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Aug. 18, 2022, 8:39 p.m. EDT

Newcrest Announces Annual Mineral Resources & Ore Reserves Statement

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Melbourne, Australia, Aug 18, 2022 (Newsfile Corp via COMTEX) -- Annual Mineral Resources and Ore Reserves Statement - as at 30 June 2022

  • Mineral Resource growth at Havieron following successful drilling program

  • Feasibility studies in progress for Lihir Phase 14A, Havieron, Cadia PC 1-2 and Red Chris Block Cave which will inform future Ore Reserve updates

  • Work program in progress to estimate Brucejack [1] Mineral Resources and Ore Reserves

Melbourne, Australia--(Newsfile Corp. - August 18, 2022) - Newcrest Mining Limited (asx:NCM) /zigman2/quotes/200289815/delayed CA:NCM +0.69% (pngx:NCM) has updated its Mineral Resource and Ore Reserve estimates for the six-month period ending 30 June 2022 following a review of all production sources. The review has considered mining depletion, drilling results, studies, long-term metal prices, foreign exchange rates and cost assumptions, as well as mining and metallurgy performance to inform cut-off grades and physical mining parameters. This statement outlines Mineral Resource and Ore Reserve changes since the previous estimate for the period ending 31 December 2021, published on 17 February 2022.

Scientific and technical studies are in progress to assess and estimate Brucejack Mineral Resources and Ore Reserves.

Newcrest's Annual Mineral Resources and Ore Reserves Statement meets the reporting requirements of the Australian Securities Exchange (ASX) Listing Rules Chapter 5, December 2019; the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves , December 2012 (JORC Code), and has been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101) of the Canadian Securities Administrators, June 2011, Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves, May 2014 and the rules of the Toronto Stock Exchange (TSX).

Group Ore Reserves

As at 30 June 2022, Group Ore Reserves [2] are estimated to contain approximately 61 million ounces of gold, 11 million tonnes of copper, 29 million ounces of silver and 0.099 million tonnes of molybdenum.

This represents decreases, predominantly as a result of mining depletion, of approximately 2 million ounces of gold (~3%), 0.3 million tonnes of copper (~3%), 1 million ounces of silver (~6%) and 0.011 million tonnes of molybdenum (~6%) compared with the estimate as at 31 December 2021. The Group Ore Reserve estimates as at 30 June 2022 are set out in Table 11 and Table 12 on a 100 per cent basis [2] . Tonnes are reported as dry metric tonnes. All Group Ore Reserves are classified as Probable Reserves except for 58 million tonnes of Lihir Stockpiles that are Proved Reserves. All tabulated tonnes, grade and metal information has been rounded to two significant figures to reflect appropriate precision in the estimate, and this may cause some apparent discrepancies in totals.

A work program is in progress to assess and estimate Ore Reserves for the Brucejack asset to enable future reporting in accordance with the JORC Code.

Feasibility Studies are progressing for Lihir Phase 14A, Havieron, Cadia PC 1-2 and Red Chris Block Cave. Outcomes of these studies will inform future Ore Reserves.

The Group Ore Reserves as at 30 June 2022 includes the following changes as compared to 31 December 2021:

  • Estimated mining depletion of approximately 1.3 million ounces of gold, 0.1 million tonnes of copper, 0.5 million ounces of silver and minor molybdenum.

  • Minor updates to price, cost and some technical input assumptions at Cadia and Telfer that delivered a slight decrease in Ore Reserves.

Group Mineral Resources

As at 30 June 2022, Group Measured and Indicated Mineral Resources [3] are estimated to contain approximately 120 million ounces of gold, 25 million tonnes of copper, 100 million ounces of silver and 0.17 million tonnes of molybdenum. This represents no appreciable change compared to the estimate as at 31 December 2021.

The Group Measured and Indicated Mineral Resources and Inferred Mineral Resources as at 30 June 2022 are set out in Table 5 to Table 10 on a 100 per cent basis [3] [,4] .

The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore Reserves. Tonnes are reported as dry metric tonnes. All tabulated tonnes, grade and metal have been rounded to two significant figures to reflect appropriate precision in the estimates. This may cause some apparent discrepancies in totals.

A work program is in progress to assess and estimate Mineral Resources for the Brucejack asset to enable future reporting in accordance with the JORC Code.

The Group Measured and Indicated Mineral Resources as at 30 June 2022 includes the following changes as compared to 31 December 2021:

  • Estimated mining depletion of approximately 1.3 million ounces of gold, 0.1 million tonnes of copper, 0.5 million ounces of silver and minor molybdenum.

  • Havieron updated estimate added 1.0 million ounces of gold and 0.04 million tonnes of copper.

As at 30 June 2022, Group Inferred Mineral Resources [4] are estimated to contain approximately 21 million ounces of gold, 4.8 million tonnes of copper, 18 million ounces of silver and 0.012 million tonnes of molybdenum. This represents an increase of 1 million ounces of gold and no appreciable change for copper, silver or molybdenum compared with the estimate as at 31 December 2021.

The Group Inferred Mineral Resources as at 30 June 2022 includes the following changes as compared to 31 December 2021:

  • Havieron updated estimate added 0.9 million ounces of gold and 0.015 million tonnes of copper.

  • Minor adjustments at Telfer due to model updates.

Assurance and Verification

Assurance programs are undertaken to verify the estimates and estimation processes for Mineral Resources and Ore Reserves. Controls include:

  • Newcrest Mining Group Standards.

  • A Resources and Reserves Steering Committee to ensure appropriate governance of development and management of resource and reserve estimates, and the public release of those estimates.

  • Independent audits or reviews of new or materially changed estimates.

  • Annual reconciliation performance metrics to validate Mineral Resources and Ore Reserves estimates for operating mines.

  • Internal technical assessments of Mineral Resources and Ore Reserves estimates.

Competent and Qualified Persons

The information in this Statement that relates to Group Mineral Resources, Ore Reserves, and associated scientific and technical information, is based on and fairly represents information compiled by Ms J Terry. Ms Terry is Newcrest's Head of Mineral Resource Management and a full-time employee of Newcrest Mining Limited. She is entitled to participate in Newcrest's executive equity long term incentive plan, details of which are included in Newcrest's 2022 Remuneration Report. She is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Ms Terry has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person under NI 43-101. Ms Terry has reviewed and approves the disclosure of scientific and technical information contained in this document and consents to the inclusion in this Statement of the matters based on her information in the form and context in which it appears.

The information in this Statement that relates to specific Mineral Resources, Ore Reserves, and associated scientific and technical information, is based on and fairly represents information and supporting documentation compiled by the Competent Persons (as defined in the JORC Code) and the Qualified Persons (as defined in NI 43-101) named in Table 1. All Competent and Qualified Persons have, at the time of reporting, sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent and/ or Qualified Person. Each Competent Person and Qualified Person listed is, unless otherwise noted, a full-time employee of Newcrest Mining Limited, or its relevant subsidiaries and may be entitled to participate in Newcrest's long term incentive plan, details of which are included in Newcrest's 2022 Remuneration Report. Some hold Newcrest shares and declare that they have no issues that could be perceived by investors as a material conflict of interest in preparing the reported information. All Competent Persons are Fellows of the AusIMM or Members of the AIG or a Recognised Professional Organisation. Each Competent and Qualified Person consents to the inclusion in this Statement of the matters based on their information in the form and context in which it appears.

Table 1

Competent and Qualified Persons
Property Deposit Accountability Competent and Qualified Person Professional Membership
Cadia Cadia East Underground, Ridgeway Underground,
Cadia Extended Underground, Big Cadia and Cadia Hill Stockpiles
Mineral Resources Luke Barbetti MAIG
Cadia East Underground Ore Reserves Ian Austen FAusIMM
Ridgeway Underground Ore Reserves Geoff Newcombe FAusIMM
Telfer Telfer Open Pit Stockpiles, West Dome Open Pit,
Telfer Underground, Havieron, Satellite Deposits,
Camp Dome and O'Callaghans
Mineral Resources Peter Morgan FAusIMM
Telfer Open Pit Stockpiles, and West Dome Open Pit Ore Reserves Brett Swanson MMSA (QP)
Telfer Underground Ore Reserves Brad Cook (Competent Person) and
Mark Kaesehagen (QP)
MAusIMM
FAusIMM
Havieron Ore Reserve Pasqualino Manca FAusIMM
Red Chris Open Pit, Open Pit Stockpiles and Underground Mineral Resources Rob Stewart FAusIMM
Open Pit and Stockpiles Ore Reserves Brett Swanson MMSA (QP)
Underground Ore Reserves Michael Sykes FAusIMM
Lihir Open Pit and Stockpiles Mineral Resources Lauren Elliott MAIG
Ore Reserves Christopher Chiang FAusIMM
WGJV Golpu Mineral Resources David Finn MAIG
Ore Reserves Pasqualino Manca FAusIMM
Wafi and Nambonga Mineral Resources Greg Job [5] FAusIMM
Namosi JV Waisoi and Wainaulo Mineral Resources Vik Singh FAusIMM

 

Mineral Resources and Ore Reserves Assumptions

Mining, metallurgical and long-term cost assumptions were developed with reference to performance data. The revised assumptions include changes in performance consistent with changing activity levels at each site over the life of the operation and the latest study for each deposit.

Long-term metal prices and foreign exchange assumptions for Mineral Resources and Ore Reserves are presented in Table 2. For long reserve life assets, all metal prices, AUD:USD exchange rate and USD:PNG kina exchange rate applied are unchanged for both Mineral Resources and Ore Reserves compared to December 2021 prices used for reporting.

For short reserve life assets, gold and copper prices and USD:PNG kina exchange rate have increased for both Mineral Resources and Ore Reserves compared to December 2021 prices used for reporting.

In consideration of the comparatively short reserve life of Telfer and the Red Chris Open Pit, the gold price assumption is US$200/oz higher, and the copper price assumption is US$0.70/Ib higher than prices applied for Ore Reserves reporting of long reserve life assets. The USD:PGK exchange rate is also 0.30 higher, in each case compared to prices used for reporting of 31 December 2021 information.

Note that long term metal prices and exchange rate assumptions are applied to Havieron Mineral Resources and Ore Reserves and Red Chris underground Mineral Resources and Ore Reserves. Where appropriate, Mineral Resources are also spatially constrained within notional mining volumes based on metal prices of US$1,400/oz for gold and US$4.00/lb for copper. This approach is adopted to eliminate mineralisation that does not have reasonable prospects of eventual economic extraction from Mineral Resource estimates.

Mineral Resource and Ore Reserve cut-off criteria are described in Table 3.

Ore Reserve metallurgical recovery assumptions are described in Table 4.

A discussion of the known legal, political, environmental, or other risks that could materially affect the potential development of the Ore Reserves and Mineral Resources for each of the material properties Cadia, Lihir, Wafi-Golpu and Red Chris can be found in the Technical Report for each project (referred to below).

Some legacy Mineral Resources and Ore Reserves estimates have applied older, conservative price and cost assumptions than stated in Table 2. These have been tested for economic viability.

Table 2

Metal Price Assumptions Long Life Assets Short Life Assets (Telfer and Red Chris Open Pit)
Mineral Resource Estimates

Gold - US$/oz 1,400.00 1,625.00
Copper - US$/lb 3.40 3.60
Silver - US$/oz 21.00 21.00
Molybdenum - US$/Ib 10.00
Ore Reserve Estimates

Gold - US$/oz 1,300.00 1,600.00
Copper - US$/lb 3.00 3.50
Silver - US$/oz 18.00 18.00
Molybdenum - US$/Ib 8.00
Exchange Rate AUD: USD 0.75 0.75

 

Table 3

Cut-Off Assumptions
Deposit Mineral Resource Cut-Off Criteria Ore Reserve Cut-Off Criteria
Cadia East Underground Net Smelter Return (NSR) of approx. A$18.00/t milled. NSR of approx. A$22.11/t milled.
Ridgeway Underground NSR of A$12.50/t milled. NSR of A$22.40/t milled.
Cadia Extended Underground NSR of A$18.71/t milled. -
Cadia Hill Stockpiles NSR of A$12.81/t milled. -
Big Cadia NSR of A$12.81/t milled. -
Telfer West Dome Open Pit NSR of A$21.20/t milled. NSR of A$19.20/t milled.
Telfer Stockpiles NSR of A$21.20/t milled. NSR of A$19.20/t milled.
Telfer Underground Variable NSR of A$ 44.92/t - A$147.96/t milled. Variable NSR of A$ 44.92/t - A$147.96/t milled.
Havieron Variable NSR of A$ 50.00/t - A$100.00/t milled. NSR of A$130.00/t milled.
Satellites Deposits 0.20g/t gold in oxide material
0.30g/t gold for transitional and 0.54g/t gold in fresh material based on dump leach processing.
-
Camp Dome 0.13% copper based on dump leach processing. -
O'Callaghans NSR of A$54.90/t milled applied to visible high grade mineralised skarn that has a minimum 5m height. -
Red Chris Open Pit and Stockpiles NSR of C$16.10/t milled. NSR of C$20.33/t milled.
Red Chris Underground NSR of C$21.00/t milled. Variable NSR of C$22.00/t - 22.80/t milled.
Lihir Open Pit and Stockpiles 1.00g/t gold. 1.00g/t gold.
WGJV - Golpu NSR of US$22.29/t milled. NSR of US$19.15/t - US$60.00/t milled (block cave).
WGJV - Wafi 0.40g/t gold for non-refractory gold and 0.90g/t gold for refractory gold. -
WGJV - Nambonga 0.50g/t gold (potential block cave shell). -
Namosi JV Waisoi NSR of US$11.00/t milled. -
Namosi JV Wainaulo NSR of US$23.20/t milled within a block cave shell. -

 

Table 4

Ore Reserve Metallurgical Recovery Assumptions
Deposit Recovery
Cadia East Underground Gold range 70 - 85%
Copper average - 87%
Silver range 60 - 70%
Molybdenum range 65-75%
Ridgeway Underground Gold - 81%
Copper - 87%
West Dome Open Pit and Telfer Stockpiles Gold average - 77%
Copper average - 52%
Telfer Underground Gold range 81 - 96%
Copper range 82 - 97%
Havieron Gold average - 88%
Copper average - 84%
Red Chris Open Pit and Stockpiles Gold average - 54%
Copper average- 80%
Red Chris Underground Gold range 60 - 75%
Copper range 81 - 86%
Lihir Open Pit and Stockpiles Gold average - 82%
WGJV - Golpu Gold average - 68%
Copper average - 95%

 

JORC Code and ASX Listing Rules Requirements

This annual statement of Mineral Resources and Ore Reserves has been prepared in accordance with the JORC Code.

/zigman2/quotes/200289815/delayed
CA : Canada: Toronto
$ 18.87
+0.13 +0.69%
Volume: 25,681
Nov. 25, 2022 4:00p
P/E Ratio
14.43
Dividend Yield
0.00%
Market Cap
$16.08 billion
Rev. per Employee
N/A
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