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Newmont Reports 8% Increase in Equity Gold Reserves to 91.8 Million Ounces; Details 2010 Exploration Funding and Opportunities
DENVER, February 25, 2010 – Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) today reported 2009 equity gold reserves of 91.8 million ounces, an 8% increase over 2008, and equity copper reserves of 9.1 billion pounds, a 17% increase over 2008.
Equity gold measured and indicated resources (NRM) for 2009 were 1.1 billion tons at an average grade of 0.020 ounces per ton, up from 0.8 billion tons at a grade of 0.026 ounces per ton for 2008. Equity copper NRM for 2009 were 796 million tons at an average grade of 0.17%, up from 431 million tons at a grade of 0.13% from 2008.
(1) | For detailed information on the Company’s year-end equity proven and probable reserves and NRM, please refer to the Supplemental Information in this release. |
Reserve additions came from all regions, with notable additions from Gold Quarry in Nevada, Boddington in Australia, underground operations across Australia and New Zealand and at Ahafo in Ghana.
“A combination of strong 2009 exploration results and the Boddington acquisition resulted in equity gold reserves at our highest level since 2006 and equity gold NRM at the highest level since 2003.” said Guy Lansdown, Executive Vice President of Discovery and Development. “These increases, combined with our generative exploration opportunities, will support future sustainability in each of our operating regions.”
Exploration, Advanced Projects, Research & Development
The recent success of the Company’s exploration program, combined with a demonstrated ability to advance exploration programs through development and into production, has established a platform for future growth. To provide increasing value for shareholders, Newmont plans to continue aggressively advancing its most prospective near mine and generative exploration development opportunities into production.
The 2010 exploration budget is between $190 and $220 million, an increase of approximately 10% from 2009. In addition, funding for Advanced Project development has increased to between $185 and $210 million, a 40% increase from 2009. These exploration and advanced project development programs are designed to generate and develop the projects that will help drive production in the decades to come.
Approximately 75% of the exploration budget is focused on programs within Newmont’s existing operating districts and major land packages, including the prospective gold belts at Hope Bay in Canada and in Suriname. These exploration programs are designed to support production, replace reserves, optimize existing assets, explore and advance copper opportunities and to develop new brown field projects that leverage existing facilities and infrastructure.
The additional Advanced Project development programs are coordinated with our exploration efforts, with exploration delivering new resources that are effectively advanced through the development pipeline in each of the operating regions. The Company’s more notable exploration and advanced project development opportunities include Hope Bay in Canada, the Greater Leeville-Turf project in Nevada, the Subika underground project in Ghana, expansion drilling at Boddington in Australia, and multiple programs targeting underground resource expansions across Australia and New Zealand and sulfide exploration and development programs in Peru.
Hope Bay, Canada
At Hope Bay in Canada, positive 2009 drilling and regional exploration results have reinforced the positive view of exploration potential across the 80 kilometer greenstone belt. The Company is advancing development with an underground focus, to be initiated with a decline at the Doris North deposit. The Company has deployed an experienced project development team and key contractors are in place to aggressively advance this underground opportunity. With near-term development plans and district exploration for years to come, Hope Bay remains a significant asset within the Company’s portfolio. The Company expects to spend approximately $60 to $70 million on advanced project development and near mine exploration in 2010 at Hope Bay, excluding capital.
Greater Leeville-Turf, Nevada
In Nevada, the Company has a portfolio of multiple open pit and underground projects. One of these opportunities is the Greater Leeville-Turf program, where the Company has a surface exploration program extending well beyond known mineralization. Early results from both surface and underground exploration programs suggest significant potential for resource expansion, with recent surface gold intercepts including CGX-24 with 32 feet at 0.7 ounces per ton and CGX-12 with 151 feet at 0.6 ounces per ton, all accessible by extensions of current underground infrastructure. The Company expects to spend approximately $75 to $85 million on advanced project development and near mine exploration in 2010 in Nevada, excluding capital.
Subika Expansion, Ghana
The Subika Expansion project at our Ahafo operation in Ghana is focused on developing reserves by expanding the existing open pit and through underground development. The Company is concurrently advancing exploration and development with surface drilling to define the exploration potential and underground drifting and future drilling for resource and project development. An exploration decline was successfully initiated in February 2010 and underground development is advancing rapidly. The Company expects to spend approximately $10 to $15 million on advanced project development and near mine exploration in 2010 in Ghana, excluding capital.
Australia / New Zealand
As Boddington ramps-up to full production, the Company continues to step out with exploration to the north and east, where preliminary results suggest significant opportunity for higher grade, shallow resource additions. Across Australia and in New Zealand, the Company is expanding underground resources with surface and underground exploration and development programs. One such opportunity is the Gateway project at Jundee, where drilling continues to identify a new vein system to the south of current resources with potential exploration drifting scheduled for late 2010 to early 2011. The Company expects to spend approximately $20 to $30 million on advanced project development and near mine exploration in 2010 in Australia/New Zealand, excluding capital.
Yanacocha District, Peru
In South America, the Company’s exploration focus is on unlocking the sulfide opportunities within the Yanacocha district and around the Conga project. Advanced exploration and development of the large gold-copper sulfide resources underlying current Yanacocha oxide pits is ongoing. As a result, research and development of metallurgical process options for potentially minable resources is advancing. In addition, the Chaquicocha Sur sulfide project has advanced into Stage 2, with a program focused on an underground mining option to develop this high grade resource. In addition, while basic engineering and permitting advances on the Conga project, multiple gold-copper porphyry targets across the prospective land package are being explored to maximize the value of this world class project. The Company expects to spend approximately $25 to $30 million on advanced project development and near mine exploration in 2010 in Peru.