By Nicole Mordant

Any alliance between Barrick Gold Corp and China's sole state-owned gold mining company is likely to involve a smaller, non-core Barrick mine or project and not any of the Canadian miner's main assets, a China National Gold Group official said on Thursday.

Barrick, the world's biggest gold producer, and China National, China's largest producer, have held talks at least three times this year on ways to cooperate, China National President Xin Song said in an interview.

Barrick's appointment of John Thornton, a China expert, as chairman this year has heightened expectations that the Toronto-based company may be seeking an alliance with Chinese investors, possibly for its large but stalled Pascua-Lama gold and silver project in South America.

Song, who has met with Thornton on at least two occasions, declined to comment on whether China National had any interest in partnering on Pascua-Lama. But he said that Barrick is likely to want to hold onto its core assets for itself and not "put them out for any cooperation."

"Non-core assets ... they are not a big deal for them. Maybe this kind of thing is a potential target for both sides to work with," Song said through an interpreter in Vancouver where he was attending a conference.

A Barrick spokesman declined to comment on any meetings with China National.

Barrick has been selling off non-core assets, including its Plutonic and Kanowna mines in Australia, as it and other miners try to cut costs to lift flagging profits in the face of weaker gold prices.

"Both parties have a very strong wish to take real steps forward," said Song, who is also president of the China Gold Association.

China National and Barrick have previously held talks about an acquisition. The Chinese company tried to buy Barrick subsidiary African Barrick Gold Plc more than a year ago, but the talks fell through. Song said China National was no longer interested in buying African Barrick.

China National has also meet with executives from U.S. gold miner Newmont Mining Corp, Song said, but has not had as much communication as with Barrick.

China National owns a 39 percent stake in small Vancouver-based gold producer China Gold International.