunas Norte Mine. Video and News