Name of the Project
Ahafo mill expansion and Subika underground gold mine development project.

Location
The project is located in the Brong Ahafo region, about 307 km north-west from Accra, in Ghana.

Client
Newmont Mining Corporation.

Project Description
Newmont Mining plans to extend profitable production at its Ahafo operations by building a new underground mine (Sublika) and expanding plant capacity by more than 50%.

The Subika underground mine is expected to produce 1.8-million ounces of gold over an 11-year mine life, and features ore grades of 4.7 g/t.

The mill expansion is expected to improve margins and support profitable production at Ahafo to at least 2029.

The mill expansion is expected to increase mill capacity to nearly ten-million tonnes a year by adding a crusher, grinding mill and leach tanks to the circuit.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The projects have been optimised to improve internal rates of return to more than 20% at a $1 200/oz gold price.

Value
The project will require development capital of between $300-million and $380-million, which will be funded through free cash flow and available cash balances.

Duration
Newmont expects first gold production at the mill expansion in the first half of 2019 and commercial production in the second half of 2019.

Latest Developments
Newmont Mining has declared commercial production at the Subika underground mine – its third completed expansion project for the year.

The $186-million Subika underground project will expand the production of the Ahafo mine, producing an average of 150 000 oz/y to 200 000 oz/y for the first five years of its initial ten-year mine life.

Combined with the completion of the Ahafo mill expansion project expected in the second half of next year, Ahafo’s average annual all-in sustaining costs are projected to improve by between $250/oz and $350/oz, compared with the costs of 2016.

“In addition to increasing gold production and lowering costs at Ahafo, Subika underground leverages the operation’s existing infrastructure and experienced workforce to further extend mine life,” Newmont CEO Gary Goldberg has said.

He added that the mine provided an underground platform to explore additional upside potential in adjacent orebodies and also included some of the latest technologies, including semiautonomous loading operations, proximity detection for vehicles, personnel tracking, and planned installation of ventilation-on-demand systems.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Newmont Mining Corporation media contact Omar Jabara, tel +1 303 837 5114 or email omar.jabara@newmont.com.
Newmont Mining Corporation investor contact Meredith Bandy, tel +1 303 837 5143 or email meredith.bandy@newmont.com.