Newmont Goldcorp to Add Profitable Gold Production through Second Expansion at Tanami in Australia
26 October 2019 - 12:15AM
Business Wire
Australia remains favorable mining jurisdiction with upside
potential
Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont
Goldcorp or the Company) announced today that its Board of
Directors unanimously approved advancing the Tanami Expansion 2
project into the execution phase. The project is expected to exceed
the Company’s required internal rate of return with profitable
production and mine life extending beyond 2040.
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the full release here:
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Newmont Goldcorp geology team members at
Tanami in Australia. (Photo: Business Wire)
“The approval of our second expansion project at Tanami in
Australia will further improve costs and extend the life of this
world class mine in a core Newmont Goldcorp jurisdiction,” said Tom
Palmer, President and Chief Executive Officer. “Building on the
success of the first expansion completed in 2017, Tanami Expansion
2 will provide a platform to further explore the area’s prolific
mineral endowment and potentially extend the operation’s mine life
beyond 2040. The Tanami district and Australia as a whole continue
to offer significant value generating opportunities for our
shareholders.”
The Tanami expansion project is anchored on the expansive Auron
deposit, which was discovered in 2008, and is located
stratigraphically beneath the original Callie orebody and, more
recently, the follow up discoveries of Federation and Liberator.
Tanami’s prolific orebodies are hosted by reactive stratigraphic
units where high-grade gold mineralization is found at
intersections with structural corridors. These predictable geologic
features, combined with recent drilling results, provide a high
degree of confidence in their continuity at depth.
The expansion includes construction of a 1,460 meter shaft,
additional capacity in the processing plant, and supporting
infrastructure to enable profitable recovery of ore at depth to
2,140 meters below surface. Additional information on the project
will be provided with the Company’s long-term outlook in early
December.
The advancement of Tanami Expansion 2 into the execution phase
represents a new and significant milestone for the operation. Since
mining commenced in 1986, Tanami has produced more than 10 million
ounces of gold and, in 2018, the operation achieved record
production of 505,000 ounces. Tanami is located 590 miles southwest
of Darwin and 350 miles northwest of Alice Springs in Australia’s
Northern Territory.
Newmont Goldcorp has the strongest and most sustainable
portfolio of operations, projects and exploration prospects in the
gold sector. These assets allow the Company to sequence profitable
projects in its unmatched pipeline to sustain six to seven million
ounces of steady gold production over a decades-long time
horizon.
About Newmont Goldcorp
Newmont Goldcorp is the world’s leading gold company and a
producer of copper, silver, zinc and lead. The Company’s
world-class portfolio of assets, prospects and talent is anchored
in favorable mining jurisdictions in North America, South America,
Australia and Africa. Newmont Goldcorp is the only gold producer
listed in the S&P 500 Index and is widely recognized for its
principled environmental, social and governance practices. The
Company is an industry leader in value creation, supported by
robust safety standards, superior execution and technical
proficiency. Newmont Goldcorp 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, estimates and expectations of
internal rate of return, extension of mine life, project
advancement and execution, geological continuity and mineral
prospectively and endowment, growth potential, future cost and
production impacts and other statements relating to future
performance. 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 or implied by the
“forward-looking statements.” Risks relating to forward looking
statements in regard to the Company’s business and future
performance may include, but are not limited to, gold price
volatility, currency fluctuations, increased production costs,
variances in ore grade or recovery rates from those assumed in
mining plans, variation in legal and economic feasibility of
extraction, other operational risks, geotechnical, metallurgical
and hydrological risks, political and community relations risk, and
changes in governmental regulation and requirements. For a more
detailed discussion of risks and other factors that might impact
future looking statements, see Newmont Goldcorp’s Annual Report on
Form 10-K for the year ended December 31, 2018 as well as Newmont
Goldcorp’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2019 under the heading “Risk Factors” available on the SEC
website or www.newmontgoldcorp.com. Investors are cautioned that
drill results are not necessarily indicative of future reserves or
production and should not rely upon expectations of prospective
mineralization. For information regarding the Company’s reserves,
see the Proven and Probable reserve tables prepared in compliance
with the SEC’s Industry Guide 7 contained in the Annual Report on
Form 8-K. 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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version on businesswire.com: https://www.businesswire.com/news/home/20191025005125/en/
Media Contact Omar Jabara
303.837.5114 omar.jabara@newmont.com Investor
Contact Jessica Largent 303.837.5484
jessica.largent@newmont.com
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