Barrick to become operator of Geophysx assets under new partnership deal
THE PARTNERSHIP to explore Jamaica for gold and copper will see Geophysx Jamaica sharing its knowledge, and assets, while global mining giant Barrick Gold Corporation will finance new research and drilling.
“Under this agreement, Barrick will be taking on full-time operation of the programme going forward. We have cleared space for three offices dedicated to them to work with our teams to move forward,” said Robert ‘Bobby’ Stewart, founder and managing director of Geophysx, at an investment forum at the Jamaica Conference Centre in Kingston on Tuesday.
“The best part is that they take on the risk,” he said.
Stewart has spent about “$3 billion” so far on research and surface drilling, since the company started in 2017. Most of that spend went towards collecting the company’s 40,000 geological samples across the island.
“Over the last twelve months, I have spent close to $1 billion,” he said, adding that the level of spending was unsustainable.
Stewart stressed that the agreement involves mineral exploration, rather than mining, at this time. Geophysx holds scores of exploration licences. The agreement also provides Barrick with access to approximately 4,000 square kilometres of lands positioned throughout the country.
Stewart said that Barrick, a Canadian company, was the best fit for Jamaica, especially since it already operates in the Caribbean.
The companies hope that the soil and geology in Jamaica will mimic existing gold and copper operations operated by Barrick in the Dominican Republic.
The Pueblo Viejo gold mine in Dom Rep, over three months to March 2024, generated US$81 million in operating profit before factoring for debt servicing, taxes and deprecation charges. Also that mine generated 1.3 million tonnes of gold and copper over the year.
“If we find a mine here, then we can do the same for Jamaica,” said Juana Barceló, president of Barrick Dominican Republic, at the forum in Kingston.
From 2013 to 2022, the Pueblo Viejo generated US$14 billion in exports, equivalent to one-third of that country’s total exports, Barceló indicated.
Geophysx has covered most of Jamaica with over 40,000 geochemical assays or tests.
“We have projects with Barrick from east to west of the island, ”said Stewart, regarding the locations for exploration by the partners.