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.

Project Owner/s
Newmont Mining Corporation.

Project Description
Newmont Mining plans to extend profitable production at its Ahafo operations by building a new underground mine (Subika) 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.

Capital Expenditure
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.

Planned Start/End Date
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
Goldcorp's Ahafo mill expansion project has processed its first ore and remains on track to achieve commercial production in the fourth quarter.

Mill capacity has been expanded by more than 50% through the addition of a crusher, grinding mill and leach tanks.

The expansion will increase gold production at the Ahafo mine by between 75 000 oz/y and 100 000 oz/y for the first five years, beginning in 2020.

“Combined with Subika Underground, which was successfully completed in November 2018, the mill expansion will increase Ahafo’s production to between 550 000 oz/y and 650 000 oz/y through 2024 while lowering life-of-mine processing costs”, Newmont president  Tom Palmer has said.

Capital costs for the Ahafo mill expansion are estimated at between $140-million and $180-million and have been funded through free cash flow and available cash balances.

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 b, tel +1 303 837 5143 or email meredith.bandy@newmont.com.