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Lihir mine, Papua New Guinea

1st April 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name: Lihir mine.

Location: The Lihir gold operation is located on Niolam Island, the largest island in the Lihir Island group, in the province of New Ireland, in Papua New Guinea.

Controlling Company: Lihir is owned and operated by Lihir Gold Limited (LGL), a 100%-owned subsidiary of Newcrest Mining.

Brief History: Gold mineralisation was discovered at Lihir in 1982, with a major exploration campaign and feasibility study conducted by a joint venture between Kennecott Explorations Australia and Niugini Mining from 1983 to 1992.

The Lihir Special Mining Lease (SML) was granted in 1995 following comprehensive and environmental studies, besides others. Under the terms of the original project approvals, the Lihir project, including the SML, was transferred to a new Papua New Guinea company – LGL.

Rio Tinto established the Lihir Management Company to develop and operate the mine on behalf of LGL. In 1997, the first gold was poured at Lihir. In 2005, Rio Tinto divested its interests in Lihir, allowing the Lihir operations to become owned and operated by LGL.

In August 2010, Newcrest acquired the Lihir operations, as a result of the merger between Newcrest and LGL.

Brief Description: Lihir is an openpit gold mine in an inactive volcanic area.
Products: Gold.

Geology/Mineralisation: The gold deposit at Lihir is located within the Luise Caldera, an extinct volcanic crater that is geothermally active. It is one of the largest known gold deposits in the world.

The principal component deposits within the Lihir openpit are called Lienetz, Minifie, Coastal and Kapit.

Exploration in the Luise Caldera has identified several additional mineral deposits, which are collectively called the Ladolam deposit. The limits of the mineralisation have not been completely defined and are open at depth, along strike and to the east (currently limited by the Pacific Ocean).

Reserves: Proven and probable reserves as at December 31, 2014, were estimated at 380-million tonnes, grading 2.4 g/t of gold.

Resources: Mineral resources as at December 31, 2014, were estimated at 790-million, grading 2.3 g/t of gold.

Mining Method: Openpit.
Major Infrastructure and Equipment: Most of the ore at Lihir is refractory and is treated using pressure oxidation before the gold is recovered by a conventional leach process.

Prospects: Newcrest Mining has approved the Lihir pit optimisation feasibility study, following a prefeasibility study (PFS) on a new plan proved viable.

A project is being undertaken to improve the efficiency of the integrated life-of-mine plan for the mine, including seepage barrier options.

The purpose of the new PFS is to enhance the integrated life-of-mine plan for Lihir, including different mine sequencing and ore scheduling options, the most appropriate mining methods and civil engineering options.

Contact Person: Newcrest senior specialist of public affairs Jason Mills.

Contact Details:
Newcrest Mining,
tel +61 3 9522 5690,
fax +61 3 9525 2996,
email jason.mills@newcrest.com.au, and
website http://www.newcrest.com.au.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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