OREANDA-NEWS. October 29, 2015. Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”)
announced plans to expand its Tanami operations in Australia by building
a second decline in the underground mine and additional plant capacity.
The expansion project is expected to add incremental gold production of
approximately 80,000 ounces per year and decrease Tanami’s all-in
sustaining costs by five to ten percent in the first five years of
production. It will open access to two million ounces of profitable
production and extend mine life by three years. The project will also
create a platform for exploration drilling to support future growth.
Recent exploration results demonstrate the potential to double current
Reserves and Resources by expanding existing Tanami deposits, and
developing adjacent discoveries.
“Tanami is a Newmont success story. Since 2012, the team has more than
doubled gold production while cutting costs by about two-thirds and
significantly improving resource confidence. The expansion project
continues this trajectory, offering robust returns of more than 35
percent at current gold prices,” said
Gary Goldberg, President and Chief
Executive Officer.
Building a second decline at Tanami will support a step change in mining
rates, which will ramp up to approximately 2.6 million tonnes per year.
The processing plant expansion includes adding a ball mill, thickener
and gravity circuit to improve recoveries and expand mill capacity from
2.3 to 2.6 million tonnes per year. When the expansion is complete,
Tanami will produce between 425,000 and 475,000 ounces of gold per year
at all-in sustaining costs of between \\$700 and \\$750 per ounce in the
first five years of production.
Capital investment of between \\$100 million and \\$120 million will be
funded through free cash flow and available cash balances. Of this
amount, a quarter will be spent in 2015, half will be spent in 2016, and
the remainder will be spent in 2017. First commercial production is
anticipated in the second half of 2017.
Newmont has one of the strongest project pipelines in the gold sector,
and remains on track to deliver profitable new production from Leeville
in Nevada as the Turf Vent Shaft is completed in late 2015; from Cripple
Creek & Victor’s expansion projects during 2016; from Merian in Suriname
in late 2016; and from Long Canyon Phase 1 in Nevada beginning in 2017.
Tanami is located 590 miles southwest of Darwin and 350 miles northwest
of
Alice Springs in Australia’s Northern Territory. The expansion
project falls within the existing Tanami operating footprint on the
Granites and Dead Bullock Soak mineral leases. Newmont acquired its
interest in 2002 through its merger with Normandy. In 2014 Tanami
produced approximately 345,000 ounces of gold at all-in sustaining costs
of \\$1,038 per ounce.
About Newmont
Newmont is a leading gold and copper producer. The Company employs
approximately 27,000 employees and contractors, with the majority
working at managed operations in the United States, Australia, Ghana,
Peru, Indonesia and Suriname. Newmont is the only gold producer listed
in the S&P 500 index and in 2007 became the first named to the Dow Jones
Sustainability World Index. 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.
Cautionary Statement Regarding Forward-Looking Statements:
This release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbor created by such sections and other
applicable laws. Such forward-looking statements may include, without
limitation: (i) estimates of future production; (ii) estimates of future
costs applicable to sales and all-in sustaining costs; (iii) estimates
of future capital expenditures and investments; (iv) expectations
regarding future sources of funding, free cash flow and available cash
balances; (v) expectations regarding the development, growth and
exploration upside potential, future mineralization and future
discoveries at Tanami; and (vi) expectations regarding future
development and growth of the Company’s project pipeline, including
without limitation, in connection with Turf Vent Shaft, Cripple Creek
and Victor expansion, Merian and Long Canyon 1. Estimates or
expectations of future events or results are based upon certain
assumptions, which may prove to be incorrect. Such assumptions, include,
but are not limited to: (i) there being no significant change to current
geotechnical, metallurgical, hydrological and other physical conditions;
(ii) permitting, development, operations and expansion of the Company’s
projects being consistent with current expectations and mine plans,
including without limitation receipt of export approvals; (iii)
political developments in any jurisdiction in which the Company operates
being consistent with its current expectations; (iv) certain exchange
rate assumptions for the Australian dollar to the U.S. dollar, as well
as other the exchange rates being approximately consistent with current
levels; (v) certain price assumptions for gold, copper and oil; (vi)
prices for key supplies being approximately consistent with current
levels; and (vii) the accuracy of our current mineral reserve and
mineral resource estimates. Where the Company expresses or implies an
expectation or belief as to future events or results, such expectation
or belief is expressed in good faith and believed to have a reasonable
basis. However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ materially
from future results expressed, projected or implied by the
“forward-looking statements”. Such risks include, but are not limited
to, gold and other metals price volatility, currency fluctuations,
increased production costs and variances in ore grade or recovery rates
from those assumed in mining plans, political and operational risks,
community relations, conflict resolution and outcome of projects or
oppositions and governmental regulation and judicial outcomes. For a
more detailed discussion of such risks and other factors, see the risk
factors section included in the Form 10-Q, filed on July 23, 2015, with
the Securities and Exchange Commission (SEC), as well as the Company’s
other SEC filings. The Company does not undertake any obligation to
release publicly revisions to any “forward-looking statement,”
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release, or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement” constitutes a
reaffirmation of that statement. Continued reliance on “forward-looking
statements” is at investors' own risk.
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