https://www.miningweekly.com
Exploration|Financial|Gold|Mining|PROJECT|Underground|Drilling|Operations
Exploration|Financial|Gold|Mining|PROJECT|Underground|Drilling|Operations
exploration|financial|gold|mining|project|underground|drilling|operations

Newcrest adjusts guidance as Lihir disappoints

11th March 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Gold major Newcrest Mining has downgraded its production guidance for the 2020 financial year, following the $90-million sale of its Gosowong project, in Indonesia, and on the back of production difficulties at Lihir, in Papua New Guinea.

Newcrest was expecting gold production for the full year ended June to reach between 2.1-million and 2.2-million ounces, down from the previous estimate of between 2.3-million and 2.5-million ounces.

The miner on Wednesday noted that while gold production from the Cadia and Red Chris operations was expected to be towards the upper end of the original production targets, the Telfer and Lihir operations would only reach the bottom-end of the production guidance.

“We have adjusted our 2020 guidance following the divestment of Gosowong along with the commencement of commercial production at Fruta del Norte. While I am pleased with the performance of Cadia and Red Chris, it has not offset the disappointing performance at Lihir and Telfer,” said Newcrest MD and CEO Sandeep Biswas.

“Lihir has been challenged by difficult mining and geothermal conditions, leading to sub-optimal blend of ore feed to the plant. Operating improvements planned at Lihir for the remainder of 2020 will be insufficient to address this shortfall in production,” he added.

Newcrest said that production at Lihir had been adjusted to account for actual and expected mine performance for the remainder of 2020. From a mining perspective, access to ex-pit ore had been delayed owing to difficult mining and geothermal conditions that had required the re-sequencing of the mine to focus on the less productive eastern side of the mine.

Newcrest noted that both the ex-pit and stockpile ore fed to the mill had proven to be problematic for gold grade, recovery and mill throughput in the financial year, and while the ratio of ex-pit ore feed to the mill was expected to improve in the coming quarter, it would not be at a level overall grade sufficient to address the shortfall in production to date.

Lihir is expected to produce between 775 000 oz and 825 000 oz in the full year to June, down from the previous estimate of between 930 000 oz to one-million ounces.

With the sale of Gosowong becoming effective from the beginning of March, the asset would only contribute some 103 000 oz of gold to the Newcrest bottom line in the full year, down from the previous guidance of between 145 000 oz and 175 000 oz.

Meanwhile, Newcrest on Wednesday also confirmed the presence of a pod of high-grade mineralisation within the East Zone of its Red Chris project, some 100 m long, 100 m wide and 200 m high, with the company planning infill drilling to fully define the extent of the pod and to search for additional high grade pods within the East zone.

The underground mining study for Red Chris will evaluate the option of stoping any high grade pods ahead of other bulk underground mining methods in order to bring the high grade ore into production earlier.

“I am extremely pleased with these high grade drill results which validate the potential that we saw in both Red Chris and Havieron. These grades are among the most impressive seen in recent history and we are very excited about the potential to bring these ounces into production as soon as possible,” said Biswas.

“Using our leading capabilities in underground mining, we are working to accelerate the potential of commencing the Red Chris exploration decline in late 2020 and the Havieron exploration decline by the end of 2020 or early 2021.”

Edited by Creamer Media Reporter

Comments

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.11 0.142s - 93pq - 2rq
Subscribe Now