Newmont Declares Commercial Production at Long Canyon, the Most Significant Oxide Ore Discovery in N

DENVER -- Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) has reached commercial production at Long Canyon, a higher grade oxide mine in an emerging gold district located less than 100 miles from its existing Nevada operations. The Company declared commercial production based on sustaining plant availability of more than 85 percent, and achieving a minimum of 70 percent of modeled leach recovery. The project was completed two months ahead of schedule for an investment of just under $225 million, which is about $50 million or 18 percent below budget.

The first phase of development is expected to produce between 100,000 and 150,000 ounces of gold per year over an eight year mine life at estimated costs applicable to sales of between $400 and $500 per ounce, and all-in sustaining cost of between $500 and $600 per ounce¹. The project was optimized by taking a phased development approach, relying on refurbished instead of new equipment, and building a leach facility rather than a mill. At current gold prices, the project is expected to generate a 26 percent rate of return with a payback period of just under four years.

The operation includes a surface mine and heap leach pad which currently holds one million tons of ore at an average estimated grade of 1.13 grams of gold per ton. The project was funded through free cash flow and available cash balances, and leverages Newmont’s existing infrastructure, expertise and strong stakeholder relationships in Nevada.

“Long Canyon marks the fourth profitable new operation we’ve added to the portfolio in the last three years, including Merian in Suriname last month, Cripple Creek & Victor in Colorado last year, and Akyem in Ghana in late 2013,” said Gary Goldberg, President and Chief Executive Officer. “We have completed these organic growth projects on or ahead of schedule and at or below budget; delivered a profitable expansion at Cripple Creek & Victor earlier this year; and are on track to complete value-adding expansions at Tanami by 2017 and at Carlin by 2018. These portfolio improvements set the stage for Newmont to continue generating superior free cash flow, which gives us the means to continue investing in profitable growth, retiring debt and returning cash to shareholders.”

Long Canyon is the most significant oxide gold discovery in Nevada in more than a decade, with characteristics similar to the Carlin Trend where Newmont has been operating for more than 50 years. The Company has grown the resource base at Long Canyon by 30 percent in two years; from an initial resource of 2.6 million ounces in 2013 to reserves and resources of 3.4 million ounces as of the end of 2015². Newmont geologists have also increased the mineralized strike by 70 percent to a length of more than five kilometers and oxide mineralization remains open in all directions.

Long Canyon Phase 2 studies are underway and Newmont expects to complete these and secure the necessary permits to proceed before Phase 1 is depleted.

About Newmont

Newmont is a leading gold and copper producer. The Company’s operations are primarily in the United States, Australia, Ghana, Peru, and Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow Jones Sustainability World Index in 2015 and 2016. The Company is an industry leader in value creation, supported by its leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since 1925.

Courtesy : www.newmont.com