Name of the Project
Pascua-Lama gold project.

Location
The deposit is located on the border between Chile and Argentina, with 75% of the orebody lying in Chile and 25% in Argentina.

Client
Barrick Gold.

Project Description
The Pascua-Lama gold project is the first binational mining project in the world.

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.

Potential Job Creation
Not stated.

Value
$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
Chile's Superintendencia del Medio Ambiente (SMA) has ordered Barrick Gold to close the Chilean side of the massive, but stalled Pascua-Lama gold/silver project.

The SMA has announced a revised sanction on the project as part of a re-evaluation process ordered by the country's Environmental Court in 2014, relating to historical compliance matters at the project.

The revised sanction includes a 25% reduction of the original administrative fine imposed by the SMA in 2013, from about $16-million to $11.5-million.

An environmental court ordered the SMA to reconsider its $16-million fine on technical grounds. At the time, the regulator threatened to consider a range of sanctions – from a warning to permit cancellation – or a fine.

The $8.5-billion project ground to a halt in 2013 in the face of mounting evidence of environmental issues, political opposition, labour unrest and swelling costs.

Based on a preliminary review of the resolution, Barrick has said the SMA has not revoked Pascua-Lama's environmental permit, but has ordered the closure of existing facilities on the Chilean side of the project, in addition to the implementation of certain monitoring activities. It is operating under a temporary closure plan on the Chilean side.

The SMA has cited 33 charges, six of them for very serious infractions, 14 for serious infractions and nine for minor infractions; while four charges have been acquitted because of a lack of data. The charges pertain to acid water discharges, destruction of flora, incomplete monitoring of both environmental and social variables, as well as environmental damage in areas and glaciers of the Andean highlands.

According to Barrick, the closure of existing surface facilities in Chile is consistent with the company's plan to advance a prefeasibility study (PFS) for an underground mining operation on the Argentinian side of Pascua-Lama, which would address a number of community concerns by reducing the overall environmental impact of the project.

The company is undertaking a number of optimisation studies to complete the PFS.

In 2016, Chile rejected an attempt by local communities to block modifications needed to keep the project on track.

Barrick's TSX-listed equity closed the day 2.53% lower at C$17.71 apiece.

Key Contracts and Suppliers
Fluor (project management).

On Budget and on Time?
Barrick halted the development of Pascua-Lama in October 2013, after spending more than $5-billion.

The project has been plagued by political opposition, permitting issues, labour unrest, cost-overruns and a falling gold price.

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.