Barrick Gold announced that it has entered into an agreement with Silver Wheaton Corp. to sell 25% of the life-of-mine silver production from the Pascua-Lama project and 100% of silver production from the Lagunas Norte, Pierina and Veladero mines until project completion at Pascua-Lama. Barrick will receive a cash deposit of $625 million payable over three years as well as ongoing payments for each ounce of silver delivered under the agreement. Barrick states the transaction enhances Pascua-Lama’s economics. The Pascua-Lama project, on the border of Chile and Argentina, is expected to become one of the gold industry’s largest and lowest cost mines.
Barrick Gold Corporation announced today that its Pascua-Lama project is proceeding to construction. Barrick has finalized the project’s economic parameters, received key construction permits, satisfactorily resolved key outstanding fiscal matters with the governments
of Chile and Argentina, and is engaged in discussions for project financing. the mine is expected to be one of the lowest cost gold producers in the world at US$20-30 per ounce in the first five years with average annual production of about 750,000-800,000 ounces of gold and 35 million
ounces of silver in the first five years of operation. Construction costs are estimated at $US 3.0 billion with full production in early 2013. The deposit contains 17.8 milion ounces of gold and 718 million ounces of silver reserves.
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