Barrick Provides Update on Pascua-Lama Project
BARRICK GOLD CORPORATION
PRESS RELEASE — February 6, 2018
All amounts expressed in U.S. dollars
Barrick Provides Update on Pascua-Lama Project
TORONTO — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the “Company”) today
provided an update on the status of its Pascua -Lama project, located on the border between
Argentina and Chile.
As previously reported, on January 17, Chile’s Superintendencia del Medio Ambiente (SMA) ordered
the closure of existing infrastructure on the Chilean side of the Pascua-Lama project. The sanction is
part of a re-evaluation process ordered by the country’s Environmental Court in 2014 and relates to
historical compliance matters. Barrick is appealing the resolution on a number of grounds, including
on the basis that the sanction is disproportionate to actual environmental impacts.
The resolution does not affect the Company’s ongoing evaluation of an underground, block-caving
operation at Pascua-Lama, which would require additional permitting and regulatory approvals in
both Argentina and Chile, irrespective of the recent SMA decision. In any underground scenario,
Barrick would also close site facilities and surface disturbance in Chile not necessary for an
underground mine.
In light of the SMA order to close surface facilities in Chile, and current plan s to evaluate an
underground mine, Barrick is reclassifying Pascua-Lama’s proven and probable gol d reserves of
approximately 14 million ounces , which are based on an open pit mine plan, as measured and
indicated resources.1 As a result, we expect to record an estimated pre-tax impairment of $429 million
at Pascua-Lama in the fourth quarter of 2017. Further details will be included in Barrick’s year-end
results release on February 14, 2018.
A shift to an underground operation would address a number of community concerns by significantly
reducing the overall environmental impacts of the project, as compared to an open pit operation. In
addition, an underground operation would be less susceptible to weather-related production impacts
during the winter season.
The Company has formed a working group with Shandong Gold to study a potential partnership at
Pascua-Lama, building on our existing joint venture at the nearby Veladero mine.
We will provide a further update on the Pascua-Lama project at the Company’s February 22 Investor
Day.
BARRICK GOLD CORPORATION PRESS RELEASE
INVESTOR CONTACT MEDIA CONTACT
Daniel Oh
Senior Vice President
Investor Engagement and Governance
Telephone: +1 416 307-7474
Email: [email protected]
Andy Lloyd
Senior Vice President
Communications
Telephone: +1 416 307-7414
Email: [email protected]
ENDNOTE
1. Estimated in accordance with National Instrument 43-101 as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2017. Pascua-Lama proven reserves
of 29.3 million tonnes grading 1.94 g/t, representing 1.8 million ounces of gold were moved
to measured resources, and probable reserves of 248.6 million tonnes grading 1.53 g/t,
representing 12.2 million ounces of gold were moved to indicated resources. Resources have
been estimated based on an assumed gold price of $1,500 per ounce, and an assumed silver
price of $20.50 per ounce. Barrick’s normal data verification procedures have been employed
in connection with the calculations. Verification procedures include industry-standard quality
control practices. While the terms “measured”, “indicated” and “inferred” mineral resources
are required pursuant to National Instrument 43 -101, the U.S. Securities and Exchange
Commission does not recognize such terms. Canadian standards differ significantly from the
requirements of the U.S. Securities and Exchange Commission, and mineral resource
information contained herein is not comparable to similar information regarding mineral
reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange
Commission. In addition, U.S. investors are cautioned not to assume that any part or all of
Barrick’s mineral resources at Pascua-Lama constitute or will be converted into reserves.
TECHNICAL INFORMATION
The scientific and technical information contained in this press release has been reviewed and
approved by Rick Sims, Registered Member SME, Vice President, Reserves and Resources of Barrick;
Patrick Garretson, Registered Member SME, Senior Director, Life of Mine Planning of Barrick ; and
Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick, each of whom is a “Qualified Person”
as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
CAUTIONARY STATEMENT REGARDING IMPAIRMENT CHARGE
Barrick cautions that, whether or not expressly stated, all figures contained in this press release
including the impairment charge are preliminary and r eflect our expectations as of the date of this
press release. The actual reported impairment charge described in this press release is subject to
management’s final review as well as audit by the Company’s independent accounting firm and may
vary significantly from the Company ’s expectations because of a number of factors, including,
without limitation, additional or revised information and changes in accounting standards or policies
or in how those standards are applied. Barrick will provide addi tional discussion and analysis and
BARRICK GOLD CORPORATION PRESS RELEASE
other important information about the impairment charge when it reports actual results on February
14, 2018.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release constitutes “forward-looking statements ”. All
statements, other than statements of historical fact, are forward -looking statements. The words
“expect”, “plan”, “will”, “would”, “intention”, “potential” and similar expressions identify forward-
looking statements. In particular, this press release contains forward -looking statements including,
without limitation, with respect to the timing and results of the prefeasibility study at Pascua-Lama.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that,
while considered reasonable by the Company as at the date of this press release in light of
management’s experience and perception of current conditions an d expected developments, are
inherently subject to significant business, economic and competitive uncertainties and contingencies.
Known and unknown factors could cause actual results to differ materially from those projected in
the forward-looking statements and undue reliance should not be placed on such statements and
information. Such factors include, but are not limited to: fluctuations in the spot and forward price
of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity);
the speculative nature of mineral exploration and development; changes in mineral production
performance, exploitation and exploration successes; diminishing quantities or grades of reserves;
increased costs, delays, suspensions and techn ical challenges associated with the construction of
capital projects; operating or technical difficulties in connection with mining or development
activities, including geotechnical challenges and disruptions in the maintenance or provision of
required infrastructure and information technology systems; failure to comply with environmental
and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary
permits and approvals; uncertainty whether the Pascua-Lama project will meet the Company’s capital
allocation objectives and internal hurdle rate; changes in national and local government legislation,
taxation, controls or regulations and/or changes in the administration of laws, policies and practices,
expropriation or nationalization of property and political or economic developments in Chile,
Argentina and other jurisdictions in which the Company or its affiliates do or may carry on business
in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that
are inconsistent with the rule of law; the outcome of the appeal of the decision of Chile ’s
Superintendencia del Medio Ambiente; damage to the Company ’s reputation due to the actual or
perceived occurrence of any number of events, including negative publicity with respect to the
Company's handling of environmental matters or dealings with community groups, whether true or
not; the possibility that future exploration results will not be consistent with the Company ’s
expectations; risks that exploration data may be incomplete and considerable additional work may
be required to complete further evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil
disturbances; litigation; contests over title to properties, particularly title to undeveloped properties,
or over access to water, power and other required infrastructure; business opportunities that may be
presented to, or pursued by, the Company; and risks associated with the fact that ce rtain of the
initiatives described in this press release are still in the early stages and may not materialize. In
BARRICK GOLD CORPORATION PRESS RELEASE
addition, there are risks and hazards associated with the business of mineral exploration,
development and mining, including environmental ha zards, industrial accidents, unusual or
unexpected formations, pressures, cave -ins, flooding and gold bullion, copper cathode or gold or
copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to
cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual
results to differ materially from those expressed or implied in any forward -looking statements made
by, or on behalf of, us. Readers are cautioned that f orward-looking statements are not guarantees
of future performance. All of the forward-looking statements made in this press release are qualified
by these cautionary statements. Specific reference is made to the most recent Form 40 -F/Annual
Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a
more detailed discussion of some of the factors underlying forward-looking statements and the risks
that may affect Barrick's ability to achieve the expectations set fo rth in the forward -looking
statements contained in this press release.
We disclaim any intention or obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise, except as required by applicable law.