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 has suspended construction at its $8.5-billion Pascua-Lama copper/gold mine, except for activities needed for environmental protection and to bring the project in line with regulatory compliance.

The decision to restart will depend on improved project economics, such as go-forward costs, the outlook for metal prices and reduced uncertainty associated with legal and other regulatory requirements.

The company will explore opportunities to improve the project's risk-adjusted returns, such as strategic partnerships and royalty, or other income-streaming agreements.

At the end of the second quarter ended June 30, Barrick had spent $5.4-billion on the project and another $310-million in the third quarter.

Barrick has indicated that it will, in the meantime, update and refine capital cost estimates and stage the project's remaining development into distinct phases, with specific work programmes, budgets and objectives.

This staged approach will also facilitate more efficient planning and execution, more effective capital deployment, and improved cost control.

The project encountered problems last year when a local indigenous community, aided by nongovernmental organisations, complained about water from the construction processes polluting the Estrecho river, which indigenous and other communities in the valley need for agriculture and personal use.

The complainants said excessively high concentrations of arsenic, aluminium, copper and other elements had been found in the water near Pascua-Lama, which had become one of the most unpopular mining ventures in Chile.

Barrick denied that it had polluted the river, but agreed to build a new water management system.

After regulators stopped construction on the Chilean side of the project at the end of 2012, the company resolved to slow construction and, currently, to mothball the project.

Barrick also has emerging labour unrest on the Chilean side to deal with.

These delays and additional infrastructure commitments are expected to further raise the project’s total cost.

The company expects to spend about $250-million to $300-million on Pascua-Lama during 2014.

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.