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.

Jobs to be Created
Not stated.

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
Barick Gold has appointed former executive George Bee to lead the development of a smaller, phased operation at its stalled Pascua-Lama project.

Barrick halted the project in 2013 after having invested $5-billion. 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.

Having previously been employed for 16 years at Barrick, including an eight-year stint in Latin America, Bee, as senior VP for Lama and Frontera District Development, will from September 12, be tasked with driving forward initial conceptual work completed by the project team to date.

Barrick is considering advancing a starter project option at Lama, on the Argentinean side of the Pascua-Lama project.

According to Barrick, recent evaluation work indicates that a smaller, scalable starter project at Lama, using underground mining methods, might represent the best option to begin a phased development plan for the project. If successful, cash flow from Lama could be used to fund additional development on both sides of the border over time.

The team in Chile will continue to focus on optimising the Chilean components of the Pascua-Lama project while working to address outstanding legal, regulatory and permitting matters, the company has advised.

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.