News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Melbourne, Australia–(Newsfile Corp. – March 30, 2021) – Newcrest Mining Limited (ASX: NCM) (TSX: NCM) (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:
- Open Pit – 310Mt @ 0.28 g/t gold and 0.34% copper for 2.7Moz contained gold and 1.0Mt contained copper
- 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.
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:
- Open Pit – 11Mt @ 0.23 g/t gold and 0.27% copper for 0.084Moz contained gold and 0.031Mt contained copper
- 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.
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%.
3 Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals.
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…