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Newcrest Mining Ltd. (ASX:NCM) announced that an update of the 2012 feasibility study for its Golpu project shows that it would be better served by “splitting it into two stages.”
Newcrest Mining Ltd. (ASX:NCM) announced that an update of the 2012 feasibility study for its Golpu project shows that it would be better served by “splitting it into two stages.” Stage 1 would target the “upper higher value portion of the ore body,” while the second would “encompass the rest of the ore reserves.”
The new study has prompted Newcrest’s board to allow Stage 1 to move forward to feasibility, with work to continue on updating the 2012 prefeasibility study for Stage 2.
Highlights of the updated study include:
- Stage one capital expenditure is forecast at US$2.3 billion (100%) with life of mine estimated capital expenditure of US$3.1 billion (100%)
- Maximum cumulative negative cash flow is forecast to be US$1.6 billion (100%)
- First production forecast for calendar year 2020
- Lowest quartile cost for gold is forecast with an All-In Sustaining Cost for gold sold of negative US$1,685/oz after copper credits
- Stage one consists of two block cave mines, with the initial block cave operating at 3Mtpa, which will be replaced by a deeper block cave operating at 6Mtpa in steady state from 2024
- Stage one has an approximate mine life of 27 years, with annual production expected to peak at 320,000 ounces of gold and 150,000 tonnes of copper in 2025
- Stage two of the updated 2012 pre-feasibility study will focus on a third block cave mine
Click here to read the full Newcrest Mining Ltd. (ASX:NCM) press release.