Reuters Published: Thursday, May 07, 2009
Handout photoBarrick discovered the bi-national Pascua-Lama orebody when initial drilling in Chile led geologists through the Andean frontier east into Argentina.

TORONTO -- Canada's Barrick Gold said Thursday that its Pascua-Lama project is proceeding to construction, after Chile and Argentina reached a deal over tax issues.
Chilean tax authorities reached a deal late last month with their counterparts in Argentina over tax issues that have long delayed work on one of the world's largest gold projects.
Pascua-Lama, one of the world's last known mega-gold finds, is located about 5,500 metres above sea level and holds an estimated 17.8 million ounces of gold. It is also one of the world's largest silver deposits.

Pascua-Lama's pre-production construction estimate is US$2.8-billion to US$3.0-billion, with expected average annual production of about 750,000 to 800,000 ounces of gold and 35 million ounces of silver in the first full five years, Barrick said in a statement.
The world's largest gold producer expects the mine to be commissioned in 2012 and production to begin in 2013.
Chile and Argentina had agreed to tax profits on the gold and silver from Pascua-Lama depending on what side of the border it comes from.