Melbourne - Newcrest Mining Limited (ASX: NCM) (TSX: NCM) (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 Reserves2 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. 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.
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 Resources3 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 Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore Reserves. Tonnes are reported as dry metric tonnes. 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 Resources4 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.
Forward Looking Statements
This document includes forward looking statements and forward-looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objectives', 'targets', 'outlook' and 'guidance', or other similar words and may include, without limitation, statements regarding estimated reserves and resources, expansion, exploration and development activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them; certain plans, strategies, aspirations and objectives of management, anticipated production, dates for projects, reports, studies or construction, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. Newcrest continues to distinguish between outlook and guidance. Guidance statements relate to the current financial year. Outlook statements relate to years subsequent to the current financial year.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Newcrest's actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Newcrest operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on Newcrest's good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Newcrest's business and operations in the future. Newcrest does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Newcrest. Readers are cautioned not to place undue reliance on forward looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward looking statements in this document speak only at the date of issue. Except as required by applicable laws or regulations, Newcrest does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based.
Contact:
Tom Dixon
Tel: +61 3 9522 5570
Email: Tom.Dixon@newcrest.com.au
NEWCREST MINING 