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Newcrest Mining Limited Releases Annual Mineral Resources & Ore Reserves Statement

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Melbourne, Australia, Feb 16, 2022 (Newsfile Corp via COMTEX) -- Annual Mineral Resources and Ore Reserves Statement - as at 31 December 2021

  • Major increases driven by organic growth at Red Chris, Havieron and Lihir

  • Gold Ore Reserves [1] increase by 10% to 54 million ounces

  • Measured and Indicated Resources [1] increase to 104 [2] million ounces gold (+7%) and 19 million tonnes copper (+12%)

  • Inferred Resources [1] increase to 16 million ounces gold (+39%) and 3.5 million tonnes copper (+50%)

Melbourne, Australia--(Newsfile Corp. - February 16, 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 twelve-month period ending 31 December 2021 following a review of all production sources. The review has taken into account divestments and acquisitions, 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.

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).

Key developments in 2021

Newcrest achieved a number of significant growth milestones in 2021 that are now reflected in this Statement:

  • On 31 March 2021, Newcrest reported an initial Mineral Resource [3] estimate for the Red Chris Mine in accordance with the JORC Code. Newcrest has an equity interest of 70% in the Red Chris Mine in joint venture with Imperial Metals Corporation. Proportional Mineral Resources are reported in this statement.

  • On 19 August 2021, Newcrest reported findings from its Cadia PC1-2 Pre-Feasibility Study [4] including updated Mineral Resource and Ore Reserve estimates for Cadia depleted to 30 June 2021.

  • On 12 October 2021, Newcrest reported findings from its Havieron Project Stage 1 Pre-Feasibility Study [5] including an updated Mineral Resource and an initial Ore Reserve estimate. Newcrest has a registered interest of 40% [6] in the Havieron Project's mining lease in joint venture with Greatland Gold Plc. Proportional Mineral Resources and Ore Reserves are reported in this statement.

  • On 12 October 2021, Newcrest reported findings from its Lihir Phase 14A Pre-Feasibility Study [7] including an updated Ore Reserve estimate depleted to 30 June 2021.

  • On 12 October 2021, Newcrest reported findings from its Red Chris Block Cave Pre-Feasibility Study [8] including initial Open Pit and Underground Probable Ore Reserves estimates in accordance with the JORC Code. Newcrest is the operator of the Red Chris Mine. Ore Reserves are reported on a proportional equity interest basis (70%) in this statement.

  • On 30 November 2021, Newcrest released its Technical Report on the Red Chris Project [9] in accordance with NI 43-101 and CIM Definition Standards.

Group Ore Reserves

As at 31 December 2021, Group Ore Reserves are estimated to contain approximately 54 million ounces of gold, 7.9 million tonnes of copper, 30 million ounces of silver and 0.11 million tonnes of molybdenum. This represents increases of approximately 5 million ounces of gold (~10%) and 1.1 million tonnes of copper (~2%) and decreases of approximately 5 million ounces of silver (~17%) and 0.01 million tonnes of molybdenum (~8%) compared with the estimate as at 31 December 2020. The Group Ore Reserve estimates as at 31 December 2021 are set out in Tables 15 to 19. 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.

The Group Ore Reserves as at 31 December 2021 includes the following changes as compared to 31 December 2020:

  • Estimated mining depletion of approximately 2.4 million ounces of gold, 0.1 million tonnes of copper, 0.8 million ounces of silver and minor molybdenum.

  • Cadia East Underground decrease of 1.6 million ounces of gold, 0.2 million tonnes of copper, 4.6 million ounces of silver and 0.01 million tonnes of molybdenum due to mining depletion (0.9 million ounces of gold, 0.1 million tonnes of copper and 0.8 million ounces of silver) and an updated Ore Reserve estimate informed by additional drilling, revised input assumptions and exclusion of some dilution material.

  • Red Chris Ore Reserves initial estimates added 5.6 million ounces of gold and 1.5 million tonnes of copper.

  • Havieron Ore Reserve initial estimate added 0.65 million ounces of gold and 0.03 million tonnes of copper.

  • Lihir added one million ounces of gold in Probable Reserves, underpinned by completion of the Phase 14A Pre-Feasibility Study.

  • O'Callaghans Ore Reserve has been withdrawn pending outcomes from planned strategic, technical and financial studies.

Group Mineral Resources

As at 31 December 2021, Group Measured and Indicated Mineral Resources are estimated to contain approximately 104 [10] million ounces of gold, 19 million tonnes of copper, 80 million ounces of silver and 0.17 million tonnes of molybdenum. This represents increases of approximately 7 million ounces of gold (~7%), and 2 million tonnes of copper (~12%) and decreases of 7 million ounces of silver (~8%) and 0.02 million tonnes of molybdenum (~11%), compared to the estimate as at 31 December 2020. The Group Measured and Indicated Mineral Resources and Inferred Mineral Resources as at 31 December 2021 are set out in Tables 5 to 14.

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 has been rounded to two significant figures to reflect appropriate precision in the estimate. This may cause some apparent discrepancies in totals.

The Group Measured and Indicated Mineral Resources as at 31 December 2021 includes the following changes as compared to 31 December 2020:

  • Estimated mining depletion of approximately 2.5 million ounces of gold, 0.1 million tonnes of copper, 0.8 million ounces of silver and minor molybdenum.

  • Cadia East Underground decrease of 2.0 million ounces of gold, 0.5 million tonnes of copper, 7.2 million ounces of silver and 0.01 million tonnes of molybdenum due to mining depletion and an updated estimate informed by additional drilling.

  • Red Chris initial estimates added 8.9 million ounces of gold and 2.6 million tonnes of copper.

  • Havieron updated estimate added 0.77 million ounces of gold and 0.04 million tonnes of copper.

As at 31 December 2021, Group Inferred Mineral Resources are estimated to contain approximately 16 million ounces of gold, 3.5 million tonnes of copper, 13 million ounces of silver and 0.01 million tonnes of molybdenum. This represents an increase of approximately 5 million ounces of gold (~39%), 1.2 million tonnes of copper (~50%), 7.6 million ounces of silver (~140%) and 0.01 million tonnes of molybdenum (100%), compared with the estimate as at 31 December 2020.

The Group Inferred Mineral Resources as at 31 December 2021 includes the following changes as compared to 31 December 2020:

  • Increase of 3.8 million ounces of gold, 0.85 million tonnes of copper, 7.5 million ounces of silver and 0.01 million tonnes of molybdenum at Cadia East Underground due to an updated Mineral Resource estimate informed by additional drilling.

  • Red Chris initial estimates added 1.3 million ounces of gold and 0.4 million tonnes of copper.

  • Havieron updated estimate converted Inferred Resources to Indicated Resources resulting in a reduction of 0.67 million ounces of gold and 0.04 million tonnes of copper.

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 and materially changed estimates.

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

  • 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 2021 Remuneration Report. She is a Fellow of the Australasian Institute of Mining and Metallurgy. 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 of material 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 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 2021 Remuneration Report. Some have exercised their entitlement to obtain 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 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 Ashok Doorgapershad FAusIMM
Telfer Open Pit Stockpiles, and West Dome Open Pit Ore Reserves Brett Swanson MMSA (QP)
Telfer Underground Ore Reserves Mark Kaesehagen FAusIMM
Havieron Ore Reserves Lino Manca FAusIMM
O'Callaghans Ore Reserves Michael Sykes 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 Reserve Michael Sykes FAusIMM
Lihir Open Pit and Stockpiles Mineral Resource Lauren Elliott MAIG
Ore Reserve David Grigg FAusIMM
WGJV Golpu Mineral Resource David Finn MAIG
Ore Reserve Pasqualino Manca FAusIMM
Wafi and Nambonga Mineral Resource Greg Job [11] FAusIMM
Namosi JV Waisoi and Wainaulo Mineral Resource 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 and short mine 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 2020 prices used for reporting.

In consideration of Telfer's current comparatively short mine life, the gold price assumption is US$100/oz higher and the copper price assumption is US$0.20/Ib lower than prices applied for Ore Reserves reporting of long life assets. The AUD:USD exchange rate is also reduced to 0.70.

Note that long term metal prices and exchange rate assumptions are applied to Havieron 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.

Undeveloped projects at Wafi-Golpu and Telfer will be progressively re-optimised when the full supporting studies are updated and are currently optimised on the more conservative (US$100/oz lower) 2019 gold price assumption.

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).

Table 2

Long-term Metal Price Assumptions
Newcrest
(excluding Telfer)

 
Telfer  
Mineral Resource Estimates  

 

Gold - US$/oz   1,400.00
  1,400.00
Copper - US$/lb   3.40
  3.40
Silver - US$/oz   21.00
  21.00
Molybdenum - US$/Ib   10.00
   
Ore Reserve Estimates    
   
Gold - US$/oz   1,300.00
  1,400.00
Copper - US$/lb   3.00
  2.80
Silver - US$/oz   18.00
  18.00
Molybdenum - US$/Ib   8.00
   
Exchange Rate AUD: USD   0.75
  0.70

 

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$19.80/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$11.13/t milled. -
Telfer West Dome Open Pit and Telfer Stockpiles NSR of A$19.20/t milled. NSR of A$19.20/t milled.
Telfer Underground Variable NSR of A$ 44.00/t - A$110.00/t milled. Variable NSR of A$ 53.00/t - A$115.00/t milled.
Havieron (40%) Variable NSR of A$ 50.00/t - A$100.00/t milled. NSR of A$130.00/t milled.
Satellites Deposits 0.20g/t gold in oxide material
0.56g/t gold for transitional or 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. -
Red Chris Open Pit and Stockpiles (70%) NSR of C$12.20/t milled. NSR of C$15.50/t milled.
Red Chris Underground (70%) NSR of C$21.00/t milled. NSR of C$20.34/t milled.
Lihir Open Pit and Stockpiles 1.00g/t gold. 1.00g/t gold.
WGJV - Golpu (50%) NSR of US$22.29/t milled. NSR of US$19.15/t - US$60.00/t milled (block cave).
WGJV - Wafi (50%) 0.40g/t gold for non-refractory gold and 0.90g/t gold for refractory gold. -
WGJV - Nambonga (50%) 0.50g/t gold (potential block cave shell). -
Namosi JV Waisoi (72.74%) NSR of US$11.00/t milled. -
Namosi JV Wainaulo (72.74%) 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%
Molybdenum range 65-75%
Ridgeway Underground Gold - 81%
Copper - 87%
West Dome Open Pit and Stockpiles Gold average - 77%
Copper average - 52%
Telfer Underground Gold range 81 - 96%
Copper range 82 - 97%
Havieron (40%) Gold average - 88%
Copper average - 84%
Red Chris Open Pit (70%) Gold average - 51%
Copper average- 79%
Red Chris Open Pit Stockpiles (70%) Gold average - 51%
Copper average- 79%
Red Chris Underground (70%) Gold range 60 - 75%
Copper range 81 - 86%
Lihir Open Pit and Stockpiles Gold average - 81%
WGJV - Golpu (50%) 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. Mineral Resources and Ore Reserves reported for the Wafi-Golpu Joint Venture (WGJV) are quoted as Newcrest's 50% interest. Mineral Resources and Ore Reserves reported for the Havieron Joint Venture are quoted as Newcrest's 40% interest. Mineral Resources and Ore Reserves reported for the Red Chris Joint Venture are quoted as Newcrest's 70% interest and Mineral Resources reported for the Namosi Joint Venture are quoted as Newcrest's 72.74% interest.

JORC and CIM Comparison

Mineral Resources and Ore Reserves are classified using the JORC Code. The confidence categories assigned under the JORC Code were reconciled to the confidence categories in the CIM Definition Standards. As the confidence category definitions are the same, no modifications to the confidence categories were required.

There are differences in terminology from JORC compared to the CIM Definition Standards. Terminology differences are the term "Ore Reserves" in the JORC Code is equivalent to "Mineral Reserves" using the CIM Definition Standards, and the term "Proved Ore Reserves" in the JORC Code is equivalent to "Proven Mineral Reserves" using the CIM Definition Standards. There are no other material differences between JORC and the CIM Definition Standards.

Note that NI 43-101 reporting requirements do not permit Inferred Mineral Resources to be added to other Mineral Resource categories. Therefore, Measured and Indicated Mineral Resources have been reported separately from Inferred Mineral Resources.

Mineral Resources that are not Ore Reserves do not have demonstrated economic viability. Due to lower certainty, the inclusion of Mineral Resources should not be regarded as a representation by Newcrest that such amounts can necessarily be totally economically exploited, and investors are cautioned not to place undue reliance upon such figures. Therefore, no assurances can be given that the estimates of Mineral Resources presented in this statement will be recovered at the tonnages and grades presented, or at all.

NI 43-101 Technical Reports

/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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