Newcrest Mining has produced more reserves data for its emerging Red Chris gold mining complex in Canada as it prepares a major statement on the future development of the area for release in September in a pre-feasibility study (PFS).
Newcrest said its initial Mineral Resource estimate for Red Chris assumes bulk open pit mining and bulk block cave underground mining and that on this basis, it had identified a massive 980 million tonnes of reserves on a measured and indicated basis.
Approximately two-thirds are underground, with the balance in the open pit.
The 980 million tonnes are at an average 0.41 grams of gold to the tonne (g/t) gold and 0.38% copper.
The Open Pit is estimated at 310 million tonnes @ 0.28 g/t gold and 0.34% copper for 2.7 million ounces contained gold and 1.0 million tonnes of contained copper.
Underground is estimated at 670 million tonnes @ 0.46 g/t gold and 0.40% copper for 10 million ounces of contained gold and 2.7 million tonnes of contained copper.
Newcrest has therefore identified reserves with a contained gold content estimates at 13 million ounces and 3.7 million tonnes of contained copper.
At current prices the gold has an estimated value at more than $US23 billion while the copper is worth $US3 billion.
That makes Red Chris (a 70% Newcrest) joint venture with Imperial Metals 30%) a massive deposit, with more exploration going on on two new areas.
Newcrest’s Managing Director and Chief Executive Officer, Sandeep Biswas, commented: “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.”
Newcrest said that its resource definition drilling at Red Chris has been focused on the East Zone. However, it sees opportunities to explore outside this area to potentially expand its mineral resource.
It explained: “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,“ as the company detailed a week ago in an earlier release.
“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,” Newcrest explained.
Newcrest says an initial reserves figure and grades will be released in September (this will be more accurate figure than the ones released yesterday).
“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 (quarterly) exploration reports,” the company said in yesterday’s statement.
Newcrest shares eased 0.8% (because of the big drop in the gold price on Tuesday) to $24.42, down 0.8%.
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The doubts about its Ghanaian gold mining lease have seen any downgrade in full year guidance from Resolute Mining.
The miner yesterday reaffirmed its full year guidance for producing up to 375,000 ounces of gold at a maximum cost of $US1,275 per ounce ($A1,365), despite the Ghanaian government revoking its Bibiani Gold Mine lease in recent weeks without explanation.
“Resolute is providing this update to clarify there is no impact on the company’s guidance and in response to speculation regarding its ability to meet debt repayments following the announcement of receipt of a letter from the Ghanaian Minerals Commission advising that the Mining Lease for the Bibiani Gold Mine stands terminated,” the company investors on Wednesday.
Shares were up 7.1% to 45 cents early on despite world gold prices sliding back under $US1,700 an ounce on Tuesday. They eased a cent to end at 44 cents, still up 4.7%.
Importantly Resolute also reassured shareholders it still expects to repay between $US25 million ($A27 million) and $US50 million ($A54 million) of debt this year.
It has structured it debt into two $US150 million facilities with the first repayment of $US25 million due in September.
Its existing mines in Mali and Senegal are still expected to provide sufficient gold for the planned $US50 million in debt repayments, even without the planned sale of Bibiani to Chifeng Jilong Gold Mining for $105 million ($112 million).
Resolute must restore the mining lease for the sale to continue.
