Name of the Project
Cadia PC1-2 copper/gold project.

Location
New South Wales, Australia.

Project Owner/s
Newcrest.

Project Description
Cadia PC1-2, together with the expansion project currently under way, is expected to sustain Cadia’s position as one of the biggest, lowest-cost and long-life gold mines in the world.

The timing of PC1-2’s development is expected to ensure that, in conjunction with the already approved PC2-3 project, the total Cadia mine production rate is sustained at about 35- to 36-million tonnes a year as production from the operational PC1 and PC2 caves begins to decline from the 2024 financial year.

PC1-2 is expected to have a 17-year mine life from first production, at an average 15-million tonnes a year.

Total ore production is estimated at 258-million tonnes producing 3.5-million ounces of gold and 660 000 t of copper.

The prefeasibility study (PFS), on PC1-2 envisages production in two stages.

Stage 1 involves the execution of a 12-month early works programme to establish ventilation systems and other critical-path development. The feasibility study will run concurrently with the early works programme.

Stage 2 involves the execution of the PC1-2 main works programme, following the conclusion of the feasibility study in the second half of 2022.

Processing of the Cadia East underground ore stream will be through the Cadia Valley operations ore treatment plant concentrators 1 and 2.

Metal recovery is through gravity and conventional flotation to a copper/gold concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has estimated net present value, at 4.5% discount rate, of A$2-billion and after tax (real) internal rate of return of 21.5%.

Capital Expenditure
Capital expenditure is estimated at A$1.3-billion. Stage 1 is estimated at A$120-million, while the Stage 2 main works programme is expected to cost A$1.12 billion.

Planned Start/End Date
Stage 1 is expected to start in the December 2021 quarter and Stage 2 is expected to be completed by 2029.

The PC1-2 cave is expected to take about six years to reach its maximum production capacity from the time of the blasting of the first drawbell.

Latest Developments
Newcrest has approved the Cadia PC1-2 PFS, allowing for the feasibility stage and early works programme to start.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Newcrest media and investment enquiries, Tom Dixon, tel +61 3 9522 5570 or email Tom.Dixon@newcrest.com.au.