##### 



Exhibit 1 BARRICK GOLD CORPORATION BCE Place
Canada Trust Tower, Suite 3700
P.O. Box 212
Toronto, Ontario
M5J 2S1 ANNUAL INFORMATION FORM For the year ended December 31, 2004 Dated as of March 30, 2005




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##### 



BARRICK GOLD CORPORATION
ANNUAL INFORMATION FORM TABLE OF CONTENTS GLOSSARY OF TERMS
    
    
    3REPORTING CURRENCY AND FINANCIAL INFORMATION
    
    
    8DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION
    
    
    8SCIENTIFIC AND TECHNICAL INFORMATION
    
    
    9GENERAL INFORMATION
    
    
    9Incorporation
    
    
    9Subsidiaries
    
    
    9Areas of Interest
    
    
    10General Development of the Business
    
    
    10NARRATIVE DESCRIPTION OF THE BUSINESS
    
    
    15Gold Mineral Reserves and Mineral Resources
    
    
    15Reconciliation of Mineral Reserves(7)
    
    
    19Uses of Gold
    
    
    21Sales and Refining
    
    
    21Employees  Labour Relations
    
    
    22Competition
    
    
    22PRINCIPAL REGIONS
    
    
    23North America
    
    
    24Goldstrike Property
    
    
    24Round Mountain Mine
    
    
    30Eskay Creek Mine
    
    
    34Hemlo Property
    
    
    37East Archimedes Project
    
    
    39Australia/Africa
    
    
    39Kalgoorlie Mine
    
    
    40Yilgarn District
    
    
    43Plutonic Mine
    
    
    43Darlot Mine
    
    
    44Lawlers Mine
    
    
    45Cowal Project
    
    
    46Bulyanhulu Mine
    
    
    48Tulawaka Mine
    
    
    52South America
    
    
    53Pierina Mine
    
    
    53Lagunas Norte Project
    
    
    57
 i




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Veladero Project
    
    
    60Pascua-Lama Project
    
    
    64EXPLORATION, DEVELOPMENT AND BUSINESS DEVELOPMENT
    
    
    66ENVIRONMENT AND CLOSURE
    
    
    67FINANCIAL RISK-MANAGEMENT
    
    
    68LEGAL MATTERS
    
    
    72Government Controls and Regulations
    
    
    72Litigation
    
    
    72RISK FACTORS
    
    
    74MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    81CONSOLIDATED FINANCIAL STATEMENTS
    
    
    81CAPITAL STRUCTURE
    
    
    81RATINGS
    
    
    84MARKET FOR SECURITIES
    
    
    86MATERIAL CONTRACTS
    
    
    86TRANSFER AGENTS AND REGISTRARS
    
    
    86DIVIDEND POLICY
    
    
    86DIRECTORS AND OFFICERS OF THE COMPANY
    
    
    87NON-GAAP PERFORMANCE MEASURES
    
    
    91ADDITIONAL INFORMATION
    
    
    94
 -ii-




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GLOSSARY OF TERMS Assay Analysis to determine the amount or proportion of the element of interest contained within a
sample. Autoclave system Oxidation process in which high temperatures and pressures are applied within a pressurized
closed vessel to convert refractory sulphide mineralization into amenable oxide ore. Ball mill A horizontal rotating steel cylinder which grinds ore to fine particles. The grinding is
carried out by the pounding and rolling of a charge of steel balls carried within the cylinder. Bench The horizontal ledge in an excavation or mining operation that is drilled, blasted and
excavated separately from other benches. By-product A secondary metal or mineral product that is recovered along with the primary metal or mineral
product during the ore concentration process. Carbonaceous Containing carbon or coal, especially shale or other rock containing small particles of carbon
distributed throughout the mass. Carbon-in-leach (C-I-L) A process step wherein granular activated carbon particles much larger than the ground ore
particles are introduced into the ore pulp. Cyanide leaching and precious metals adsorption onto
the activated carbon occurs simultaneously. The loaded activated carbon is mechanically screened to
separate it from the barren pulp, processed to remove the precious metals and finally prepared for
reuse. Carbon-in-pulp (C-I-P) A precious metals leaching technique in which granular activated carbon particles much larger
than the ground ore particles are added to the cyanidation pulp after the precious metals have been
solubilized. The activated carbon and pulp are agitated together to enable the solubilized precious
metals to become adsorbed onto the activated carbon. The loaded activated carbon is mechanically
screened to separate it from the barren pulp, processed to remove the precious metals and finally
prepared for reuse. Concentrate A processing product containing the valuable ore mineral from which most of the waste mineral
has been eliminated. Contained ounces Represents total ounces in a mineral reserve before reduction to account for ounces not able
to be recovered by the applicable metallurgical process. Contango The positive difference between the spot market gold price and the forward market gold price.
It is often expressed as an interest rate quoted with reference to the difference between
inter-bank deposit rates and gold lease rates. -3-




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Crushing Breaking of ore from the size delivered from the mine into smaller and more uniform fragments
to be then fed to grinding mills or to a leach pad. Cyanidation A method of extracting gold or silver by dissolving it in a weak solution of sodium cyanide. Deferred stripping /capitalized mining costs Mining costs associated with waste rock removal that are deferred and amortized to operating
costs over the life of an open pit mine. Development Work carried out for the purpose of opening up a mineral deposit. In an underground mine, this
includes shaft sinking, crosscutting, drifting and raising. In an open pit mine, development
includes the removal of overburden and/ or waste rock. Dilution Sub-economic material that is unavoidably included with the mined ore, lowering the mined
grade. Doré Unrefined gold and silver bullion bars usually consisting of approximately 90 percent precious
metals that will be further refined to almost pure metal. Drift A horizontal tunnel generally driven within or alongside an ore body and aligned parallel to
the long dimension of the ore. Drilling Core:a drilling method that uses a rotating barrel and an annular-shaped, diamond-impregnated
rock-cutting bit to produce cylindrical rock cores and lift such cores to the surface, where they
may be collected, examined and assayed. Reverse circulation:a drilling method that uses a rotating cutting bit within a double-walled
drill pipe and produces rock chips rather than core. Air or water is circulated down to the bit
between the inner and outer wall of the drill pipe. The chips are forced to surface through the
centre of the drill pipe and are collected, examined and assayed. Conventional rotary:a drilling method that produces rock chips similar to reverse
circulation except that the sample is collected using a single-walled drill pipe. Air or water
circulates down through the center of the drill pipe and returns chips to the surface around the
outside of the pipe. In-fill:The collection of additional samples between existing samples, used to provide
greater geological detail and to provide more closely-spaced assay data. Geotechnical:diamond drilling targeted and utilized specifically for the collection of
information used for mine engineering, slope stability, and underground ground reinforcement
purposes. Exploration Prospecting, sampling, mapping, diamond-drilling and other work involved in locating the
presence of economic deposits and establishing their nature, shape and grade. Flotation A process by which some mineral particles are induced to become attached to bubbles and float,
and other particles to sink, so that the valuable minerals are concentrated and separated from the
uneconomic gangue or waste. -4-




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Grade The amount of metal in each ton of ore, expressed as troy ounces per ton or grams per tonne
for precious metals and as a percentage for most other metals. Cut-off grade:the minimum metal grade at which material can be economically mined and
processed (used in the calculation of ore reserves). Mill-head grade:metal content of mined ore going into a mill for processing. Recovered grade:metal content that was extracted from ore by processing. Reserve grade:estimated metal content of an orebody that satisfies all economic, mining, and
other criteria to be considered a reserve. Grinding (Milling) Powdering
or pulverising of ore, by pressure or abrasion, to liberate valuable
minerals for further
metallurgical processing. Heap leaching A process whereby gold is extracted by heaping broken ore on sloping impermeable pads and
continually applying to the heaps a weak cyanide solution which dissolves the contained gold. The
gold-laden solution is then collected for gold recovery. Layback A single cut, in an open pit mine, consisting of a number of benches, mined in sequence to
expose a portion of the underlying orebody. LIBOR The London Inter-Bank Offered Rate for deposits. Lode A mineral deposit, consisting of a zone of veins, veinlets or disseminations, in consolidated
rock as opposed to a placer deposit. Long-hole open stoping A method of underground mining involving the drilling of holes up to 30 meters or longer into
an ore bearing zone and then blasting a slice of rock which falls into an open space. The broken
rock is extracted and the resulting open chamber may or may not be filled with supporting material. Metric conversion Troy ounces
    
    
    ×
    
    
    
    31.10348
    
    
    
    =
    
    
    GramsTroy ounces per
short ton
    
    
    ×
    
    
    
    34.28600
    
    
    
    =
    
    
    Grams per tonneTons
    
    
    ×
    
    
    
    0.90718
    
    
    
    =
    
    
    TonnesFeet
    
    
    ×
    
    
    
    0.30480
    
    
    
    =
    
    
    MetersMiles
    
    
    ×
    
    
    
    1.60930
    
    
    
    =
    
    
    KilometersAcres
    
    
    ×
    
    
    
    0.40468
    
    
    
    =
    
    
    HectaresFahrenheit
    
    
    
    
    
    
    (°F-32) × 5  ̧ 9
    
    
    
    =
    
    
    Celsius
 Mill A processing facility where ore is finely ground and thereafter undergoes physical or chemical
treatment to extract the valuable metals. Also the device used to perform grinding (milling). Mineral reserve See Narrative Description of the Business  Gold Mineral Reserves and Mineral Resources. -5-




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Mineral resource See Narrative Description of the Business  Gold Mineral Reserves and Mineral Resources. Mining claim That portion of applicable mineral lands that a party has staked or marked out in accordance
with applicable mining laws to acquire the right to explore for and exploit the minerals under the
surface. Net profits interest royalty A royalty based on the profit remaining after recapture of certain operating, capital and
other costs. Net smelter return royalty A royalty based on a percentage of valuable minerals produced with settlement made either in
kind or in currency based on the spot sale proceeds received less all of the offsite smelting,
refining and transportation costs associated with the purification of the economic metals. Open pit mine A mine where materials are removed entirely from a working that is open to the surface. Ore Rock, generally containing metallic or non-metallic minerals, which can be mined and processed
at a profit. Orebody A sufficiently large amount of ore that is contiguous and can be mined economically. Oxide ore Mineralized rock in which some of the original minerals have been oxidized. Oxidation tends
to make the ore more amenable to cyanide solutions so that minute particles of gold will be readily
dissolved. Qualified Person See Scientific and Technical Information. Ramp An inclined roadway connecting two levels in an open pit or underground mine. Reclamation The process by which lands disturbed as a result of mining activity are modified to support
beneficial land use.Reclamation activity may include the removal of buildings, equipment,
machinery and other physical remnants of mining, closure of tailings storage facilities, leach pads
and other mine features, and contouring, covering and re-vegetation of waste rock and other
disturbed areas. Reclamation and Closure Costs The cost of reclamation plus other costs, including without limitation certain personnel
costs, insurance, property holding costs such as taxes, rental and claim fees, and community
programs associated with closing an operating mine. Recovery rate A term used in process metallurgy to indicate the proportion of valuable material physically
recovered in the processing of ore. It is generally stated as a percentage of the material
recovered compared to the total material originally present. Reef A South African term for a continuous mineral deposit, usually containing gold-bearing quartz. -6-




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Refining The final stage of metal production in which impurities are removed from the molten metal. Refractory material Mineralized material in which the metal is not amenable to recovery by conventional cyanide
methods without any pre-treatment. The refractory nature can be due to either silica or sulphide
encapsulation of the metal or the presence of naturally occurring carbons or other constituents
that reduce gold recovery. Roasting The treatment of sulphide ore by heat and air, or oxygen enriched air, in order to oxidize
sulphides and remove other elements (carbon, antimony or arsenic). Semi-autogenous grinding (SAG) A method of grinding rock into fine particles, in which the grinding media consist of steel
balls. Shaft A vertical passageway to an underground mine for ventilation, moving personnel, equipment,
supplies and material including ore and waste rock. Stope An underground excavation from which ore is extracted. Strike length The distance measured along the longest horizontal dimension of an orebody or zone of
mineralization. Tailings The material that remains after all economically and technically recoverable precious metals
have been removed from the ore during processing. Tailings storage facility A natural or man-made confined area suitable for depositing the material that remains after
the treatment of ore. Tons Short tons (2,000 pounds). Total cash costs Total cash costs are calculated in accordance with The Gold Institute Production Cost Standard
and include site costs for all mining (excluding deferred stripping costs), processing and
administration, royalties, production taxes and revenue from the sale of by-products such as
silver, but are exclusive of amortization, reclamation, financing, capital and exploration costs.
See Non-GAAP Performance Measures. -7-




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REPORTING CURRENCY AND FINANCIAL INFORMATION All currency amounts in this Annual Information Form are expressed in United States dollars,
unless otherwise indicated. References to C$ are to Canadian dollars. References to A$ are to
Australian dollars. For Canadian dollars to U.S. dollars, the average exchange rate for 2004 and
the exchange rate at December 31, 2004 were one Canadian dollar per 0.7683 and 0.8308 U.S. dollars,
respectively. For Australian dollars to U.S. dollars, the average exchange rate for 2004 and the
exchange rate at December 31, 2004 were one Australian dollar per 0.7362 and 0.7790 U.S. dollars,
respectively. Total cash costs in this Annual Information Form are calculated in accordance with The Gold
Institute Production Cost Standard and are net of by-product credits. See Non-GAAP Performance
Measures. Barrick prepares its primary financial statements in accordance with the United States
generally accepted accounting principles (US GAAP). Accordingly, unless otherwise indicated,
financial information in this Annual Information Form is presented in accordance with US GAAP.
Ontario corporate law requires that Barrick also prepare financial statements in accordance with
Canadian generally accepted accounting principles (Canadian GAAP). The consolidated financial
statements of the Company for the year ended December 31, 2004 (the Consolidated Financial
Statements) were prepared in accordance with US GAAP and are incorporated by reference in this
Annual Information Form. DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION Certain information contained or incorporated by reference in this Annual Information Form,
including any information as to our future financial or operating performance, constitutes
forward-looking statements. All statements, other than statements of historical fact, are
forward-looking statements. The words believe, expect, anticipate, contemplate, target,
plan, intends, continue, budget, estimate, may, will, schedule and similar
expressions identify forward-looking statements. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered reasonable by us, 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. Such factors include, but are not limited to: fluctuations in the
currency markets (such as the Canadian and Australian dollars versus the U.S. dollar); fluctuations
in the spot and forward price of gold or certain other commodities (such as silver, copper, diesel
fuel and electricity); changes in U.S. dollar interest rates or gold lease rates that could impact
the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under
interest rate swaps and variable rate debt obligations; risks arising from holding derivative
instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in
national and local government legislation, taxation, controls, regulations and political or
economic developments in Canada, the United States, Australia, Chile, Peru, Argentina, Tanzania,
Russia or Barbados or other countries in which we do or may carry on business in the future;
business opportunities that may be presented to, or pursued by, us; our ability to successfully
integrate acquisitions; operating or technical difficulties in connection with mining or
development activities; the speculative nature of gold exploration and development, including the
risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves;
adverse changes in our credit rating; and contests over title to properties, particularly title to
undeveloped properties. In addition, there are risks and hazards associated with the business of
gold exploration, development and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion 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 forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in this Annual Information Form are
qualified by these cautionary statements. Specific reference is made to Narrative Description of
the Business  Gold Mineral Reserves and Mineral Resources and Risk Factors and to the
Managements Discussion and Analysis of Financial and Operating Results for the year ended
December 31, 2004 (US GAAP) incorporated by reference herein for a discussion of some of the
factors underlying forward-looking statements. -8-




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The Company may, from time to time, make oral forward-looking statements. The Company strongly
advises that the above paragraph and the risk factors described in this Annual Information Form and
in the Companys other documents filed with the Canadian securities commissions and the United
States Securities and Exchange Commission should be read for a description of certain factors that
could cause the actual results of the Company to materially differ from those in the oral
forward-looking statements. The Company disclaims any intention or obligation to update or revise
any oral or written forward-looking statements whether as a result of new information, future
events or otherwise. SCIENTIFIC AND TECHNICAL INFORMATION Scientific or technical information in this Annual Information Form relating to mineral
reserves or mineral resources is based on information prepared under the supervision of, or has
been reviewed by, René L. Marion, P.Eng., Vice President, Technical Services of Barrick. Scientific
or technical information in this Annual Information Form describing the geology of
particular properties and the exploration programs described in this Annual Information Form are
prepared and/or designed and carried out under the supervision of Alexander J. Davidson, P. Geo., Executive Vice
President, Exploration of Barrick. Each of Messrs. Marion and Davidson is a Qualified Person as defined in National Instrument
43-101. A Qualified Person means an individual who is an engineer or geoscientist with at least
five years of experience in mineral exploration, mine development or operation or mineral project
assessment, or any combination of these, has experience relevant to the subject matter of the
mineral project, and is a member in good standing of a professional association. GENERAL INFORMATION Incorporation Barrick Gold Corporation (Barrick or the Company) is a corporation governed by the
Business Corporations Act(Ontario) resulting from the amalgamation, effective July 14, 1984 under
the laws of the Province of Ontario, of Camflo Mines Limited, Bob-Clare Investments Limited and the
former Barrick Resources Corporation. By articles of amendment effective December 9, 1985, the
Company changed its name to American Barrick Resources Corporation. Effective January 1, 1995, as a
result of an amalgamation with a wholly-owned subsidiary, the Company changed its name from
American Barrick Resources Corporation to Barrick Gold Corporation. On December 7, 2001, in
connection with its acquisition of Homestake Mining Company (Homestake), the Company amended its
articles to create a special voting share, which has special voting rights designed to permit
holders of Barrick Gold Inc. (formerly Homestake Canada Inc.) (BGI) exchangeable shares to vote
as a single class with the holders of Barrick common shares. For a description of Barricks
acquisition of Homestake, see General Information  General Development of the Business.
Barricks head and registered office is located at BCE Place, Canada Trust Tower, 161 Bay Street,
Suite 3700, Toronto, Ontario, M5J 2S1. Subsidiaries A significant portion of Barricks business is carried on through subsidiaries. A chart
showing the names of the significant subsidiaries of Barrick as at March 30, 2005 and their
respective jurisdictions of incorporation is set out at the end of this General Information
section. All subsidiaries referred to in the chart are 100% owned unless otherwise noted. Unless
otherwise indicated or the context otherwise requires, references to Barrick or the Company in this
Annual Information Form include Barrick and, where appropriate, its predecessor corporations and
its subsidiaries. -9-




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Areas of Interest For a map showing Barricks mining operations and projects, see the end of this General
Information section. General Development of the Business Barrick entered the gold mining business in 1983 and is now one of the largest gold mining
companies in the world in terms of production and reserves. The Company has operating mines or
development projects in Canada, the United States, Australia, Peru, Chile, Argentina and Tanzania. During its first ten years, Barrick focused on acquiring and developing properties in North
America, notably the Companys flagship Goldstrike property on the Carlin Trend in Nevada. Barrick
has transformed Goldstrike from a small heap-leach operation to a property with 19.2 million ounces
of gold reserves and two producing mines  the Betze-Post (Goldstrike Open Pit) and Meikle
(Goldstrike Underground) mines. Goldstrike produced 1.94 million ounces of gold in 2004. Since
1994, Barrick has strategically expanded beyond its North American base to ensure growth in
reserves and production and now operates in South America, Africa and Australia. Barrick has employed a growth strategy that involves acquisitions, a district development
program and exploration. The acquisition strategy is illustrated by the acquisitions noted below.
The district development program involves focusing exploration on and around existing properties.
Through this program, the Company discovered and brought into production the Goldstrike Underground
mine and related mineral deposits on the Goldstrike property. Although the trend changed in 2003,
exploration spending across the industry, particularly among junior companies, had decreased
significantly. During this same period, Barrick increased its exploration activities and engaged in
early stage exploration in four major areas: Peru, Tanzania, Australia and Chile/Argentina. This
program resulted in the grassroots discovery of the Lagunas Norte deposit in the Alto Chicama
District in Peru in 2002. Barricks exploration program continues to focus both on areas around
our existing mines and early stage exploration activities in the United States, Canada, Peru,
Tanzania, Australia, Argentina, Chile, Russia and Central Asia. In 1994, Barrick acquired Lac Minerals Ltd., an international gold mining company with
operating mines in Canada, the United States and Chile. The acquisition gave Barrick a 40% interest
in the Veladero project and control of what is now known as the Pascua-Lama property, which now
hosts proven and probable reserves of 17.6 million ounces of gold and 643 million ounces of silver
contained within reported gold reserves. In 1996, Barrick acquired Arequipa Resources Ltd., an exploration company with mineral
properties in Peru, including the Pierina early stage exploration property. The property commenced
production in November 1998 and, since production began, has produced, in aggregate, over 5.1
million ounces of gold to December 31, 2004. In 1999, Barrick acquired Sutton Resources Ltd., an exploration company with mineral
properties in Tanzania, including the Bulyanhulu gold project and the Kabanga/Kagera nickel
concessions. At the time of acquisition, proven and probable gold reserves at Bulyanhulu were 3.6
million ounces. At year-end 2004, proven and probable gold reserves were 10.6 million ounces. Mine
construction began in the third quarter of 1999 and production commenced in April 2001. For the
year-ended December 31, 2004, the mine produced 349,865 ounces of gold at average total cash costs
of $283 per ounce. The Tulawaka property was obtained by Barrick through the acquisition of Pangea Goldfields
Inc. in June 2000. The Tulawaka mine commenced operations in March 2005. In December 2001, Barrick acquired Homestake whose operations included mining operations in
the United States, Canada, Australia and Chile, development projects in Argentina and Australia,
and exploration projects in the United States, Canada, Australia, Argentina and Chile. The assets
acquired included the Eskay Creek mine, the interests in the Kalgoorlie, Round Mountain and Hemlo
operations, the Plutonic, Lawlers and Darlot mines, the Cowal project, and the remaining 60 percent
interest in the Veladero project. -10-




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In late 2003, Barrick was reorganized, dividing its global operations into three regions:
North America, Australia/Africa and South America. Each region is supported with financial and
technical resources from the Companys corporate center. Generally, under this new structure, each
region has responsibility from development to closure in respect of each property in the region. In connection with Barricks plan to develop a business unit in Russia and Central Asia,
Barrick acquired a 10% equity interest in Highland Gold Mining Ltd. (Highland) in October 2003.
In January 2004, Barrick acquired an additional equity interest, bringing its total equity interest
to approximately 14% at December 31, 2004, in Highland and certain participation and other rights
with respect to properties in Russia. In January 2005, Barrick acquired a 9% equity interest in
Celtic Resources Holdings PLC (Celtic). In addition, Barrick acquired additional subscription
rights for shares in Celtic and certain rights with respect to a property in Russia and certain
participation rights with respect to properties in Kazakhstan. In May 2003, Barrick announced a plan to optimize its capital structure through the initiation
of a share buyback plan. In 2004, Barrick repurchased 4 million shares at a total cost of $95
million. Including shares purchased in 2003, Barrick repurchased a total of approximately 13
million shares at a total cost of $249 million. The share
buyback program expired in 2004 and, given the Companys capital
expenditure program, was
not renewed. On March 25, 2005, Barrick entered into a subscription agreement with Falconbridge Limited
(Falconbridge) in which Falconbridge agreed to purchase an indirect 50% interest in the Kabanga
nickel deposit and adjacent areas through the purchase of newly issued shares in a subsidiary of
Barrick for $15 million. Upon receipt of approval of the transaction by the Government of
Tanzania, Barrick and Falconbridge will, at closing, each control, indirectly, 50% of the equity of
Kabanga Nickel Company Limited and Kagera Mining Company Limited, subject to the terms of a
shareholders agreement. Falconbridge will be the operator of the joint venture. Initial funding
of activities up to a maximum of $145 million will be provided by Falconbridge, with a one time
right to withdraw from the joint venture after $50 million has been expended. All expenditures
will be made consistent with an approved work plan designed to complete a feasibility study on the
Kabanga nickel deposit over the next 36 months. During the past three fiscal years, production at Barricks existing mines has decreased and
average total cash costs per ounce have increased. In 2005, overall production is expected to
increase from 2004 as Barricks Lagunas Norte and Veladero mines commence operations in the second
half of 2005, but expected 2005 average total cash costs of $220-$230 per ounce are higher than
2004 average total cash costs of $212 per ounce. At December 31, 2004, proven and probable mineral reserves stood at 89.1 million ounces of
gold and mineral resources stood at 20.5 million ounces of measured and indicated gold and 13.9
million ounces of inferred gold. For a breakdown of reserves and resources by category, see
Narrative Description of the Business  Summary of Mineral Reserves and Mineral Resources. For
the year-ended December 31, 2004, Barrick produced 4.96 million ounces of gold. Gold production is
targeted at between 5.4 and 5.5 million ounces in 2005. The following table summarizes Barricks interest in its principal producing mines and its
share of gold production from these mines: 2004
    
    
    2003
    
    
    2002Mines
    
    Ownership(1)
    
    
    (ounces)
    
    
    (ounces)
    
    
    (ounces)North AmericaGoldstrike Property, NevadaGoldstrike Open Pit
    
    
    100
    %
    
    
    1,381,315
    
    
    
    1,559,461
    
    
    
    1,409,985
 -11-




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2004
    
    
    2003
    
    
    2002Mines
    
    Ownership(1)
    
    
    (ounces)
    
    
    (ounces)
    
    
    (ounces)Goldstrike Underground
    
    
    100
    %
    
    
    561,345
    
    
    
    551,664
    
    
    
    640,336Goldstrike Property total
    
    
    
    
    
    
    1,942,660
    
    
    
    2,111,125
    
    
    
    2,050,321Eskay Creek Mine, British Columbia
    
    
    100
    %
    
    
    289,568
    
    
    
    352,070
    
    
    
    358,718Round Mountain Mine, Nevada(3)
    
    
    50
    %
    
    
    381,484
    
    
    
    392,649
    
    
    
    377,747Hemlo Property, Ontario (3)
    
    
    50
    %
    
    
    247,440
    
    
    
    267,888
    
    
    
    269,057Marigold Mine, Nevada (3)
    
    
    33
    %
    
    
    47,101
    
    
    
    47,396
    
    
    
    27,422Holt-McDermott Mine, Ontario(2)
    
    
    100
    %
    
    
    54,578
    
    
    
    89,515
    
    
    
    83,5772,962,831
    
    
    
    3,260,643
    
    
    
    3,166,842South AmericaPierina Mine, Peru
    
    
    100
    %
    
    
    645,874
    
    
    
    911,723
    
    
    
    898,228Australia/AfricaPlutonic Mine, Western Australia
    
    
    100
    %
    
    
    304,468
    
    
    
    333,947
    
    
    
    307,377Darlot Mine, Western Australia
    
    
    100
    %
    
    
    140,235
    
    
    
    154,977
    
    
    
    145,443Lawlers Mine, Western Australia
    
    
    100
    %
    
    
    110,374
    
    
    
    99,223
    
    
    
    113,291Kalgoorlie Mine, Western Australia (3)
    
    
    50
    %
    
    
    444,242
    
    
    
    436,098
    
    
    
    360,025999,319
    
    
    
    1,024,245
    
    
    
    926,136Bulyanhulu Mine, Tanzania
    
    
    100
    %
    
    
    349,865
    
    
    
    313,551
    
    
    
    356,3191,349,184
    
    
    
    1,337,796
    
    
    
    1,282,455Other Mines(3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    347,352Company total
    
    
    
    
    
    
    4,957,889
    
    
    
    5,510,162
    
    
    
    5,694,877
   (1)Barricks interest is subject to royalty obligations at certain mines.(2)The Holt-McDermott mine was sold in October 2004.(3)Barricks proportional share. See Note 3 to the Consolidated Financial Statements and Managements Discussion and
Analysis for the year ended December 31, 2004 (the Managements Discussion and Analysis) for
further information on the Companys operating and geographic segments. -12-




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##### 



(FLOW CHART) -13-




---



##### 



(MAP) -14-




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##### 



NARRATIVE DESCRIPTION OF THE BUSINESS Gold Mineral Reserves and Mineral Resources At December 31, 2004, Barricks total proven and probable gold mineral reserves were 89.1
million ounces. During 2004, Barrick produced 4.96 million ounces of gold (5.5 million contained
ounces) and added approximately 8.6 million contained ounces to reserves for a net increase of
approximately 3.1 million contained ounces (see - Reconciliation of Mineral Reserves). The
addition to reserves of 8.6 million contained ounces is primarily attributable to Goldstrike Open
Pit, Lagunas Norte, Veladero, East Archimedes, Pascua-Lama, Round Mountain and Pierina. Except as
noted below, 2004 reserves have been calculated using an assumed gold price of $375 per ounce, a
silver price of $5.50 per ounce and an exchange rate of $1.45 C$/US$. 2004 reserves at the
Australian properties assumed a gold price of A$560 per ounce. Reserves at the Hemlo property
assumed a gold price of $350 per ounce and an exchange rate of $1.35 C$/US$. 2004 reserves at
Round Mountain are based on pit designs consistent with a gold price of $375 per ounce. Reserves
at the Marigold property assumed a gold price of $350 per ounce. Reserve calculations incorporate
current and/or expected mine plans and cost levels at each property. Cost estimates at each
Australian property assumed an exchange rate of $0.70 US$/A$. Reserves and resources have been calculated as at December 31, 2004 in accordance with
definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum and incorporated
into National Instrument 43-101 (see Definitions below). Calculations have been prepared by
employees of Barrick under the supervision of René L. Marion, P.Eng., Vice President, Technical
Services of Barrick. Such calculations incorporate then current and/or expected mine plans and cost
levels at each property. Varying cut-off grades have been used depending on the mine, methods of
extraction and type of ore contained in the reserves. Mineral resource metal grades and material
densities have been estimated using industry-standard methods appropriate for each mineral project
with support of various commercially available mining software packages. For the cut-off grades
used in the calculation of reserves, see   Notes to the Reserves, Resources and Reconciliation
Tables. Barricks normal data verification procedures have been employed in connection with the
calculations. Sampling, analytical and test data underlying the stated mineral resources and
reserves have been verified by Mr. Marion, employees under his supervision, and/or independent
Qualified Persons. Verification procedures include industry-standard quality control practices. For
details of data verification and quality control practices at each material property, see
Principal Regions. Barrick reports its reserves in accordance with National Instrument 43-101, as required by
Canadian securities regulatory authorities and for United States reporting purposes, Industry Guide
7 under the Securities Exchange Act of 1934, which (as interpreted by the Staff of the U.S.
Securities and Exchange Commission) applies different standards in order to classify mineralization
as a reserve. Although the Company has carefully prepared and verified the mineral reserve figures presented
below and elsewhere in this Annual Information Form, such figures are estimates, which are, in
part, based on forward-looking information, and no assurance can be given that the indicated level
of gold will be produced. Estimated reserves may have to be recalculated based on actual production
experience. Market price fluctuations of gold, silver and copper, as well as increased production
costs or reduced recovery rates, may render the present proven and probable reserves unprofitable
to develop at a particular site or sites for periods of time. See Risk Factors and Disclosure
Regarding Forward-Looking Information. Definitions A mineral resourceis a concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the Earths crust in such form and quantity and of such a grade or
quality that it has reasonable prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are known, estimated or interpreted
from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of
increasing geological confidence, into inferred, indicated and measured categories. -15-




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##### 



An inferred mineral resourceis that part of a mineral resource for which quantity and grade
or quality can be estimated on the basis of geological evidence, limited sampling and reasonably
assumed but not verified geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. An indicated mineral resourceis that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic parameters, to support
mine planning and evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably assumed. A measured mineral resourceis that part of a mineral resource for which quantity, grade or
quality, densities, shape, physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and economic
parameters, to support production planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration, sampling and testing information
gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough to confirm both geological and grade continuity. A mineral reserveis the economically mineable part of a measured or indicated mineral
resource demonstrated by at least a preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting that economic extraction can be justified. A mineral reserve
includes diluting materials and allowances for losses that may occur when the material is mined.
Mineral reserves are sub-divided in order of increasing confidence into probable mineral reserves
and proven mineral reserves. A probable mineral reserveis the economically mineable part of an indicated and, in some
circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility
study. This study must include adequate information on mining, processing, metallurgical, economic
and other relevant factors that demonstrate, at the time of reporting, that economic extraction can
be justified. A proven mineral reserveis the economically mineable part of a measured mineral resource
demonstrated by at least a preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can be justified. -16-




---



##### 



Gold
Mineral Reserves(1), (3), (4), (7), (10), (11)
(as at December 31, 2004) PROVEN
    
    
    
    
    PROBABLE
    
    
    
    
    TOTALTons
    
    
    Grade(8)
    
    

Ounces(9)
    
    
    Tons
    
    
    Grade(8)
    
    
    Ounces(9)
    
    
    Tons
    
    
    Grade(8)
    
    
    Ounces(9)Based on attributable ounces
    

(000s)
    
    
    (oz/ton)
    
    

(000s)
    
    

(000s)
    
    
    (oz/ton)
    
    

(000s)
    
    

(000s)
    
    
    (oz/ton)
    
    

(000s)North AmericaOperating MinesGoldstrike Open Pit
    
    
    66,943
    
    
    
    0.121
    
    
    
    8,077
    
    
    
    56,391
    
    
    
    0.144
    
    
    
    8,111
    
    
    
    123,334
    
    
    
    0.131
    
    
    
    16,188Goldstrike Underground
    
    
    2,871
    
    
    
    0.494
    
    
    
    1,419
    
    
    
    4,704
    
    
    
    0.330
    
    
    
    1,551
    
    
    
    7,575
    
    
    
    0.392
    
    
    
    2,970Goldstrike Property Total
    
    
    69,814
    
    
    
    0.136
    
    
    
    9,496
    
    
    
    61,095
    
    
    
    0.158
    
    
    
    9,662
    
    
    
    130,909
    
    
    
    0.146
    
    
    
    19,158Round Mountain (50%)
    
    
    50,123
    
    
    
    0.017
    
    
    
    831
    
    
    
    36,860
    
    
    
    0.019
    
    
    
    707
    
    
    
    86,983
    
    
    
    0.018
    
    
    
    1,538Hemlo (50%)
    
    
    8,611
    
    
    
    0.103
    
    
    
    885
    
    
    
    5,335
    
    
    
    0.070
    
    
    
    375
    
    
    
    13,946
    
    
    
    0.090
    
    
    
    1,260Eskay Creek
    
    
    233
    
    
    
    1.124
    
    
    
    262
    
    
    
    252
    
    
    
    0.996
    
    
    
    251
    
    
    
    485
    
    
    
    1.058
    
    
    
    513Marigold (33%)
    
    
    17,777
    
    
    
    0.024
    
    
    
    421
    
    
    
    14,467
    
    
    
    0.022
    
    
    
    323
    
    
    
    32,244
    
    
    
    0.023
    
    
    
    744ProjectEast Archimedes
    
    
    7,363
    
    
    
    0.061
    
    
    
    446
    
    
    
    9,730
    
    
    
    0.058
    
    
    
    565
    
    
    
    17,093
    
    
    
    0.059
    
    
    
    1,011South AmericaOperating MinesPierina
    
    
    26,234
    
    
    
    0.055
    
    
    
    1,446
    
    
    
    38,792
    
    
    
    0.027
    
    
    
    1,062
    
    
    
    65,026
    
    
    
    0.039
    
    
    
    2,508ProjectsLagunas Norte(7)
    
    
    4,644
    
    
    
    0.044
    
    
    
    206
    
    
    
    224,805
    
    
    
    0.040
    
    
    
    8,917
    
    
    
    229,449
    
    
    
    0.040
    
    
    
    9,123Veladero
    
    
    21,306
    
    
    
    0.038
    
    
    
    799
    
    
    
    375,211
    
    
    
    0.032
    
    
    
    12,050
    
    
    
    396,517
    
    
    
    0.032
    
    
    
    12,849Pascua-Lama
    
    
    35,124
    
    
    
    0.058
    
    
    
    2,035
    
    
    
    325,635
    
    
    
    0.048
    
    
    
    15,580
    
    
    
    360,759
    
    
    
    0.049
    
    
    
    17,615Australia/AfricaOperating MinesPlutonic
    
    
    358
    
    
    
    0.025
    
    
    
    9
    
    
    
    17,933
    
    
    
    0.140
    
    
    
    2,503
    
    
    
    18,291
    
    
    
    0.137
    
    
    
    2,512Lawlers
    
    
    1,082
    
    
    
    0.124
    
    
    
    134
    
    
    
    2,140
    
    
    
    0.127
    
    
    
    271
    
    
    
    3,222
    
    
    
    0.126
    
    
    
    405Darlot
    
    
    2,798
    
    
    
    0.120
    
    
    
    337
    
    
    
    4,344
    
    
    
    0.164
    
    
    
    711
    
    
    
    7,142
    
    
    
    0.147
    
    
    
    1,048Kalgoorlie (50%)
    
    
    48,079
    
    
    
    0.055
    
    
    
    2,621
    
    
    
    39,815
    
    
    
    0.064
    
    
    
    2,560
    
    
    
    87,894
    
    
    
    0.059
    
    
    
    5,181Bulyanhulu
    
    
    1,915
    
    
    
    0.401
    
    
    
    767
    
    
    
    21,998
    
    
    
    0.447
    
    
    
    9,829
    
    
    
    23,913
    
    
    
    0.443
    
    
    
    10,596Tulawaka (70%)
    
    
    22
    
    
    
    0.273
    
    
    
    6
    
    
    
    1,055
    
    
    
    0.356
    
    
    
    376
    
    
    
    1,077
    
    
    
    0.355
    
    
    
    382ProjectCowal
    
    
    5,191
    
    
    
    0.046
    
    
    
    238
    
    
    
    58,409
    
    
    
    0.039
    
    
    
    2,257
    
    
    
    63,600
    
    
    
    0.039
    
    
    
    2,495OTHER
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    287
    
    
    
    0.411
    
    
    
    118
    
    
    
    287
    
    
    
    0.411
    
    
    
    118TOTAL
    
    
    300,674
    
    
    
    0.070
    
    
    
    20,939
    
    
    
    1,238,163
    
    
    
    0.055
    
    
    
    68,117
    
    
    
    1,538,837
    
    
    
    0.058
    
    
    
    89,056
 See   Notes to the Mineral Reserves, Resources and Reconciliation Tables. -17-




---



##### 



Gold Mineral Resources(1), (2), (3), (5)
(as at December 31, 2004) MEASURED (M)
    
    
    
    
    
    
    INDICATED (I)
    
    
    (M) + (I)
    
    
    
    
    
    
    INFERREDTons
    
    
    Grade(8)
    
    

Ounces(9)
    
    
    Tons
    
    
    Grade(8)
    
    
    Ounces(9)
    
    
    Ounces(9)
    
    
    Tons
    
    
    Grade(8)
    
    
    Ounces(9)Based on attributable ounces
    

(000s)
    
    
    (oz/ton)
    
    

(000s)
    
    

(000s)
    
    
    (oz/ton)
    
    

(000s)
    
    

(000s)
    
    

(000s)
    
    
    (oz/ton)
    
    

(000s)North AmericaOperating MinesGoldstrike Open Pit
    
    
    12,119
    
    
    
    0.054
    
    
    
    651
    
    
    
    10,199
    
    
    
    0.045
    
    
    
    456
    
    
    
    1,107
    
    
    
    722
    
    
    
    0.073
    
    
    
    53Goldstrike Underground
    
    
    2,114
    
    
    
    0.361
    
    
    
    764
    
    
    
    4,154
    
    
    
    0.387
    
    
    
    1,609
    
    
    
    2,373
    
    
    
    6,899
    
    
    
    0.346
    
    
    
    2,388Goldstrike Property Total
    
    
    14,233
    
    
    
    0.099
    
    
    
    1,415
    
    
    
    14,353
    
    
    
    0.144
    
    
    
    2,065
    
    
    
    3,480
    
    
    
    7,621
    
    
    
    0.320
    
    
    
    2,441Round Mountain (50%)
    
    
    21,734
    
    
    
    0.013
    
    
    
    272
    
    
    
    23,630
    
    
    
    0.017
    
    
    
    394
    
    
    
    666
    
    
    
    43,171
    
    
    
    0.013
    
    
    
    562Marigold (33%)
    
    
    7,500
    
    
    
    0.021
    
    
    
    154
    
    
    
    10,268
    
    
    
    0.023
    
    
    
    233
    
    
    
    387
    
    
    
    61,477
    
    
    
    0.014
    
    
    
    859Eskay Creek
    
    
    156
    
    
    
    0.558
    
    
    
    87
    
    
    
    320
    
    
    
    0.528
    
    
    
    169
    
    
    
    256
    
    
    
    280
    
    
    
    0.496
    
    
    
    139Hemlo (50%)
    
    
    1,800
    
    
    
    0.091
    
    
    
    163
    
    
    
    3,451
    
    
    
    0.125
    
    
    
    431
    
    
    
    594
    
    
    
    4,233
    
    
    
    0.144
    
    
    
    608ProjectEast Archimedes
    
    
    979
    
    
    
    0.063
    
    
    
    62
    
    
    
    2,070
    
    
    
    0.060
    
    
    
    125
    
    
    
    187
    
    
    
    
    
    
    
    
    
    
    
    South AmericaOperating MinesPierina
    
    
    4,305
    
    
    
    0.030
    
    
    
    128
    
    
    
    11,058
    
    
    
    0.019
    
    
    
    213
    
    
    
    341
    
    
    
    101
    
    
    
    0.010
    
    
    
    1ProjectsLagunas Norte
    
    
    277
    
    
    
    0.025
    
    
    
    7
    
    
    
    15,876
    
    
    
    0.024
    
    
    
    388
    
    
    
    395
    
    
    
    9,718
    
    
    
    0.022
    
    
    
    215Veladero
    
    
    1,092
    
    
    
    0.020
    
    
    
    22
    
    
    
    20,712
    
    
    
    0.021
    
    
    
    427
    
    
    
    449
    
    
    
    63,110
    
    
    
    0.017
    
    
    
    1,045Pascua-Lama
    
    
    5,724
    
    
    
    0.058
    
    
    
    333
    
    
    
    37,744
    
    
    
    0.065
    
    
    
    2,464
    
    
    
    2,797
    
    
    
    36,728
    
    
    
    0.044
    
    
    
    1,613Australia/AfricaOperating MinesPlutonic
    
    
    349
    
    
    
    0.221
    
    
    
    77
    
    
    
    12,854
    
    
    
    0.156
    
    
    
    2,008
    
    
    
    2,085
    
    
    
    10,349
    
    
    
    0.192
    
    
    
    1,988Lawlers
    
    
    244
    
    
    
    0.098
    
    
    
    24
    
    
    
    4,580
    
    
    
    0.162
    
    
    
    741
    
    
    
    765
    
    
    
    1,114
    
    
    
    0.139
    
    
    
    155Darlot
    
    
    1,089
    
    
    
    0.148
    
    
    
    161
    
    
    
    2,895
    
    
    
    0.108
    
    
    
    312
    
    
    
    473
    
    
    
    127
    
    
    
    0.213
    
    
    
    27Kalgoorlie (50%)
    
    
    3,907
    
    
    
    0.066
    
    
    
    258
    
    
    
    8,891
    
    
    
    0.068
    
    
    
    608
    
    
    
    866
    
    
    
    588
    
    
    
    0.056
    
    
    
    33Bulyanhulu
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,253
    
    
    
    0.546
    
    
    
    2,321
    
    
    
    2,321
    
    
    
    4,303
    
    
    
    0.587
    
    
    
    2,526Tulawaka (70%)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    584
    
    
    
    0.068
    
    
    
    40
    
    
    
    40
    
    
    
    161
    
    
    
    0.075
    
    
    
    12ProjectsCowal
    
    
    2,594
    
    
    
    0.038
    
    
    
    98
    
    
    
    44,940
    
    
    
    0.033
    
    
    
    1,498
    
    
    
    1,596
    
    
    
    31,053
    
    
    
    0.033
    
    
    
    1,011Buzwagi
    
    
    69
    
    
    
    0.072
    
    
    
    5
    
    
    
    27,058
    
    
    
    0.074
    
    
    
    2,011
    
    
    
    2,016
    
    
    
    804
    
    
    
    0.056
    
    
    
    45Other Properties
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,702
    
    
    
    0.158
    
    
    
    744
    
    
    
    744
    
    
    
    4,802
    
    
    
    0.139
    
    
    
    669TOTAL
    
    
    66,052
    
    
    
    0.049
    
    
    
    3,266
    
    
    
    250,239
    
    
    
    0.069
    
    
    
    17,192
    
    
    
    20,458
    
    
    
    279,740
    
    
    
    0.050
    
    
    
    13,949
 See   Notes to the Mineral Reserves, Resources and Reconciliation Tables. -18-




---



##### 



Reconciliation of Mineral Reserves(7) Mineral Reserves
    
    
    
    
    
    
    
    
    
    
    Mineral ReservesDecember 31,
    
    
    
    
    
    
    Increase
    
    
    December 31,Property (000s of ounces)
    
    2003(6)
    
    
    Processed in 2004
    
    
    (decrease)
    
    
    2004(4)North AmericaOperating MinesGoldstrike Open Pit
    
    
    15,685
    
    
    
    (1,627
    )
    
    
    2,130
    
    
    
    16,188Goldstrike Underground
    
    
    3,460
    
    
    
    (626
    )
    
    
    136
    
    
    
    2,970Round Mountain (50%)
    
    
    1,583
    
    
    
    (454
    )
    
    
    409
    
    
    
    1,538Marigold (33%)
    
    
    737
    
    
    
    (69
    )
    
    
    76
    
    
    
    744Eskay Creek
    
    
    941
    
    
    
    (310
    )
    
    
    (118
    )
    
    
    513Hemlo (50%)
    
    
    1,744
    
    
    
    (263
    )
    
    
    (221
    )
    
    
    1,260Holt-McDermott (12)
    
    
    55
    
    
    
    (55
    )
    
    
    
    
    
    
    ProjectEast Archimedes
    
    
    
    
    
    
    
    
    
    
    1,011
    
    
    
    1,011South AmericaOperating MinesPierina
    
    
    2,768
    
    
    
    (569
    )
    
    
    309
    
    
    
    2,508ProjectsLagunas Norte
    
    
    7,155
    (7)
    
    
    
    
    
    
    1,968
    
    
    
    9,123Veladero
    
    
    11,115
    
    
    
    
    
    
    
    1,734
    
    
    
    12,849Pascua-Lama
    
    
    16,862
    
    
    
    
    
    
    
    753
    
    
    
    17,615Australia/AfricaOperating MinesPlutonic
    
    
    2,646
    
    
    
    (339
    )
    
    
    205
    
    
    
    2,512Lawlers
    
    
    402
    
    
    
    (115
    )
    
    
    118
    
    
    
    405Darlot
    
    
    1,135
    
    
    
    (146
    )
    
    
    59
    
    
    
    1,048Kalgoorlie (50%)
    
    
    5,894
    
    
    
    (515
    )
    
    
    (198
    )
    
    
    5,181Bulyanhulu
    
    
    10,907
    
    
    
    (395
    )
    
    
    84
    
    
    
    10,596Tulawaka
    
    
    368
    
    
    
    
    
    
    
    14
    
    
    
    382ProjectCowal
    
    
    2,495
    
    
    
    
    
    
    
    
    
    
    
    2,495OTHER
    
    
    
    
    
    
    
    
    
    
    118
    
    
    
    118Total
    
    
    85,952
    
    
    
    (5,483
    )
    
    
    8,587
    
    
    
    89,056
 Notes to the Mineral Reserves, Resources and Reconciliation Tables   (1)
    Reflects Barricks ownership share where ownership interest is less than 100%.(2)
    These mineral resources are in addition to mineral reserves. Mineral resources that are not
mineral reserves do not have demonstrated economic viability when calculated using mineral
reserve assumptions.(3)
    Mineral reserves and resources have been calculated as at December 31, 2004.(4)
    Mineral reserves have been calculated as at December 31, 2004 using an assumed gold price of
$375 per ounce, a silver price of $5.50 per ounce and an exchange rate of $1.45 C$/US$.
Reserves at the Australian properties assumed a gold price of A$560 per ounce. Reserves at
the Hemlo property assumed a gold price of $350 per ounce and an exchange rate of $1.35
C$/US$. Reserves at Round Mountain are based on pit designs consistent with a gold price of
$375 per -19-




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##### 



ounce. Reserves at the Marigold property assumed a gold price of $350 per ounce. Reserve
calculations incorporate current and/or expected mine plans and cost levels at each
property. Cost estimates at each Australian property assumed an exchange rate of $0.70
US$/A$.(5)
    Resources as at December 31, 2004 have been estimated using varying cut-off grades, depending
on both the type of mine, its maturity and ore type at each property. Assumed gold prices of
$400 and A$600 have been used in estimating resources.(6)
    Mineral reserves have been calculated as at December 31, 2003 using an assumed gold price of
$325 per ounce and a silver price of $4.75 per ounce and exchange rates of $1.50 C$/US$ and
$0.57 US$/A$. Reserves at the Kalgoorlie property assumed an exchange rate of $0.59 US$/A$.
Reserves at the Hemlo property assumed an exchange rate of $1.53 C$/US$.(7)
    Mineral reserves have been calculated in accordance with National Instrument 43-101, as
required by Canadian securities regulatory authorities. For United States reporting purposes,
Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by Staff of the
U.S. Securities and Exchange Commission, applies different standards in order to classify
mineralization as a reserve. For U.S. reporting purposes, as at December 31, 2003, the
mineralization at the Lagunas Norte project, located in the Alto Chicama District, was
classified as mineralized material. As at May 1, 2004, the mineralization at the Lagunas
Norte project was classified as reserves for U.S. reporting purposes.(8)
    Grade represents an average, weighted by reference to tons of ore type where several recovery
processes apply.(9)
    Ounces estimated to be present in the tons of ore which would be mined and processed. Mill
recovery rates have not been applied in calculating the contained ounces.(10)
    Reserves include stockpile material totalling approximately 83.9 million tons, containing
approximately 4.8 million ounces. Properties at which stockpile material represents more than
5% of the reported reserves are as follows: ContainedTons
    
    
    Grade
    
    
    OuncesProperty
    
    (000s)
    
    
    (oz/ton)
    
    
    (000s)Kalgoorlie
    
    
    12,437
    
    
    
    0.035
    
    
    
    435Goldstrike
    
    
    39,927
    
    
    
    0.097
    
    
    
    3,874Round Mountain
    
    
    29,879
    
    
    
    0.013
    
    
    
    376
  (11)
    The metallurgical recovery applicable at each property and the cut-off grades used to
determine reserves are as follows: MetallurgicalRecovery
    
    Cut-off Grade(%)
    
    (oz/ton)OPERATING MINESGoldstrike PropertyOpen Pit
    
    
    83.6
    
    
    
    0.050-0.070Underground
    
    
    89.7
    
    
    
    0.120-0.270Marigold
    
    
    72
    
    
    
    0.005-0.010Round Mountain
    
    
    65.1
    
    
    
    0.006-0.018Eskay Creek
    
    
    84.9
    
    
    
    0.233-0.875Hemlo Property
 -20-




---



##### 



MetallurgicalRecovery
    
    Cut-off Grade(%)
    
    (oz/ton)David Bell
    
    
    93.0
    
    
    
    0.145Williams
    
    
    91.9
    
    
    
    0.023-0.129East Archimedes
    
    
    74.3
    
    
    
    0.008-0.088Pierina
    
    
    81.5
    
    
    
    0.007-0.013Lagunas Norte
    
    
    75.0
    
    
    
    0.011-0.029Veladero
    
    
    72.8
    
    
    
    0.017-0.022Pascua-Lama
    
    
    81.7
    
    
    
    0.028-0.039Darlot
    
    
    97.0
    
    
    
    0.092-0.116Lawlers
    
    
    95.6
    
    
    
    0.110Plutonic
    
    
    89.9
    
    
    
    0.026-0.088Kalgoorlie
    
    
    85.6
    
    
    
    0.026Cowal
    
    
    84.9
    
    
    
    0.013-0.019Bulyanhulu
    
    
    89.0
    
    
    
    0.219-0.241Tulawaka
    
    
    95.0
    
    

    
    0.047-0.061
  (12)
    The Holt-McDermott mine was sold in October 2004. Uses of Gold Product fabrication and bullion investment are two principal uses of gold. The introduction of
more readily accessible and more liquid gold investment vehicles (such as gold exchange traded
funds) may further facilitate investment in gold. Within the fabrication category there are a wide
variety of end uses, the largest of which is the manufacture of jewelry. Other fabrication purposes
include official coins, electronics, miscellaneous industrial and decorative uses, dentistry,
medals and medallions. Sales and Refining Gold can be readily sold on numerous markets throughout the world and it is not difficult to
ascertain its market price at any particular time. Since there are a large number of available gold
purchasers, the Company is not dependent upon the sale of gold to any one customer. Barricks gold
is currently being refined to market delivery standards by MKS Finance S.A. in Castel San Pietro,
Switzerland (a portion of Goldstrike production) and Argor-Heraeus S.A. in Mendrisio, Switzerland
(a portion of Goldstrike production and Bulyanhulus gold doré production), by Johnson Matthey
Limited in Brampton, Ontario, Canada (Pierina production and a portion of the Hemlo production), by
the Royal Canadian Mint in Ottawa, Ontario, Canada (a portion of the Hemlo production), by Johnson
Matthey Refining Inc. in Salt Lake City, Utah, United States (Round Mountain production) and by
Australian Gold Refinery in Perth, Australia (Plutonic production, Kalgoorlie production, Darlot
production and Lawlers production). The gold is then delivered to meet commitments under gold sale
contracts or sold to various gold bullion dealers or smelters on a competitive basis at spot
prices. The Company believes that, because of the availability of alternative refiners, no material
adverse effect would result if the Company lost the services of any of its current refiners. The Bulyanhulu mine also produces gold-copper concentrates. At Bulyanhulu, sales contracts
have been established with Pan Pacific Copper Co., Ltd., an affiliate of Nippon Mining & Metals
Co., Ltd., and with Sumitomo Metal Mining Co., Ltd. for 30% to 70% of the mines concentrate
production through 2008. A sales contract has been established with Marc Rich + Co. Investment AG
in conjunction with Yunnan Copper in China for 30% to 70% of the mines concentrate production
through 2006. -21-




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##### 



The Eskay Creek mine sells direct shipping ore under long-term sales contracts with Dowa
Mining Company Limited, Akita-Ken, Japan, and Noranda Inc., Rouyn-Noranda, for combined ore sales
of 135,000 dry tonnes annually. These contracts expire in 2006 and 2007. The Eskay Creek mine also
produces flotation concentrates, up to 70% of which is committed under a sales agreement with
Noranda Inc. in Rouyn-Noranda, Quebec, Canada and 30% to Teck Cominco Metals Ltd. in Trail, British
Columbia, Canada. These contracts expire at various dates between 2005 and 2008. Employees  Labour Relations As at December 31, 2004, Barrick had approximately 5,700 full-time employees worldwide, as
well as approximately 1,800 employees at operations jointly owned by Barrick, substantially all of
who are employed in the United States, Canada, Australia, Chile, Peru, Argentina and Tanzania.
Unions represent approximately 1,000 persons at the Companys operations. Labour relations at all
locations are believed to be good. However, recent increased demand for skilled workers in the
resource industry has led to an increase in employee turnover at certain of Barricks operations.
This competition for qualified employees may lead to workforce shortages. Hourly employees are provided with a variety of retirement, insurance and other benefits
generally corresponding to prevailing customs in the relevant area and industry. Certain of the
Companys mining operations participate in retirement pension plans that are defined contribution
plans. The Company also has pension plans covering certain United States employees. Certain of
these pension plans, covering U.S. salaried and other non-union employees, provide benefits based
on the employees years of service and highest compensation for a period prior to retirement.
Certain of these pension plans, covering U.S. union employees, provide defined benefits based on
each year of service. The Company also has other post-retirement plans that provide medical and
life insurance benefits for certain retired employees. The excess of accumulated benefit
obligations over plan assets for pension plans with accumulated benefit obligations in excess of
plan assets was $49 million at December 31, 2004 and $51 million at December 31, 2003. Plans where
the projected benefit obligation and accumulated benefit obligation exceeded plan assets included a

qualified pension plan covering salaried and non-union employees, a nonqualified supplemental
pension plan covering certain employees and a nonqualified pension plan covering a director of the
Company. In addition, an irrevocable trust (Rabbi Trust) was set up to fund the nonqualified
plans and certain other deferred compensation plans. The diversified assets held in the Rabbi
Trust included short-term investments of approximately $31 million as of December 31, 2004. The
Company has put in place a retirement plan for certain officers of Barrick. Pursuant to the
unfunded plan, 15% of the officers salary and bonus for the year is accrued and accumulated with
interest until retirement. There are no other benefits programs in place that could result in any
unfunded post-retirement benefits. In addition, the Company has implemented incentive programs for
certain employees. Competition The Company competes with other mining and exploration companies in connection with the
acquisition of mining claims and leases on gold and other precious metals prospects and in
connection with the recruitment and retention of qualified employees (see   Employees  Labour
Relations). There is significant competition for the limited number of gold acquisition opportunities and,
as a result, the Company may be unable to continue to acquire attractive gold mining properties on
terms it considers acceptable. -22-




---



##### 



PRINCIPAL REGIONS For the year-ended December 31, 2004, Barrick produced 4.96 million ounces of gold at average
total cash costs of $212 per ounce. Gold production is targeted at between 5.4 and 5.5 million
ounces of gold in 2005 at expected average total cash costs of $220 to $230 per ounce of gold.
Expected 2005 gold production and expected average total cash costs for each mine are provided as
at the date of this Annual Information Form. This information, to the extent it differs,
supersedes and replaces the previous targets provided for such mine(s). Guidance for total 2005
expected gold production and related average total cash costs per ounce remain unchanged from
previous guidance. Cost of Sales For the years ended December 31,
    
    2004
    
    
    2003Total cash costs  per US GAAP 2
    
    $
    1,062
    
    
    $
    1,065Accretion expense and reclamation costs at operating mines
    
    
    (18
    )
    
    
    (14
    )Total cash costs  per Gold Institute Production Cost Standard 1
    
    $
    1,044
    
    
    $
    1,051Ounces sold (thousands)
    
    
    4,936
    
    
    
    5,554Total cash costs per ounce  per US GAAP (dollars) 3
    
    $
    215
    
    
    $
    192Total cash costs per ounce  per Gold Institute Production Cost Standard
(dollars) 1, 3
    
    $
    212
    
    
    $
    189
 Total cash costs  per Gold Institute Production Cost Standard 1 ($/oz) For the years ended December 31,
    
    2004
    
    
    2003Cost of sales at market foreign exchange rates
    
    $
    248
    
    
    $
    210Gains realized on currency hedge contracts
    
    
    (19
    )
    
    
    (12
    )By-product credits
    
    
    (30
    )
    
    
    (21
    )Cash operating costs
    
    
    199
    
    
    
    177Royalties
    
    
    11
    
    
    
    9Production taxes
    
    
    2
    
    
    
    3Total cash costs
    
    $
    212
    
    
    $
    189
    2. Equal to cost of sales and other operating expenses less accretion expense and reclamation
costs at non- operating mines. 3. Per ounce weighted average. -23-




---



##### 



Barricks principal regions are North America, Australia/Africa and South America. For
the purposes of this Annual Information Form, Barrick has identified Goldstrike, Round Mountain,
Eskay Creek, Kalgoorlie, Pierina and Bulyanhulu as material operating properties and Lagunas Norte,
Veladero and Pascua-Lama as material development projects. The following is a summary of Barricks
operations and development projects by region. North America Operating Properties Barricks principal North American operations consist of its Goldstrike property, its 50%
interest in the Round Mountain mine, its Eskay Creek mine and its 50% interest in the Hemlo
property. Barricks North American development project is its East Archimedes property. The
following table summarizes the production and average total cash costs per ounce of the North
American mines. Total Cash Costs  perGold InstituteProduction Cost
    
    
    Total Cash Costs  perProduction
    
    
    Standard1
    
    
    US GAAP(attributable ounces)
    
    
    ($/oz)
    
    
    ($/oz)For the years ended 12/31
    
    
    For the years ended 12/31
    
    
    For the years ended 12/312004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003GoldstrikeOpen Pit
    
    
    1,381,315
    
    
    
    1,559,461
    
    
    $
    247
    
    
    $
    233
    
    
    $
    249
    
    
    $
    234Underground
    
    
    561,345
    
    
    
    551,664
    
    
    
    255
    
    
    
    253
    
    
    
    256
    
    
    
    253Goldstrike property total
    
    
    1,942,660
    
    
    
    2,111,125
    
    
    
    249
    
    
    
    238
    
    
    
    251
    
    
    

    237Round Mountain (50% owned)
    
    
    381,484
    
    
    
    392,649
    
    
    
    221
    
    
    
    173
    
    
    
    225
    
    
    
    177Eskay Creek
    
    
    289,568
    
    
    
    352,070
    
    
    
    31
    
    
    
    52
    
    
    
    32
    
    
    
    53Hemlo (50% owned)
    
    
    247,440
    
    
    
    267,888
    
    
    
    240
    
    
    
    226
    
    
    
    241
    
    
    
    227Holt-McDermott(2)
    
    
    54,578
    
    
    
    89,515
    
    
    
    197
    
    
    
    239
    
    
    
    198
    
    
    
    240Marigold (33% owned)
    
    
    47,101
    
    
    
    47,396
    
    
    
    197
    
    
    
    171
    
    
    
    198
    
    
    
    1722,962,831
    
    
    
    3,260,643
    
    
    $
    221
    
    
    $
    209
    
    
    $
    223
    
    
    $
    211
   1.
    
    For an explanation of the use of non-GAAP performance measures, refer to
Non-GAAP Performance Measures.2.
    
    The Holt-McDermott mine was sold in October 2004. Goldstrike Property General Information A wholly-owned subsidiary of Barrick owns and operates the Goldstrike Open Pit mine and the
Goldstrike Underground mine and related deposits on the Goldstrike property. The property is
located in north central Nevada, approximately 25 miles (40 kilometers) north of the town of
Carlin, at an elevation of 5,600 feet (1,700 meters) in the hilly terrain of the Tuscarora
Mountains. Access to the property is provided by certain access agreements with Newmont Mining
Corporation, that allow for the use of various roads in the area, and a right-of-way issued by the
Bureau of Land Management. Such roads are accessed from Elko, Nevada by traveling west on U.S.
Interstate 80 to Carlin, Nevada and then by approximately 23 miles (37 kilometers) of local roads
north of Carlin. Generally, the climate of the area does not materially impact on the mines
operations. -24-




---



##### 



PanCana Minerals Ltd. (PanCana) first mined the property for gold in 1976. In 1978,
Western States Minerals Corporation (WSMC) became the operator in a 50/50 joint venture with
PanCana. Barrick acquired a 50% interest and assumed management of the Goldstrike property on
December 31, 1986 with the acquisition of WSMCs 50% interest in the property. It completed the
acquisition of 100% ownership of the property pursuant to a plan of arrangement entered into with
PanCana in January 1987. At the time of acquisition, mining operations on the property were
concentrated on various shallow oxide deposits. The principal known deposit was the Post surface
oxide deposit, which then contained approximately half a million ounces of gold. The property was
operated as an open pit, heap leach operation. Reserves for the Post deposit were delineated during
1986 and mining of the Post deposit commenced in 1987. Following acquisition, two sulphide ore
zones were identified (the Betze and Deep Post deposits). During the first two years after
acquisition, a carbon-in-leach mill and ancillary facilities, as well as a crushing and
agglomeration plant designed to improve recoveries from low grade oxide ore, were constructed. In
January 1989, Barrick announced the four-year Betze Development Plan to develop the Post oxide and
Betze sulphide reserves. The plan, which called for the development of a large open pit and the
expansion of the milling facilities, was completed in 1993 with the commissioning of the final
three of the total of six autoclaves. The Goldstrike Underground mine, which was discovered in
1989, commenced production in 1996. During 2000, the Company completed construction of a roaster
facility for the treatment of carbonaceous ore on the property. The roaster increased the
propertys processing capacity by approximately 16,000 tons per day. In 2001, an intensive
development program to bring the Rodeo deposit, part of the Goldstrike Underground mine, into
production was completed and a new ball mill was added to increase autoclave recovery. A total of
approximately 1,600 employees work at the Goldstrike Open Pit and Goldstrike Underground mines. At December 31, 2004, the Goldstrike property comprised approximately 9,921 acres (4,000
hectares) of land. This includes 1,762 acres (713 hectares) of patented lode mining and millsite
claims and 1,870 acres (757 hectares) of unpatented lode mining and millsite claims held directly
or by lease, 2,531 acres (1,024 hectares) of land acquired through land exchanges with the United
States government, and 3,848 acres (1,557 hectares) purchased from other mining companies and a
private individual. Patenting is the process that transfers fee simple title from the federal
government to the applicant. The Goldstrike Open Pit and Goldstrike Underground mines and the
majority of the beneficiation and processing facilities at the Goldstrike property are situated on
land owned by Barrick. Geology The property is located on the Carlin trend, one of North Americas most prolific gold
producing areas. The area of the Goldstrike property consists of folded and faulted Paleozoic
sedimentary rocks, which were intruded by the diorite to granodiorite Goldstrike stock of the
Jurassic Age. Mesozoic folding and thrust faults form important structural traps for the
mineralization in the Betze-Post pit. Tertiary faulting developed ranges and basins, which were
subsequently filled with volcanics and sediments during Tertiary time. The gold mineralization
occurred at the onset of Tertiary volcanism, approximately 39 million years ago. The major gold deposits  Post Oxide, Betze and Meikle  are all hosted in sedimentary rocks
of Silurian to Devonian ages. The Post Oxide orebody occurs in the siliceous siltstones, mudstones,
argillites and minor limestones of the Rodeo Creek Formation. Betze and Meikle are found in the
silty limestones and debris flows of the Popovich Formation. The gold at Goldstrike was carried
into the various orebodies by hot hydrothermal fluids, and deposited with very fine pyrite and
silica. Over time, the pyrite oxidized, freeing the gold and making its extraction relatively easy,
as in the Post Oxide deposit. In the deeper deposits  Betze, Deep Post and Meikle  the gold is
still locked up with the iron sulphide and an additional processing step (autoclaving or roasting)
is required to free the gold. -25-




---



##### 



Processing The property has two processing facilities: an autoclave installation, which is used to treat
the propertys non-carbonaceous sulphide (refractory) ore; and the roaster, which is used to treat
the propertys carbonaceous ore (whose active carbon content responds poorly to autoclaving). The
combined design capacity of these two facilities is approximately 33,000 to 35,000 tons per day.
These process facilities treat the ore from both the Goldstrike Open Pit and Goldstrike Underground
mines. Gold contained in recovered ore is processed into doré on-site and shipped to outside
refineries for processing into gold bullion. Power is currently purchased from Sierra Pacific Power
Company pursuant to a contract and applicable tariffs. In 2004, the Nevada Public Utilities
Commission approved Barricks proposal to build a 115 megawatt natural gas-fired power plant that
is capable of providing 85 percent of Goldstrikes future power requirements. The plant is expected to
commence operations in fourth quarter 2005. In 2004, Goldstrike processed an average grade of 0.18 ounces per ton, consisting of 0.15
ounces per ton ore from the Goldstrike Open Pit mine and 0.40 ounces per ton ore from the
Goldstrike Underground mine. Environment At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $47 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. Exploration In 2004, Barrick conducted exploration and development drilling programs, focusing on the
North and South pit targets. In 2005, Barrick will expand these exploration and development
drilling programs and will test other targets identified in 2003 and 2004. Recent exploration on
the Goldstrike Property is based on a comprehensive re-evaluation and re-interpretation of mine and
exploration data gathered from 1987 to 2003. New exploration drilling programs were initiated in
late 2003 and these drilling programs were designed to convert resources to reserves and to add new
resources, both north and south of the Goldstrike Open Pit mine. These programs returned positive
results in 2004, with open-pit grade intercepts encountered in 80% of the holes completed. A total
of 250,000 feet (76,000 meters) of drilling were completed for the year. In 2005, Barrick plans to advance and expand the North and South pit drilling programs and
conduct reserve development drilling at the North Post underground orebody. Barrick also plans to
conduct exploration drilling along the Post Fault corridor adjacent to and beneath the Meikle,
Griffin and Rodeo orebodies. The goal is to add new resources at Goldstrike in 2005. In addition,
Barrick will conduct exploration drilling elsewhere on the Goldstrike property. Capital Expenditures In 2004, capital expenditures for the Goldstrike property were $72 million, including
expenditures for development work, mobile equipment, systems improvements, tailings storage
facility expansion and costs for construction of the power plant. For 2005, capital expenditures
at Goldstrike are expected to be $166 million, including costs for construction of the power plant,
underground development work, dewatering, tailings dam expansion and equipment replacement. -26-




---



##### 



Goldstrike Open Pit Mine The Goldstrike Open Pit mine is an open pit truck-and-shovel operation, using standard proven
equipment. It produced 1,381,315 ounces of gold in 2004 at average total cash costs of $247 per
ounce, and is expected to produce between 1,425,000 and 1,435,000 ounces of gold in 2005 at average
total cash costs of between $250 and $260 per ounce. Based on existing reserves and production
capacity, the expected remaining mine life is approximately 13 years. Geology The gold mineralization at Goldstrike Open Pit is controlled by favorable stratigraphy,
structural complexities in the form of faults and folds, and the contact of the Goldstrike
intrusive. The deposit represents many styles of mineralization occurring within numerous rock
types and alteration assemblages. The favored host for gold mineralization is the Popovich
limestone followed by the Rodeo Creek unit, Goldstrike sill complex and Roberts Mountains
Formation. Some ore occurs below sills, which act as dams to the ascending hydrothermal fluids.
Alteration is characterized by decalcification of limestone, silicification of all rock types and
clay development in structurally disturbed areas. Overall, the Betze-Post ore zones extend for
6,000 feet (1,829 meters) in a northwest direction and average 600 to 800 feet (183 to 244 meters)
in width and 400 to 600 feet (122 to 183 meters) in thickness. Drilling and Analysis More than 6,500 drill holes have been completed within and around the Betze-Post deposit.
Approximately 69 percent of the total drill holes are reverse circulation and rotary drill holes
and the remaining are diamond core holes. Drill spacing through the Betze, West Betze and Screamer
deposits is approximately 175 feet (53 meters) and at Post is 150 feet (46 meters). Drill spacing
in the North Screamer and West Barrel deposits is approximately 100 feet (30 meters). Almost all
of the total drill hole footage has been sampled on five-foot intervals and assayed for gold by the
fire assay method with cyanide AA finish. All assaying is checked and verified under a
comprehensive, multi-level quality assurance and quality control program that includes external
laboratory check assays. All drill hole collar, survey and assay information used in modeling and resource estimation
are manually verified and approved by geologic staff prior to entry into the mine-wide database. The quality assurance procedures and assay protocols followed by Barrick in connection with
drilling and sampling on the Goldstrike property conform to industry accepted quality control
methods. Royalties Most of the property comprising the Goldstrike Open Pit mine is subject to a net smelter
return and net profits interest royalties payable on the valuable minerals produced from the
property. The maximum third party royalties payable on the Betze deposit are a 4% net smelter
return and a 6% net profits interest. Production Information The following table summarizes certain production and financial information for the Goldstrike
Open Pit mine for the periods indicated: -27-




---



##### 



Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    134,212
    
    
    
    141,693Tons of ore processed (000s)
    
    
    10,779
    
    
    
    10,041Average grade processed (ounces per ton)
    
    
    0.15
    
    
    
    0.19Recovery rate (%)
    
    
    85.1
    
    
    
    82.0Ounces of gold produced (000s)
    
    
    1,381
    
    
    
    1,559Average total cash costs per ounce
    
    
    $       247
    
    
    
    $       233
 Goldstrike Underground Mine The Meikle orebody, located one mile (1.6 kilometers) north of the Goldstrike Open Pit mine on
Barricks Goldstrike property, is a high grade orebody which was discovered in 1989. Two different
underground mining methods are used at Goldstrike Underground, long-hole open stoping and
drift-and-fill (used for flat-lying mineralization or where ground conditions are less competent).
Goldstrike Underground is a trackless operation which commenced production in September 1996. The
Meikle orebody now incorporates the Main Meikle, Meikle Extension, South Meikle, Griffin and Rodeo
underground zones. An intensive development program to bring the Rodeo deposit into production was
completed in late 2001. While exploration drilling will continue at depth below Main Meikle and in
the Rodeo area, the best potential for reserve additions is likely north of Main Meikle, in an area
known as Banshee. Based on existing reserves and production capacity, the expected remaining mine
life is 5 years. The underground mine, which originally produced at a rate of approximately 2,000 tons of ore
per day, averaged 4,305 tons per day in 2004 and 4,523 tons per day in 2003. Goldstrike Underground
produced 561,345 ounces of gold in 2004 and is expected to produce between 540,000 and 555,000
ounces of gold in 2005 at average total cash costs of between $265 and $275 per ounce. In 2004,
mining activity took place in five main areas  Main Meikle, Meikle Extension, South Meikle,
Griffin and Rodeo. In 2005, mining activity will continue in these five areas. Geology Carbonate breccias and limestones of the Devonian Popovich Formation and various intrusive
rocks host the Meikle orebody, which is compact in size and very high grade. In contrast to the
Goldstrike Open Pit area, the overlying mudstones and argillites of the Devonian Rodeo Creek Member
are generally unmineralized. Gold-bearing fluids have ascended faults and fractures and have
deposited gold and other minerals, such as pyrite and barite, in permeable horizons in the breccias
and limestones. These breccias were formed by a combination of collapse, tectonic and hydrothermal
processes, and display excellent continuity of grade both down deep and along strike. The fluids
have been focused below a steep dipping monzonite porphyry dyke and the overlying relatively
impermeable Rodeo Creek Member. Since silicification is the dominant alteration at Meikle, the bulk
of the ore is quite hard and competent. Drilling and Analysis Underground drilling at the Meikle deposit (Meikle, South Meikle, Griffin, and West Griffin)
commenced in 1995 and a total of 1,075,857 feet (328,005 meters) in 4,378 underground holes had
been completed in and around the deposit as of December 31, 2004. A total of 338 surface holes,
for 517,086 feet (157,608 meters), have been drilled in and around the Meikle deposit. -28-




---



##### 



Underground drilling commenced at the Rodeo deposit (Rodeo, West Rodeo, and Barrel) in 1998
and, as of December 2004, a total of 1,454 underground holes totaling 448,962 feet (136,879 meters)
had been drilled in and around the deposit. A total of 230 surface holes, for 344,300 feet
(104,943 meters), have been drilled in and around the Rodeo deposit. Although the majority of drilling is core, approximately 43% of Meikle and 60% of Rodeo
definition drilling are by underground reverse-circulation methods. Drill spacing through the
Meikle deposit is 25 to 85 feet (8 to 26 meters). Some of the wider-spaced core holes are sampled
on 20-foot intervals (chip samples) and 5-foot whole or split core in mineralized intervals. All
samples are fire-assayed with an atomic absorption spectrometer finish followed by a gravimetric
finish for samples with AuFA greater than 0.436 oz of gold per ton. Most sampling and assaying is
done on-site by Barrick with both internal check assays and external check assays performed by
independent laboratories. Royalties The maximum royalties payable on the Meikle deposit are a 4% net smelter return and a 5% net
profits interest. Production Information The following table summarizes certain production and financial information for the Goldstrike
Underground mine for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    1,573
    
    
    
    1,631Tons of ore processed (000s)
    
    
    1,566
    
    
    
    1,622Average grade processed (ounces per ton)
    
    
    0.40
    
    
    
    0.39Recovery rate (%)
    
    
    89.7
    
    
    
    88.3Ounces of gold produced (000s)
    
    
    561
    
    
    
    552Average total cash costs per ounce
    
    
    $     255
    
    
    
    $     253
 -29-




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##### 



(GOLDSTRIKE PROPERTY MAP) Round Mountain Mine General Information Wholly-owned subsidiaries of Barrick own a 50% interest in the Round Mountain gold mine, which
is located approximately 60 miles (96 kilometers) north of Tonopah in Nye County, Nevada, at an
elevation of approximately 6,200 feet (1,890 meters). Kinross Gold Corp. owns the remaining 50%
interest and is the operator. Access to the property is by paved road. Generally, the climate of
the area does not materially impact on the mines operations. Barrick acquired its interest upon
its merger with Homestake. Homestake had acquired its initial 25% interest in Round Mountain in
1984, and bought an additional 25% in July 2000. Barrick and Kinross Gold Corp. have first refusal
rights over each others interest in the property. The mine has been in operation since 1977. The
mine employs approximately 650 workers. Based on existing reserves and production capacity, the
expected remaining mine life is 6 years. The Round Mountain property position consists of contiguous patented and unpatented mining
claims covering approximately 36,920 acres (14,930 hectares). Patented claims cover all of the
current reserves in the ultimate pit. -30-




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##### 



Geology The Round Mountain orebody is a large, epithermal, low-sulphidation, volcanic-hosted,
hot-springs type, precious metal deposit located along the margin of a buried volcanic caldera. The
deposit genesis is associated with the Tertiary volcanism and caldera formation. Intra-caldera
collapse features and sympathetic faulting in the metasedimentary rocks provided the major
structural conduits for gold-bearing hydrothermal fluids. Ascending fluids deposited gold within
the metasediments and overlying volcanic tuff units along a broad northwest trend. Gold mineralization at Round Mountain occurs as electrum in association with quartz, adularia,
pyrite and iron oxides. Economic gold mineralization is found in both the volcanic and surrounding
metasedimentary rocks as well as overlaying alluvial placers. The mineralization occurs within
shear zone fractures and veins or as disseminations within the more permeable units. Narrow
fractures in shear zones host higher-grade mineralization while porous volcanic rocks host the
lower-grade disseminated mineralization. Primary sulphide mineralization consists of electrum
associated with or internal to pyrite grains. In oxidized zones, gold occurs as electrum associated
with iron oxides, or as finely divided blebs along fractures. Alteration of the volcanic units at Round Mountain can be characterized as a continuum from
fresh rock progressing through chlorite; clay; sericitic and quartz; adularia, quartz and sericite;
and quartz and adularia alteration assemblages. The alteration is zoned outward from potassic at
the center to propylitic on the margin. There is a reasonable correlation between increasing gold
grades and increasing degrees of alteration. The central ore zone is characterized by pervasive
K-feldspar found replacing the rock groundmass and primary sanidine, or as crystal growths in
open-space. Alteration within the metasedimentary rocks are more subtle, largely defined by secondary
quartz overgrowths, pyrite, and adularia associated with narrow northwest trending structures. The open-pit mine is over a mile (1.6 kilometers) at its longest dimension and currently more
than 1,295 feet (395 meters) from the top bench to the bottom of the pit. Mining and Processing The operation uses open-pit mining methods and recovers gold using four independent processing
operations. These include crushed ore leaching (reusable pad), run-of-mine ore leaching (dedicated
pad), milling of higher-grade ore, and the gravity concentration circuit. Recovered gold is smelted
on-site into doré and shipped to outside refineries for processing into bullion. Water is supplied
from joint venture-owned wells on the property. Power is purchased from Sierra Pacific Power
Company under a standard industry tariff. In 2004, Round Mountain produced 762,968 ounces of gold, of which the Companys share was
381,484 ounces, at average total cash costs of $221 per ounce. In 2005, the mine is expected to
produce between 700,000 and 720,000 ounces of gold, of which between approximately 350,000 and
360,000 ounces would be the Companys share, at average total cash costs of between $245 and $255
per ounce. Environment At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $28 million. In connection with the
reclamation -31-




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##### 



of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. Exploration, Drilling and Analysis Deep surface drilling had previously identified high grade mineralization occurring northwest
of the Round Mountain pit. In 2004, an exploration decline was designed to access this zone for
underground drilling. It is expected that the decline will be collared early in second quarter 2005
and will take approximately 16 months to complete. In 2004, exploration drilling was focused on the Gold Hill area. Drilling totalled 68,000 feet
in 76 core and reverse circulation drill holes. Much of the drilling tested blind, gravel-covered
targets that had been defined by geophysics. Encouraging disseminated mineralization was
intersected in the drilling. In addition, a number of high grade veins were intersected that are
being evaluated as underground targets. In addition, 28 core and reverse circulation drill holes
were completed on peripheral targets, totalling 34,000 feet. An aggressive exploration program is
planned for 2005 to follow up these results and to generate and develop new exploration targets. An external commercial laboratory was used to assay all the exploration drill hole samples.
Blanks, duplicates, and standards are all included with each set of samples for quality control and
quality assurance purposes. In addition, check assays were completed at an external commercial lab.
Quality assurance procedures and assay protocols followed by Barrick in connection with drilling
and sampling on the Round Mountain property conform to industry accepted quality control methods. Approximately 4,400 drill holes have been completed within and around the Round Mountain
deposit, the majority of which are drilled by reverse-circulation methods. Optimum spacing within
the Round Mountain deposit ranges between 100 and 140 feet (30 and 42 meters). All of the drill
holes have footage that has been sampled on five-foot intervals and assayed for gold by the fire
assay method with a
gravimetric finish. For the Round Mountain deposit, all sampling and assaying is done on-site
by the in-house lab. Internal check assays and external check assays are performed by independent
laboratories. Capital Expenditures In 2004, Barricks share of capital expenditures was $4.95 million, which included the
continued construction of phase 4 of the west dedicated pad, mine dewatering and new mine
equipment. In 2005, capital expenditures are expected to be $4.3 million (of which $2.15 million is
the Companys share), which will include Gold Hill permitting and development, a sample preparation
system, housing and a crusher. Royalties All Round Mountain mine production is subject to a royalty determined by a formula based on
the price of gold. The royalties range from approximately 3.5% of gold revenues at prices of $320
per ounce of gold or less to approximately 6.4% of gold revenues at prices of $440 per ounce of
gold or more. During 2004, the royalties averaged 5.7% of revenues. Production Information The following table summarizes certain production and financial information for the Round
Mountain mine for the periods indicated: -32-




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##### 



Year ended
    
    Year endedDecember 31, 2004
    
    December 31, 2003Tons mined (000s)
    
    
    39,485
    
    
    
    49,126Tons of ore processed (000s)
    
    
    73,926
    
    
    
    62,940Average grade processed (ounces per ton)
    
    
    0.02
    
    
    
    0.02Ounces of gold produced (000s)
    
    
    763
    
    
    
    785Ounces of gold produced (000s) -
Barricks share(1)
    
    
    381
    
    
    
    393Average total cash costs per ounce
    
    $
    221
    
    
    $
    173
   (1)
    
    Represents Barricks 50% ownership interest . (ROUND MOUNTAIN MINE MAP) -33-




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##### 



Eskay Creek Mine General Information A wholly-owned subsidiary of Barrick owns the Eskay Creek gold/silver mine, which is located
in northwestern British Columbia approximately 80 kilometers by air north of Stewart, British
Columbia. Access is by 60 kilometers of privately owned single-lane gravel road. The mine is

located at an elevation of 800 meters. Generally, the climate of the area does not materially
impact on the mines operations. The Eskay Creek mine was acquired by Barrick as a result of its
merger with Homestake. Homestake acquired an interest in Eskay Creek in June 1992 when it merged
with Corona Corporation, which owned 50.6% of Prime Resources Group Inc., which in turn owned 100%
of the property. Homestake acquired the remaining 49.4% of Prime Resources Group Inc. in December
1998. Eskay Creek began commercial production in 1995. In 1997, the gravity and flotation mill was
constructed to treat lower grade ore. Based on existing reserves and production capacity, the
expected remaining mine life is 4 years. Excluding contractors, approximately 130 people are
employed at the Eskay Creek mine. The Eskay Creek property consists of five mining leases, two mineral claims and various other
mineral and surface rights comprising approximately 2,060 hectares. The leases have remaining terms
of 17-21 years, subject to renewal rights. There are aboriginal claims relating to various areas of
British Columbia, including a claim by the Tahltan Nation to the area which includes the Eskay
Creek mine. The nature, extent and validity of such claims have not been determined. Barrick
believes that its relations with the Tahltan Nation are good. Barrick does not believe that
aboriginal claims at Eskay Creek will have any material adverse effect on the operations. Geology The Eskay Creek orebody is a precious metal-enriched volcanogenic massive sulphide deposit
that occurs in association with volcanics of the Jurassic-aged (141 to 195 million years) Hazelton
Group. Eskay Creek mineralization generally is stratabound and occurs in a contact mudstone and
breccia bounded below by a rhyolite flow-dome complex and overlain by volcanic and sedimentary
rocks in the west limb of a north-plunging fold. Recent mineralization has also been outlined in
discordant feeder type relationships in the underlying rhyolite and dacite. Sphalerite, pyrite,
galena and tetrahedrite are the most abundant ore minerals. Native gold occurs as mostly
microscopic particles located between sulphide grains, in fractures with sulphide grains, or locked
in pyrite. Gold also occurs in volcanic rocks beneath the contact mudstone, along with
coarse-grained sphalerite, pyrite and galena in quartz veins or stockworks. Mining and Processing The mine is an underground, trackless operation accessible through three surface portals.
Mining is conducted by a contractor using equipment owned by a subsidiary of Barrick. The mine
utilizes a drift-and-fill mining method with cemented rock backfill. Higher-grade ore is crushed
and blended at the mine site then sold to third-party smelters without any further processing.
Additional higher-grade and lower-grade ore is sent to a 360 tons per day on-site gravity and
flotation mill for further processing and concentration prior to transport to third party smelters.
Mine waste rock and tailings from the mill are disposed of underwater in two nearby barren lakes.
Water is supplied to the operation from the Eskay and Argillite Creeks and power is produced by
on-site diesel generators. In 2004, Eskay Creek produced 289,568 ounces of gold and 15.8 million ounces of silver at
average total cash costs of $31 per ounce of gold, net of the silver by-product. In 2005, Eskay
Creek is expected to produce between 175,000 and 180,000 ounces of gold and approximately 11
million ounces of silver at average total cash costs of between $100 and $110 per ounce of gold.
The decrease in production reflects -34-




---



##### 



the lower grade of ore anticipated to be processed in 2005.
Actual total cash costs in 2005 will be affected by both the quantity of silver produced as a
by-product and realized silver selling prices, which in turn will be affected by silver spot market
prices. Environment At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $13 million. In connection with the
reclamation of the mine area, Barrick has provided the security as required by governmental
authorities. See Environment and Closure. Exploration, Drilling and Analysis In 2004, the Company continued its development/exploration drilling program and the
in-fill/definition drilling program. During 2004, 1,838 meters of surface exploration and
definition drilling was completed. There also was 16,748 meters of underground definition diamond
drilling and 16,945 meters of underground exploration diamond drilling completed. The Company also
completed an extensive review of all existing geological data to, among other goals, identify
possible exploration targets. More than 6,800 diamond drill holes or about 603,728 meters have been drilled within and
around the Eskay Creek mine. Of this, 1,700 holes or about 347,828 meters of core has been drilled
from surface and 5,100 holes or about 255,900 meters of core drilled from underground. Surface drilling is generally planned at 100 to 200 meter spacing in prospective areas and is
reduced to 25 meter spacing for follow-up used to outline resources. Core is split and prospective
areas sampled on 1.5 meter lengths and mineralized sections sampled at 1.0 meter lengths. Known
barren areas are only randomly sampled and all of the core is saved and stored. Dependent on grade and target geometry, definition programs are nominally 10 meter centers and
as tight as 5 meter centers in very high grade target areas. Diamond drill core in new areas is
commonly split, but when in a known horizon it is usually whole sampled. In unmineralized areas,
sample lengths may be up to 5 meters, but in known ore, sample lengths are generally a maximum of 1
meter. Most surface core is assayed off-site. Surface assays are done by inductively coupled plasma
atomic emission spectrometer and any values greater than 1 gram per ton gold are redone by fire
assay. All underground core and the closer-spaced resource driven surface programs are assayed by
the on-site Eskay lab using fire assay for gold and silver and atomic absorption for base metals.
All assays are systematically checked with both internal standards and systematic check assays
performed by independent laboratories. All drill hole collar, survey and assay information used in modeling and resource estimation
are manually verified and approved by geologic staff prior to entry into the mine-wide database. The quality assurance procedures and assay protocols followed in connection with drilling and
sampling on the Eskay property conform to industry accepted quality control methods. -35-




---



##### 



Capital Expenditures During 2004, $8.7 million was spent on capital expenditures at Eskay Creek, including
ventilation, mobile equipment, mine drainage, power upgrades, tailings pond and ramp developments.
Capital expenditures for 2005 are expected to be $5.5 million, including ventilation, a new road
and ramp development work. Royalties The mine is subject to a 1% net smelter royalty, with the exception of a small portion of the
orebody, which is subject to a 2% net smelter royalty. Production Information The following table summarizes certain production and financial information for the Eskay
Creek mine for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    269
    
    
    
    272Tons of ore shipped (000s)
    
    
    139
    
    
    
    149Direct shipped ore grade (ounces per ton)
    
    
    1.74
    
    
    
    1.97Direct shipped ore recovery (%)
    
    
    95.2
    
    
    
    95.4Tons of ore milled (000s)
    
    
    125
    
    
    
    127Mill grade (ounces per ton)
    
    
    0.55
    
    
    
    0.80Mill recovery (%)
    
    
    85.8
    
    
    
    88.9Ounces of gold produced (000s)
    
    
    290
    
    
    
    352Average total cash costs per ounce
    
    $
    31
    
    
    $
    52
 -36-




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##### 



(ESKAY CREEK MINE MAP) Hemlo Property Barrick has a 50% interest in the Hemlo operations, which are comprised of two underground
mines (the Williams (which includes an open-pit mine) and David Bell mines), located in the Hemlo
Gold Camp, approximately 350 kilometers east of Thunder Bay. A company owned equally by a
subsidiary of Barrick and a subsidiary of Teck Cominco Limited operates each of the mines. Barrick
and Teck Cominco Limited provide funds equally for all costs incurred to operate the mines and have
rights of first refusal over each others interests in the mines and operating companies. Based on
existing reserves and -37-




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##### 



production capacity, the expected remaining mine lives of the David Bell mine
and the Williams mine, respectively, are approximately 4 years and 6 years. The Williams and David Bell mines share milling, processing and tailings facilities. Ore from
the two mines is commingled and fed to the processing plant that has two grinding lines, each with
a semi-autogenous mill and a ball mill. Gravity and C-I-P processes are used to recover gold.
Recovered gold is smelted into doré on-site and shipped to an outside refinery for processing into
bullion. Tailings water is reclaimed for use in the mill and excess water is treated through a
seasonally-operated effluent treatment plant prior to discharge into the environment. Excluding
temporary and contract workers, Hemlo employs approximately 650 people. Ground stability continues to be a significant area of focus for the Hemlo operations. Changes
to the mine plan, mining sequence, increased ground support and increased monitoring
instrumentation are ongoing to minimize this risk. In 2004, the Companys share of Hemlo gold production was 247,440 ounces at average total cash
costs of $240 per ounce. In 2005, the Companys share of Hemlo gold output is expected to be
between 225,000 and 230,000 ounces of gold, produced at expected average total cash costs of
between $260 and $270 per ounce. In 2004, the average grade milled was 0.13 ounces per ton. At December 31, 2004, the Companys share of the recorded amount of estimated future
reclamation and closure costs that were also asset retirement obligations, as defined in FAS 143
(as described in note 17(a) to the Consolidated Financial Statements), for the property was $3.7
million. In connection with the reclamation of the mine area, Barrick has provided the financial
security as required by governmental authorities. See Environment and Closure. The mining claims at the Williams mine are subject to three net smelter royalties totaling a
net effective rate of 2.06%. The mining claims at the David Bell mine are subject to a 3% net
smelter royalty. The following table summarizes certain production and financial information for the Hemlo
operations for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    9,430
    
    
    
    8,356Tons of ore processed (000s)
    
    
    4,037
    
    
    
    3,942Average grade processed (ounces per ton)
    
    
    0.13
    
    
    
    0.14Recovery rate (%)
    
    
    94.0
    
    
    
    95.0Ounces of gold produced (000s)
    
    
    495
    
    
    
    536Ounces of gold produced (000s) -
Barricks share(1)
    
    
    247
    
    
    
    268Average total cash costs per ounce
    
    $
    240
    
    
    $
    226
   (1)
    
    Represents Barricks 50% ownership interest. Projects -38-




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##### 



East Archimedes Project The East Archimedes project is located in Eureka, Nevada. The property was acquired in
connection with Barricks merger with Homestake in December 2001. The East Archimedes deposit is
located on the same property as the Ruby Hill mine, which closed in 2002. In September 2004, due, in part, to the rising gold price environment, Barrick made the
decision to proceed with its East Archimedes project. The project is an open-pit, heap leach
operation exploiting the East Archimedes deposit, a deeper continuation of the ore mined previously
at the closed Ruby Hill mine. Oxide ores will be processed at the existing heap leach facility.
Higher-grade sulfide ores will be processed at the Goldstrike roaster facility. Construction
capital is estimated at approximately $75 million over an expected two-year construction phase that
will begin once permitting is secured. The mining fleet has been ordered and permitting work is
ongoing. The first gold pour is targeted for mid2007. At December 31, 2004, the project had proven and probable gold reserves of 17 million tons at
an average grade of 0.059 ounces per ton, for 1 million contained ounces. During 2003 and 2004,
feasibility test-work and technical evaluation focused on dewatering, metallurgy and resource
definition. Australia/Africa Barricks principal Australian operations consist of its Kalgoorlie operations, and its
operating mines located in the Yilgarn District in Western Australia. Barricks Australian project
is its Cowal project located in central New South Wales. Barricks principal African operations
are its Bulyanhulu mine and its Tulawaka mine (which began operation in March 2005), both in
Tanzania. The following table summarizes the production and total cash costs per ounce of the
Australian and African mines. Total Cash Costs  perGold InstituteProduction CostProduction
    
    
    Standard1
    
    
    Total Cash Costs  per US(attributable ounces)
    
    
    ($/oz)
    
    
    GAAP ($/oz)For the years ended 12/31
    
    
    For the years ended 12/31
    
    
    For the years ended 12/312004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Kalgoorlie (50% owned)
    
    
    444,242
    
    
    
    436,098
    
    
    $
    231
    
    
    $
    209
    
    
    $
    234
    
    
    $
    212Plutonic
    
    
    304,468
    
    
    
    333,947
    
    
    
    223
    
    
    
    193
    
    
    
    223
    
    
    
    193Darlot
    
    
    140,235
    
    
    
    154,977
    
    
    
    210
    
    
    
    164
    
    
    
    211
    
    
    
    165Lawlers
    
    
    110,374
    
    
    
    99,223
    
    
    
    246
    
    
    
    249
    
    
    
    247
    
    
    
    250999,319
    
    
    
    1,024,245
    
    
    
    227
    
    
    
    200
    
    
    
    229
    
    
    
    203Bulyanhulu
    
    
    349,865
    
    
    
    313,551
    
    
    
    283
    
    
    
    246
    
    
    
    304
    
    
    
    2601,349,184
    
    
    
    1,337,796
    
    
    $
    241
    
    
    $
    210
    
    
    $
    248
    
    
    $
    216
   1.
    
    For an explanation of the use of non-GAAP performance measures refer to Non-GAAP
Performance Measures. Australia Operating Properties -39-




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##### 



Kalgoorlie Mine General Information The Kalgoorlie operations are located adjacent to the town of Kalgoorlie approximately 550
kilometers east of Perth, Western Australia. Access is by paved road. The mine is located at an
elevation of 420 meters above sea level. Except with respect to the roaster as noted below,
generally, the climate of the area does not impact on the mines operations. Mining operations in
the Kalgoorlie region date back to 1893. Barrick acquired a 50% interest in the Kalgoorlie operations as a result of its merger with
Homestake in 2001. Subsidiaries of Newmont Mining Company (Newmont) own the other 50% interest.
Barrick, through a wholly-owned subsidiary, and Newmont jointly own and control Kalgoorlie
Consolidated Gold Mines Pty Ltd. (KCGM), which manages the operations under the direction of a
joint management committee. Homestake acquired its interest in the original joint venture in 1975.
In 1989, KCGM was formed to assume management of the Mt. Charlotte underground mine and to develop
and operate the Super Pit open pit mine for the joint venture. Mt. Charlotte was scheduled to
cease production in 2003, but mining of residual ore may prolong its life beyond 2005. The Super
Pit mine commenced operations in 1989 and since then over 11 million ounces of gold have been
recovered. Excluding temporary and contract workers, Kalgoorlie employs approximately 500

individuals. Based on existing reserves and production capacity, the expected remaining mine life
of the Super Pit mine is 13 years. The Kalgoorlie properties consist of 58 mining leases and 104 prospecting licenses covering
approximately 23,000 hectares. The mining leases were granted for a term of 21 years on conditions
covering rental, royalties, expenditures, mining practices and rehabilitation. They are renewable
in the final year. There are a number of native title claims relating to the area of the Kalgoorlie
operations, but the validity of those claims has not been determined. Geology The ore deposits mined in the Kalgoorlie goldfields occur within an intensely mineralized
shear zone system in dolerite host rocks, within the Norseman-Wiluna greenstone belt, which is part
of the Yilgarn Block of Western Australia. The rocks are of Archean age. The favorable structural,
metamorphic and lithologic setting in conjunction with hydrothermal activity controlled gold
mineralization. Since 1893, in excess of 50 million ounces of gold have been produced from the
Kalgoorlie properties at depths of up to 1,220 meters from high-grade lodes and adjacent
disseminated mineralization in the Golden Mile Dolerite, and from the large stockwork zones, which
characterize the Mt. Charlotte and Reward (underground) orebodies. Mining and Processing The Kalgoorlie operations consist of the Super Pit open-pit mine and the Mt. Charlotte
underground mine. Ore is treated at the Fimiston mill. Sulphide concentrates produced at the
Fimiston mill are roasted and leached at the Gidji roaster, located approximately 20 kilometers
north of the main Kalgoorlie operations. Gold-laden carbon from the Gidji roaster is sent to the
Fimiston mill for processing. As a result of increasingly stringent sulfur dioxide emissions
constraints and occasional unfavorable weather conditions, from time to time the roaster is unable
to treat all of the sulphide concentrates produced by the
mill. Processing is supplemented by two ultra fine grinding mills which treat concentrate
that cannot be processed by the roaster. Doré is produced on-site and shipped to off-site refiners
for refinement into gold bullion. The Super Pit mine is located along the Golden Mile orebodies
previously mined from underground. Mining at the Super Pit is by open-pit, truck-and-loader mining
methods, with most of the ore and waste being mined on 10-meter benches. -40-




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##### 



In 2004, the mine produced 888,484 ounces of gold, of which the Companys share was 444,242
ounces, at average total cash costs of $231 per ounce. In 2005, the mine is expected to produce
between 870,000 and 880,000 ounces of gold, of which between 435,000 and 440,000 ounces would be
the Companys share, at expected average total cash costs of between $250 and $260 per ounce. The
average grade processed in 2004 was 0.072 ounces per ton. Fresh water is supplied under allocation from the state water system and is piped
approximately 550 kilometers from Perth. Remaining process water requirements are satisfied using
salt water taken from wells and the underground mine. Power is provided under a power supply
agreement with Newmont Power Pty Ltd., a wholly-owned subsidiary of Newmont. Environment At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $22 million. In connection with the
reclamation of the mine area, Barrick has provided financial security as required by governmental
authorities. See Environment and Closure. Exploration, Drilling and Analysis In 2004, the mine exploration program focused on the leases north of the Super Pit, targeting
mineralization in close proximity to the Mt. Charlotte underground operations. A total of 12,390
meters was drilled, including 10,690 meters of diamond core holes and 1,700 meters of
reverse-circulation holes. Several targets were tested during 2004 around the Mt. Percy open cut,
north of the Mt. Charlotte glory hole, and at the Croesus pit for remnant ore. In 2005, exploration will continue to concentrate on the belt extending from Morrison in the
south to Mt. Percy in the north. While the main focus is on the near-mine area, opportunities
further out in the Kalgoorlie region are also being considered. More than 96,000 drill holes have been completed within and around the Fimiston Super Pit,
including 24,530 diamond core holes, 15,005 rotary air blast holes and 53,720 reverse circulation
holes. Drill spacing is 10 by 8 meters in the upper reserve levels (3 benches down) and 20 by 16
meters (down 6 benches) with 60 by 60 meter spaced deeper infill drilling in the Super pit. Drill holes have been sampled mainly on two-meter intervals (65 percent) or one-meter
intervals (30 percent). Samples are assayed for gold by fire assay method. Assaying is performed
by external contract laboratory with both internal check assays and external check assays performed
by an independent umpire laboratory. All drill hole collar, survey and assay information used in modeling and resource estimation
is manually verified and approved by geologic staff prior to entry into the mine-wide database. The quality assurance procedures and assay protocols followed by KCGM in connection with
drilling and sampling on the Fimiston property conform to industry accepted quality control
methods. Capital Expenditures Barricks share of capital expenditures at Kalgoorlie in 2004 was $10 million, primarily for
mining equipment, treatment optimization projects and sustaining capital projects. Capital
expenditures for 2005 -41-




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##### 



are expected to be $18 million (Barricks share), primarily for mining
equipment, tailing facilities, bore fields and sustaining capital. Royalties On July 1, 1998 a gold royalty became payable to the State of Western Australia at a rate of
1.25% on the realized value of gold produced, increasing to 2.5% on July 1, 2000 in respect of all
of the Companys State of Western Australia properties. The realized value is based on the spot
price of gold. From July 1, 2000 through June 30, 2005, the royalty rate has been reduced to 1.25%
during calendar quarters when the spot gold price is less than A$450 per ounce. At December 31,
2004, the spot gold price was A$560 per ounce. There are no other royalties currently payable on
production from the Kalgoorlie operations. Production Information The following table summarizes certain production and financial information for the Kalgoorlie
operations for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    90,918
    
    
    
    97,354Tons of ore processed (000s)
    
    
    14,284
    
    
    
    14,342Average grade processed (ounces per ton)
    
    
    0.07
    
    
    
    0.07Recovery rate (%)
    
    
    86.6
    
    
    
    85.8Ounces of gold produced (000s)
    
    
    888
    
    
    
    872Ounces of gold produced (000s) -
Barricks share (1)
    
    
    444
    
    
    
    436Average total cash costs per ounce
    
    $
    231
    
    
    $
    209
   (1)
    
    Represents Barricks 50% ownership interest. -42-




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##### 



(KALGOORLIE CONSOLIDATED GOLD MINES MAP) Yilgarn District The Yilgarn district consists of the Plutonic, Darlot and the Lawlers mines. Barrick acquired
the mines through its merger with Homestake in 2001. Homestake acquired each of these mines as an
operating mine in its 1998 merger with Plutonic Resources Limited. Plutonic Resources Limited
itself was incorporated as Noranda Limited in Victoria in 1984 and listed on the Australian
Associated Stock Exchange in August 1985. In 1989, it acquired the Plutonic property in Western
Australia following discovery of a gold deposit in 1988. It subsequently explored, developed and
constructed the Plutonic mine, which commenced production in August 1990. The Darlot mine covers an
extensive goldfield discovered more than 100 years ago. The Lawlers mine has operated since 1986. Plutonic Mine A wholly-owned subsidiary of Barrick owns the Plutonic gold mine, which is located
approximately 180 kilometers northeast of Meekatharra, Western Australia, and approximately 13
kilometers from the Great Northern Highway. Staff employees and contract personnel work on a
fly-in-fly-out rotation basis. Excluding temporary and contract workers, the mine employs
approximately 370 people. Based on existing reserves and production capacity, the expected
remaining mine life is 9 years. The Plutonic mine consists of both open-pit and underground operations. Underground operations
are the primary source of ore, although open-pit mining of several smaller pits continues. Ore
mined from the underground and the open pits is being supplemented with ore from stockpiles. Ore is
treated at the on-site mill, which operates both sulphide and oxide circuits. Doré is produced
on-site and shipped to off-site refiners for refinement into gold bullion. -43-




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##### 



The mine produced 304,468 ounces of gold during 2004 at average total cash costs of $223 per
ounce. In 2005, the mine is expected to produce between 315,000 and 320,000 ounces at expected
average total cash costs of between $250 and $260 per ounce. The average grade processed in 2004
was 0.13 ounces per ton. At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $1.6 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. With the exception of the royalty payable to the State of Western Australia described under 
- Kalgoorlie Operations, the underground operations are not subject to any royalties. However, 16
mining leases which contain a relatively small proportion of the mines overall reserves and
resources are subject to a sliding-scale royalty based on tonnage and grade. The following table summarizes certain production and financial information for the Plutonic
mine for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    13,721
    
    
    
    14,180Tons of ore processed (000s)
    
    
    2,662
    
    
    
    3,010Average grade processed (ounces per ton)
    
    
    0.13
    
    
    
    0.12Recovery rate (%)
    
    
    90.0
    
    
    
    89.9Ounces of gold produced (000s)
    
    
    304
    
    
    
    334Average total cash costs per ounce
    
    $
    223
    
    
    $
    193
 Darlot Mine A wholly-owned subsidiary of Barrick owns the Darlot gold mine, which is an underground mine
located approximately 113 kilometers north of Leonora, Western Australia. The Darlot mine is a
fly-in-fly-out operation with staff employees and contractor personnel working on a rotation basis.
Excluding temporary and contract workers, the mine employs approximately 155 workers. Based on
existing reserves and production capacity, the expected remaining mine life is 8 years. Ore is treated at the on-site mill. Doré is produced on-site and shipped to off-site refiners
for refinement into gold bullion. In 2004, the mine produced 140,235 ounces of gold at average total cash costs of $210 per
ounce. In 2005, the mine is expected to produce between 125,000 and 130,000 ounces of gold at
expected average total cash costs of between $245 and $255 per ounce. At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $1 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. With the exception of the royalty payable to the State of Western Australia described under -
Kalgoorlie Operations, the Darlot mine is not subject to any royalties. -44-




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##### 



The following table summarizes certain production and financial information for the Darlot
mine for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    896
    
    
    
    876Tons of ore processed (000s)
    
    
    861
    
    
    
    879Average grade processed (ounces per ton)
    
    
    0.17
    
    
    
    0.18Recovery rate (%)
    
    
    95.8
    
    
    
    96.9Ounces of gold produced (000s)
    
    
    140
    
    
    
    155Average total cash costs per ounce
    
    $
    210
    
    
    $
    164
 Lawlers Mine A wholly-owned subsidiary of Barrick owns the Lawlers gold mine, which is located
approximately 120 kilometers northwest of Leonora, Western Australia. The mine is a fly-in-fly-out
operation with staff employees and contractor personnel working on a rotation basis. Excluding
temporary and contract workers, approximately 150 workers are employed at Lawlers. Based on existing reserves and
production capacity, the expected remaining mine life is 4 years. The Lawlers mine consists of both underground and open pit operations. The primary sources of
ore at present are from underground operations situated approximately 15 kilometers from the mill
and are supplemented by open pit mining. Ore from stockpiles supplements the underground and open
pit feed. Prior to 2003, contractors performed the mining. The mine moved to owner mining in the
first quarter of 2003. Ore is treated at the on-site mill, which processes both sulphide and oxide
ores. Doré is produced on-site and shipped for refinement into gold bullion. The mine produced 110,374 ounces of gold during 2004 at average total cash costs of $246 per
ounce. In 2005, the mine is expected to produce between 105,000 and 110,000 ounces of gold at
expected average total cash costs of between $270 and $280 per ounce. The average grade processed
in 2004 was 0.13 ounces per ton. At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $2.6 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. With the exception of the royalty payable to the State of Western Australia described under -
Kalgoorlie Operations, the Lawlers mine is not subject to any royalties. The following table summarizes certain production and financial information for the Lawlers
mine for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    3,365
    
    
    
    1,152Tons of ore processed (000s)
    
    
    866
    
    
    
    806Average grade processed (ounces per ton)
    
    
    0.13
    
    
    
    0.13Recovery rate (%)
    
    
    96.1
    
    
    
    95.8
 -45-




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##### 



Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Ounces of gold produced (000s)
    
    
    110
    
    
    
    99Average total cash costs per ounce
    
    $
    246
    
    
    $
    249
 Projects Cowal Project General A wholly-owned subsidiary of Barrick owns the Cowal project, which is located in Central New
South Wales, Australia, approximately 32 kilometers north of West Wyalong and approximately 350
kilometers west of Sydney. Cowal was acquired in 2001 by Homestake from Rio Tinto following Rio
Tintos acquisition of North Limited. Barrick acquired Cowal in connection with its acquisition of
Homestake. The general landscape is flat to undulating hills. The property can be accessed by
road. The Cowal region is located on the boundaries of the south eastern semi-arid and the south
eastern temperate regions of Australia. Generally, the climate of the area is not expected to
materially impact the mines operations. Based on a feasibility study and environmental impact statement completed in 1998, the project
was awarded Development Consent by the New South Wales government in February 1999. The approved
project envisages the development of an open pit to a depth of approximately 335 meters, and
process facilities designed to treat approximately 6.5 million tons of ore per year by a
combination of conventional carbon-in-leach and sulphide flotation technologies. Geology The Cowal project is located in the Lachlan Fold Belt of central New South Wales. This
Ordovician volcanic belt contains high K calc-alkaline to shoshonitic volcanics and intrusives
which host porphyry, epithermal and mesothermal style gold deposits. The E42 deposit is the largest
of several drill-identified deposits that are located on the western edge of the Lake Cowal
complex. The deposits occur in favourable lithologies and structural settings within a north-south
corridor adjacent to a large body of diorite-gabbro. Low grade porphyry copper mineralization
occurs in parts of the diorite-gabbro intrusive to the south of the gold deposits. The rocks in the E42 project area do not outcrop as they are obscured under a cover of
Quaternary sediment comprised of lacustrine clay with some sand and gravels. The E42 deposit is
hosted by a suite of Ordovician age northeast striking and northwest dipping (50°) volcanic
sediments and lavas (informally known as the Lake Cowal Volcanics) set in an embayment of the major
regional north-south trending diorite. The diorite is also mineralized. At the E42 deposit the Lake
Cowal Volcanics have been informally subdivided into three conformable stratigraphic units. The
basal unit (Cowal Conglomerate Unit) consists of massive to graded beds of coarse polymictic
volcanic debris interbedded with laminated siltstone and mudstone. The central unit (Golden Lava
Unit) consists of porphyritic trachyandesite lava and autobreccias. The youngest and upper unit
(Great Flood Unit) consists of predominantly massive to graded pyroclastic debris and laminated
sediments. The units and diorite are intruded by diorite/gabbro stocks and porphyritic mafic to
intermediate dykes. The host sequence is offset by two major fault sets  a 340° steeply dipping
strikeslip set and a 290°  300° moderately north dipping normal fault set. Gold mineralization occurs predominantly in shallow south dipping dilational tensional
auriferous quartz-carbonate-sulphide vein sets striking west northwest and dipping southwest.
Individual mineralized veins are not laterally continuous, although vein sets are continuous, being
controlled by fault -46-




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##### 



proximity, rheology and chemistry of host rocks. All rocks in the deposit area
except possibly some of the dykes are mineralized. The central Lava, the basal Cowal Conglomerate
and diorite are the most strongly mineralized. Vein density is extremely variable, ranging from two
to five per meter to one per several meters. The individual vein thickness varies from millimeters
to centimeters. The surface of the deposit has been weathered to an average depth of about 40
meters but weathering depth ranges up to 100 meters on the eastern side of the deposit. The upper
part of the weathered zone includes commonly ferruginous mottled and pallid clays referred to as
soft oxide. Below the soft oxide the weathered bedrock is referred to as the hard oxide. Development The Companys Board of Directors approved full project construction in February 2004. Capital
expenditures during 2004 totaled $73 million and included the completion of the construction of the
water supply pipeline and the drilling of pit dewatering bores. Barrick has also ordered the
projects major mining equipment items. During 2004, Barrick awarded the contract for the projects
electricity transmission line and work on the transmission line has commenced. There is continuing opposition to the project from several local individuals and organizations
that has the potential to affect the timing of the mine construction schedule. The construction costs for the project are estimated at approximately $305 million. The
arrival of major mining equipment and mill components, mine stripping and the completion of the
process plant are scheduled for 2005. Capital expenditures for 2005, including capitalized
interest, are expected to be approximately $268 million. During the first three full years of
production, Cowal is expected to produce approximately 230,000 ounces of gold per year at expected
average total cash costs of approximately $240 per ounce, with production expected to commence in the first
quarter of 2006. Estimated total cash costs are sensitive to exchange rate fluctuations  a
stronger Australian dollar would result in higher total cash costs. Exploration, Drilling and Analysis At December 31, 2004, the project had proven and probable gold reserves of 63.6 million tons
at an average grade of 0.039 ounces per ton, for 2.5 million contained ounces. Since the
acquisition of Cowal in July 2001, Barrick has completed a technical program, including drilling
and engineering studies, to optimize the feasibility study. The exploration strategy for the Cowal
is to optimize the mining opportunities within the mining lease and develop a geological platform
for exploration in the greater region. A total of 20,851 meters of diamond core drilling has been
completed. The drilling program was focused on infill drilling of the E42 ore body to a 30-meter by
40-meter pattern, to assist in planning for the start of operations. More than 1,000 drill holes have been completed in the Cowal project resource area. The
majority of these holes are diamond core holes with the remainder being reverse circulation
percussion holes. Drill hole samples are collected at one-meter intervals. All samples taken
since the acquisition of the property by Barrick have been prepared and analyzed by external
laboratories. All drill hole collar, survey and assay information used in modeling and resource
estimation are manually verified and approved by geologic staff prior to entry into the mine-wide
database. The quality assurance procedures and assay protocols followed by Barrick in connection
with drilling and sampling on the Cowal property conform to industry accepted quality control
methods. -47-




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##### 



Royalties The Cowal property is subject to a royalty payable to the state of New South Wales, Australia
of 4% of mine revenue less certain costs including portions of operating, administration, refining
and depreciation. Africa Operating Properties Bulyanhulu Mine General Information The Bulyanhulu gold mine is located in northwestern Tanzania, East Africa, approximately 55
kilometers south of Lake Victoria and approximately 150 kilometers from the city of Mwanza. Barrick operates the Bulyanhulu property through its wholly-owned subsidiary Kahama Mining
Corporation Limited (Kahama). Bulyanhulu, which is an underground gold mine, was purchased
through Barricks acquisition of Sutton Resources Ltd. in March 1999. The property is located in essentially flat topography on the Victoria Greenstone Belt.
Generally, the climate of the area does not impact on the mines operations. However, a lack of
precipitation can have an impact on the mines power supply and, as a result, certain of its
operations. The property can be accessed by road or by air. An airstrip has been located on the
property. The property can be accessed by road from Mwanza or from the south via an approximately
72 kilometer road, which connects to the main paved highway to Dar es Salaam, and to a railway
line. Gold was first discovered at Bulyanhulu in 1976. In 1994, after several exploration efforts,
the Government of Tanzania entered into a development agreement and granted a prospecting license
to Kahama (then a subsidiary of Sutton Resources Ltd.). Kahama began conducting on-site work,
including geochemical and geophysical surveys, in September 1994 and commenced drilling in January
1995. From June 1998 through to March 1999, various work was completed (including construction of
camp facilities, certain infrastructure, earthworks, development of an underground ramp for test
mining and commencement of level development). Excluding temporary and contract workers, the mine
employs approximately 1,400 people. Reflecting the general labour shortage in the resource
industry, Bulyanhulu competes with other employers over the small pool of qualified staff who are
willing to work in remote areas such as where the mine is located. At the time of acquisition in 1999 by Barrick, proven and probable mineral resources were
approximately 3.6 million ounces of gold. At the end of 2004, Bulyanhulu had 10.6 million ounces of
proven and probable gold reserves. Drill results to date indicate that grades improve at depth. The
current reserves are concentrated on one reef but significant exploration potential has been
identified on two other reefs on the property. Based on existing reserves and production capacity,
the expected remaining mine life is approximately 24 years. Geology At Bulyanhulu, the geology consists of mafic volcanic flows overlain by a series of
pyroclastics and ash tuffs. Argillite is present at the contact between the mafic and felsic rocks.
The gold, silver and copper mineralization on the property occurs in mineralized reefs or quartz
veins localized along steeply dipping northwest striking structures, generally localized in the
argillite units. The zone strikes 310 degrees and dips steeply to the northeast. The mineralization
has been defined over a strike length of 5 -48-




---



##### 



kilometers and averages 2 to 3 meters wide. The most significant structure discovered on the
property to date is Reef 1 and it contains the bulk of the mineral reserves defined to date. Mining and Processing Bulyanhulu is an underground trackless mining operation using long hole and drift-and-fill as
its principal stoping methods. Ore reserves are accessed via a surface shaft and an internal ramp
system. The 3,250 tonnes per day (3,575 tons per day) plant consists of a crushing and grinding
circuit, a copper/gold/silver flotation circuit, a tailings thickening/filtration circuit and a
tailings storage facility. As a result of delays in customs clearance, the mine has experienced
delays in receiving materials for the mine. Barrick is currently working on establishing a customs
clearance point at the mine itself. Power to the property is supplied through a 220-kilovolt overhead line connecting the property
to the Shinyanga Station and is purchased pursuant to a contract with the Tanzanian Electric Supply
Company, Ltd. that expires in September 2005. The Company expects to renew the power contract in
the ordinary course. During the year, a lack of rain has resulted in an occasionally unstable power
supply for the mines operations. The impact of this unstable power supply has been somewhat
mitigated, at a higher cost, by the mines own power generation. Water is supplied through a 48
kilometer pipeline from Lake Victoria to the property. In 2004, the mine produced 349,865 ounces of gold at average total cash costs of $283 per
ounce. In 2005, production is expected to be between 340,000 and 350,000 ounces of gold at
expected average total cash costs of between $285 and $295 per ounce. Gold recoveries during 2004
averaged 88%, reflecting improvements made to the flotation circuit of the plant. The average
grade processed in 2004 was 0.35 ounces per ton. Environment At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the Consolidated Financial Statements), for the property was $7.6 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. Exploration, Drilling and Analysis Diamond drilling is the primary method of exploring the Bulyanhulu deposit. During 2004,
Barrick re-activated the exploration-drilling program at Bulyanhulu. The objective of the program
was to add to the resources and/or reserves of the mine. In July 2004, drilling began on the Reef 1
deep western down-plunge extension; Reef 2 down-dip extension; and Reef 2 eastern strike extension.
By November 2004, 16,193 meters of diamond drilling had been completed. The most significant
intersections occur in the Reef 2 horizon  east. Holes have been drilled on a regular grid with a spacing of 25 meters above the 4,850 meter
elevation (with the adjusted mine grid surface elevation being 5,000 meters), spacing of 50 to 100
meters down to the 4,450 meter elevation, and 100 to 150 meters below the 4,450 meter elevation.
Drilling is done from the hanging wall to the footwall at inclined angles between 45 and 87
degrees. Exceptions are reverse circulation and geotechnical holes, which are drilled vertically.
Maximum vertical depth drilled to date is 2,225 meters. The resources/reserves replacement program
will continue in 2005. Approximately 17,000 meters of diamond drilling are planned on Reef 1, most
of it to be performed from the surface. -49-




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##### 



Approximately 12,000 meters of diamond drilling are planned for Reef 2, with most of it to be
done from underground. The drilling program to date has turned Bulyanhulu into at least five distinct deposits: the
Main, West and East Zones, Reef 2 and Reef 0. The Main Zone hosts the majority of the existing
mineral reserves and is open at depth. The East Zone was discovered in 2000, is estimated to
contain 1.2 million ounces of gold and is open to the east, west and at depth. The West Zone is
estimated to host almost 2 million ounces and is open at depth and to the west. Reef 0, is located
about 10 meters from the current Main Zone between Reef 1 and Reef 2. Reef 2 consists of a series
of mineralized structures located approximately 500 meters from Reef 1. The exploration program for 2004 consisted of infill drilling around existing reserves to
facilitate mine planning and scheduling of operations. Sampling intervals are based on geological
units and mineralized zones; otherwise minimum and maximum widths for sampling are 0.5 meters and 1
meter respectively. All samples are prepared and assayed for gold at independent laboratories in
Canada and Tanzania. A standard fire assay method is used, and high-grade samples are checked with
Metallic Screen Fire Assay. Every twentieth sample submitted to the lab is either a blank or a
standard, and results are reviewed by an independent auditor, who requests assay repeats where
required. Samples are routinely sent to other labs for testing. Quality assurance procedures and assay protocols followed by Barrick in connection with
drilling and sampling on the Bulyanhulu property conform to industry accepted quality control
methods. Bulyanhulu is the hub of Barricks district development program in Tanzania. The Companys
objective is to discover, develop and produce gold from this new gold district. Capital Expenditures Capital expenditures in 2004, primarily for completing and equipping the shaft, mine
development and process plant modifications totalled $46 million. 2005 capital expenditures are
expected to total $34 million, mainly for mine development, underground mining equipment and
infrastructure. Royalties The Bulyanhulu property, under Article 86 of the 1998 Mining Act of Tanzania, is obligated to
pay to the government a royalty of 3% on the net back value of minerals produced from the
property. Net back value means the market value of minerals freight-on-board at the point of
export from Tanzania, less: (a) the cost of transport, including insurance and handling charges,
from the mining area to the point of export or delivery; and (b) the cost of smelting and refining
or other processing costs unless such other processing costs relate to processing normally carried
out in Tanzania in the mining area. Pledge of Assets Drawdown on the mines limited recourse $200 million facility was completed in the second
quarter of 2001. Repayment consists of fourteen consecutive semi-annual installments falling due on
June 15 and December 15 of each year, with the first installment of $6 million paid on December 15,
2002. This facility is insured for political risks equally by branches of the Canadian government
and World Bank. Substantially all the assets of Kahama, including the Bulyanhulu property, have
been pledged as security under the loan. The effective interest rate for 2004 was 8.0%. The
effective interest rate includes payments made under an interest-rate swap that matches the loan
principal over the term to repayment, which fixes the rate for the
term of the debt at approximately 7%. -50-




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##### 



Production Information The following table summarizes certain production and financial information for the Bulyanhulu
mine for the periods indicated: Year ended
    
    
    Year endedDecember 31, 2004
    
    
    December 31, 2003Tons mined (000s)
    
    
    1,118
    
    
    
    945Tons of ore processed (000s)
    
    
    1,123
    
    
    
    980Average grade processed (ounces per ton)
    
    
    0.35
    
    
    
    0.36Recovery rate (%)
    
    
    88.4
    
    
    
    88.1Ounces of gold produced (000s)
    
    
    350
    
    
    
    314Average total cash costs per ounce
    
    $
    283
    
    
    $
    246
 -51-




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##### 



(BULYANHULU MINE MAP) Tulawaka Mine The Tulawaka property was obtained by Barrick through the acquisition of Pangea Goldfields
Inc. in June 2000. Barricks wholly-owned subsidiary, Pangea Minerals Ltd., a wholly-owned
subsidiary of Pangea Goldfields Inc., received approval of an Environmental Impact Assessment in
September 2003 and was granted a Mining License in November 2003 from the United Republic of
Tanzania. The Development Agreement was signed on December 29, 2003, by the Tanzanian Minister of
Energy and Minerals and provides for fiscal stability under the current regulations for the
duration of the mines life. Tulawaka is a 70/30 joint venture between Pangea Goldfields Inc., a wholly-owned subsidiary of
Barrick, and Northern Mining Explorations Ltd. The mine is located approximately 1,000 kilometers
from Dar es Salaam and 100 kilometers from Barricks Bulyanhulu mine. Excluding temporary and
contract -52-




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workers, approximately 150 people were employed at Tulawaka at December 31, 2004. At full
capacity, Tulawaka will employ approximately 300 people. The Tulawaka mine is an open pit operation with approximately half of the gold being recovered
using gravity separation technology and the balance from conventional carbon in leach technology.
Construction of various mine facilities was substantially completed during 2004. The mine commenced
production in March 2005. Tulawaka contains approximately 382,000 ounces (70% share) of gold in proven and probable
reserves with 1.1 million tons of ore at a grade of 0.355 ounces per ton. Its construction cost
will be approximately $38 million (70% share). The mine life is currently expected to be four
years. During the first three full years of production, gold production is expected to average
approximately 90,000 ounces of gold (70% share) annually and average total cash costs are expected
to be approximately $180 per ounce. In 2005, production is expected
to be between 85,000 and
90,000 ounces (70% share) of gold at expected average total cash costs of between $175 and $185 per
ounce. South America Barricks principal South American operation consists of its Pierina mine. Barricks
principal South American development projects consist of the Lagunas Norte project, located in the
Alto Chicama District, the Veladero project and the Pascua-Lama project. The following table
summarizes the production and average total cash costs per ounce of the Pierina mine. Total Cash Costs  perGold Institute
    
    
    Total Cash Costs - perProduction
    
    
    Production Cost
    
    
    US GAAP(attributable ounces)
    
    
    Standard 1($/oz)
    
    
    ($/oz)For the years ended
    
    
    For the years ended
    
    
    For the years ended12/31
    
    
    12/31
    
    
    12/312004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Pierina
    
    
    645,874
    
    
    
    911,723
    
    
    $106
    
    
    $83
    
    
    $111
    
    
    $87
   1.
    For an explanation of the use of non-GAAP performance measures refer to Non-GAAP Performance
Measures. Pierina Mine General Information A wholly-owned subsidiary of Barrick owns the Pierina mine, which is located in the Andean
Cordillera in the Department of Ancash, in north central Peru, approximately 10 kilometers
northwest of the city of Huaraz, at an altitude of approximately 4,100 meters. The property is
characterized by sloping to moderately steep, undulating topography. Generally, the climate of the
area does not impact on the mines operations. The mine is accessed by an approximately 16
kilometer gravel road from Huaraz. The mine comprises a total area of approximately 3,530 hectares.
The property was acquired by Barrick through the acquisition of Arequipa Resources Ltd. in August
1996. The Company owns surface rights and mining concessions covering 5,400 hectares in respect of
the Pierina mine. In Peru, mining concessions grant the holder the right to explore for and exploit
mineral deposits. The mine commenced production in November 1998. Based on existing reserves and
production capacity, the remaining mine life is approximately 4 years. The mine employs
approximately 370 people. Barrick is continuing its efforts to strengthen its relationship with
the surrounding communities through its community -53-




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development programs. Recently, some local interests have engaged in protests in the vicinity
of the mine, seeking additional benefits from Barricks mining activities. Geology The Pierina mine is located in an approximately 70 kilometer long, northwest-trending
extensional zone coincident with the Rio Santa valley. Known deposits within this mineral belt
include gold, silver, copper, lead and zinc. Gold and silver mineralization at Pierina is found in
the Tertiary-aged Calipuy volcanics. The base of the Tertiary rocks are andesite lavas. These are
overlain by rhyodacite pumice and lithic tuffs. Faults that control mineralization in the deposit
trend north-northwest, west-northwest and northeast. The gold and silver is predominantly found in the rhyodacite pumice tuff with lesser amounts
in the overlying lithic tuff and the underlying andesite. The high-grade areas of the deposit are
associated with vuggy silica alteration. This alteration type is surrounded by quartz-alunite and
argillic alteration. Ore-grade mineralization in the pumice tuff occurs over intervals of more than
260 meters. The area of currently known mineralization at Pierina measures approximately 450 meters
wide by 1,200 meters long and is presently open to the southeast. Over 95% of the known
mineralization at Pierina is oxide. However, sulfide feeder zones have been intersected at the
bottom of the deposit. Mining and Processing The orebody is being mined as an open pit, truck-and-loader operation, at an average mining
rate of approximately 109,905 tons per day in 2004. Ore is crushed and then transported via an
overland conveyor to the leach pad area. Run-of-mine ore is trucked directly to the leach pad. The
leach pad is a classic valley-fill type pad. Recovered gold is smelted into doré on-site and
shipped to an outside refinery for processing into bullion. Power is provided by a utility company
through a 138-kilowatt line connected to the Canyon del Pato 150-megawatt hydroelectric generating
plant, located approximately 90 kilometers from the mine. The waste rock disposal area and leach pad facilities are contained within one valley,
limiting potential environmental impacts. The operations management and protection of surface
water and ground water resources are designed to ensure that residents downstream of the site are
not adversely affected. Mining activity is focused on three laybacks: layback 2, which will be completed mid-2005;
layback 3, which is expected to be mined through mid-2006; and layback 4, which is expected to be
mined into 2007. Mining of layback 5 is expected to begin in the first quarter of 2006 and is expected
to be mined through to the end of the mines life. In 2004, the identification of a pit wall
instability on the southern/west wall of the pit required a modification to the mine plan to reduce
the risk of a pit wall failure. In 2004, the average grade placed on the heap leach pad was 0.034 ounces per ton. The Pierina
mine produced 645,874 ounces of gold at average total cash costs of $106 per ounce in 2004. 2005
production is expected to be between 620,000 and 625,000 ounces of gold at expected average total
cash costs of between $140 and $150 per ounce. The increase in expected total cash costs from 2004
is primarily due to longer haul cycles and increased waste tonnage as the ore to waste ratio
increases. Environment At December 31, 2004, the recorded amount of estimated future reclamation and closure costs
that were also asset retirement obligations, as defined in FAS 143 (as described in note 17(a) to
the -54-




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Consolidated Financial Statements), for the property was $60 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. Exploration, Drilling and Analysis In 2004, Barrick continued its development drilling program at Pierina, focusing on the west
wall and southeast margin of the main Pierina ore body. As a result of this drilling, over 400,000
ounces of gold were added to reserves. In 2005, Barrick will continue development drilling of
certain targets identified in 2002. As at December 31, 2004, over 988 drill holes have been
completed in the Pierina area. About 14 percent of these are diamond core drill holes and the
remainder are reverse circulation rotary holes. Reverse circulation holes have been drilled on
approximately 45-meter centers. Diamond core holes have been used to reduce that spacing to 25
meters locally. While some early drilling was sampled on 2-meter intervals, the majority has been
sampled on 1-meter intervals. Exploration on the Pierina property has been conducted using surface mapping and sampling,
geophysical methods and drilling. Exploration during 2004 focused on targets identified in 2002
and 2003 that are in areas to the northwest and south of the Pierina deposit. This work included
surface mapping and sampling, geophysical methods and drilling. Eight diamond drill core holes were
completed in the northern area, with 1,620 meters drilled. Assay results were not promising and no
further work is planned in 2005. Twelve reverse circulation holes were completed south of the mine,
with 2,740 meters drilled. In 2005, exploration will focus on targets near the mine. As with
development drilling, some early drill holes were sampled at 2-meter intervals however, the
majority have been sampled at 1-meter intervals. Both development and exploration samples have been prepared and fire assayed for gold by an
independent Peruvian laboratory at its facilities in Lima. The quality assurance procedure followed
at the Pierina property conform to industry accepted quality control methods. Capital Expenditures In 2004, capital expenditures for the Pierina property were $8 million, including sustaining
capital expenditures the leach pad expansions and upgrading certain processing facilities. For
2005, capital expenditures are expected to be $9 million for new equipment and other programs. Royalties The Pierina mine is not subject to royalties. Production Information The following table summarizes certain production and financial information for the Pierina
mine for the periods indicated: -55-




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Year ended
    
    Year endedDecember 31, 2004
    
    December 31, 2003Tons mined (000s)
    40,225
    
    39,501Tons of ore processed (000s)
    16,746
    
    15,786Average grade processed (ounces per ton)
    0.03
    
    0.07Ounces of gold produced (000s)
    646
    
    912Average total cash costs per ounce
    $      106
    
    $      83
 (PIERINA MINE MAP) Projects -56-




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Lagunas Norte Project General Information The Lagunas Norte project, on the Alto Chicama property, is located 140 kilometers east of the
coastal city of Trujillo, Peru, and 175 kilometers north of Barricks Pierina mine. The property
is located on the western flank of the Peruvian Andes and is at an elevation of 4,000 to 4,260
meters above sea level. The area is considered to have a mountain climate. Generally, the climate
of the area is not expected to impact on the mines operations. Vegetation consists of small
shrubs and grasses. The property is accessible year round by road from both Trujillo and
Huamachuco, Peru, and consists of approximately 18,550 hectares. The Alto Chicama region has been actively mined for coal since the 19th century, principally
for domestic consumption. In 1990, Minero Peru S.A. (CENTROMIN Peru S.A. (Centromin)) constructed
a camp to re-evaluate the previous carbon operations. The Alto Chicama region hosts a low grade
anthracite coal deposit, but it was not developed due to the availability of cheaper sources of
energy elsewhere. Centromin, the State mining company, conducted field surveys in 1999 and
concluded there was potential for other mineralization on the property, including gold. Barrick began exploring the Alto Chicama property, located in north-central Peru, in the first
quarter of 2001. Barricks wholly-owned subsidiary, Minera Barrick Misquichilca S.A. (MBM)
signed the Public Deed of the Mining Option Contract with Centromin on March 28, 2001 and exercised
its option to acquire the property in December 2002, with the result that the Company now holds the
mining rights to the property. The rights have no expiry date as long as the annual land payments
(currently $3.00 per hectare) are made. Barrick submitted an Environmental Impact Study (EIS)
for the project in September 2003. Approval of the EIS by the Ministry of Energy and Mines was
received in April 2004. As is the case with the Pierina mine, Barrick has an extensive community
development program associated with this project. Still, in the current political environment in
Peru, it is expected that Barrick may experience some level of opposition and protest from local interests seeking additional
benefits from this development. Geology The regional geology of the Alto Chicama area is dominated by a thick sequence of Mesozoic
marine clastic and carbonate sedimentary rocks and andesitic and dacitic volcanic rocks of the
Tertiary Calipuy Group. The Mesozoic sequence is unconformably overlain by the Tertiary Calipuy
volcanic rocks and cut by numerous small intrusive bodies. The Mesozoic sequence has been affected
by at least one and probably two stages of compressive deformation during Andean orogenesis. The Lagunas Norte mineralization occurs on the 185 square kilometer Alto Chicama property. The
mineralization is of the high sulphidation type. It is disseminated and hosted in volcanic and
sedimentary breccias and tuffs. The mineralization outcrops and has been defined over an area of
1,600 meters long by 750 meters wide and up to 300 meters deep. It is open to the south and
southeast. Development Barrick commenced a field program at the Alto Chicama property in March 2001, which included
geologic mapping, geochemical sampling and ground geophysics and resulted in the identification of
areas for drill testing. A diamond drill program commenced in mid-2001 and identified the Lagunas
Norte deposit. -57-




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The Lagunas Norte project is being built as an open pit mine and heap leaching operation,
using equipment, facilities and processes which have been proven in similar commercial applications
throughout the world, including at Barricks Pierina mine. Recovered gold will be smelted into
doré on-site and shipped to an outside refinery for processing into bullion. Permanent electric
power will be supplied from the Peruvian grid by way of a new power line extended from Trujillo to
the camp facilities. The fresh water requirements of the project will be supplied by wells,
supplemented by surface run-off if required. With the approval of the EIS and the receipt of the projects principal construction permit,
construction began in the second quarter of 2004, with production expected for the third quarter of
2005. The expected construction cost for the project is $340 million. At December 31, 2004,
approximately 70% of the projects construction was complete. During 2004, Barrick purchased
approximately $40 million of mine equipment. In January 2005, the projects power line was
completed and energized. In 2005, Barrick expects to complete the leach pad and crushing facility. Including
capitalized interest, capital expenditures are expected to be approximately $147 million in 2005.
In September 2004, MBM established a $56 million capital lease program with Citibank del Peru S.A.
to partially finance the construction of certain assets at Lagunas Norte. The lease has a term of
five years and is non-recourse to Barrick Gold Corporation. In November 2004, MBM filed an
initial shelf prospectus relating to up to $150,000,000 aggregate principal amount of bonds with
CONASEV, the National Supervisory Commission of Companies and Securities in Peru. In March 2005,
MBM filed an amended shelf prospectus with CONASEV. MBM expects to use the proceeds from the bond
program to finance construction and development costs of Lagunas Norte and for other general
corporate purposes. The
Lagunas Norte project is anticipated to produce on average
approximately 800,000 ounces of gold annually
at expected average total cash costs of approximately $155 per ounce during the first three full
years of the projects life. Based on existing reserves and production capacity, the expected mine
life is 10 years. Barrick has obtained property rights for the majority of the surface land which will be
affected by the project. However, legal title and certain possessory interests remain outstanding
and are the subject of on-going applications, negotiations or discussions, which Barrick expects
will be successfully concluded in the ordinary course. Through its experience in constructing and
operating the Pierina mine, however, Barrick is familiar with the statutory, regulatory and
procedural framework governing the environmental approval and permitting process for new mining
projects in Peru. Based on Barricks experience to date, the Company expects that any remaining
surface access and other rights required for development, and all remaining permits and approvals
required for construction and operation, will be obtained in a timely fashion and in the ordinary
course of business. In January 2005, Barrick entered into a Legal Stability Agreement with the
Peruvian government. The Legal Stability Agreement provides increased certainty with respect to
foreign exchange and the fiscal administrative regime for 15 years. Exploration, Drilling and Analysis At December 31, 2004, Lagunas Norte had proven and probable reserves of 9.1 million ounces of
gold. As of the end of 2004, 767 exploration holes had been drilled, totaling 166,891 meters of
drilling. Initial drill hole spacing of 200 meter centers has been reduced to 100 meter centers,
and completed to 62 meter centers. Drill hole collars have been surveyed, and down-hole Sperry Sun
surveys conducted on the holes, with data collected approximately every 50 meters. Core is placed
in metal trays at the drill site and transported to the field camp. Geological logs of all core
are then compiled on handheld computers, using standardized rock codes and descriptive information
developed by Barrick geologists. Changes to the standardized rock codes and other descriptions can
be made only if approved by senior members of the geological staff. Data recorded on the handheld
computers are downloaded to the main server at the -58-




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end of every shift, reviewed, field checked if necessary, and then incorporated into the main
database. Generally, sample lengths vary from 0.3 meters to 4.0 meters. A total of 125,833
samples have been taken for the entire diamond drill program. The average sample length is 1.3
meters. Samples are prepared on-site and fire assayed at an independent laboratory in Lima, Peru.
Industry standard quality assurance and quality control procedures, including standards, duplicates
and check assays, are employed. Royalties Under the terms of the agreement with Centromin, Barrick has paid Centromin an advance
contractual royalty of $2 million, which will be a credit against Centromins retained net smelter
royalty of 2.51%. The following diagram sets out the planned design and layout of the Lagunas Norte project. -59-




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(LAGUNAS NORTE PROJECT MAP) Veladero Project General The Veladero property is located in San Juan Province, Argentina, immediately to the south of
the Pascua-Lama property, approximately 370 kilometers by road northwest of the city of San Juan.
Barrick evaluated unified development opportunities following its merger with Homestake. Based on
this effort, Barrick redesigned the Veladero project, as previously designed by Homestake, and
incorporated exploitation of the Filo Norte deposit (which was situated within the boundaries of
the Pascua-Lama property before the merger) as part of the Veladero project. The Veladero project
is a combination of two properties: (i) the Veladero mining claims, controlled by an indirect,
wholly-owned, subsidiary of Barrick under the terms of an Exploitation Contract signed with the
Instituto Provincial de Exploraciones y -60-




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Explotaciones Mineras de la Provincia de San Juan (IPEEM), the Provincial entity owner of
these mining claims, and ii) Mina Ursulina Sur Mine claim, owned and controlled by the subsidiary
of Barrick. Barrick exercised its option to enter into an exploitation contract with IPEEM in July
2003, in accordance with the terms of the previous exploration contract. The project site is
located at elevations of between 4,000 and 4,850 meters above sea level. The area is considered to
have a sub-arid, sub-polar, mountain climate. During the winter months, extreme weather may create
a challenging operating environment. Recognizing this issue, the potential impact of possible
extreme weather conditions, to the extent possible, has been incorporated into the projects
operating plan. Access to the property is via a combination of public highways and an upgraded
private gravel road. The Veladero project received environmental impact study approval in November 2003 from the
Mining Authority of the San Juan Province. Barricks plan for the Veladero property provides for an
open pit mine using heap leaching. The Veladero project includes the mining of gold and silver from
two open pits: the Filo Federico pit and the Amable pit. Full construction commenced in the fourth
quarter of 2003, with production expected to commence in late 2005. Geology The Veladero deposit is an oxidized, high sulfidation gold-silver deposit hosted by
volcaniclastic sediments, tuffs, and volcanic breccias related to a Miocene diatreme-dome complex.
Disseminated precious metals mineralization forms a broad, 3-kilometer long tabular blanket
localized between the 4,000 and 4,350 meter elevations. The mineralized envelope encompassing
greater than 0.4 ppm gold is oriented along a 345°-trending regional structural corridor. Higher
grade zones within this envelope occupy northeast-striking faults and fracture zones. Hydrothermal
alteration is typical of high sulfidation gold deposits, with a silicified core grading outward
into advanced argillic alteration, then into peripheral argillic and propylitic alteration haloes.
Gold occurs as fine native grains, and is dominantly associated with silicification and with iron
oxide or iron sulfate fracture coatings. Silver mineralization is distinct from gold, and occurs
as a broader, more diffuse envelope, probably representing a separate mineralizing event. Copper
and other base metals are insignificant, and sulfide mineralization is negligible. Principal
controls on gold mineralization are structures, brecciation, alteration, host rocks, and elevation. The Veladero deposit comprises three main ore bodies: Amable in the south; Cuatro Esquinas in
the center; and Filo Federico in the north. Much of the Veladero deposit is covered by up to 170
meters of overburden. A variety of volcanic explosion breccias and tuffs are the principal host rocks at the two
northern ore bodies, where alteration consists of intense silicification. The Amable ore body is
hosted within bedded pyroclastic breccias and tuffs, which are affected by silicification and
advanced argillic alteration. Development Similar to the Pierina mine in design, the Veladero project is being built as an open pit mine
with a valley-fill heap leach operation and two-stage crushing process. Recovered gold will be
smelted into doré on-site and shipped to an outside refinery for processing into bullion. Full
construction commenced in the fourth quarter of 2003, with production expected to commence in
fourth quarter 2005. During 2004, construction was completed for the projects internal roads,
assay lab and truck shop. Construction of the projects crushers, assay lab and heap leach
facility embankment all began in 2004. Veladeros 2005 field program will focus on on-going
pre-stripping of the mine and completing construction of the leach pad, crushers, power supply and
process plant. Including capitalized interest, capital expenditures for Veladero in 2005 are
expected to be approximately $208 million. During the year, Barrick raised the expected
construction cost for the project to approximately $540 million. The increase in the expected
construction -61-




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cost of the mine reflected, among other factors, certain preliminary scope changes in the
project, exchange rate variations, increased winter operating costs and increased costs with
respect to fuel, steel, concrete and labour. Production at the Veladero project is anticipated to
average approximately 700,000 ounces of gold annually at expected average total cash costs of
approximately $200 per ounce (based on prevailing exchange rates in effect in late 2004 and
excluding any applicable export duties) over the first three full years of the projects life. The
various cost increases referred to above may also impact on future total cash costs. Based on
existing reserves and production capacity, the expected mine life is 16 years. Exploration, Drilling and Analysis At December 31, 2004, Veladero had proven and probable reserves of 12.8 million ounces of
gold. A 19-hole program of reverse circulation infill drilling totaling 7,381 meters was completed
during 2004, principally within the Filo Federico and Cuatro Esquinas ore bodies. The goal of this
program was to convert resources located within designed pit limits to reserves. This infill
drilling program succeeded in converting approximately 851,000 ounces of gold resources to
reserves. It also encountered ore-grade mineralization in areas previously modeled as waste based
on earlier, wider-spaced drilling. Infill drilling will continue during 2005, with plans for at
least 7 holes totaling approximately 1,750 meters. During the fourth quarter 2004, geologic evaluations commenced with the goal of identifying
and prioritizing mine-area exploration targets. Evaluation criteria include known mineralization
outside of modeled pit limits; projections of mineralized trends; and coincidence of favorable host
rocks, geologic structures, hydrothermal alteration, and permissive geophysical anomalies. This
work identified at least five high-priority exploration targets within the mine area. Three
exploration drill holes totaling 237 meters were completed during the 2004 fourth quarter, and
approximately 14,500 meters of core and reverse circulation exploration drilling are planned for
the first half of 2005. At December 31, 2004, the Veladero resource database contained 782 reverse circulation drill
holes totalling 208,111 meters; 128 diamond drill holes for 26,557 meters; and 5,153 meters of
channel samples from two declines which total 1,147 meters in length. Drill spacing within
mineralized zones varies from 30 meters to 100 meters, and averages approximately 35 meters. All Veladero samples are prepared and analyzed by external laboratories. The quality
assurance procedures and assay protocols followed by Barrick in connection with drilling and
sampling on the Veladero property conform to industry accepted quality control methods. Royalties Pursuant to legislation passed by the government of the Province of San Juan, all gold and
silver, among other ores, extracted from the property within the Province of San Juan are subject
to a royalty, payable to the government of the Province of San Juan, of 3% of the value of the ore
at the mine mouth. Under the terms of an agreement between Barricks subsidiaries and IPEEM, a
0.75% mine mouth royalty on the minerals produced from the Veladero property is payable to IPEEM.
This agreement also provides for the payment of a 0.75% mine mouth royalty on the minerals
produced from the Mina Ursulina Sur, on which the Filo Norte deposit is situated. Pledge of Assets During 2004, Barricks wholly-owned subsidiary, Minera Argentina Gold S.A. (MAGSA), secured
a variable rate, limited recourse $250 million loan facility for Veladero. As at December 31, 2004,
MAGSA had drawndown approximately $198 million under the facility. Barrick has guaranteed the loan -62-




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until completion of the project has occurred, after which it will become non-recourse. This
facility is insured for political risks by branches of the Canadian government and German
government. Substantially all the assets of MAGSA, including the Veladero property and related
assets, have been pledged as security under the loan. The effective interest rate for 2004 was
7.5%. The following diagram sets out the planned design and layout of the Veladero project. (VELADERO PROJECT MAP) -63-




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Pascua-Lama Project General The Pascua-Lama property is located in the Frontera District in Chiles Region III and
Argentinas San Juan Province. It straddles the Chile-Argentina border and is approximately 150
kilometers southeast of the city of Vallenar, Chile, 380 kilometers by road northwest of the city
of San Juan, Argentina and approximately 10 kilometers from the Veladero project. The Chilean part
of the deposit, which is at an elevation of approximately 4,300 to 5,250 meters above sea level,
was acquired by Barrick in 1994 and is held through a wholly-owned, subsidiary of Barrick, Compañía
Minera Nevada Limitada. The Argentinean part of the property was acquired subsequently and is held
through wholly-owned subsidiaries of Barrick, Barrick Exploraciones Argentina S.A. and
Exploraciones Mineras Argentina S.A. The legislatures of Chile and Argentina completed
ratification of a Mining Treaty between the two countries during 2000. The Specific Pascua-Lama
Protocol under the Mining Treaty was signed into law by both countries in the third quarter of
2004. The Pascua-Lama project is within the area subject to the Mining Treaty and the project is
entitled to enjoy the benefits to cross-border mining operations that are granted by the Mining
Treaty. High mountain ranges and deep valleys with natural slopes of 20 to 40 degrees characterize the
area of the Pascua-Lama property. Surface material consists of rock outcrops, scree and colluvial
materials, which are primarily gravel, sand, silt and clay. Vegetation is sparse. The area is
considered to have a sub-arid, sub-polar, mountain climate. During the winter months, extreme
weather may create a challenging operating environment. Recognizing this issue, the potential
impact of possible extreme weather conditions, to the extent possible, will be incorporated into
the projects operating plan. Access to the property will be pursuant to a combination of public
highways and upgraded gravel roads from both Chile and Argentina. Geology The Pascua-Lama property is located in the high cordillera of Region III, Chile, in what has
been designated as the Eastern Belt of Hydrothermal Alteration. The gold, silver and copper
mineralization at Pascua-Lama is part of a mineralized acid sulfate system that was structurally
controlled within intrusive and volcanic rock sequences of Upper Paleozoic and Middle Tertiary age. Basement rocks in the Pascua-Lama area are dominated by a multiphase granite pluton that may
be a slightly younger upper Permian or lower Triassic phase of the Permian Guanaco Sonso sequence
of intrusives and volcanics. In the deposit area the granite intrudes older diorites and volcanic
pyroclastic units and is, in turn, intruded by diorite stocks and dykes of mid-Tertiary Bocatoma
age. During Tertiary time, all of the previously described rocks were cut by sub-vertical fault
zones and hydrothermal breccias located at complex fault intersections. Numerous breccia bodies occur in the Esperanza, Quebrada de Pascua and Lama areas. At the
surface, these breccias vary in size from outcrops measured in centimeters up to hundreds of
meters. Typically the breccias show a strong correlation to zones of intersection of two or more
major structural zones. Breccia Central, the large inter mineral breccia pipe, occurs in the
Quebrada de Pascua area. On the surface this breccia is about 650 meters long and up to 250 meters
in width while underground between 200 and 400 meters below the surface the composite body measures
about 550 meters in length and up to 130 meters in width. It extends to at least 700 meters below
surface. This well mineralized breccia pipe is evidence of an explosive hydrothermal event related
to the formation of the Quebrada de -64-




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Pascua ore deposit. Breccia Oeste and Breccia Sur are the two large post mineralization
breccia pipe complexes located in the mine area. Oriented north/south along the Breccia Oeste
fault zone in the Esperanza area, the Breccia Oeste pipe measures up to 500 meters long, up to 150
meters wide, and extends up to 300 meters below surface. Development The Pascua-Lama mine is being designed as an open pit, centered at an elevation of 4,600
meters. The project will produce both oxide and sulfide ores. Both ore types will be put through a
processing circuit expected to consist of crushing, dry grinding and a washing circuit to remove
soluble salts. The oxide ore will then be processed through a cyanide leaching circuit. The
sulfide ore will then undergo a flotation process to produce a smelter saleable concentrate, with
the sulfide ore floating tails being routed to the cyanide leach circuit. Recovered gold and
silver from the leach circuit will be smelted into doré on-site and shipped to an outside refinery
for processing into bullion. In the first of half of 2004, work on the Pascua-Lama project focused on updating its 2001
feasibility study. Barrick made the decision to proceed with the project in July 2004. The
Company filed for its principal environmental permits in both Chile and Argentina in 2004 and is
finalizing fiscal and taxation matters, which are expected to be resolved by the end of 2005, at
which time a three-year construction schedule is expected to begin. Production is anticipated in
2009, subject to obtaining the necessary permits, approvals and fiscal regimes. In 2005, Barrick
will continue its efforts with respect to community/government relations, permitting, protocol
implementation and tax stability. Factors such as permitting, protocol implementation, tax
stability, export duties, other fiscal and taxation matters, royalties, rising costs of materials
and currency fluctuations may impact on the timing and the cost of development and operation of the
project. In addition to the $1.4-$1.5 billion in construction capital, a further investment of
about $250 million is anticipated in the first three years after production start-up for a plant
expansion to increase capacity from 33,000 tons per day to 44,000 tons per day and for a flotation
plant. During the first decade of production, annual production is estimated at between 750,000 and
775,000 ounces of gold at estimated average total cash costs of approximately $130-$140 (subject to
exchange rate fluctuations and applicable export duties) per ounce. Based on existing reserves and
production capacity, mine life is expected to be 21 years. The Pascua-Lama project received Environmental Impact Study (EIS) approval from appropriate
authorities in Chile in May 2001 and, in December 2004, Barrick submitted a second EIS in respect
of modifications of the project. The EIS prepared for the portion of the mine, mill and tailings
storage facility for the project located in Argentina was updated to incorporate the cumulative
impacts of the construction and development of the nearby Veladero project. This EIS was submitted
in late 2004, with approval anticipated by the end of 2005. Following the completion of EIS
processes in Chile and Argentina, Barrick will also need to obtain various sectoral permits for the
construction and operation of the project. Based on Barricks experience with permitting in Chile
and in the San Juan Province of Argentina, Barrick expects such permits to be obtained in the
ordinary course. Exploration, Drilling and Analysis At December 31, 2004, Pascua-Lama had proven and probable reserves of 17.6 million ounces of
gold and 643 million ounces of silver contained within gold reserves. The drill hole database for
the Pascua-Lama property contains 1,173 reverse circulation holes, 562 diamond drill core holes,
22,302 meters of underground tunnel samples and 12,774 meters of surface trench samples. Samples
totaling 322,288 meters from reverse circulation holes, 151,265 meters from diamond drill core
holes, 22,302 meters from underground tunnels, and 12,774 meters from surface trenches were used to
estimate the gold and silver resources. The drill hole spacing is variable, approximately 40
meters in the Esperanza area -65-




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and 40 to 60 meters in the Quebrada de Pascua area. Pascua-Lama samples were analyzed for
gold, silver and copper by independent laboratories in Santiago, Chile. The quality assurance
procedures and assay protocols followed by Barrick in connection with drilling and sampling on the
Pascua-Lama property conform to industry accepted quality control methods. Royalties Pursuant to legislation passed by the government of the Province of San Juan, all gold and
silver, among other ores, extracted from the property within the Province of San Juan are subject
to a royalty, payable to the government of the Province of San Juan, of 3% of the value of the ore
at the mine mouth. In addition, Barrick is obligated to pay a gross proceeds sliding scale
royalty on gold produced from the Pascua-Lama properties located in Chile ranging from 1.5% to 9.8%
and a 2% net smelter royalty on copper produced from the properties. In addition, a step-scale 5%
or 7.5% gross proceeds royalty on gold produced and a sliding scale net smelter royalty of 0.5% to
6% on all products other than gold and silver is payable in respect of certain portions of the
property located in Argentina. The sliding scale and step-scale royalties on gold increase with
rising spot gold prices. EXPLORATION, DEVELOPMENT AND BUSINESS DEVELOPMENT Barrick has traditionally grown its reserve base through a combination of acquisitions and
focused exploration on and around its operating properties. Barrick believes there is a higher
probability of finding new mineral reserves around existing mines. Once found, these new reserves
can be developed more quickly and profitably due to existing infrastructure. The Companys strategy
is to maintain a geographic mix of projects at different stages in the exploration and development
sequence. The low gold price environment that existed in recent years required that major mining
companies undertake more early stage exploration than in the past because junior exploration
companies had been less active, and there were fewer new discoveries to buy or joint ventures to
fund. Accordingly, Barrick is engaged in early stage exploration in four major areas where it
possesses significant infrastructure: Peru, Tanzania, Australia and Chile/Argentina. This program
resulted in the grassroots discovery at the Lagunas Norte project, in the Alto Chicama District, in
Peru. Barrick utilizes state-of-the-art technology to explore deeper and more effectively. At
Goldstrike, Barrick uses new deep-penetrating geophysical techniques and geological modeling to
locate and define new targets. These new techniques are equally applicable in Tanzania and
Australia. Exploration is directed from Barricks head office in Toronto and is conducted through a
number of exploration offices around the world. The Company spent $141 million on its exploration, development and business development
activities in 2004 (2003  $137 million) and is expected to spend approximately $150 million in
2005. Of the $96 million spent on exploration in 2004, approximately $30 million was spent in North
America, approximately $20 million was spent in South America, approximately $40 million was spent
in the Australia/Africa region and approximately $5 million was spent in Russia and Central Asia. Development expenditures totaled approximately $14 million, of which $9 million was spent at
the Lagunas Norte project in the Alto Chicama District. Business development costs totaled
approximately $18 million. In connection with its exploration strategy and goal of establishing a
business unit in respect of Russia and Central Asia, Barrick acquired a 10% equity interest in
Highland Gold Mining PLC (Highland) in October 2003. In January 2004, Barrick acquired an
additional equity interest, bringing its total interest in Highland to approximately 14% at
December 31, 2004, and certain participation and other rights with respect to properties in Russia.
In January 2005, Barrick acquired a 9% equity interest in -66-




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Celtic Resources Holdings PLC (Celtic). In addition, Barrick acquired additional
subscription rights for shares in Celtic, certain rights with respect to the Nezhdaninskoye deposit
in Russia and certain participation rights with respect to properties Celtic acquires in
Kazakhstan. ENVIRONMENT AND CLOSURE The Companys mining, exploration and development activities are subject to various levels of
federal, provincial and state laws and regulations relating to protection of the environment,
including requirements for closure and reclamation of mining properties (see Legal Matters -
Government Controls and Regulations). Barrick has a policy of conducting environmental audits of its operations to assess the
effectiveness of the existing organization, its resources, and supporting management systems to
adhere to policies, guidelines, procedures and adopted codes of practice, maintain compliance,
reduce risk and manage liabilities. The Companys policy is to perform environmental audits on a
regular and scheduled basis. In practice, this typically results in environmental audits at each
operating mine every second year and at least once every five years for other properties. A
committee of Barricks Board of Directors reviews the Companys environmental policies and programs
and oversees Barricks environmental performance. During 2004, all of the Companys operations were in compliance in all material respects with
applicable corporate standards and environmental regulations and there were no material notices of
violations, fines or convictions relating to environmental matters at any of the Companys
operations. As part of Barricks goal to minimize the impact on the environment, it develops
closure and reclamation plans as part of its initial project planning and design. The Company has
estimated future site reclamation and closure obligations, which it believes will meet current
regulatory requirements. See Notes 2 and 17 of the Notes to the Consolidated Financial Statements
for the year ended December 31, 2004. The Companys operating facilities have been designed to mitigate environmental impacts. The
operations have processes, procedures or facilities in place to manage substances that have the
potential to be harmful to the environment. In order to prevent and control spills and protect
water quality, Barrick utilizes multiple levels of spill containment procedures and routine
inspection and monitoring of its facilities. The Company also has various programs to reuse and
conserve water at its operations. In order to mitigate the impact of dust produced by its
operations, Barrick uses several different dust suppression techniques at its properties. The
Company has also implemented safeguards at its properties that are designed to protect wildlife in
the surrounding areas. Such safeguards include fencing and netting or other coverings of ponds and
tanks, the establishment of water sources for wildlife and small mammal refuges. Certain of the Companys operating properties handle ore or rock which has the potential to be
acid generating (Goldstrike, Pierina, Bulyanhulu, Eskay Creek and Hemlo), use cyanide in the
processing of gold operations (Goldstrike, Pierina, Round Mountain, Marigold, Hemlo, Kalgoorlie
and Yilgarn) or produce mercury as a co-product of the production process (Goldstrike, Pierina and
Hemlo). The Company has implemented programs to manage the handling of ore and rock to reduce the
potential for acid rock drainage. Such procedures include segregation of potentially acid
generating material, containment systems for the collection and treatment of drainage and
reclamation and closure steps designed to minimize water infiltration and oxygen flux. Facilities
that use cyanide are designed and constructed to prevent process solutions from being released to
surface water or groundwater. Typically, these facilities include leak detection systems and have
the ability to collect and treat seepage that may occur. The tailings storage facilities are
typically fenced and process ponds are typically netted or other procedures implemented to deter
access. Site specific management procedures for mercury handling, monitoring and transportation
exist at each of the operations that produce mercury as a co-product. -67-




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Further, employees receive training in the safe use and proper management of cyanide, mercury
and other hazardous materials. Grants Tailings The US Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) imposes
liabilities on persons who own or operate facilities from which hazardous substances have been
released. Pursuant to CERCLA, the United States Environmental Protection Agency (EPA) publishes
a National Priorities List (NPL) of such facilities. A closed uranium mill site acquired by Barrick in the Homestake merger, near Grants, New
Mexico, is listed on the NPL. The EPA asserted that leachate from the tailings storage facilities
contaminated a shallow aquifer used by some of the residents in adjacent residential subdivisions.
Homestake paid the cost of extending the municipal water supply to the subdivisions. Homestake
also has operated a water injection and collection system since 1976 that has significantly
improved the quality of the aquifer and since 1999 has operated a water treatment facility for
treating the groundwater adjacent to the tailings storage facility. The estimated costs of
continued remediation are included in the asset retirement obligation recorded by the Company.
Homestake has settled with the EPA concerning its oversight costs for this site. Under Nuclear Regulatory Commission (NRC) regulations, the decommissioning of the tailings
storage facilities is in accordance with the provisions of the facilitys license. The uranium mill
facility license sets the closure of the two tailings impoundments as 2004 and 2013, subject to
extension under certain circumstances. The NRC and EPA signed a Memorandum of Understanding in 1993
which has established the NRC as the oversight and enforcement agency for decommissioning and
reclamation of the site. Mill decommissioning was completed in 1994 and final closure of the large
tailings storage facility is scheduled for completion in 2013. During 2004, Barricks expenditures
at the Grants facility were $1.48 million. For 2005, Barricks expenditures are planned at $1.46
million. Title X of the US Energy Policy Act of 1992 (the Energy Policy Act) and subsequent
amendments to the Energy Policy Act authorized appropriations of $335 million to cover the federal
governments share of certain costs of reclamation, decommissioning and remedial action for
by-product material (primarily tailings) generated by certain licensees as an incident of uranium
sales to the federal government. Reimbursement is subject to compliance with regulations of the
Department of Energy (DOE), which were issued in 1994. Pursuant to the Energy Policy Act, the DOE
is responsible for 51.2% of the past and future costs of reclaiming the Grants site in accordance
with NRC license requirements. In 1983, the State of New Mexico notified the Company that it intends to pursue claims against
Homestake for natural resource damages resulting from the Grants site. The State has taken no
action to pursue the claims. For additional information regarding this matter, see Legal Matters
 Litigation. FINANCIAL RISK-MANAGEMENT Forward Sales Program The Company has operations in six principal countries which produce its primary product, gold,
as well as by-products such as silver and copper. The Companys activities expose it to a variety
of market risks, including risks related to the effects of changes in gold prices. This financial
exposure is monitored and managed by the Company as an integral part of its overall risk-management
program. The Companys risk-management program has historically focused on the unpredictability of
commodity and -68-




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financial markets and used financial instruments to mitigate significant, unanticipated
earnings and cash flow fluctuations that may arise from volatility in commodity prices. Price
fluctuations in gold could cause actual cash inflows from the sale of gold to differ from
anticipated cash inflows. For most of Barricks history, gold forward sales were a significant element in providing the
Company the relatively stable revenue that helped fuel its growth. In 2002, Barrick began to take
steps to simplify and reduce the size of its gold forward sales hedge program. With the Companys
positive outlook for the gold price, interest rates near 40-year lows (which may lead to lower
forward sales price premiums) and Barricks strong financial position, the Company has been
managing the program down to a lower percentage of overall gold reserves. In late 2003, Barrick
adopted a no-new-hedge gold policy such that it will not add new ounces to its gold forward sales
hedge program and will pursue opportunities to reduce its gold forward sales hedge position.
Barrick continues to enter into other financial and commodity instruments to mitigate the effect of
other risks that are inherent in its business, and also to take advantage of opportunities to
secure attractive pricing for currencies, interest rates and other commodities. Barricks gold and silver forward sales contracts represent agreements to sell gold and silver
on a delivery date in the future. Barrick has the flexibility to choose a delivery date in advance
of the master trading agreements termination date (2014 in most cases). Barrick may, in its
discretion, choose to settle any gold forward sales hedge contract in advance of the contracts termination date.
Barrick manages its gold and silver forward sales hedge contracts such that Barrick is able to
physically deliver gold and silver against the contracts on these dates. For currencies, fuel and
interest rates contracts, Barrick sets the contract terms with the intention of receiving hedge
accounting treatment. The rights and obligations under Barricks fixed-price gold forward sales hedge contracts are
set out in master trading agreements executed with various counterparties. The selling price under
a contract is based on the forward price of gold at the future delivery date, which we believe is
essentially a function of the spot gold price on the date the contract is entered into plus a
premium (commonly referred to as contango) through the future delivery date. Generally, though
not always, the future price for the sale of gold under the contract is higher than the spot gold
price at the time the contract is entered into. In general, the longer the period of time from the
start of the contract until delivery, the greater the amount of the forward premium or contango and
the greater the contract price compared to the spot price at the start of the contract. In some
cases, the premium becomes negative (known as backwardation). However, this occurrence is
relatively uncommon, and, historically, any periods of backwardation have been relatively
short-lived. Barrick has arrangements in place with approximately 19 high-quality counterparties whose
credit ratings are generally AA- or higher. To reduce exposure to defaults by counterparties,
Barrick diversifies its fixed-price forward sales hedge contracts across a number of
counterparties, limits exposure to individual counterparties, uses master netting arrangements
(which means that Barricks exposure is limited to the net positive exposure of contracts of a
similar type with individual counterparties) and regularly monitors its counterparties credit
ratings. To date, all counterparties have fully performed their obligations under such
arrangements. At December 31, 2004, Barrick had fixed-price gold forward sales hedge contracts
with one counterparty that represented 11% of Barricks total commitment to deliver gold ounces
under its fixed-price gold forward sales hedge contracts. Barricks trading agreements provide for early close out of certain transactions in the event
of a material adverse change in the ability of Barrick or its principal hedging subsidiary to
perform its obligations under the trading agreements and related parent guarantees or a lack of a
gold market, and for customary events of default such as covenant breaches, insolvency or
bankruptcy. The principal financial covenants contained in the trading agreements are the
requirement that Barrick maintain a consolidated -69-




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net worth of at least $2 billion  at December 31, 2004, it was $3.6 billion  and a long-term
debt to consolidated net worth ratio of 2:1 or lower  at December 31, 2004, it was 0.51:1. For
the purpose of these covenants, unrealized mark-to-market gains or losses on derivative
transactions are excluded. If an event of default occurred, counterparties could require Barrick
to immediately settle outstanding contracts. Under its trading agreements, Barrick is not required
to post any collateral or subject to any margin calls. Prior to 2003, as a result of the Companys fixed-price forward sales hedge program and the
level of spot prices for gold, substantially all of the gold produced by the Company (excluding
Homestake production) was delivered against existing fixed-price gold forward sales hedge contracts
rather than into the spot market. During 2004, the Company delivered 2 million ounces of its gold
production into its gold forward sales hedge program and delivered its remaining gold production
into the spot market. In 2004, the Company realized an average price of $391 per ounce compared
with the average London P.M. Fix for the year of $409 per ounce. In comparison, for 2003, the
Company realized an average gold price of $366 per ounce compared with the average London P.M. Fix
for the year of $363 per ounce. At December 31, 2004, the Company had outstanding commitments to deliver approximately 13.5
million ounces of its future gold production under its fixed-price
gold forward sales hedge program. The
Company also had floating-price gold forward sales contracts under which, at year end,
Barrick is committed to deliver 0.5 million ounces of gold over the next ten years at spot prices,
less an average fixed-price adjustment of $52 per ounce.. In anticipation of building the
Pascua-Lama project and in support of any related third party financing, in 2004, the Company
allocated 6.5 million ounces of existing fixed-price gold forward sales hedge contracts
specifically to PascuaLamas future gold production. The Company believes that the allocation of
these contracts will help reduce gold price risk at PascuaLama and should facilitate the financing
for its construction. The Company expects the allocation of these contracts to eliminate
requirements by lenders to add incremental gold sales hedge contracts in the future to support the
financing of PascuaLama. The designated contracts represent just over 35% of the 17.6 million
ounces of current gold reserves at PascuaLama, and do not impact any of the 643 million ounces of
silver contained in gold reserves at PascuaLama. The remaining 7.0 million ounces of existing
fixed-price gold forward sales hedge contracts represent slightly over one year of expected future
gold production and approximately 10% of Barricks reserves, excluding PascuaLama. Barrick plans to continue to explore and evaluate various strategies to reduce the size of its
fixed-price gold forward sales hedge position. In general, the Company will endeavor to make use
of gold market volatility or other opportunities in reducing its fixed-price gold forward sales
hedge position. Depending on market conditions and other factors, Barrick may choose to deliver a
portion of its gold production into its fixed-price gold forward sales hedge program at prices that
are below the spot price, or Barrick may choose to pursue any of a number of alternative methods of
reducing its fixed-price gold forward sales hedge position, including, but not restricted to,
restructuring, transferring, converting or otherwise settling contracts. There can be no assurance
that Barrick will be able to achieve in the future realized prices for gold that exceed the spot
price as a result of its fixed-price gold forward sales hedge program. If Barrick chooses to
deliver a portion of its gold production into its fixed-price gold forward sales hedge program at
prices that are below the spot price, it will incur an opportunity loss on those contracts. For a summary of the Companys future gold sale and delivery commitments, derivative financial
instruments used in the gold forward sales hedge program and associated risks, see Notes 4 and 16 of the Notes
to the Consolidated Financial Statements for the year ended December 31, 2004, pages 36 to 38 and
53 to 57 of the Companys Annual Report to Shareholders for the year ended December 31, 2004 and
Risk Factors. -70-




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Currency, Interest Rate and Commodity Hedge Programs The Company also monitors and manages exposures related to currencies, interest rates and
commodity prices. Currency risk mainly arises on non-US dollar cash expenditures at the Companys
Australian and Canadian mines that are denominated in local currencies. Interest rate risk mainly
relates to interest income receipts on cash balances and interest payments on variable-rate debt
obligations. Commodity price risk arises in respect of commodities such as diesel fuel and natural
gas consumed at each of the Companys operations. The Company mainly uses forward exchange
contracts, interest rate swaps and forward commodity contracts to mitigate the impact of volatility
in currency exchange rates, interest rates and commodity prices on its business. For a summary of
the derivative instruments used in the Companys currency, interest rate and commodity hedge
programs, see Note 16 of the Notes to the Consolidated Financial Statements. Oversight and Control Over Risk-Management Activities The Companys financial risk-management activities are subject to the management, direction,
and control of its Finance Committee as part of that Committees oversight of the Companys
investment activities and treasury function. The Finance Committee, which is comprised of four
members of the Companys Board of Directors, including the Companys Chief Executive Officer,
reports to the Board of Directors on the scope of the Companys risk-management strategy (including
the gold forward sales hedge program) and other activities. The Finance Committee approves
corporate policy that defines the Companys risk-management objectives and philosophy relating to
financial risk-management activities and provides guidance for financial instrument usage. The
Finance Committee also approves hedging strategies that are developed by management through its
analysis of risk exposures to which the Company is subject, and commodity, foreign exchange and
interest rate market analysis from internal and industry sources. The resulting hedging strategies
are then incorporated into the Companys overall risk-management strategies. Responsibility for the implementation of gold sales, hedging and risk-management strategies is
delegated to the Companys treasury function. A report on Barricks gold sales and hedge position,
detailing the size of the hedge position by contract type, diversification of the position among
counterparties and each counterpartys recent credit rating and the latest fair value of each group
of contracts, is prepared each week and distributed to the Chief Executive Officer, the Chief
Financial Officer and the Chairman of the Finance Committee. The Finance Committee and the Board of
Directors also receive a report on Barricks hedging and overall
risk-management position at each of their regularly scheduled
meetings. Barrick maintains a separate compliance function to independently monitor and verify gold
sales and hedging activities and achieve segregation of duties of personnel responsible for
entering into hedging transactions from personnel responsible for recording and reporting
transactions. In addition, the treasurer regularly monitors gold sales and hedging transactions
entered into by the treasury group. All confirmations and settlements of transactions are processed
and checked independently of the treasury group. Responsibility for entering into gold sales and
hedging transactions is limited to a small group of experienced treasury personnel. Summaries of
each individual transaction, setting out the terms of the transactions and the identity of the
individual executing each transaction, are generated by the treasury group and delivered to the
compliance function on a daily basis. Confirmations from counterparties are received directly by
the compliance function and checked against the documentation generated by the treasury group.
Barrick has not entered into gold delivery commitments that are not covered by scheduled
production. -71-




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LEGAL MATTERS Government Controls and Regulations The Companys business is subject to various levels of government controls and regulations,
which are supplemented and revised from time to time. In October 2003, Peru enacted legislation
governing mine closure, which, among other things, requires that closure plans for existing
operations be submitted to the Ministry of Energy and Mining. The enabling regulations for this
legislation have not yet been promulgated. Barrick expects to comply with such regulations, when
promulgated, in respect of its operations in Peru. In the first quarter of 2004, a report (the
Cooke Report) regarding the effects of mining on the Kalgoorlie, Western Australia, area was
presented in the Parliament of Western Australia. The Cooke Report makes several recommendations,
some of which, if implemented by the government of Western Australia, could have an impact on
Barricks Kalgoorlie operations. To date, no legislation or regulation has been passed in respect
of the recommendations made in the Cooke Report. Barrick is unable to predict what additional legislation or revisions may be proposed that
might affect its business or when any such proposals, if enacted, might become effective. Such
changes, however, could require increased capital and operating expenditures and could prevent or
delay certain operations by the Company. The various levels of government controls and regulations address, among other things, the
environmental impact of mining and mineral processing operations. With respect to the regulation of
mining and processing, legislation and regulations in various jurisdictions establish performance
standards, air and water quality emission standards and other design or operational requirements
for various components of operations, including health and safety standards. Legislation and
regulations also establish requirements for decommissioning, reclamation and rehabilitation of
mining properties following the cessation of operations, and may require that some former mining
properties be managed for long periods of time. In addition, in certain jurisdictions, the Company
is subject to foreign investment controls and regulations governing its ability to remit earnings
abroad. The Company believes that it is in substantial compliance with all material current government
controls and regulations at each of its properties. Litigation On April 30, 1998, Barrick was added as a defendant in a class action lawsuit initiated
against Bre-X Minerals Ltd., certain of its directors and officers or former directors and officers
and others in the United States District Court for the Eastern District of Texas, Texarkana
Division. The class action alleges, among other things, that statements made by Barrick in
connection with its efforts to secure the right to develop and operate the Busang gold deposit in
East Kalimantan, Indonesia were materially false and misleading and omitted to state material facts
relating to the preliminary due diligence investigation undertaken by Barrick in late 1996. On July
13, 1999, the Court dismissed the claims against Barrick and several other defendants on the
grounds that the plaintiffs had failed to state a claim under United States securities laws. On
August 19, 1999, the plaintiffs filed an amended complaint restating their claims against Barrick
and certain other defendants and on June 14, 2000 filed a further amended complaint, the Fourth
Amended Complaint. On March 31, 2001, the Court granted in part and denied in part Barricks Motion
to Dismiss the Fourth Amended Complaint. As a result, Barrick remains a defendant in the case.
Barrick believes that the remaining claims against it are without merit. Barrick filed its formal
answer to the Fourth Amended Complaint on April 27, 2001 denying all relevant allegations of the
plaintiffs against Barrick. Discovery in the case has been stayed by the court pending its
decision on whether or not to -72-




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certify the case as a class action. On March 31, 2003, the U.S. District Court for the
Eastern District Court of Texas, Texarkana Division denied all pending motions of the plaintiffs
seeking to certify a class action in the lawsuit against several defendants, including Barrick,
related to Bre-X Minerals Ltd. Under U.S. rules, the plaintiffs have the right to appeal the
Courts decision declining to certify their lawsuit as a class action, but plaintiffs have not
filed such an appeal. On June 2, 2003, the plaintiffs submitted a proposed trial and case
management plan, suggesting that such plan would cure the defects in the plaintiffs motions to
certify the class. The Court has taken no action with respect to the proposed plan. The
plaintiffs case against the defendants may now proceed in due course with respect to the specific
claims of the plaintiffs named in the lawsuit, but not on behalf of a class of plaintiffs. Having
failed to certify the case as a class action, we believe that the likelihood of any of the named
plaintiffs succeeding against Barrick with respect to their claims for securities fraud is remote. On January 7, 2003, Barrick was served with a Complaint for Injunctive Relief by Blanchard and
Company, Inc. (Blanchard), and Herbert Davies (Davies). The complaint, which is pending in the
U. S. District Court for the Eastern District of Louisiana, also names J. P. Morgan Chase & Company
(J.P. Morgan) as a defendant, along with an unspecified number of additional defendants to be
named later. The complaint alleges that Barrick and bullion banks with which Barrick entered into
spot deferred contracts have manipulated the price of gold, in violation of U.S. antitrust laws and
the Louisiana Unfair Trade Practices and Consumer Protection Law. Blanchard alleges that it has
been injured as a seller of gold due to reduced interest in gold as an investment. Davies, a
customer of Blanchard, alleges injury due to the reduced value of his gold investments. The
complaint seeks damages and an injunction terminating certain of Barricks trading agreements with
J. P. Morgan and other bullion banks. In September 2003, the Court issued an order granting in
part, and denying in part, Barricks motions to dismiss this action. Discovery has commenced in
the case. In February 2005, the Court granted Blanchards motion to amend their complaint to add
an allegation of a violation of the Commodity Exchange Act and amend its allegation of Barricks
violation of anti-trust laws. A trial date has been tentatively set for July 2005. Barrick has and
will continue to vigorously defend the action. On September 21, 2004, a putative class action complaint was filed in the U.S. District Court
for the Eastern District of Louisiana against Barrick and J.P. Morgan. The plaintiffs, Dr. Gregg
McKenzie and others are alleged purchasers of gold and gold derivatives. The complaint alleges
violations of the U.S. anti-trust laws and also of the Commodity Exchange Act, based upon the same
conduct as alleged in the Blanchard complaint. The complaint seeks damages and an injunction
terminating certain of Barricks trading agreements with J.P. Morgan. On December 17, 2004, a
second and substantially identical complaint was filed in the same court against the same
defendants. Barrick has not yet been served with this second complaint. Barrick has and will
continue to vigorously defend the action. On March 5, 2003, Barrick commenced legal proceedings against Blanchard and certain other
defendants in the Ontario Superior Court of Justice. The proceedings pertain to a series of false
and defamatory statements that Blanchard and its CEO, Donald W. Doyle, Jr., have published since
mid-December 2002 concerning Barrick. In the action, Barrick seeks damages in the amount of C$100
million, aggravated, exemplary and punitive damages in the amount of C$100 million, a permanent
injunction restraining the defendants from repeating, disseminating, publishing or causing to be
re-published the defamatory statements complained of, and a mandatory injunction requiring the
defendants to remove or cause to be removed all of their defamatory statements from websites or
other locations on the Internet. The defendants filed a Statement of Defence on February 17, 2004
denying any liability. Discoveries are ongoing and are required to be completed by May 31, 2005.
A trial date has not yet been set. On June 12, 2003, a complaint was filed against Barrick and several of its current or former
officers in the U.S. District Court for the Southern District of New York. The complaint is on
behalf of Barrick -73-




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shareholders who purchased Barrick shares between February 14, 2002 and September 26, 2002.
It alleges that Barrick and the individual defendants violated U.S. securities laws by making false
and misleading statements concerning Barricks projected operating results and earnings in 2002.
The complaint seeks an unspecified amount of damages. Other parties on behalf of the same proposed
class of Barrick shareholders filed several other complaints, making the same basic allegations
against the same defendants. In September 2003, the cases were consolidated into a single action
in the Southern District of New York. The plaintiffs filed a Consolidated and/or Amended Complaint
on November 5, 2003. On January 14, 2004, Barrick filed a motion to dismiss the Wagner complaint.
On September 29, 2004, the Court issued an order granting in part and denying in part Barricks
motion to dismiss the action. The Court granted the plaintiffs leave to file a Second Amended
Complaint, which was filed on October 20, 2004. The plaintiffs filed a Third Amended Complaint on
January 6, 2005. Barrick has and will continue to vigorously defend the action. On September 8, 2004, two of Barricks U.S. subsidiaries, Homestake Mining Company of
California (Homestake California) and Homestake Mining Company (Homestake) were served with a
First Amended Complaint by persons alleging to be current or former residents of a rural area near
the former Grants Uranium Mill. The Complaint, which was filed in the U.S. District Court for the
District of New Mexico, identifies 26 plaintiffs. Homestake and Homestake California, along with
an unspecified number of unidentified defendants, are named as defendants. The plaintiffs allege
that they have suffered a variety of physical, emotional and financial injuries as a result of
exposure to radioactive and other hazardous substances. The Complaint seeks an unspecified amount
of damages. A motion to dismiss the claim was filed with the Court, but the Court has not yet
ruled on the motion. Barrick has and will continue to vigorously defend the action. Opponents of Barricks Cowal project continue to pursue various claims, legal proceedings and
complaints against the project and the Companys compliance with its permits and licenses. Such
actions have the potential to affect the timing of the mine construction schedule. Barrick has and
will continue to vigorously defend such actions. In 2001, an action was filed in Chile by Rudolfo Francisco Villar against Barricks Chilean
subsidiary, Compania Minera Nevada Limitada (CMN), claiming that it had failed to fully honor an
agreement to purchase certain mining claims of Villar located near the Pascua Lama project.
Villars suit seeks to rescind the purchase agreement with CMN or, alternatively, damages of
approximately US$ 1 million. At the outset of the litigation, Villar obtained an ex parte
injunction barring CMN from selling or encumbering the claims while the suit is pending before the
Chilean courts. Barrick intends to vigorously defend the action. Barrick and its subsidiaries are, from time to time, involved in various claims, legal
proceedings and complaints arising in the ordinary course of business. Barrick is also subject to
reassessment for income and mining taxes for certain years. Barrick does not believe that adverse
decisions in any pending or threatened proceedings related to any potential tax assessments or
other matters, or any amount which it may be required to pay by reason thereof, will have a
material adverse effect on the financial condition or future results of operations of Barrick. RISK FACTORS The risks described below are not the only ones facing Barrick. Additional risks not
currently known to Barrick or that Barrick currently deems immaterial may also impair Barricks
operations. -74-




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Gold price volatility Barricks business is strongly affected by the world market price of gold. Gold prices can be
subject to volatile price movements, which can be material and can occur over short periods of time
and are affected by numerous factors, all of which are beyond Barricks control. These include
industry factors such as: industrial and jewelry demand; the level of demand for gold as an
investment; central bank lending, sales and purchases of gold; speculative trading; and costs of
and levels of global gold production by producers of gold. Gold prices may also be affected by
macroeconomic factors, including: expectations of the future rate of inflation; the strength of,
and confidence in, the US dollar, the currency in which the price of gold is generally quoted, and
other currencies; interest rates; and global or regional, political or economic uncertainties. If the world market price of gold were to drop and the prices realized by Barrick on gold
sales were to decrease significantly and remain at such a level for any substantial period,
Barricks profitability and cash flow would be negatively affected. In such circumstances, Barrick
may determine that it is not economically feasible to continue commercial production at some or all
of its operations or the development of some or all of its current projects, which could have an
adverse impact on Barricks financial performance and results of operations. Barrick may curtail
or suspend some or all of its exploration activities, with the result that depleted reserves are
not replaced. In addition, the market value of Barricks gold inventory may be reduced and
existing reserves may be reduced to the extent that ore cannot be mined and processed economically
at the prevailing prices. Price volatility of other commodities The profitability of Barricks business is also affected by the market prices of other
commodities produced as by-products at Barricks mines, such as silver and copper, as well as
commodities which are consumed or otherwise used in connection with Barricks operations and
development projects, such as diesel fuel, electricity, steel, concrete and cyanide. Prices of such
commodities also can be subject to volatile price movements, which can be material and can occur
over short periods of time, and are affected by factors that are beyond Barricks control. An
increase in the cost, or decrease in the availability, of construction materials such as steel and
concrete may affect the timing and cost of Barricks development projects. If Barricks proceeds
from the sale of by-products were to decrease significantly, or the costs of certain commodities
consumed or otherwise used in connection with Barricks operations and development projects were to
increase significantly, and remain at such levels for a substantial period, Barrick may determine
that it is not economically feasible to continue commercial production at some or all of Barricks
operations or the development of some or all of Barricks current projects, which could have an
adverse impact on Barrick as described under   Gold price volatility above. Mining risks and insurance risks The mining industry is subject to significant risks and hazards, including environmental
hazards, industrial accidents, unusual or unexpected geological conditions, labour force
disruptions, unavailability of materials and equipment, weather conditions, pit wall failures, rock
bursts, cave-ins, flooding, seismic activity, water conditions and gold bullion losses, most of
which are beyond Barricks control. These risks and hazards could result in: damage to, or
destruction of, mineral properties or producing facilities; personal injury or death; environmental
damage; delays in mining; and monetary losses and possible legal liability. As a result,
production may fall below historic or estimated levels and Barrick may incur significant costs or
experience significant delays that could have a material adverse effect on Barricks financial
performance, liquidity and results of operation. -75-




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Barrick maintains insurance to cover some of these risks and hazards. The insurance is
maintained in amounts that are believed to be reasonable depending on the circumstances surrounding
each identified risk. No assurance can be given that such insurance will continue to be available,
or that it will be available at economically feasible premiums, or that Barrick will maintain such
insurance. Barricks property, liability and other insurance may not provide sufficient coverage
for losses related to these or other risks or hazards. In addition, Barrick does not have coverage
for certain environmental losses and other risks, as such coverage cannot be purchased at a
commercially reasonable cost. The lack of, or insufficiency of, insurance coverage could adversely
affect Barricks cash flow and overall profitability. Mineral reserves and resources The mineral reserves and mineral resources are estimates, and no assurance can be given that
the estimated reserves and resources are accurate or that the indicated level of gold will be
produced. Such estimates are, in large part, based on interpretations of geological data obtained
from drill holes and other sampling techniques. Actual mineralization or formations may be
different from those predicted. Further, it may take many years from the initial phase of drilling
before production is possible, and during that time the economic feasibility of exploiting a
discovery may change. Fluctuations in the price of gold or by-product minerals, such as silver and copper, may
render mineral reserves containing relatively lower grades of gold mineralization uneconomic.
Moreover, short-term operating factors relating to the mineral reserves, such as the need for
orderly development of orebodies or the processing of new or different ore grades, may cause
mineral reserves to be reduced or Barrick to be unprofitable in any particular accounting period. Estimated reserves may have to be recalculated based on actual production experience. Market
price fluctuations of gold, silver and copper, as well as increased production and capital costs or
reduced recovery rates, may render the present proven and probable reserves unprofitable to develop
at a particular site or sites for periods of time. Any of these factors may require Barrick to reduce its mineral reserves and resources, which
could have a negative impact on Barricks financial results. Failure to obtain necessary permits or
government approvals could also cause Barrick to reduce its reserves. There is no assurance that Barrick will obtain indicated levels of recovery of gold or the
prices assumed in determining gold reserves. Production
and cost estimates Barrick prepares estimates of future production, cash costs and capital costs of production
for particular operations. No assurance can be given that such estimates will be achieved. Failure
to achieve production or cost estimates or material increases in costs could have an adverse impact
on Barricks future cash flows, forward sales program, profitability, results of operations and
financial condition. Barricks actual production and costs may vary from estimates for a variety of reasons,
including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical
and other characteristics; short-term operating factors relating to the ore reserves, such as the
need for sequential development of orebodies and the processing of new or different ore grades;
revisions to mine plans; risks and hazards associated with mining; natural phenomena, such as
inclement weather conditions, floods, and earthquakes; and unexpected labour shortages or strikes.
Costs of production may also be affected by a variety of factors, including: changing waste-to-ore
ratios, ore grade metallurgy, labour costs, the cost of -76-




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supplies and services (for example, power and fuel), general inflationary pressures and
currency exchange rates. Accounting policies The accounting policies and methods utilized by Barrick determine how it reports its financial
condition and results of operations, and they may require management of the Company to make
estimates or rely on assumptions about matters that are inherently uncertain. Barricks financial
condition and results of operations are reported using accounting policies and methods prescribed
by U.S. GAAP. In certain cases, U.S. GAAP allows accounting policies and methods to be selected
from two or more alternatives, any of which might be reasonable, yet result in Barrick reporting
materially different amounts. Management of Barrick exercises judgment in selecting and applying
accounting policies and methods to ensure that, while U.S. GAAP compliant, they reflect
managements best judgment of the most appropriate manner in which to record and report the
Companys financial condition and results of operations. Significant accounting policies to the
Consolidated Financial Statements are described in Note 2 to such statements. Internal controls Barrick has invested resources to document and analyze its system of internal controls over
financial reporting and it is continuing its evaluation of such internal controls. Internal
controls over financial reporting are procedures designed to provide reasonable assurance that
transactions are properly authorized, assets are safeguarded against unauthorized or improper use,
and transactions are properly recorded and reported. A control system, no matter how well designed
and operated, can provide only reasonable, not absolute, assurance with respect to the reliability
of financial reporting and financial statement preparation. Exploration Barrick must continually replace gold reserves depleted by production to maintain production
levels over the long term. Reserves can be replaced by expanding known orebodies or by locating
new deposits. Gold exploration is highly speculative in nature. Barricks exploration projects
involve many risks and are frequently unsuccessful. Once a site with gold mineralization is
discovered, it may take several years from the initial phases of drilling until production is
possible, during which time the economic feasibility of production may change. Substantial
expenditures are required to establish proven and probable reserves and to construct mining and
processing facilities. As a result of these uncertainties, there is no assurance that current or
future exploration programs will be successful. There is a risk that depletion of reserves will
not be offset by discoveries. As a result, the mineral base of Barrick may decline if reserves are
mined without adequate replacement and Barrick may not be able to sustain production beyond the
current mine lives, based on current production rates. Development Barricks ability to sustain or increase its present levels of gold production is dependent in
part on the successful development of new orebodies and/or expansion of existing mining operations.
The economic feasibility of development projects is based upon many factors, including: the
accuracy of reserve estimates; metallurgical recoveries; capital and operating costs of such
projects; future gold prices; and, in certain circumstances, future silver and copper prices.
Development projects are also subject to the successful completion of feasibility studies, issuance
of necessary governmental permits, acquisition of satisfactory surface or other land rights and
availability of adequate financing. -77-




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Development projects have no operating history upon which to base estimates of future cash
flow. Substantial expenditures are required to develop mineral projects. It is possible that
actual costs and economic returns may differ materially from Barricks estimates or that Barrick
could fail to obtain the governmental approvals necessary for the operation of a project. It is not
unusual in the mining industry for new mining operations to experience unexpected problems during
the start-up phase, resulting in delays and requiring more capital than anticipated. Environmental, health and safety regulations; permits Barricks mining and processing operations and exploration activities are subject to extensive
laws and regulations governing the protection of the environment, waste disposal, worker safety,
mine development and protection of endangered and protected species. In addition, Barricks
ability to successfully obtain key permits and approvals to explore for, develop and operate mines
and to successfully operate in communities around the world will likely depend on our ability to
develop, operate and close mines in a manner that is consistent with the creation of social and
economic benefits in the surrounding communities. Barricks ability to obtain permits and
approvals and to successfully operate in particular communities may be adversely impacted by real
or perceived detrimental events associated with Barricks activities or those of other mining
companies affecting the environment, human health and safety or the surrounding communities.
Delays in obtaining or failure to obtain government permits and approvals may adversely affect
Barricks operations, including its ability to explore or develop properties, commence production
or continue operations. Barrick has made, and expects to make in the future, significant
expenditures to comply with such laws and regulations and, to the extent possible, create social
and economic benefit in the surrounding communities. Future changes in applicable laws, regulations
and permits or changes in their enforcement or regulatory interpretation could have an adverse
impact on Barricks financial condition or results of operations. Failure to comply with applicable environmental and health and safety laws and regulations may
result in injunctions, fines, suspension or revocation of permits and other penalties. There can
be no assurance that Barrick has been or will at all times be in full compliance with all such laws
and regulations and with its environmental and health and safety permits or that Barrick has all
required permits. The costs and delays associated with compliance with these laws, regulations and
permits could stop Barrick from proceeding with the development of a project or the operation or
further development of a mine or increase the costs of development or production and may materially
adversely affect Barricks business, results of operations or financial condition. Barrick may
also be held responsible for the costs of addressing contamination at the site of current or former
activities or at third party sites. Barrick could also be held liable for exposure to hazardous
substances. The costs associated with such responsibilities and liabilities may be significant. In the United States and Canada, for example, Barrick is required to submit, for government
approval, a reclamation plan for each of its mining sites that establishes Barricks obligation to
reclaim property after minerals have been mined from the site. In some jurisdictions, bonds or
other forms of financial assurances are required for security for these reclamation activities.
Barrick may incur significant costs in connection with these reclamation activities, which may
materially exceed the provisions Barrick has made for such reclamation. In addition, the unknown
nature of possible future additional regulatory requirements and the potential for additional
reclamation activities create further uncertainties related to future reclamation costs, which may
have a material adverse effect on Barricks financial condition, liquidity or results of
operations. Barrick is involved in various investigative and remedial actions. There can be no
assurance that the costs of such actions would not be material. When a previously unrecognized
reclamation liability becomes known or a previously estimated cost is increased, the amount of that
liability or additional cost is expensed, which may materially reduce net income in that period. -78-




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Foreign investments and operations Barrick conducts mining, development and exploration activities in many countries, including
the United States, Canada, Australia, Argentina, Chile, Peru, Russia and Tanzania. Mining
investments are subject to the risks normally associated with any conduct of business in foreign
countries including: uncertain political and economic environments; war and civil disturbances;
changes in laws or policies of particular countries, including those relating to taxation,
royalties, imports, exports, duties and currency, some of which have been recently discussed in
Chile, Peru and Argentina; risk of loss due to disease and other potential endemic health issues;
delays in obtaining or the inability to obtain necessary governmental permits; currency
fluctuations; restrictions on the ability of local operating companies to sell gold offshore for
U.S. dollars, and on the ability of such companies to hold U.S. dollars or other foreign currencies
in offshore bank accounts; import and export regulations, including restrictions on the export of
gold; limitations on the repatriation of earnings; and increased financing costs. These risks may limit or disrupt projects, restrict the movement of funds or result in the
deprivation of contract rights or the taking of property by nationalization or expropriation
without fair compensation, and may materially adversely affect Barricks financial position or
results of operations. Furthermore, in the event of a dispute arising from Barricks activities in
Argentina, Chile, Peru or Tanzania, Barrick may be subject to the exclusive jurisdiction of courts
outside North America and Australia, which could adversely affect the outcome of the dispute. Currency fluctuations Currency fluctuations may affect the costs Barrick incurs at its operations and may affect
Barricks operating results and cash flows. Gold is sold throughout the world based principally on
the US dollar price, but a portion of Barricks operating expenses are incurred in local
currencies, such as the Canadian and Australian dollar. The appreciation of non-US dollar
currencies against the US dollar can increase the costs of gold production at Barricks mines,
making such mines less profitable. Barrick enters into currency hedging contracts to mitigate the
impact on operating costs of the appreciation of non-US dollar currencies against the US dollar.
This could result in Barrick failing to benefit to some degree if the US dollar appreciates in
value relative to non-US dollar currencies. Also, there can be no assurance that Barrick will
continue these hedging activities. See   Use of derivatives. Use of derivatives Barrick uses certain derivative products to manage the risks associated with gold price
volatility, changes in commodity prices, interest rates, foreign currency exchange rates and energy
prices. The use of derivative instruments involves certain inherent risks including: (a) credit
risk  the risk of default on amounts owing to Barrick by the counterparties with which Barrick has
entered into such transaction; (b) market liquidity risk  risk that Barrick has entered into a
derivative position that cannot be closed out quickly, by either liquidating such derivative
instrument or by establishing an offsetting position; (c) unrealized mark-to-market risk  the risk
that, in respect of certain derivative products, an adverse change in market prices for
commodities, currencies or interest rates will result in Barrick incurring an unrealized
mark-to-market loss in respect of such derivative products. For a description of the steps Barrick has taken to mitigate these risks, see Financial
Risk-Management  Forward Sales Program. If the gold price rises above the price at which future
production has been committed under Barricks fixed-price gold forward sales hedge program, Barrick
may have an opportunity loss. However, if the gold price falls below that committed price,
revenues will be protected to the extent of such committed production. There can be no assurance
that Barrick will be able to achieve in the future realized prices for gold that exceed the spot
price as a result of its fixed-price -79-




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forward sales hedge program. Barrick has announced a no-new-hedge gold policy such that it
will not add any new ounces to its fixed-price gold forward sales hedge program and it will pursue
opportunities to reduce its fixed-price gold forward sales hedge position. Barrick may voluntarily
deliver gold production into its fixed-price gold forward sales hedge program, resulting in an
opportunity loss. No assurance can be given as to when such goal will be achieved or the costs of
achieving such goal. Interest rates and gold lease rates A significant, prolonged decrease in interest rates could have a material adverse impact on
the interest earned on Barricks cash balances. A significant, prolonged decrease in interest rates
and/or increase in gold lease rates could have a material adverse impact on the difference between
the forward gold price over the current spot price (contango), and, ultimately, the realized
price under gold forward sales hedge contracts entered into by Barrick. The Companys interest
rate exposure mainly relates to the            mark-to-market value of derivative instruments, the fair
value and ongoing payments under gold lease rate and US dollar interest-rate swaps, fixed-rate and
floating-rate debt and interest receipts on the Companys cash balances. Title to properties The validity of mining claims, which constitute most of Barricks property holdings, can be
uncertain and may be contested. Although Barrick has attempted to acquire satisfactory title to its
properties, some risk exists that some titles, particularly title to undeveloped properties, may be
defective. Competition Barrick competes with other mining companies and individuals for mining claims and leases on
exploration properties and the acquisition of gold mining assets. Barrick also competes with other
mining companies to attract and retain key executives and employees. Barrick cannot assure that it
will continue to be able to compete successfully with Barricks competitors in acquiring such
properties and assets or in attracting and retaining skilled and experienced employees. Acquisitions and integration From time to time Barrick examines opportunities to acquire additional mining assets and
businesses. Any acquisition that Barrick may choose to complete may be of a significant size, may
change the scale of Barricks business and operations, and may expose Barrick to new geographic,
political, operating, financial and geological risks. Barricks success in its acquisition
activities depends on its ability to identify suitable acquisition candidates, negotiate acceptable
terms for any such acquisition, and integrate the acquired operations successfully with those of
Barrick. Any acquisitions would be accompanied by risks. For example, there may be a significant
change in commodity prices after Barrick has committed to complete the transaction and established
the purchase price or exchange ratio; a material orebody may prove to be below expectations;
Barrick may have difficulty integrating and assimilating the operations and personnel of any
acquired companies, realizing anticipated synergies and maximizing the financial and strategic
position of the combined enterprise, and maintaining uniform standards, policies and controls
across the organization; the integration of the acquired business or assets may disrupt Barricks
ongoing business and its relationships with employees, customers, suppliers and contractors; and
the acquired business or assets may have unknown liabilities which may be significant. In the
event that Barrick chooses to raise debt capital to finance any such acquisition, Barricks
leverage will be increased. If Barrick chooses to use equity as consideration for such
acquisition, existing shareholders may suffer dilution. Alternatively, Barrick may choose to
finance any such acquisition with its existing resources. -80-




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There can be no assurance that Barrick would be successful in overcoming these risks or any
other problems encountered in connection with such acquisitions. Employee relations Barricks ability to achieve its future goals and objectives is dependent, in part, on
maintaining good relations with its employees. A prolonged labour disruption at any of its
material properties could have a material adverse impact on its operations as a whole. Litigation Barrick is currently subject to litigation and may be involved in disputes with other parties
in the future which may result in litigation. If Barrick is unable to resolve these disputes
favourably, it may have a material adverse impact on Barricks financial performance, cash flow and
results of operations. See Legal Matters  Litigation. MANAGEMENTS DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS Reference is made to the Managements Discussion and Analysis of Financial and Operating
Results of the Company (US GAAP) for the year ended December 31, 2004 which is incorporated by
reference into this Annual Information Form. CONSOLIDATED FINANCIAL STATEMENTS Reference is made to the Companys Consolidated Financial Statements for the year ended
December 31, 2004 (US GAAP) which is incorporated by reference into this Annual Information Form. CAPITAL STRUCTURE Set forth below is a description of Barricks share capital. The following statements are
brief summaries of, and are subject to the provisions of, the articles of amalgamation and by-laws
of Barrick and the relevant provisions of the Business Corporations Act(Ontario). General Barricks authorized share capital consists of an unlimited number of Barrick common shares,
an unlimited number of first preferred shares issuable in series and an unlimited number of second
preferred shares issuable in series. Common Shares The holders of Barrick common shares are entitled to one vote for each share on all matters
submitted to a vote of shareholders and do not have cumulative voting rights. The holders of
Barrick common shares are entitled to receive dividends if, as and when declared by the Board of
Directors of Barrick in respect of the Barrick common shares. Subject to the prior rights of the
holders, if any, of the first preferred shares and second preferred shares then outstanding and of
the shares then outstanding of any other class ranking senior to the Barrick common shares, the
holders of Barrick common shares are entitled to share ratably in any distribution of the assets of
Barrick upon liquidation, dissolution or winding-up, after satisfaction of all debts and other
liabilities. -81-




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The rights, preferences and privileges of holders of Barrick common shares are subject to the
rights of the holders of shares of any series of first preferred shares (the First Preferred
Shares) or second preferred shares (the Second Preferred Shares) or any other class ranking
senior to the Barrick common shares that Barrick may issue in the future. There are no limitations contained in the articles or by-laws of Barrick or the Business
Corporations Act(Ontario) on the ability of a person who is not a Canadian resident to hold
Barrick common shares or exercise the voting rights associated with Barrick common shares. Preferred Shares First Preferred Shares and Second Preferred Shares may be issued from time to time in series.
The board of directors of the Company determines by resolution the designation, rights, privileges,
restrictions and conditions to be attached to each such series. The Company is entitled to redeem all or any part of the First Preferred Shares or Second
Preferred Shares of any series on payment for each share of the amount equal to the result obtained
when the stated capital account for the series is divided by the number of issued and outstanding
shares of such series together with such premium, if any, as may be determined by the board of
directors in connection with its determination of the designation, rights, privileges, restrictions
and conditions to be attached to the applicable series, and all declared and unpaid dividends
thereon. The Company is also entitled to purchase for cancellation all or any part of the First
Preferred Shares of any series. The First Preferred Shares and the Second Preferred Shares of each series are entitled to a
preference over the common shares of the Company and any other shares ranking junior to the First
Preferred Shares or Second Preferred Shares, as the case may be, with respect to the payment of
dividends and the distribution of assets in the event of a liquidation, dissolution or winding-up
of the Company. Any series of First Preferred Shares or Second Preferred Shares may also be given
such other preferences over the common shares and any other shares ranking junior to the First
Preferred Shares or Second Preferred Shares, as the case may be, as may be determined. In the
event of a liquidation, dissolution or winding-up of the Company, the holders of the First
Preferred Shares are entitled to receive, in the aggregate, the amount of the stated capital
account of the First Preferred Shares plus all declared and unpaid dividends plus, if the
liquidation, dissolution or winding-up is voluntary, any premium to which the shares would be
entitled on a redemption, before any amount is paid or property or assets are distributed to the
holders of common shares or any other shares ranking junior to the First Preferred Shares. After
payment of such amount, the holders of the First Preferred Shares are not entitled to share in any
further distribution of the property or assets of the Company. In the event of a liquidation,
dissolution or winding-up of the Company, the holders of the Second Preferred Shares are entitled
to receive, in the aggregate, the amount of the stated capital account of the Second Preferred
Shares plus all declared and unpaid dividends plus, if the liquidation, dissolution or winding-up
is voluntary, any premium to which the shares would be entitled on a redemption, before any amount
is paid or property or assets are distributed to the holders of common shares or any other shares
ranking junior to the Second Preferred Shares. After payment of such amount, the holders of the
Second Preferred Shares are not entitled to share in any further distribution of the property or
assets of the Company. The holders of First Preferred Shares and Second Preferred Shares are entitled to receive
fixed, non-cumulative preferential quarterly cash dividends at such rate and on such dates as may
be determined by the board of directors in connection with its determination of the designation,
rights, privileges, restrictions and conditions to be attached to the applicable series. -82-




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The approval of the holders of the First Preferred Shares or the Second Preferred Shares is
required to delete or vary any right, privilege, restriction or condition attaching to the First
Preferred Shares or Second Preferred Shares, as the case may be, as a class and any other matter
requiring the approval or consent of the holders of the First Preferred Shares or the Second
Preferred Shares, as the case may be, as a class. The first series of First Preferred Shares is designated as $0.114 Non-cumulative Redeemable
Convertible First Preferred Shares, Series A (the First Preferred Shares, Series A), consisting
of 10,000,000 First Preferred Shares. In addition to the rights, privileges, restrictions and
conditions attached to the First Preferred Shares as a class, the First Preferred Shares, Series A
are entitled to fixed non-cumulative preferential cash dividends of C$0.114 per year, payable
quarterly and can be converted into common shares on a one for one basis (subject to adjustment) if
called for redemption. The redemption price for the First Preferred Shares, Series A is initially
C$1.90 per share, but it may change if the Company gives notice that it has determined that the
market price of the First Preferred Shares, Series A is a stipulated price. On or after the day
that is 30 days after such notice is given, a holder of First Preferred Shares, Series A can
require the Company to redeem his or her First Preferred Shares, Series A. The approval of the
holders of the First Preferred Shares, Series A is required in respect of certain changes to the
provisions relating to the First Preferred Shares or the First Preferred Shares, Series A. As of
March 30, 2005 there were no First Preferred Shares, Series A issued and outstanding. The second series of First Preferred Shares is designated as $0.126 Non-cumulative Redeemable
Convertible First Preferred Shares, Series B (the First Preferred Shares, Series B), consisting
of 10,000,000 First Preferred Shares. In addition to the rights, privileges, restrictions and
conditions attached to the First Preferred Shares as a class, the First Preferred Shares, Series B
are entitled to fixed non-cumulative preferential cash dividends of C$0.126 per year, payable
quarterly and can be converted into common shares on a one for one basis (subject to adjustment) if
called for redemption. The redemption price for each First Preferred Share, Series B is its stated
capital (being C$2.10 per share) plus a premium of C$0.2625 per share, together with all declared
and unpaid dividends. The approval of the holders of the First Preferred Shares, Series B is
required in respect of certain changes to the provisions relating to the First Preferred Shares or
the First Preferred Shares, Series B. No class of shares may be created or issued ranking as to
capital or dividends prior to or on parity with the First Preferred Shares except with the prior
approval of the holders of the First Preferred Shares, Series B. As of March 30, 2005 there were
no First Preferred Shares, Series B issued and outstanding. The third series of First Preferred Shares is designated as First Preferred Shares, Series C
Special Voting Share (the Special Voting Share), consisting of one Special Voting Share. The
Special Voting Share was issued to effect the assumption by Barrick of the BGI exchangeable share
structure in connection with the acquisition of Homestake. In connection with a prior merger
transaction, BGI, a subsidiary of Homestake, issued a class of exchangeable shares to investors
resident in Canada and, to a lesser extent, the United States that allowed the holders of those
shares to exchange their shares for shares of Homestake on a share-for-share basis. On the
completion of the acquisition of Homestake by Barrick, those holders became entitled to exchange
their BGI exchangeable shares for Barrick common shares on the basis of 0.53 Barrick common shares
for each BGI exchangeable share. In addition to the rights, privileges, restrictions and conditions attached to the First
Preferred Shares as a class, except as otherwise required by applicable law, the holder of record
of the Special Voting Share has a number of votes equal to the number of BGI exchangeable shares
outstanding from time to time, which are not owned by Barrick or its subsidiaries or affiliates,
multiplied by 0.53. The holder of the Special Voting Share will vote together with the holders of
Barrick common shares as a single class on all matters submitted to a vote of the holders of the
Barrick common shares, except as may be required by applicable law. The holder of the Special
Voting Share is entitled to receive, in any distribution of -83-




---



##### 



property or assets of Barrick upon any liquidation, dissolution or winding-up of Barrick, an
amount equal to the stated capital of the share plus all declared and unpaid dividends on the
share, before any amount is paid or distributed in respect of the Barrick common shares or any
other Barrick shares ranking junior to the Special Voting Share. The holder of the Special Voting
Share is entitled to receive a dividend of C$0.04 per year. At such time as no BGI exchangeable
shares (other than BGI exchangeable shares owned by Barrick or any subsidiary or affiliate of
Barrick) are outstanding and there are no shares, securities, debt obligations, options or other
agreements that could give rise to the issuance of any BGI exchangeable shares to any person (other
than to Barrick or any subsidiary or affiliate of Barrick), the Special Voting Share will be
redeemed by Barrick for C$1.00 plus all declared and unpaid dividends. As of March 30, 2005 there
was one Special Voting Share issued and outstanding. The first series of Second Preferred Shares is designated as $0.222 Non-cumulative Redeemable
Convertible Second Preferred Shares, Series A (the Second Preferred Shares, Series A),
consisting of 15,000,000 Second Preferred Shares. In addition to the rights, privileges,
restrictions and conditions attached to the Second Preferred Shares as a class, the Second
Preferred Shares, Series A are entitled to fixed non-cumulative preferential cash dividends of
C$0.222 per year, payable quarterly and can be converted into common shares on a one for one basis
(subject to adjustment) if called for redemption. The redemption price for each Second Preferred
Share, Series A is C$2.43 per share, together with all declared and unpaid dividends. A holder of
Second Preferred Shares, Series A can require the Company to redeem his or her Second Preferred
Shares, Series A at the redemption price. The approval of the holders of the Second Preferred
Shares, Series A is required in respect of certain changes to the provisions relating to the Second
Preferred Shares or the Second Preferred Shares, Series A. No class of shares may be created or
issued ranking as to capital or dividends prior to or on parity with the Second Preferred Shares
(with the exception of the First Preferred Shares) except with the prior approval of the holders of
the Second Preferred Shares, Series A. As of March 30, 2005 there were no Second Preferred Shares,
Series A issued and outstanding. RATINGS The following table sets out the ratings of Barricks corporate debt by the rating agencies
indicated: Moodys Investor
    
    Standard & Poors
    
    Dominion BondRating Agency
    
    Service
    
    Rating Services
    
    Rating ServiceSenior, unsecured debt 2034
    
    Baa1
    
    A
    
    ASenior, unsecured debt due 2014
    
    Baa1
    
    A
    
    ASenior, unsecured debt due 2007
    
    Baa1
    
    A
    
    AMunicipal bonds, due 2029(1)
    
    Aa1/VMIG1
    
    AA+/A-1+
    
    Not RatedMunicipal bonds, due 2032(1)
    
    Aa2/P-1
    
    Not Rated
    
    Not Rated
   1.
    Barrick, through two wholly-owned subsidiaries, issued a total of $63 million of tax
exempt, solid waste disposal bonds. The bonds are guaranteed by Barrick and no principal payments are required until cancellation,
redemption or maturity. A portion of such bonds mature in 2029, with the remainder maturing in 2032. Moodys Investors Service (Moodys) credit ratings for long-term debt are on a rating
scale that ranges from Aaa to C, which represents the range from highest to lowest quality of such
securities rated. According to Moodys, a rating of Baa is the fourth highest of nine major
categories. Moodys applies numerical modifiers 1, 2 and 3 in each generic rating classification
from Aa to Caa in its corporate bond rating system. The modifier 1 indicates that the issue ranks
in the higher end of its generic rating category, the modifier 2 indicates a mid-range ranking and
the modifier 3 indicates that the issue ranks in the lower end of its generic rating category. -84-




---



##### 



In the case of variable rate demand obligations (VRDOs), a two-component rating system is
assigned by Moodys, a long or short-term rating and a demand obligation rating. The first element
represents Moodys evaluation of the degree of risk associated with scheduled principal and
interest payments. The second element represents Moodys evaluation of the degree of risk
associated with the ability to receive purchase price upon demand, using a variable municipal
investment grade rating. Moodys credit ratings for long-term aspect of VRDOs are on a rating
scale that ranges from Aaa to C, which represents the range from highest to lowest quality of such
securities rated. According to Moodys, a rating of Aa is the second highest of nine major
categories. Moodys applies numerical modifiers 1, 2 and 3 in each generic rating classification
from Aa to Caa in its municipal bond rating system. The modifier 1 indicates that the issue ranks
in the higher end of its generic rating category, the modifier 2 indicates a mid-range ranking and
the modifier 3 indicates that the issue ranks in the lower end of its generic rating category.
Moodys credit ratings for the short-term or demand aspect of VRDOs are on a rating scale that
ranges from VMIG 1 to SG, which represents the range from highest to lowest quality of such
securities rated. According to Moodys, a rating of VMIG 1 is the highest of four categories. Moodys also uses credit ratings for the short-term or demand aspect of VRDOs on a rating
scale that ranges from P-1 to NP, which represents the range from highest to lowest quality of such
securities rated. According to Moodys, a rating of P-1 is the highest of four categories. Standard & Poors Ratings Services (S&P) credit ratings for long-term debt are on a rating
scale that ranges from AAA to D, which represents the range from highest to lowest quality of such
securities rated. According to S&P, the A rating is the third highest of ten major categories.
The ratings from AA to CCC may be modified by the addition of a plus (+) or minus () sign to show
relative standing within the major rating categories. S&P assigns a dual rating to debt issues that have a put option or demand feature as part of
their structure. The first rating addresses the likelihood of repayment of principal and interest
as due, and the second rating addresses only the demand feature. S&Ps long-term debt rating
symbols are used for bonds to denote the long-term maturity and its short term debt (including
commercial paper) rating symbols are used for the put option. According to S&P, the AA rating is
the second highest of ten major categories. S&Ps credit ratings for short-term debt are on a
rating scale that ranges from A-1 to D, which represents the range from highest to lowest quality
of such securities rated. According to S&P, the A-1 rating is the highest of six major categories.
Within the A-1 category, certain obligations are designated with a plus (+) sign. This indicates
that the obligors capacity to meet is financial commitment on these obligations is extremely
strong. Dominion Bond Rating Service Limited (DBRS) credit ratings are on a long-term debt rating
scale that ranges from AAA to D, which represents the range from highest to lowest quality of such
securities rated. According to DBRS, a rating of A by DBRS is in the middle of three subcategories
within the third highest of ten major categories. The assignment of a (high) or (low) modifier
within each rating category indicates relative standing within such category. The (high) and
(low) grades are not used for the AAA category. Barrick understands that the ratings are based on, among other things, information furnished
to the above ratings agencies by Barrick and information obtained by the ratings agencies from
publicly available sources. The credit ratings given to Barricks debt instruments by the rating
agencies are not recommendations to buy, hold or sell such debt instruments since such ratings do
not comment as to market price or suitability for a particular investor. There is no assurance
that any rating will remain in effect for any given period of time or that any rating will not be
revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances
so warrant. -85-




---



##### 



MARKET FOR SECURITIES Barricks common shares are listed and posted for trading on the Toronto Stock Exchange, the
New York Stock Exchange, the London Stock Exchange, the Swiss Stock Exchange and La Bourse de
Paris. The majority of trading of Barricks common shares take place on the Toronto Stock Exchange
and the New York Stock Exchange under the symbol ABX. The following table outlines the closing
share price trading range and volume of shares traded by month in 2004. Toronto Stock Exchange
    
    
    
    New York Stock ExchangeShare Price Trading Range
    
    
    Share
    
    
    
    Share Price Trading Range
    
    
    ShareHigh
    
    
    Low
    
    
    Volume
    
    
    
    High
    
    
    Low
    
    
    Volume2004
    
    (C$ per share)
    
    
    (millions)
    
    
    
    ($ per share)
    
    
    (millions)January
    
    
    29.95
    
    
    
    25.64
    
    
    
    40.8
    
    
    
    
    23.40
    
    
    
    19.34
    
    
    
    58.3February
    
    
    28.10
    
    
    
    26.30
    
    
    
    37.7
    
    
    
    
    21.50
    
    
    
    19.67
    
    
    
    45.8March
    
    
    31.00
    
    
    
    26.85
    
    
    
    44.9
    
    
    
    
    23.78
    
    
    
    20.02
    
    
    
    64.1April
    
    
    31.56
    
    
    
    26.00
    
    
    
    39.6
    
    
    
    
    24.10
    
    
    
    19.02
    
    
    
    57.9May
    
    
    28.53
    
    
    
    25.45
    
    
    
    29.8
    
    
    
    
    20.99
    
    
    
    18.38
    
    
    
    46.6June
    
    
    28.08
    
    
    
    25.80
    
    
    
    33.2
    
    
    
    
    20.67
    
    
    
    18.76
    
    
    
    35.0July
    
    
    27.65
    
    
    
    24.70
    
    
    
    29.3
    
    
    
    
    20.99
    
    
    
    18.61
    
    
    
    30.8August
    
    
    26.30
    
    
    
    24.25
    
    
    
    27.2
    
    
    
    
    20.30
    
    
    
    18.22
    
    
    
    29.4September
    
    
    26.60
    
    
    
    25.00
    
    
    
    27.4
    
    
    
    
    21.04
    
    
    
    19.37
    
    
    
    32.3October
    
    
    27.60
    
    
    
    25.58
    
    
    
    32.3
    
    
    
    
    22.55
    
    
    
    20.34
    
    
    
    42.0November
    
    
    30.15
    
    
    
    26.22
    
    
    
    36.0
    
    
    
    
    25.39
    
    
    
    21.40
    
    
    
    56.1December
    
    
    29.50
    
    
    
    28.10
    
    
    
    29.9
    
    
    
    
    24.90
    
    
    
    23.03
    
    
    
    43.4
 MATERIAL CONTRACTS On November 12, 2004, Barrick entered into an Indenture with Barrick Gold Inc., Barrick Gold
Finance Company and JPMorgan Chase Bank. Pursuant to such Indenture, (a) Barrick issued
$200,000,000 principal amount of 5.80% notes due 2034 (the Barrick 2034 Notes), (b) Barrick Gold
Finance Company issued $200,000,000 principal amount of 5.80% notes due 2034 (the BGFC 2034
Notes), and (c) Barrick Gold Finance Company issued $350,000,000 principal amount of 4.875% notes
due 2014 (the 2014 Notes) on November 12, 2004. The Indenture sets out the terms and conditions
pertaining to the Barrick 2034 Notes, the BGFC 2034 Notes and the 2014 Notes. Each of the BGFC
2034 Notes and the 2014 Notes are unconditionally guaranteed by Barrick. TRANSFER AGENTS AND REGISTRARS Barricks transfer agent and registrar for its common shares is CIBC Mellon Trust Company,
Toronto, Ontario. Barricks transfer agent and registrar for the BGI exchangeable shares is
Computershare Trust Company of Canada, Toronto, Ontario. DIVIDEND POLICY In each of 2002, 2003 and 2004, Barrick paid a total cash dividend of $0.22 per share  $0.11
in mid-June and $0.11 in mid-December. The amount and timing of any dividends is within the
discretion of Barricks Board of Directors. The Board of Directors reviews the dividend policy
semi-annually based on the cash requirements of Barricks operating assets, exploration and
development activities, as well as potential acquisitions, combined with the current and projected
financial position of Barrick. -86-




---



##### 



DIRECTORS AND OFFICERS OF THE COMPANY Reference is made to the sections Election of Directors and Statement of Corporate
Governance Practices on pages 5 to 12 of the Management Information Circular and Proxy Statement
of the Company dated March 14, 2005 for information regarding directors of the Company and the
Committees of the Board which pages are incorporated herein by reference. The Management
Information Circular and Proxy Statement of the Company is available on SEDAR at
www.sedar.com. As of March 24, 2005, directors and executive officers of Barrick as a
group beneficially own, directly or indirectly, or exercise control or direction over,
approximately 0.4% of the outstanding common shares of Barrick. One director of the Company, Mr. J.L. Rotman, has been a director of other companies, which
during the past ten years have been the subject of a cease trade or similar order while Mr. Rotman
was acting as a director of such companies. Livent Inc. was the subject of a cease trade order
issued by the Ontario Securities Commission on August 7, 1998 following the discovery of accounting
irregularities. In November 1998 Livent Inc. filed a voluntary petition under Chapter 11 of the
U.S. Bankruptcy Code and filed for protection under the Companies Creditors Arrangement Act in
Canada. The cease trade order was revoked effective November 20, 1998 and Mr. Rotman resigned as a
director of Livent Inc. on September 29, 1999. Paragon Entertainment Corporation made a filing
under the Companies Creditors Arrangement Act in April 1998; Mr. Rotman resigned as a director of
Paragon in June 1998. Officers of the Company The following are the officers of the Company as at March 30, 2004: OfficeName (age) and municipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsPeter Munk (77)
Toronto, Ontario
    
    Chairman and Director
(1984)
    
    Chairman of the Company; Chairman of
Trizec Properties, Inc. (real estate)
and Chairman and Chief Executive
Officer, Trizec Canada Inc. (real
estate); prior to May 2002, Chairman,
TrizecHahn Corporation (real estate).Gregory C. Wilkins (49)
Toronto, Ontario
    
    President and Chief
Executive Officer (2003)
and Director (1991)
    
    President and Chief Executive Officer of
the Company; prior to February 2003,
Corporate Director; prior to May 2002,
Vice-Chairman, TrizecHahn Corporation
(real estate); prior to March 2001,
President and Chief Operating Officer,
TrizecHahn Corporation.Jack E. Thompson (55)
Alamo, California
    
    Vice Chairman and Director
(2001)
    
    Vice Chairman of the Company; prior to
December 2001, Chairman and Chief
Executive Officer of Homestake Mining
Company (gold mining).
 -87-




---



##### 



OfficeName (age) and municipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsAlexander J. Davidson (53)
Toronto, Ontario
    
    Executive Vice President,
Exploration and Corporate Development (1993)
    
    Executive Vice President,
Exploration and Corporate Development of the Company; prior to
March 2005, Executive Vice President, Exploration of
the Company; prior to May 2003, Senior
Vice President, Exploration of the
Company.Patrick J. Garver (53)
Toronto, Ontario
    
    Executive Vice President and
General Counsel (1993)
    
    Executive Vice President and General
Counsel of the Company.Peter J. Kinver (49)
Toronto, Ontario
    
    Executive Vice President and
Chief Operating Officer (2003)
    
    Executive Vice President and Chief
Operating Officer of the Company; prior
to February 2004, Executive Vice
President, Operations of the Company;
prior to August 2003, Divisional
Director, Western Division, Anglo
American Platinum plc (platinum mining).Jamie C. Sokalsky (47)
Toronto, Ontario
    
    Executive Vice President and
Chief Financial Officer (1993)
    
    Executive Vice President and Chief
Financial Officer of the Company; prior
to April 2004, Senior Vice President and
Chief Financial Officer of the Company.Gordon F. Fife (46)
Stouffville, Ontario
    
    Senior Vice President,
Organizational
Effectiveness (2002)
    
    Senior Vice President, Organizational
Effectiveness of the Company; prior to
February 2004, Vice President,
Organizational Effectiveness of the
Company; prior to January 2002,
Principal, PricewaterhouseCoopers LLP
(consulting).Ammar Al-Joundi (40)
Toronto, Ontario
    
    Vice President, Finance,
and Treasurer (1999)
    
    Vice President, Finance and Treasurer of
the Company; prior to April 2004, Vice
President and Treasurer of the Company.Ramon Araneda (56)
La Molina, Lima, Peru
    
    Vice President,
Exploration, South America(2004)
    
    Vice President, Exploration, South
America of the Company; prior to July
2004, Exploration Manager, Peru of the
Company.Richard D. Ball (36)
Toronto, Ontario
    
    Vice President, Financial
Reporting and Risk
Analysis (2004)
    
    Vice President, Financial Reporting and
Risk Analysis of the Company; prior to
April 2004, Director, Financial
Reporting and Risk Analysis of the
Company; prior to March 2002, Senior
Manager, PricewaterhouseCoopers LLP
(accounting).
 -88-




---



##### 



OfficeName (age) and municipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsDarren J. Blasutti (36)
Toronto, Ontario
    
    Vice President, Investor
Relations (2004)
    
    Vice President, Investor Relations of
the Company; prior to February 2004,
Director, Corporate Development of the
Company; prior to July 2002, Senior
Manager, Corporate Development of the
Company.M. Vincent Borg (48)
Toronto, Ontario
    
    Vice President, Corporate
Communications (1992)
    
    Vice President, Corporate Communications
of the Company.Michael J. Brown (47)
Alexandria, Virginia
    
    Vice President, United
States Public Affairs(1995)
    
    Vice President, United States Public
Affairs of the Company.Edward L. Cope (50)
Spring Creek, Nevada
    
    Vice President,
Exploration, United States(2004)
    
    Vice President, Exploration, United
States of the Company; prior to July
2004, Manager, USA Exploration of the
Company.Brad L. Doores (54)
Cedar Valley, Ontario
    
    Vice President and
Assistant General Counsel
(2004)
    
    Vice President and Assistant General
Counsel of the Company; prior to April
2004, Assistant General Counsel of the
Company.Kelvin Dushnisky (41)Oakville, Ontario
    
    Vice President, Regulatory
Affairs (2003)
    
    Vice President, Regulatory Affairs of
the Company; prior to May 2003,
Director, Regulatory Affairs of the
Company; prior to April 2002, Managing
Director, Altara Securities Inc.
(financial services); prior to August
2001, Vice-Chair and General Counsel,
EuroZinc Mining Corporation (metals
mining).André R. Falzon (50)
Toronto, Ontario
    
    Vice President and
Controller (1988)
    
    Vice President and Controller of the
Company.Igor Gonzales (50)La Molina, Lima, Peru
    
    Vice President, Peru(2004)
    
    Vice President, Peru of the Company;
prior to February 2004, Vice President
and General Manager, Pierina mine, of
the Company.Rich Haddock (46)Bountiful, Utah
    
    Vice President, Environment
    
    Vice President, Environment of the
Company; prior to February 2005, Senior
Counsel, US Operations of the Company.
 -89-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsRob Krcmarov (40)
North Perth, Australia
    
    Vice President,
Exploration
    
    Vice President, Exploration of the
Company; prior to March 2005, Vice President, Exploration, Australia,
Tanzania and Asia of the Company; prior
to July 2004, Executive General Manager,
Australia/Africa of the Company; prior
to March 2004, General Manager,
Exploration, Australia of the Company;
prior to January 2002, Manager, Project
Development of the Company; prior to
January 2001, district geologist of the
Company.Gregory A. Lang (50)
Sandy, Utah
    
    Vice President, North
American Operations (2001)
    
    Vice President, North American
Operations of the Company; prior to
February 2004, Vice President,
Australian Operations of the Company;
prior to December 2001, Vice President,
Australia, Homestake Mining Company
(gold mining).René L. Marion (42)
Toronto, Ontario
    
    Vice President, Technical
Services (2004)
    
    Vice President, Technical Services of
the Company; prior to February 2004,
Vice President & General Manager, Kahama
Mining of the Company; prior to July
2003, Corporate Head, Evaluations and
Development of the Company; prior to
April 2002, Senior Manager, Development
of the Company; prior to January 2001,
Staff Mining Engineer of the Company.John T. McDonough (58)
Santiago, Chile
    
    Vice President,
Chile/Argentina (1994)
    
    Vice President, Chile Argentina, prior
to October 2004, Vice President,
Environment of the Company.Calvin F. Pon (48)
Toronto, Ontario
    
    Vice President, Tax(2004)
    
    Vice President, Tax of the Company;
prior to February 2004, Director, Tax of
the Company.George Potter (48)
Toronto, Ontario
    
    Vice President, Capital
Projects (2004)
    
    Vice President, Capital Projects of the
Company; prior to October 2004, Managing
Director of Projects, Metallurgy and
Supplies for Ashanti Goldfields and
Anglogold Ashanti Ltd.John Shipp (58)
Perth, Australia
    
    Vice President,
Australia/Africa (2004)
    
    Vice President, Australia/Africa of the
Company; prior to September 2004,
General Manager at Kalgoorlie
Consolidated Gold Mines.
 -90-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsSybil
E. Veenman (41)

Toronto, Ontario
    
    Vice President, Assistant
General Counsel and
Secretary (1995)
    
    Vice President, Assistant General
Counsel and Secretary of the Company;
prior to April 2004, Associate General
Counsel and Secretary of the Company.David
D. Young (54)

Toronto, Ontario
    
    Vice President, Supply
Chain Management (2004)
    
    Vice President, Supply Chain Management
of the Company; prior to February 2004,
Vice President, Material & Supply,
Rockwell Collins (aviation technology).James
W. Mavor (39)

Toronto, Ontario
    
    Assistant Treasurer 
Risk-management (2004)
    
    Assistant Treasurer  Risk-management of
the Company; prior to February 2004,
Director, Treasury Operations of the
Company.Jeffrey
A. Swinoga (37)

Toronto, Ontario
    
    Assistant Treasurer 
Finance (2004)
    
    Assistant Treasurer  Finance of the
Company; prior to February 2004,
Director, Treasury Finance of the
Company.
 NON-GAAP PERFORMANCE MEASURES Total cash costs per ounce data has been included in this Annual Information Form because
these statistics are a key performance measure that Barricks management uses to monitor
performance. Barrick uses these statistics to assess how well its producing mines are performing
compared to plan and also to assess the overall effectiveness and efficiency of its mining
operations. The inclusion of these statistics in this Annual Information Form helps an investor to
assess performance through the eyes of management. Barrick understand that certain investors
also use these statistics to assess the Companys performance. The inclusion of total cash costs
per ounce statistics enables investors to better understand year on year changes in production
costs, which in turn affect profitability and the ability to generate operating cash flow for use
in investing and other activities. Barrick reports total cash costs per ounce data calculated in
accordance with The Gold Institute Production Cost Standard (the Standard). Adoption of the
Standard is voluntary, but Barrick understands that most senior gold producers follow the Standard
when reporting cash cost per ounce data. The data does not have a meaning prescribed by US GAAP
and therefore amounts presented may not be comparable to data presented by gold producers who do
not follow the Standard. Total cash costs per ounce are derived from amounts included in the
Statements of Income (as part of the Consolidated Financial Statements) and mine site operating
costs such as mining, processing, administration, royalties, production taxes and from the sale of
by-products such as silver, but exclude amortization, reclamation costs, financing costs, and
capital, development and exploration costs. A US GAAP measure of costs per ounce has also been
presented as required by securities regulations that govern non-GAAP performance measures.
Information within this Annual Information Form is focused on the total cash costs measure as
defined by the Standard. -91-




---



##### 



The data is intended to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with GAAP. The
measures are not necessarily indicative of operating profit or cash flow from operations as
determined under GAAP. As can be seen from the following tables reconciling the GAAP and nonGAAP
measures, the GAAP and nonGAAP measures are not significantly different. For the years ended December 31($ millions, except per ounce information)
    
    2004
    
    
    2003Total cash costs  per US GAAP 1
    
    $
    1,062
    
    
    $
    1,065Accretion expense and reclamation costs at
the operating mines
    
    
    (18
    )
    
    
    (14
    )Total cash costs per ounce  per Gold
Institute Production Cost Standard
    
    $
    1,044
    
    
    $
    1,051Ounces sold (thousands)
    
    
    4,936
    
    
    
    5,554Total cash costs per ounce  per US GAAP (dollars)2
    
    $
    215
    
    
    $
    192Total cash costs  per Gold Institute
Production Cost Standard (dollars)2
    
    $
    212
    
    
    $
    189
 -92-




---



##### 



Reconciliation of Total Cash Costs Per Ounce to Financial Statements Goldstrike -
    
    
    Goldstrike -Open Pit
    
    
    Underground
    
    
    Eskay Creek2
    
    
    Round MountainFor the years ended December 31
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Total cash production costs  per US GAAP1
    
    $
    336.5
    
    
    $
    380.6
    
    
    $
    141.2
    
    
    $
    152.1
    
    
    $
    9.3
    
    
    $
    18.6
    
    
    $
    84.5
    
    
    $
    67.2Accretion expense and reclamation costs at operating mines
    
    
    (2.5
    )
    
    
    (2.5
    )
    
    
    (0.2
    )
    
    
    
    
    
    
    (0.2
    )
    
    
    (0.3
    )
    
    
    (1.6
    )
    
    
    (1.6
    )Total cash production costs per Gold Institute Production Cost Standard
    
    $
    334.0
    
    
    $
    378.1
    
    
    $
    141.0
    
    
    $
    152.1
    
    
    $
    9.1
    
    
    $
    18.3
    
    
    $
    82.9
    
    
    $
    65.6Ounces sold (thousands)
    
    
    1,352
    
    
    
    1,625
    
    
    
    554
    
    
    
    600
    
    
    
    290
    
    
    
    354
    
    
    
    375
    
    
    
    379Total cash costs per ounce sold per US GAAP (dollars)3
    
    $
    249
    
    
    $
    234
    
    
    $
    256
    
    
    $
    253
    
    
    $
    32
    
    
    $
    53
    
    
    $
    225
    
    
    $
    177Total cash costs per ounce sold  per Gold Institute Production Cost Standard (dollars)4
    
    $
    247
    
    
    $
    233
    
    
    $
    255
    
    
    $
    253
    
    
    $
    31
    
    
    $
    52
    
    
    $
    221
    
    
    $
    173
 Hemlo
    
    
    Holt-McDermott
    
    
    Marigold
    
    
    Total North AmericaFor the years ended December 31
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Total cash production costs  per US GAAP1
    
    $
    57.6
    
    
    $
    60.4
    
    
    $
    12.1
    
    
    $
    20.9
    
    
    $
    9.1
    
    
    $
    8.1
    
    
    $
    650.3
    
    
    $
    707.9Accretion expense and reclamation costs at operating mines
    
    
    (0.2
    )
    
    
    (0.2
    )
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (4.9
    )
    
    
    (4.8
    )Total cash production costs per Gold Institute Production Cost Standard
    
    $
    57.4
    
    
    $
    60.2
    
    
    $
    12.0
    
    
    $
    20.8
    
    
    $
    9.0
    
    
    $
    8.0
    
    
    $
    645.4
    
    
    $
    703.1Ounces sold (thousands)
    
    
    239
    
    
    
    266
    
    
    
    62
    
    
    
    87
    
    
    
    46
    
    
    
    47
    
    
    
    2,918
    
    
    
    3,358Total cash costs per ounce sold per US GAAP (dollars)3
    
    $
    241
    
    
    $
    227
    
    
    $
    195
    
    
    $
    240
    
    
    $
    198
    
    
    $
    172
    
    
    $
    223
    
    
    $
    211Total cash costs per ounce sold  per Gold Institute Production Cost Standard (dollars)4
    
    $
    240
    
    
    $
    226
    
    
    $
    197
    
    
    $
    239
    
    
    $
    197
    
    
    $
    171
    
    
    $
    221
    
    
    $
    209
 Pierina
    
    
    Total South America
    
    
    Plutonic
    
    
    DarlotFor the years ended December 31
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Total cash production costs  per US GAAP1
    
    $
    72.2
    
    
    $
    78.9
    
    
    $
    72.2
    
    
    $
    78.9
    
    
    $
    69.2
    
    
    $
    62.6
    
    
    $
    30.0
    
    
    $
    25.4Accretion expense and reclamation costs at operating mines
    
    
    (3.5
    )
    
    
    (3.2
    )
    
    
    (3.5
    )
    
    
    (3.2
    )
    
    
    (0.1
    )
    
    
    (0.2
    )
    
    
    (0.1
    )
    
    
    (0.1
    )Total cash production costs per Gold Institute Production Cost Standard
    
    $
    68.7
    
    
    $
    75.7
    
    
    $
    68.7
    
    
    $
    75.7
    
    
    $
    69.1
    
    
    $
    62.4
    
    
    $
    29.9
    
    
    $
    25.3Ounces sold (thousands)
    
    
    649
    
    
    
    911
    
    
    
    649
    
    
    
    911
    
    
    
    310
    
    
    
    324
    
    
    
    142
    
    
    
    154Total cash costs per ounce sold per US GAAP (dollars)3
    
    $
    111
    
    
    $
    87
    
    
    $
    111
    
    
    $
    87
    
    
    $
    223
    
    
    $
    193
    
    
    $
    211
    
    
    $
    165Total cash costs per ounce sold  per Gold Institute Production Cost Standard (dollars)4
    
    $
    106
    
    
    $
    83
    
    
    $
    106
    
    
    $
    83
    
    
    $
    223
    
    
    $
    193
    
    
    $
    210
    
    
    $
    164
   1
    
    Represents cost of sales and other operating costs (excluding amortization and accretion expense and reclamation costs for non-operating mines).2
    
    Eskay Creeks total cash costs in 2004 are impacted by higher silver prices which the Company treats as a by-product. Total cash costs on
a co-product basis are: 2004 - gold $202 per ounce, silver $3.36 per
ounce (2003 - gold $175 per ounce, silver $2.37 per ounce).3
    
    Represents total cash production costs per US GAAP divided by ounces sold.4
    
    Represents total cash production costs per Gold Institute Production Cost Standard divided by ounces sold.
 -93-




---



##### 



Lawlers
    
    
    Kalgoorlie
    
    
    Bulyanhulu
    
    
    Total Australia/AfricaFor the years ended December 31
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Total cash production costs  per US GAAP1
    
    $
    28.3
    
    
    $
    23.8
    
    
    $
    108.5
    
    
    $
    88.1
    
    
    $
    103.2
    
    
    $
    77.1
    
    
    $
    339.2
    
    
    $
    277.0Accretion expense and reclamation costs at operating mines
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (1.5
    )
    
    
    (1.5
    )
    
    
    (7.5
    )
    
    
    (4.1
    )
    
    
    (9.3
    )
    
    
    (6.0
    )Total cash production costs per Gold Institute Production Cost Standard
    
    $
    28.2
    
    
    $
    23.7
    
    
    $
    107.0
    
    
    $
    86.6
    
    
    $
    95.7
    
    
    $
    73.0
    
    
    $
    329.9
    
    
    $
    271.0Ounces sold (thousands)
    
    
    115
    
    
    
    95
    
    
    
    463
    
    
    
    415
    
    
    
    339
    
    
    
    297
    
    
    
    1,369
    
    
    
    1,285Total cash costs per ounce sold per US GAAP (dollars)2
    
    $
    247
    
    
    $
    250
    
    
    $
    234
    
    
    $
    212
    
    
    $
    304
    
    
    $
    260
    
    
    $
    248
    
    
    $
    216Total cash costs per ounce sold  per Gold Institute Production Cost Standard (dollars)3
    
    $
    246
    
    
    $
    249
    
    
    $
    231
    
    
    $
    209
    
    
    $
    283
    
    
    $
    246
    
    
    $
    241
    
    
    $
    210
   1
    
    Represents cost of sales and other operating costs (excluding amortization and accretion expense and reclamation costs for non-operating mines).2
    
    Represents total cash production costs per US GAAP divided by ounces sold.3
    
    Represents total cash production costs per Gold Institute Production Cost Standard divided by ounces sold.
 Reconciliation of Amortization Costs per Ounce to Financial Statements For the years ended December 31
    
    2004
    
    
    2003
    
    
    2002Amortization expense per consolidated financial statements
    
    $
    452
    
    
    $
    522
    
    
    $
    519Amortization expense recorded on property, plant and equipment not at operating mine sites
    
    
    (27
    )
    
    
    (25
    )
    
    
    (26
    )Amortization expense for per ounce calculation
    
    $
    425
    
    
    $
    497
    
    
    $
    493Ounces sold (thousands)
    
    
    4,936
    
    
    
    5,554
    
    
    
    5,805Amortization per ounce (dollars)
    
    $
    86
    
    
    $
    90
    
    
    $
    85
 ADDITIONAL INFORMATION Additional information, including directors and officers remuneration and indebtedness,
principal holders of the Companys securities and options to purchase securities is contained in
the Companys Management Information Circular and Proxy Statement dated March 14, 2005. As well,
additional financial information is provided in the Companys 2004 Annual Report, in the Companys
Consolidated Financial Statements (as prepared under US GAAP) and Managements Discussion and
Analysis of Financial and Operating Results for the year ended December 31, 2004 (as prepared under
US GAAP), each of which is available electronically from the Canadian System for Electronic
Document Analysis and Retrieval (SEDAR) (http://www.sedar.com) and from the U.S. Securities and
Exchange Commissions Electronic Document Gathering and Retrieval System (EDGAR)
(http://www.sec.gov). -94-