Pascua-Lama (Project)

Spanning the border of Argentina and Chile, it is located in the Frontera district, within approximately 10 kilometres of our Veladero mine. The project is at an elevation of 3,800 to 5,200 metres. Pascua-Lama has proven and probable reserves of 17.8 million ounces of gold, with 717.6 million ounces of silver, and 649.5 million pounds of copper, contained within the gold reserves. It has an estimated mine life of more than 25 years.

On May 7, 2009, Barrick announced that the Pascua-Lama project is proceeding to construction. The company has finalized the project's economic parameters, received key construction permits, satisfactorily resolved outstanding fiscal matters with the governments of Chile and Argentina, and is engaged in discussions for project financing.

Pascua-Lama's pre-production construction estimate is $2.8-$3.0 billion, with expected average annual production of about 750,000-800,000 ounces of gold and 35 million ounces of silver in the first full five years. The anticipated total cash costs in the first full five years are $20-$50 per ounce - which would make Pascua-Lama one of the lowest cost gold producing mines in the world.

The Pascua-Lama project has strong bi-national government support and strong support from local citizens and regional stakeholders in both countries. One of our objectives is to help the people in the region find ways to grow their economy, skills and infrastructure for long-term benefit. As a result, this large, long-life mine also is expected to offer jobs and community development in the region for many years to come.