Barrick Gold Corp. has won approval for its Pascua Lama gold and silver project in South America, setting the stage for possible production by 2010.

After more than two years of reviews and several modifications, the Argentine province of San Juan approved Barrick's environmental impact assessment yesterday.

"This milestone decision is the result of a serious and thorough evaluation process on both sides of the border," Barrick's president and chief executive officer, Greg Wilkins, said yesterday in a written statement.

Pascua Lama straddles the border of Argentina and Chile more than 4,500 feet above sea level in the Andes mountains. It has been delayed several times by concerns about production costs and opposition from environmental groups.

In February, Chile gave the go-ahead to the $1.5-billion (U.S.) project, which may contain as much as much as 18.3 million ounces of gold and 650 million ounces of silver.

Out of Barrick's seven development projects, Pascua Lama is "next in line, so it is by default the most important one," said Victor Flores, an analyst with HSBC Securities.

Barrick said it must obtain several other permits before construction can begin.