Filed
by
Barrick Gold Corporation
This
communication is filed pursuant to Rule 425 under The Securities Act of 1933,
as
amended.
Subject
Company: Placer Dome Inc.
Commission
File Number: 1-9059
Date:
November 1, 2005
Company
Background
Barrick
ranks among the world’s largest gold mining companies, with operating mines and
development projects on four continents: North and South America, Africa and
Australia.
The
Company entered the gold mining business in 1983. Its success has been grounded
in three key, complementary strategies:
| · |
a
consistent investment in exploration and development;
|
| · |
a
district development approach, aimed at optimizing reserves on highly
prospective gold belts; and
|
| · |
disciplined
acquisitions and mergers.
|
Barrick’s
current record in mine development is the most recent demonstration of the
success of these strategies. Three new mines entered production in 2005 and
a
fourth will do so in early 2006, each with significant reserves and further
potential.
| · |
The
Tulawaka mine in Tanzania: entered production in March 2005, ahead
of
schedule.
|
| · |
The
Lagunas Norte mine in Peru: entered production in June 2005, ahead
of
schedule and within budget, and by Q3 2005 one of Barrick’s largest
producers.
|
| · |
The
Veladero mine in Argentina: poured gold ahead of schedule in September,
2005, marking the start of mining activities in the highly prospective
Frontera District, our 30-million-ounce gold camp straddling the
Chile/Argentina border.
|
| · |
The
Cowal mine in Australia, on schedule to enter production in early
2006.
|
The
Company is making significant progress with its other development projects
as
well, including the Pascua-Lama project in the Frontera District of
Chile/Argentina, already home to the Veladero mine.
Barrick
initially focused on acquiring and developing properties in North America.
It
began by transforming Goldstrike from a small heap-leach operation to the
Company’s flagship property, with proven and probable gold reserves at year end
2004 of over 19 million ounces1
and two producing mines: Goldstrike Open Pit (Betze-Post) and Goldstrike
Underground (Meikle and Rodeo). For the last decade, Goldstrike has contributed
about 2 million ounces to Barrick’s annual production, and is still the
Company’s largest producer.
1994
In
1994, in a move aimed at ensuring growth in reserves and production, Barrick
expanded beyond its North American base when it acquired Lac Minerals Ltd.,
an
international gold mining company with operating mines in Canada, the United
States and Chile. The acquisition gave Barrick control of the El Indio Belt
and
an interest in the Veladero Project in Argentina, later consolidated through
the
merger with Homestake Mining Company in 2001. Veladero poured its first gold
in
September, 2005.
1996
In
1996, Barrick expanded its South American presence, acquiring Arequipa Resources
Ltd., which had exploration properties in Peru, including Pierina. Within four
months, Barrick had confirmed 6.5 million ounces of gold into reserves. Pierina
began production in November 1998.
1999
In
1999, Barrick expanded to Africa, acquiring Sutton Resources Ltd., an
exploration company with mineral properties in Tanzania, including the
Bulyanhulu Gold Project. At the time of acquisition, the project’s gold reserves
were 3.8 million ounces. Eighteen months later, Barrick had increased reserves
to 10 million ounces and currently stands at 10.6 million ounces. Bulyanhulu
began production in April 2001.
2000
In
2000, in an extension of its district development approach, Barrick acquired
Pangea Goldfields Inc., a mining exploration company with properties in
Tanzania, Canada and Peru. As part of the acquisition, the Company acquired
a 70
percent interest in the Tulawaka exploration property, located 200 road
kilometers from the Bulyanhulu Mine. Barrick took Tulawaka through the
development phase, and brought it into production in March, 2005.
2001
In
2001, Barrick merged with Homestake Mining Company, and added mines in North
America, South America and Australia to its global portfolio. The Australian
assets included Kalgoorlie Consolidated Gold Mines (KCGM), a joint venture
property, plus three operating mines and the Cowal Property, targeted to enter
production in early 2006. South American assets included Homestake’s 60%
interest in the Veladero project in Argentina, which poured its first gold
in
September 2005.The Barrick-Homestake merger created a combined company with
the
industry’s only ‘A’ rating, a portfolio of large, low-cost properties, and
commanding land positions in prolific gold-producing regions of the
world.
2002
In
2002, Barrick announced a significant grassroots discovery, Lagunas Norte,
on
its Alto Chicama District in north-central Peru, which it had acquired earlier.
2003
In
2003, Barrick met its production and total cash cost targets for the year,
advanced its development projects, and implemented a new organization design
using Regional Business Units in keeping with the Company’s growing global
footprint.
2004
In
2004, Barrick met its original production and cash cost targets and made
significant progress with its development projects, all of which remained on
schedule for their target dates to enter production (the first three in 2005,
and Cowal in early 2006). In July, the Company announced it would proceed with
its Pascua-Lama development project, one of the largest undeveloped gold and
silver mining properties in the world. Pascua-Lama, like Veladero, is located
in
the Frontera District which straddles the Chile-Argentina border. The Company
also formed strategic partnerships in Russia and Central Asia, taking measured
steps - as conditions warrant - to establish itself in the development of the
gold industry in that geologically attractive part of the world. During 2004,
the Company also increased reserves through the continued success of its
exploration and district-development strategies.
2005
In
2005, Barrick brings three new mines into production. By third quarter, these
mines are making a sizeable contribution to earnings and cash flow, helping
to
create one of the best production, earnings and cash flow quarters in Company
history. Development projects are progressing well and the Company is on track
to meet its production and cash cost targets for the full year.
Important
Notice
Barrick
plans to file with the U.S. Securities and Exchange Commission a Registration
Statement on Form F-8, which will include Barrick’s offer and take-over bid
circular. Investors and security holders are urged to read the offer and
take-over bid circular, regarding the proposed business combination transaction
referred to in the foregoing information, when these documents become available,
because they will contain important information. Investors may obtain a free
copy of the offer and take-over bid circular when they become available and
other documents filed by Barrick with the SEC at the SEC’s website at
www.sec.gov. The prospectus and these other documents may also be obtained
for
free, once they have been mailed, on Barrick’s website or by directing a request
to Barrick’s media or investor relations department.
1 Based
on
reserves calculated at December 31, 2004 using an assumed price of $375 per
ounce for gold. Calculations were performed by employees of Barrick under the
supervision of Rene L. Marion, P. Eng., Vice President, Technical Services
of
Barrick. Reserve calculations incorporate current and/or expected mine plans
and
cost levels. Barrick’s normal data verification procedures have been employed in
connection with the calculations. For a breakdown of reserves by category and
for additional information on Barrick’s reserve methodology, see Barrick’s most
recent Annual Information Form / Form 40-F on file with Canadian provincial
securities regulatory authorities and the US Securities and Exchange
Commission.