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The shear strength of an arsenic bearing sludge derived from gold mining was evaluated as a function of lime content. Lime was used as a physico-chemical stabilization agent of this waste to enhance slope stability and increase site storage capacity. Shear strength characteristics of the sludge before and after lime stabilization were obtained through unconsolidated undrained triaxial tests performed at lime content weight percentages of 0, 5, 10, and 20%. The shear strength testing results show an increase in cohesion from 5 kPa at 0% lime content, to 27 kPa at 20% lime content. Slope stability analysis indicates that stabilization of the sludges improves storage capacity by 43%. This represents an increase from 3,487.5 m3/m (0% lime content) to 4,987.50 m3/m (20% lime content). Thus the addition of lime is effective in improving the shear strength and storage capacity of arsenic bearing sludge. [ABSTRACT FROM AUTHOR]