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
Barrick raised the capital expenditure allocation from $7.5-billion to $8-billion in the June quarter to between $8-billion and $8.5-billion in the September quarter.

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 will delay the start-up of its Pascua-Lama gold mine until after late 2014 and, as a result, that the project will probably exceed its current budget of up to $8.5-billion .

Barrick has attributed the delay to water management work required by Chile's new environmental regulator.

A Chilean court partially halted construction of the project in April to investigate claims by indigenous communities that Barrick has damaged pristine glaciers and harmed water supplies.

Chile's environmental regulator then halted its own work at the gold/silver project in May, citing serious violations.

However, while all nonenvironmental work has been halted in Chile, construction continues on the Argentine side of the project.

The cost overruns and delays at the mine have led to some speculation that Barrick might scrap the project as part of its drive to reel in capital spending, a trend that has swept across the sector over the past year.

The company has said it "will continue to evaluate all alternatives, in light of the uncertainties associated with the legal and regulatory actions, and the current commodity price environment."

Key Contracts and Suppliers
Fluor (project management).

On Budget and on Time?
First production has been delayed until past 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.