African Barrick goes ahead with Tanzania's Bulyanhulu expansion

African Barrick Gold (LON:ABG) shares rose 6% today as the miner announced its board has approved a $185 million expansion at Bulyanhulu, its underground gold mine in Tanzania.

The new carbon in leach circuit (CIL) at the plant, said African Barrick in a statement, will add production in excess of 40,000 ounces of gold per annum for the first six years of the project from the first half of 2014, and will continue to boost production for the remainder of the life of mine.

CEO Greg Hawkins said the construction of the new CIL circuit would create “significant additional upside potential.”

“As we move through 2012, we are now seeing the results from two years of investment in our portfolio of high quality assets. We have extended the life of Tulawaka, announced a 4.6Moz resource at Nyanzaga and we are now advancing the first of an expected series of brownfield projects,” he said.

Bulyanhulu mine expected to produce for more than 25 years, based on its proven and probable gold reserves of 10.63 million ounces.

Barrick Gold (NYSE & TSX: ABX) holds a 73.9% equity interest in ABG, Tanzania's largest gold producer and one of the five largest gold producers in Africa.

Image courtesy of African Barrick Gold