May 25, 2012 / 7:52 PM / 5 years ago

Barrick boosts land position around Cortez mine

* Barrick to pay Victoria Gold $24 mln for Mill Canyon

* Cortez one of Barrick’s largest and lowest-cost mines

TORONTO, May 25 (Reuters) - Barrick Gold Corp, the world’s largest gold miner, will pay $24 million to buy the Mill Canyon property in Nevada from Victoria Gold Corp, a move that allows Barrick to consolidate its land position around its prolific Cortez mine.

Cortez is one of Barrick’s largest and lowest-cost operations. It produced about 1.4 million ounces of gold at cash cost of $245 an ounce in 2011, and it hosts reserves of roughly 14.5 million ounces of gold.

The site is also home to one of Barrick’s most promising new discoveries, Goldrush. Barrick has already delineated a resource of more than 7 million ounces at Goldrush and views it as one of its most significant new finds in decades. It expects to boost its estimate on the size of the asset substantially in coming months.

The Mill Canyon property consists of claims that Victoria Gold bought from Newmont Mining Corp in 2003.

In a statement on Friday, Victoria Gold said the sale of Mill Canyon combined with the recent sales of some of its other projects in Nevada will allow it to fund the development of its flagship Eagle gold project in Canada’s Yukon Territory.

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