Barrick Gold to construct gold mine in Pascua Lama

TORONTO.- Following a tax agreement that was reached between Argentina and Chile, the Canadian mining company Barrick Gold Corp announced today that it will be going ahead with the construction of a mining project in Pascua Lama, which will produce an average of between 750,000 and 800,000 ounces of gold per year.

The company added that the project would begin towards the end of 2012 and said that production would commence during the beginning of 2013.

Barrick also indicated that Pascua Lama, located some 5,500 meters above sea level on the Argentina-Chile border, would also produce an average of 35 million ounces of silver per year once it entered into full operation.

The company estimates that construction costs for the project will be between US$ 2.8 and US$ 3 billion dollars, for which the corporation has already begun negotiations to obtain US$ 1 billion dollars in financing.

Chile and Argentina reached an agreement last week regarding the mechanism by which the bi-national services of the project will be taxed. Both countries had previously made a pact concerning earnings on gold and silver from Pascua Lama that was based on which side of the border the resources had originated.