The Quencher Main project in Peru.
The world’s largest gold miner, Newmont Goldcorp, has brought its fourth project for the year into operation, with Quecher Main at Yanacocha, Peru, hitting commercial production.
The project was completed at a cost of about $275-million, which the mining major said on Thursday was below its initial estimate. It was also completed ahead of schedule.
Quecher Main will extend Yanacocha’s mine life to 2027, contributing an average of 200 000 oz/y from 2020 through 2024, at all-in sustaining costs of between $900/oz and $1 000/oz.
The project is expected to generate an internal rate of return of approximately 15% at a $1 200/oz gold price.
“The project takes advantage of Yanacocha’s existing infrastructure to add profitable production from remaining oxide ores while also serving as a bridge to future growth opportunities, including Yanacocha’s extensive sulphide deposits,” said president and CEO Tom Palmer.
The project included development of the Quecher Main pit, two smaller oxide deposits and a heap leach pad.
Yanacocha, a joint venture between Newmont Goldcorp (51.35%), Minas Buenaventura (43.65%) and Sumitomo (5%), began commercial production in 1993 and has since produced about 38-million ounces of gold from openpit oxide and transitional ores processed at Yanacocha’s gold mill and leach pad.
This year, Newmont Goldcorp completed the Ahafo mill expansion, in Ghana, the new Borden all-electric mine in Canada and the Tanami power station project, in Australia.
Last week, Newmont Goldcorp approved the Tanami Expansion 2 project, in Australia, which will improve the mine’s cost profile and extend its operating life beyond 2040.