Name and Location
Pascua-Lama gold project, Chile and Argentina.

Client
Barrick Gold.

Project Description
The project is the first binational mining project in the world. The deposit is located on the border between Chile and Argentina, with 75% of the orebody lying in Chile and 25% in Argentina.

It is a world-class resource of almost 18-million ounces of proven and probable gold reserves and 676-million ounces of silver contained within the gold reserves, with a mine life of 25 years. It is expected to produce between 800 000 oz and 850 000 oz of gold and 35-million ounces of silver in its first five years of production.

Value
Pascua-Lama was originally expected to not cost more than $3-billion when construction was approved in 2009. The cost of the project has since escalated to $8.5-billion.

Duration
Production has been delayed to the second half of 2014, owing to delays in earthworks and underground works for the process plant.

Latest Developments
Barrick Gold is hopeful it can find a way forward with its stalled Pascua Lama gold mine.

Barrick halted the project on the Chilean and Argentine border in 2013 after investing $5-billion in it. In addition to permitting issues, cost overruns and a sharp drop in bullion prices, it faced the strong and organised opposition of the local indigenous communities.

However, Barrick is still looking for ways to take the project forward, senior VP for Pascua Lama Edmundo Flores told financial newspaper Diario Financiero.

"The company has made significant changes. We hope to . . . find a way . . . there is an opportunity, it's small, but it exists," he has said.

Although the construction of the project has been halted, Barrick is committed to completing the building of a water management system and is also in discussions with the local communities who have opposed the project to try to work out an agreement.

A technical report will be ready in December or January, Flores has said.

If completed, Pascua-Lama is expected to produce up to 850 000 oz/y of gold in its first five years, which would contribute a large share of Barrick's future production

Key Contracts and Suppliers
Fluor (project management).

On Budget and on Time?
First production has been delayed until after 2014 and, as a result, the project will likely exceed its current budget.

Contact Details for Project Information
Barrick Gold media relations manager Andy Lloyd, tel +1 416 307 7414, or email alloyd@barrick.com.
Fluor, tel +1 469 398 7000 or fax +1 469 398 7255.