The Pascua-Lama project is located on the border of Chile and Argentina, in the Frontera district at an elevation of 3,800 to 5,200 meters, approximately 10 kilometers from Barrick’s Veladero mine. The Pascua-Lama project has strong bi-national government support and strong support from local citizens and regional stakeholders in both countries. One of Barrick’s 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.
As at December 31, 2011, Pascua-Lama has proven and probable reserves of 17.9 million ounces of gold, with 676 million ounces of silver contained within the gold reserves1.
Pascua-Lama’s expected average annual gold production is 800,000–850,000 ounces in the first full five years of operation at negative total cash costs of $225-$275 per ounce2,3 assuming a silver price of $25 per ounce. Average annual silver production for the first full five years is expected to be about 35 million ounces. For every $1 per ounce increase in the silver price, total cash costs are expected to decrease by about $35 per ounce over this period.
Pre-production capital is expected to be $4.7-$5.0 billion2, of which approximately 55% has been committed at the end of Q4 2011. In Chile and Argentina, earthworks are about 95% and 65% complete, respectively, at the end of Q4. Approximately 40% of the concrete has been poured at the processing facilities in Argentina and about 15% of the structural steel has been erected to date. Occupancy of the construction camps in Chile and Argentina continues to ramp up with 6,500 beds available by the end of 2011. The camps are expected to reach their full capacity of 10,000 beds in mid-2012.
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