Market Release

31 March 2021

Newcrest announces its initial Mineral Resource estimate for Red Chris

Newcrest Mining Limited (ASX, TSX, PNGX: NCM) is pleased to announce its initial Mineral Resource estimate for the Red Chris mine located in British Columbia, Canada. Red Chris is operated by Newcrest under a Joint Venture Agreement with Imperial Metals Corporation (Imperial Metals).

Since becoming operator in August 2019, Newcrest has embarked on an extensive work program to define the potential of block cave mining beneath the existing open pit operation. Activities have included:

  • additional exploration and resource definition drilling;
  • resource optimisation for both open pit and underground mining scenarios;
  • commencing a Pre-Feasibility Study (PFS) to support the potential development of an underground block cave(1); and
  • commencing construction of the box cut for the exploration decline.

The initial Mineral Resource estimate is a key input into the Red Chris PFS which Newcrest expects to release by the end of September 2021. An initial Newcrest Ore Reserve estimate for Red Chris is also expected to be released within the same timeframe.

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said "The announcement of our initial Mineral Resource estimate marks another milestone in our transformation of Red Chris. We remain on track to release the findings of our block cave Pre-Feasibility Study by the end of September 2021 and continue to evaluate a number of early mining options which could enable an acceleration of cash flows prior to the development of a block cave."

Mineral Resource Estimate(2)

The initial Mineral Resource estimate for Red Chris assumes bulk open pit mining and bulk block cave underground mining.

Measured and Indicated Mineral Resources:

  • 980Mt @ 0.41 g/t gold and 0.38% copper for 13Moz contained gold and 3.7Mt contained copper, including: o Open Pit - 310Mt @ 0.28 g/t gold and 0.34% copper for 2.7Moz contained gold and 1.0Mt contained
    copper
    o Underground - 670Mt @ 0.46 g/t gold and 0.40% copper for 10Moz contained gold and 2.7Mt contained copper

Newcrest's Measured and Indicated Mineral Resource estimate reflects its strategy of defining high value Mineral Resources that will support the development of a high margin underground block cave at Red Chris.

  1. The development of a block cave mine at the Red Chris Project is subject to the completion of a successful exploration program and further studies, market and operating conditions, regulatory approvals and Board approvals.
  2. Represents 100% of the Mineral Resource for Red Chris. Newcrest's joint venture interest in the Mineral Resource is 70%.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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Inferred Mineral Resources(3):

  • 190Mt @ 0.31 g/t gold and 0.30% copper for 1.9Moz contained gold and 0.57Mt contained copper, including: o Open Pit - 11Mt @ 0.23 g/t gold and 0.27% copper for 0.084Moz contained gold and 0.031Mt
    contained copper
    o Underground - 180Mt @ 0.32 g/t gold and 0.30% copper for 1.8Moz contained gold and 0.54Mt contained copper

Newcrest's Inferred Mineral Resource estimate reflects its focus of operating a higher value, smaller open pit and developing a larger underground mine. Growth drilling to further define Inferred Mineral Resources for bulk extractable underground mining options is currently underway. Newcrest expects to publish the results from these activities within its upcoming exploration reports.

Project Details

Red Chris is a gold-copper porphyry deposit located on the northern edge of the Skeena Mountains, approximately 1,700 kilometres north of Vancouver and 18 kilometres south east of the town of Iskut in British Columbia. The construction of Red Chris was completed in November 2014, with first commercial production from the open pit in July 2015. The mine site is located on 23,142 hectares and consists of 77 mineral tenures, five of which are mining leases.

Red Chris is a joint venture between Newcrest (70%) and Imperial Metals (30%). Newcrest acquired its interest in, and operatorship of, Red Chris on 15 August 2019. Since acquisition, Newcrest has undertaken a work program that consisted of additional exploration and resource definition drilling, resource optimisation for both open pit and underground mining scenarios, a PFS to define a high value optimum plan to develop an underground mine and numerous upgrades to the camp, maintenance workshops and other facilities in readiness for operation of a long life block cave.

Sufficient work has now been undertaken to estimate Red Chris' Mineral Resources in accordance with JORC and in line with Newcrest's block cave strategy. Newcrest expects to report Ore Reserves in accordance with JORC on completion of its PFS by the end of September 2021.

For the purposes of ASX Listing Rules or NI 43-101, Red Chris is currently not considered to be a material mining project for Newcrest.

Exploration Potential

Newcrest's resource definition drilling to date has focused on the East Zone which has enhanced its understanding of high grade continuity while allowing critical metallurgical and geotechnical data to be collected to support the PFS and initial Ore Reserve estimate.

The Brownfields Exploration program is focused on the discovery of additional zones of higher grade mineralisation within the Red Chris porphyry corridor, including targets outside of the Mineral Resource. A total of 109,177m of drilling from 92 drill holes have been drilled since Newcrest acquired its interest in the joint venture. Drilling continues to return significant intercepts across the entire porphyry corridor.

Brownfields exploration drilling activities are currently focused on the following three areas:

In the East Zone, drilling continues to confirm the potential for additional high grade mineralisation south of the South Boundary Fault. The South Boundary Fault currently defines the southern extent of mineralisation across the East Zone, Main Zone and Gully Zone.

In the Main Zone, drilling has confirmed the potential for further higher grade mineralisation which could support additional mineral resources, beneath and to the south west of the open pit. The mineralisation is located immediately

3 Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals.

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adjacent to the South Boundary Fault and is open at depth and along strike. Drilling to define the extent and continuity of this potential high grade mineralisation is underway.

At East Ridge, located adjacent to the East Zone, Newcrest's first hole discovered a new zone of higher grade mineralisation. The style of mineralisation and grade tenor is similar to that seen in the high grade pods from the East Zone. The intercept, a 300m step out east of the East Zone, is located south of the South Boundary Fault and is open in all directions and extends the eastern side of the porphyry corridor as shown in Figure 1. Drilling to define the extent and continuity of this high grade mineralisation is underway.

Figure 1. Schematic plan view map of the Red Chris porphyry corridor spanning East Ridge, East Zone, Main Zone and Gully Zone showing drill hole locations (Newcrest & Imperial). 1 g/t AuEq and 2 g/t AuEq shell projections generated from a Leapfrog model. Gold equivalent (AuEq) grade calculated using a copper conversion factor ([gold grade (g/t)] + [copper grade (%) x 1.67]), using US$1,400/oz Au, US$3.40/lb Cu and 100% recovery.

Mineral Resource Estimate Summary

The Red Chris Mineral Resource estimate is reported as a Measured and Indicated Mineral Resource and an Inferred Mineral Resource in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (JORC Code). Refer to details in Appendix 1 for information relating to data collection and resource estimation. There are no material differences between the definitions of Mineral Resources under the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves and the equivalent definitions in the JORC Code. Refer to the section titled 'JORC and CIM Comparison' for further information.

The Red Chris deposit, as defined by the drilling to date, has dimensions of approximately 0.3km in width by 3.4km in length and 1.3km in vertical extent (Figure 2). Currently three zones of mineralisation have been identified including the Gully Zone, Main Zone, and the East Zone where the gold and copper mineralisation consists of vein, disseminated and breccia sulphides typical of porphyry-style mineralisation. Mineralisation is hosted by diorite to quartz monzonite stocks and dykes collectively known as the Redstock Instrusive.

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Geostatistical testing of the gold and copper grade distributions showed that the Redstock Instrusive is highly diffusive in nature, therefore a gaussian based estimation is considered appropriate. All drillhole samples were composited to 12m downhole intervals honouring the domain boundary. Within the Redstock domain Localised Uniform Conditioning of gold and copper was undertaken into the panel size of 80m x 80m x 12m blocks and localised into the selective mining unit of 20m x 20m x 12m blocks. No grade capping has been applied, however distance restrictions have been applied to control outlier gold and copper grades.

Reasonable prospects for eventual economic extraction have been assessed through the existing open pit operational performance and the preliminary ongoing underground mining studies which confirm bulk open pit and underground block cave extractable mining methods are applicable. The Mineral Resource estimate has been constrained using appropriate drill hole data spacing parameters and geological control. The open pit Mineral Resource estimate is reported above a US$9.80/t net smelter return (NSR) value cut-off within an optimised open pit shell based on current mining and processing parameters, but restricted to a minimum level of 1112mRL (refer Figure 3). The underground Mineral Resource estimate is reported within a nominal US$16.80/t NSR shell defined by a minimum mining footprint based on proposed block cave underground mass mining with no internal selectivity, therefore includes internal material below the nominal NSR cut-off.

The NSR is based on current off-site parameters such as treatment and refining costs, payabilities, and royalties, using domain specific metallurgical recoveries that can range on average from 50-61% for Au and 81-83% for Cu that also uses assumed metals prices of US$1,400/oz Au and US$3.40/lb Cu, with a CAD:USD exchange rate of 0.80.

Tables 1 to 4 summarise the Red Chris Mineral Resource for gold and copper.

Figure 2. Schematic plan view map of the Red Chris Mineral Resource footprint and drill hole locations.

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Figure 3. Schematic section views of the Red Chris Mineral Resource shells for open pit and underground. Note the current assumption is open pit resources are defined within an optimised pit shell limited to the 1112mRL and underground resources below the open pit resource.

Table 1 - 31 December 2020 Gold Measured and Indicated Mineral Resource

Red Chris Gold (100%)

Measured Resource

Indicated Resource

Measured and Indicated

Mineral Resource

Gold Measured and Indicated

Dry

Gold

Insitu

Dry

Gold

Insitu

Dry

Gold

Insitu

Gold

Gold

Gold

Tonnes

Grade

Tonnes

Grade

Tonnes

Grade

Mineral Resources

(million

(million

(million

(million)

(g/t Au)

(million)

(g/t Au)

(million)

(g/t Au)

ounces)

ounces)

ounces)

Red Chris Open Pit (incl.stockpiles)

9.8

0.15

0.048

300

0.28

2.7

310

0.28

2.7

Red Chris Underground

-

-

-

670

0.46

10

670

0.46

10

Total Red Chris Province

9.8

0.15

0.048

970

0.41

13

980

0.41

13

Table 2 - 31 December 2020 Gold Inferred Mineral Resource

Red Chris Gold (100%)

Inferred Mineral Resource

Dry

Gold

Insitu

Gold Inferred Mineral Resources

Gold

Tonnes

Grade

(million

(million)

(g/t Au)

ounces)

Red Chris Open Pit (incl.stockpiles)

11

0.23

0.084

Red Chris Underground

180

0.32

1.8

Total Red Chris Province

190

0.31

1.9

NOTE: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals. Data represents 100% of the Mineral Resource for Red Chris. Newcrest's joint venture interest in the Mineral Resource is 70%.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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Newcrest Mining Limited published this content on 31 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2021 21:33:03 UTC.