Newcrest Mining Limited (Newcrest) is pleased to announce a significant upgrade to the Ore Reserve estimate for the Golpu copper-gold deposit in Papua New Guinea (PNG), following the completion of a technical Pre-Feasibility Study.
The Golpu deposit forms part of the Wafi-Golpu Project (the Project) located approximately 65 kilometres west of Lae, in the Morobe Province of PNG. Newcrest and Harmony Gold Mining Company Limited (Harmony) each have a 50% interest in the Project.
The Golpu Pre-Feasibility Study supports an updated Ore Reserve estimate containing 12.4 million ounces of gold and 5.4 million tonnes of copper. The study also confirms Golpu as a world-class deposit with an expected mine life in excess of 25 years and projected unit cash costs at the bottom of the industry cost curve.
The Pre-Feasibility Study proposes the Golpu deposit be mined using the underground block caving method, similar to that employed at Newcrest’s Ridgeway and Cadia East mines, with ore treated by flotation to produce a copper-gold concentrate product.
The capital cost is estimated at US$4.8 billion to establish the mine and achieve first commercial production, which is anticipated around 2019. The Project is estimated to have a mine life of 26 years, with projected annual production of up to approximately 550 thousand ounces of gold and 300 thousand tonnes of copper. These numbers are in 100% terms.
Before the Golpu Project proceeds to the Feasibility Study phase, the joint venture participants will engage with key stakeholders, including government and landowner representatives, to ensure alignment on the planned project development and key elements of the next phase of work.
A Concept Study into the development options for the Wafi deposit is continuing and is expected to progress to Pre-Feasibility Study later in the 2012 calendar year.
Further details are available on the Newcrest website.
For further information, please contact:
Investor Enquiries – North America/Europe
T: +1 212 351 5064
Investor Enquiries – Australia/Asia
T: +61 3 9522 5316
T: +61 3 9522 5593
This information is available on our website at www.newcrest.com.au.