In the face of today’s explosive moves for both gold and silver, SD contributor SRSrocco has an update on what just might be the most explosively bullish supply-side news for gold and silver in history!
UPDATE: There was an error in SRSrocco’s previous article. Barrick is not required to cover 200 million ounces of silver should the mine project fail to proceed. The error is discussed in a post below; click here to read it. Nevertheless, expected future silver supply would decline materially.
RENO (MINEWEB) –
Barrick Gold is considering suspending the Pascua Lama project or developing a smaller pit on the Argentinean side of the project, among other options, Barrick officials announced Wednesday.
“At Pascua Lama, we are working to address the environmental and other regulatory requirements on the Chilean side of the project,” said Barrick CEO Jamie Sokalsky. “Concurrently, we are taking hard look at evaluating all alternatives in light of uncertainties associated with the suspension of construction in Chile
As a result of the court order, Barrick suspended construction activities in Chile, including work on the primary crusher and the Chilean side of the tunnel that moves ore from Chile to Argentina.
Folks… this is a SERIOUS ANNOUNCEMENT. Pascua Lama was supposed to bring 700,000-800,000 oz of gold and 35 million oz of silver PER YEAR!
When I spoke to Harvey Organ about this last year, he told me that Barrick would never get this mine up and running. Barrick is contemplating on whether or not to set up and mine the smaller area located on the Argentina side, but this would not be commercially viable. They are just saying that to CUT THE LOSSES FROM THE STOCK PRICE…LOL.
We have to remember, the majority of the ORE is located on the Chilean side, so without the GOODS, the project is a bust.
For those needing a refresher on why the loss of Barrick’s future production has such explosively bullish implications particularly for silver, we suggest you freshen up on SRSrocco’s original post on Barrick’s 200 million oz silver contract with Silver Wheaton.
Barrick’s 200 Million Ounce Silver Problem: The Impending Annihilation of the Paper Shorts
Is a massive Barrick’s silver short squeeze imminent?
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