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P E R UP E R U
Investments of Barrick in PerúToronto, March 2006
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TABLE OF CONTENTS
Barrick in Peru
Pierina Mine
Lagunas Norte Mine
Environmental Protection and Community Programs
Conclusions
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BARRICK IN PERU
1993-1994 Barrick becomes active in Peru; Minera Barrick Misquichilca S.A. was constituted as a company 1996 - Acquired Arequipa Resources, owner of the Pierina exploration project advances 1997 - The EIA for Pierina was approved Operations began in 1998 2001 - MBM was awarded the bid regarding the Alto Chicama Concession 2004 - The EIA for Alto Chicama Lagunas Norte was approved Q-2 2005 Production began at Lagunas Norte.
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LIMA
Trujillo
Pacific Ocean
Cajamarca
Arequipa
Huamachuco
HuarazPierina
Alto Chicama
Barrick in Peru
areaenlarged
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PIERINA MINE
Located in the Ancash Region
Open-pit mine Average remaining grade
1.00 grams per tonne Production to date:
Crushing capacity: 42,000 tonnes per day
Total tonnes per day: 140,000
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LAGUNAS NORTE
Located in the La Libertad Region
Open-pit mine Average grade 1.25 grams
per tonne Production to date:
Crushing capacity: 63,000 tonnes per day
Total tonnes per day: 100,000
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BARRICKS CONTRIBUTION TO THE REGION AND THE COUNTRY
Gold is the countrys N° 1 export Peru is now the largest producer in South America
and ranks 5th in the world thanks in part to Barrick´s Pierina and Lagunas Norte mines
The company has paid over $220 million in various taxes
Capital asset investments: $280 million to build Pierina, $340 million to build Lagunas Norte, and further sustaining capital
Approximately $38 million in taxes will be returned to the regions based on the 2005 results
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PIERINA MINE
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PIERINA MINEP E R UP E R U
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PIERINA MINEP E R UP E R U
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PIERINA MINEP E R UP E R U
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PIERINA LEACH PAD
Environmental Panel
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PIERINA PONDS
Sediment PondCollection Pond
Polishing Pond
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PIERINA COLLECTION POND
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PIERINA POLISHING POND
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LAGUNAS NORTE / ALTO CHICAMA
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Lagunas Norte ProjectLagunas Norte ProjectAlto Chicama DistrictAlto Chicama District
Located in the District of Quiruvilca, in Santiago de Chuco,La Libertad province
Barrick has been exploring it since 2001 It was awarded the public bid in January 2001 It belonged to Centromin Peru Similar in size and cash cost structure to Pierina Capital investment: $340 million Life of Mine: At least 10 years Reserves calculated at 8.3 million ounces of gold The Lagunas Norte-Alto Chicama process is similar
to the one in Pierina
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LAGUNAS NORTE-ALTO CHICAMA
LAGUNAS NORTE-ALTO CHICAMA
#³
#³
Trujillo
Huamachuco
Alto Chicama
Lagunas Norte
Otuzco
Palla
Trujillo
Casca
Julcan
Cajabamba
Sanchez Carrión
Santiago de Chuco
Ascope
Viru
0 10 20 Kilometers
N
Located in La Located in La Libertad, between Libertad, between the provinces of the provinces of OtuzcoOtuzco and Santiago and Santiago de de ChucoChuco, 4,100 , 4,100 meters above sea meters above sea levellevel
The camp is located in The camp is located in QuiruvilcaQuiruvilca, at km. 132 , at km. 132 of the Trujillo of the Trujillo HuamachucoHuamachuco roadroad
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LAGUNAS NORTEP E R UP E R U
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LAGUNAS NORTEPANORAMIC VIEWP E R UP E R U
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LAGUNAS NORTE - OPERATIONS
PRIMARY CRUSHER SECONDARY CRUSHER
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LAGUNAS NORTE OPERATIONSCONVEYOR BELT
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LAGUNAS NORTE OPERATIONSLEACH PAD PHASE 0
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LAGUNAS NORTE OPERATIONSLEACH PAD PHASE 1
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LAGUNAS NORTE OPERATIONSPROCESS PLANT
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LAGUNAS NORTE OPERATIONSSMELTING
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ENVIRONMENTALPROTECTION AND
COMMUNITY PROGRAMS
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PIERINA ENVIRONMENTAL PROTECTION / PRACTICESP E R UP E R U
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Erosion Control
PIERINA ENVIRONMENTPIERINA ENVIRONMENTDRAINAGE IMPROVEMENT FOR DRAINAGE IMPROVEMENT FOR
EROSION CONTROLEROSION CONTROLP E R UP E R U
13.84 Km of erosion control structures (stone masonry and gabions)
23 Km of erosion control structures in ravines (sedimentation ponds, stone masonry and gabions, etc.)
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PIERINA CONCURRENT RECLAMATION
1. Earth movement
2. Reshaping of slopes
3. Soil Compacting
4. Top soil covering5. Replanted area
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PIERINA - ENVIRONMENTAL PROTECTION
Wastedumprecovery
Remediation
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PIERINA SOCIAL INVESTMENT
Housing and School
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Houses at Mataquita
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PIERINA SOCIAL INVESTMENT
Irrigation
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Pastures
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PIERINA SOCIAL INVESTMENTCATTLE RAISING
Agriculture
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PIERINA SOCIAL INVESTMENT
Agriculture
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LAGUNAS NORTE ENVIRONMENTEROSION CONTROL
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LAGUNAS NORTE ENVIRONMENTAL PROTECTION
747 sedimentation dikes with gabions and stone masonry and 27.7 km of silk fences
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LAGUNAS NORTE ENVIRONMENTAL PROTECTION
Sediment flows are controlled in the areas below the mine
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Reclamation Areas
Sediment containment terraces below the slopes
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LAGUNAS NORTE ENVIRONMENTAL
PROTECTION
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LAGUNAS NORTE LAGUNAS NORTE ENVIRONMENTALENVIRONMENTALCHUYUGUAL TREE NURSERYCHUYUGUAL TREE NURSERY
Local workers build Local workers build the terraces to plant the terraces to plant quenualesquenuales and pines and pines
seedlingsseedlings
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Capacity for 200,000 trees per year
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Top soil StockpileTop soil Stockpile
LAGUNAS NORTE ENVIRONMENTLAGUNAS NORTE ENVIRONMENTTOP SOIL STRIPPING AND TRANSFER TOP SOIL STRIPPING AND TRANSFER
CONTROLCONTROL
Top soil accumulations before Top soil accumulations before its final transfer to stockpiles.its final transfer to stockpiles.
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BUILDING TERRACES
LAGUNAS NORTE ENVIRONMENTCOMMUNITY NURSERY AT LOS LOROS
SEEDLINGS
40 COMMUNITY MEMBERS BENEFIT FROM THIS PROJECTPROGRAMMED GOAL: 30.000 FOREST PLANTS
24 HECTARES WILL BE PLANTED AS ARESULT OF THIS PROJECT
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LAGUNAS NORTE - ENVIRONMENTTREE NURSERIES
QuenualesQuenuales and pines seedlingsand pines seedlings
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LAGUNAS NORTE ENVIRONMENTWATER MONITORING WITH COMMUNITY
REPRESENTATIVES
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LAGUNAS NORTE ENVIRONMENT
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LAGUNAS NORTE SOCIAL INVESTMENT
IMPROVEMENT OF THE PONCE ROAD ( 8,5 KM )EL SAUCO COMMUNITY
65 Families will benefit from this work
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Participative Meeting with community
Meeting with authorities to verify route
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IRRIGATIONIRRIGATION
GRAZINGGRAZINGPASTURE CUTTINGPASTURE CUTTING
PREPARING THE LANDPREPARING THE LAND
LAGUNAS NORTE SOCIAL INVESTMENT
MODEL FARM AT EL SAUCO
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LAGUNAS NORTE SOCIAL INVESTMENTWHEAT SOWING
PREPARING THE GROUND
READY FOR HARVESTINGMATURING PROCESS
SOWING THE WHEAT
10 FAMILIES WILL DIRECTLY BENEFIT FROM THIS PROJECT
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3 CLASSROOMS WERE BUILT AT SANAGORAN
AFTER
BEFORE
80 STUDENTS WILL BENEFIT FROM THIS PROJECT
LAGUNAS NORTE SOCIAL INVESTMENT
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HEALTH CAMPAIGNS
LAGUNAS NORTE SOCIAL INVESTMENT
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TEXTILES AND LOOMS
COMMUNITY MEETING
CHUYUGUAL WOMEN
SHOWING THEIR WEAVING SKILLS
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LAGUNAS NORTE SOCIAL INVESTMENT
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LAGUNAS NORTE SOCIAL INVESTMENTIMPROVEMENT OF THE POTABLE WATER SYSTEM
PAMPA VERDE
COVERING THE MAIN PIPELINEVERIFICATION OF DELIVERY
OF THE POTABLE WATER
STUDENTS, TEACHERSAND MBM TECHNICIANS
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LAGUNAS NORTE SOCIAL INVESTMENTFARM TRAINING PROGRAM
EXPERIMENTAL FARMINGPilot Program GUINEA PIG FARMS
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LAGUNAS NORTE SOCIAL INVESTMENTCAREER ORIENTATION FAIR - HUAMACHUCO
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CONCLUSIONS
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Barrick has been in Peru for 14 years We have has successfully participated in privatization
processes We have been able to obtain two tax stability
agreements one for each property. Both tax stability agreements have been respected in full
On-going operations since 1998 Second operation started in Q-2 2005 We have invested an average of $6 million in exploration
during the last 6 years Our investment to date in the country: $700 million
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COUNTRY ADVANTAGES
Great mining potential Good macro economic standing Country has long mining tradition, thus has
qualified workers Exports have duplicated in one year Transparent, comprehensive and balanced
permitting process Favorable balance of payment Legal and fiscal transparency and stability
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P E R UP E R U
Investments of Barrick in PerúToronto, March 2006