Chile-Argentina Polymetallic Project Could Start Construction in Late 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)-- Barrick Gold Corporation (NYSE:ABX), has announced that construction on its Pascua Lama project could start in September 2008 after all sector permits are obtained. The estimated $2.4 billion Pascua Lama is a gold, silver and copper project located on Argentina-Chile border in the Andes Mountains at 4,200 to 5,200 meters above sea level. The project has proven reserves of 17 million ounces of gold, 689 million ounces of silver and 565 million tons of copper. Once operational, annual production is expected to reach approximately 775,000 ounces of gold, 25 million ounces of silver, and 4,800 tons of copper. For more information, see related September 5, 2007, article - Chilean-Argentine Copper, Gold and Silver Projects.

Pascua Lama is the world's first bi-national mining project. About 80% of the deposit is in the northern Chilean region of Atacama about 120 kilometers south of the city of Vallenar, and the remainder is in the northwestern Argentine province of San Juan about 280 kilometers north of the province's capital, San Juan. A large part of the open pit will be in Chilean territory, as well as the mine equipment maintenance complex and other facilities. A smaller portion of the open pit will be in Argentine territory, as well as a processing plant, a tailings pond, a construction camp for about 4,000 people and an operation camp for 1,000 people. The companies developing the project are Compania Minera Nevada (Santiago, Chile) and Barrick Exploraciones Argentinas S.A. (San Juan, Argentina). Construction will be carried out by Fluor Chile S.A. (Santiago) and is expected to be complete in three years.

Even though the project received environmental approvals from Chilean and Argentine authorities in 2006, the countries must first determine the tax distribution before moving forward with construction. Chile's government would require Barrick Gold to pay 80% of the taxes to meet the proportion of the ore deposits in Chile. However, Argentine authorities have rejected that idea, since all of it would be processed in Argentina. According to Barrick Gold statements, progress continues on the project, but that in order to announce the construction of the mine the corporation needs to obtain all the necessary permits and the governments of both countries need to finalize the tax regime.

Barrick Gold has 27 operating mines in North America, South America, Australia-Pacific and Africa. Barrick's South American region consists of the Pierina and Lagunas Norte gold mines in Peru, the Veladero gold mine in Argentina, the Zaldivar copper mine and Cerro Casale project (pending acquisition) in Chile and the Pascua-Lama development project. The region hosts 38 million ounces, or 31%, of the company's overall proven and probable reserves.

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