WRITTEN BY DON CAMPBELL

El Dorado has been debunked as a myth. A legend fuelled by the Spanish’s hunger and lust for gold, and although the City of Gold has never been found the hundreds of explorers who have gone in search of this mystic place should have just spent some time digging beneath the surface.

THE REAL El Dorado

En español click aquí

“Within the South America’s Barrick Gold includes

the Pierina and Lagunas Norte gold mines in

Peru; the Veladero gold mine in Argentina; the

Cerro Casale project in Chile,” Luis tells us.

South America has an area of 17,840,000 square kilometres and

with a population of well over 371,090,000, most of whom live near

the western or eastern coasts of the continent while the interior

and the far south is sparsely populated. The geography of western

South America is dominated by the Andes, which is the longest range

of mountains in the world. It is vibrant and lush land, famous for the

Amazon basin and those of Paraná and Orinoco and most of it lies in

the tropics.

“As diverse as the country’s landscape it boasts a wide cultural,

ethnical and racial diversity,” Luis tells us, “People here originate from

South America as well as Europe, Africa and Asia.”

About Barrick South AmericaBarrick Gold Corporation is the largest gold mining company

in the world, headquartered in Toronto, Ontario, Canada with four

regional business units located in Australia, Africa, North America and

South America giving it a complete global footprint. As well as South

America, Barrick is currently undertaking mining and exploration

projects in Papua New Guinea, the United States, Canada, Dominican

Republic, Australia, Peru, Chile, Russia, South Africa, Colombia,

Argentina and Tanzania.

“Since, January 20, 2006, when Barrick acquired a majority

share of Placer Dome, we have enjoyed the position as the larger

gold producer in the world,” Luis tells us, “In 2012, South America

produced 1.63 million ounces of gold at total cash costs of $467 per

ounce and in 2013, gold production is expected to be in the range of

1.25-1.35 million ounces at all-in sustaining costs of $875-$925 per

ounce and total cash costs of $550-$600 per ounce.”

Lagunas Norte PeruLocated on the Alto Chicama property in north-central Peru,

140 kilometres east of the coastal city of Trujillo, and 175 kilometres

north of Barrick’s Pierina mine. Lagnuas Norte, lies on the western

flank of the Peruvian Andes and is at an elevation of 4,000 to 4,260

“Since January 20, 2006, when Barrick acquired a majority share of Placer Dome, we have enjoyed the position as the larger gold producer in the world.”

BARRICK SOUTH AMERICA

For a million years ago the continent of South America saw fit to bestow the land with the 7000 kilometre crest of the Andes Mountains, the creation of which caused the creation of a range of precious metals that have proved more valuable than the city of El Dorado could ever have claimed. We spoke with commercial director Luis Pino regarding this legend of the industry.

HAUG S.A.Av. Argentina 2060, Callao –PeruTel: (511) 6134545comercial@haug.com.pewww.haug.com.pe

HAUG CHILE INTERNACIONAL LTDAAv. Once de Septiembre 1881, Office 702, Providencia, Santiago de Chile - ChileTel.: (562)-22337567comercial@haug.cl

FACTORIA METALICA HAUG. S.A. SUC. ARGENTINAReconquista 1034 1st Floor, Buenos Aires- ArgentinaTel.:(5411) 60917300comercial@haug.com.ar

HAUG S.A. congratulates Barrick Gold South America for reaching this crucial milestone and wishes the best of luck in their future endeavour.

Pierina mine.”

In 2006, Lagunas Norte won first prize awarded by the Mining

Safety Institute (ISEM) in the category Open Pit Operations, this

recognition became a milestone in the sector as it was the first time in

the history of Peruvian mining a mine in its first year of operation had

ever achieved this award.

Environment At Lagunas NorteOn the environmental side, Lagunas Norte has the ISO 14001

Environmental Management System, awarded by the international

certification body Bureau Veritas and this recognition is part of

Barrick’s vision and values to maintain the highest standards of care

and preservation of the environment, this commitment throughout

the process operation.

Also, as part of good environmental practices Barrick, Lagunas

Norte has a ranch ecological project that demonstrates the viability

of a harmonious coexistence between farming and mining. At the

ranch the bred species include alpacas, cows, and other small animals

in order to improve and rehabilitate highly productive high-puna

conditions.

As far as productivity of the mine is concerned, in 2012, Lagunas

Norte produced 754,000 ounces

of gold at total cash costs of

$318 per ounce. Lagunas Norte

is expected to produce 0.56-0.60

million ounces of gold in 2013 at

total cash costs of $380-$420

per ounce. Proven and probable

gold reserves as of December 31,

2012, were 5.8 million ounces.

The Pierina Mine In Andean Cordillera

The Pierina mine is located

in the Andean Cordillera in the

Department of Ancash (Ancash

– ‘blue’ in the local Quechua

language) in north-central Peru,

approximately 10 kilometres

northwest of the city of Huaraz,

at an altitude of approximately

4,100 metres. Featuring an open-

BARRICK SOUTH AMERICA

meters above sea level. It’s an

open-pit, crush, valley-fill heap

leach operation.

“The mineralization is

disseminated and hosted in

volcanic and sedimentary rocks,”

Luis explains, “the deposit

is exposed at surface and is

currently defined over a strike

length of 1,600 metres oriented

in a northwest/southeast

direction and a width of 750

metres.

“Generally, the mineralization

is flat-lying and extends up to 300

metres in depth, disseminated

and hosted in volcanic and

sedimentary breccias and

tuffs. The deposit is of the high

sulfidation type and is similar

in style to the mineralization at

pit, truck-and-loader operation where ore is crushed and transported

through an overland conveyor to the leach pad area whereas run-of-

mine ore is trucked directly to a classic valley-fill type of leach pad.

“In 2011, Pierina produced 152,000 ounces of gold at a total cash

cost of $825 per ounce,” Luis explains, “Proven and probable mineral

reserves as of December 31, 2011 were estimated at 771,000 ounces

of gold and 23.2 million ounces of silver.”

As a result of rising gold prices, and based on mineral reserves

Pierina’s mine life has been extended to the end of 2016.

The Pierina Belt contains structurally controlled gold, silver, lead,

zinc and copper mineralization in the Calipuy volcanics. A 70 km long

belt of hydrothermal alteration is associated with the known deposits

which are underlain by basal andesitic lavas and overlying rhyodacitic

pumice and lithic tuffs.

Gold mineralization is associated with vuggy silica alteration

and is dominantly hosted in the rhyodacitic pumice tuff with lesser

amounts in the overlying lithic tuff and the underlying andesite. The

silica altered zone is flanked by quartz-alunite and argillic alteration.

Ore-grade mineralization in the pumice tuff occurs over intervals

of more than 260 m. The area of currently known mineralization

measures approximately 450 m wide by 1,200 m long and is open to

+54 11 5941 4444 | Gonçalves Dias 1145 [C1276ACQ] Buenos Aires | info@sullair.com.ar www.sullairargentina.com @SullairArg Sullair Argentina S.A. sullairargentina

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the southeast. Significant silver mineralization is present. The highest

grades of silver (to 300 g/t) are located in the north end of the deposit

where over 95% of the mineralization is oxide.

“The leach process is a classic valley fill method. The ore is stacked

in a lined containment area behind a retention dam,” Luis diligently

explains, “Cyanide is sprinkled on top of the low grade ore and the

resulting pregnant (gold bearing) solution is then redirected to a gold

recovery circuit.”

Investment In Local CommunityBarrick’s investment in local communities is already making a

difference and the Pierina mine has had a profoundly positive impact

on local communities where poverty has declined significantly since

the mine opened and literacy rates are on the rise. Over 90% of

Pierina’s employees and contractors are Peruvians and they live in

the nearby communities who feel the positive effects of the company.

“Barrick is also involved with the A Roof for My Country,” Luis

describes, “An international non-governmental organization (NGO)

whose volunteers build transitional homes side by side with the

families who will live in them.”

In all, 335 homes will be built in 11 different communities around

Barrick’s Pierina mine during the

three-year program and 135 of

which will be directly funded by

the company.

Additionally, as the region

surrounding the mine suffers

from deforestation Pierina

mine holds a greenhouse that

produces and holds 300,000

trees and plants per year. Thanks

to this, Barrick has already

planted more than 1.2 million

trees in the mine area.

“In 2012, Pierina produced

110,000 ounces of gold at total

cash costs of $1,156 per ounce.

Proven and probable mineral

reserves as of December 31,

2012, were 542,000 ounces of

gold.”- Luis Pino.

The Veladero Mine, San Juan Province, Argentina

Utilising the same mining

and processing techniques as its

sister mine Pierina, Veladero is a

conventional open-pit operation

where ore is crushed by a two-

stage process and transported

via overland conveyor and trucks

to the leach pad area.

“One of our gems, in 2009,

Veladero produced 611k oz. of

gold at total cash costs of $438

per ounce,” Luis tells us, “Probable

mineral reserves as of December

31, 2009 are estimated at 12.0

million ounces of gold.”

Located in the San Juan

SEMISA S.AEMPRESA MAYO S.R.L U.T.E

(transitory united of companies)and 21collaborative companies

ARGENTINIAN MINE SERVICES COMPANY

SEMISA S.A –EMPRESA MAYO S.R.L U.T.EGRAL. MOSCONI S/N ENTRE CALLE 5 Y

PROGRESO-RAWSON -SAN JUAN-ARGENTINAempresamayosrl@speedy.com.ar

www.semisa.com.ar

We are the region leader mine services company, specialized in people transportation.

Working in synergy with our clients we plan strategies trying to improve every day and in the way to give immediate solutions to all their problems, always focus on quality management, security and environment cares.

EMPRESA MAYO S.R.indd 1 13/08/2013 17:09

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BARRICK SOUTH AMERICA

Province of Argentina, immediately to the south of the Pascua-Lama

property in the highly prospective Frontera District and elevated

at about 4500 metres above sea level, the property is located at

elevations of 4,000 and 4,850 metres above sea level, approximately

374 kilometres northwest of the city of San Juan.

Volcanics host epithermal mineralization and Veladero contains

at least 8 alteration areas with an aggregate 14 sq. km area. The

property contains several large bulk-tonnage deposits of gold-

silver mineralization in altered, silicified volcanic rock, dominantly

various types of silicified breccia and the oxidized zone extends to

considerable depth.

Veladero is a conventional open-pit operation and 2006 is the

mine’s first full year of production. There are two open pits, a truck

shop, primary and secondary crushers located next to Filo Federico

open pit, covered ore stockpile, secondary crusher and load out bin,

where trucks collect crushed ore to haul to the valley-fill leach facility.

“Veladero mine plan calls for mining 80 million tons per year of

ore and rocks,” Luis tells us, “Of that, 12.6 million tons of ore will be

crushed and sent to the valley-fill leach pads; and 3.5 million tons of

ore will be sent for additional processing, depending on the grade.”

“In 2011, Pierina produced 152,000 ounces of gold at a total cash cost of $825 per ounce.”

Environment And CommunityUsing the company’s experience at Pierina, Veladero are

providing emergency services training, health programs, an expansion

to the Rodeo hospital, and programs that promote mining industry

awareness.

“Things like internet access to local communities make a huge

difference,” Luis tells us, “The service has been installed in the towns

of Las Flores, Rodeo, and Jachal, where it is available at public libraries

and community centres.”

Safe transport, storage and handling of chemicals is a priority at

Veladero where spill prevention measures, such as double-walled

tanks and lined or bermed containment cells, minimize the risk of an

accidental release of petroleum products or other chemical solutions

impacting the environment or leaving the mine site.

Staffing And Community Barrick Gold South America

One of the key reasons we are so keen to highlight Barrick Gold

South America is to highlight the focus placed on their staff and the

local communities. The with such high yields coming from the land

Barrick Gold have responded with an ardent focus on improving

and developing the lives of

their staff and the surrounding

communities.

“We take this very seriously,”

Luis states, ““In 2005, we were

one of the first to sign the

UN Global Compact (UNGC)

which is an initiative that

directly involves the business

community in tackling some of

the most pressing social and

environmental challenges of our

time,”

The principles behind the

Global Compact are based

on internationally recognized

norms and conventions covering

human rights, including labour

standards, the environment and

anti-corruption.

Taking its responsibility

as a major employer very

seriously, Barrick Gold has

created thousands of jobs while

at the same time mitigating

its environmental impact and

working to develop the economy

of the region. With projects

of this scale there is always a

positive ripple effect when it

comes to employment. To a ratio

of 1:3, for every one person who

is directly employed an additional

3 are indirectly employed which

allows for some understanding of

the positive impact this company

provides.

“Barrick Gold South

America is all about people and

community,” Luis tells us, “They

are the pillars holding us up.”

“Barrick Gold South America is all about people and community,” Luis tells us. “They are the pillars holding us up.”

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