In August 2019, Newcrest commenced operating the Red Chris copper and gold mine in British Columbia, Canada. Newcrest is a 70% owner, along with previous owner Imperial Metals Corporation (30%).
Red Chris provides Newcrest with production and asset diversification. Red Chris is a copper-gold porphyry orebody with an open-pit mine. Imperial has estimated that it has mineral resources of 20 million ounces of gold and 13 billion pounds of copper. (1,2)
The property comprises 23,142 hectares with 77 mineral tenures, five of which are mining leases. It sits in the traditional territory of the Tahltan Nation in British Columbia.
The acquisition of Red Chris is a measured entry into North America and aligns with Newcrest’s strategic goal of building a global portfolio of Tier 1 orebodies, where we can deliver value by applying our unique operating capabilities.
We have identified a pathway to potentially(3) turn this orebody into a Tier 1 operation in one of the premier gold districts of the world.
The geology at Red Chris is similar to the Cadia orebodies in Australia, where Newcrest has created significant value from a deep underground porphyry using its technical expertise in block caving, operations optimisation and selective processing.
We will use this experience to maximise the value of Red Chris and its surrounding tenements.
(1) The figures shown represent 100% production under Imperial Metals. As at 15 August 2019, Newcrest owns 70% of Red Chris in an incorporated joint venture with Imperial Metals.
(2) The information in this report that relates to the Mineral Resource estimates of Imperial in relation to Red Chris is based on the “National Instrument 43–101 Technical Report” dated 30 September 2015 and filed by Imperial on SEDAR (www.sedar.com) in accordance with National Instrument 43–101 as required by Canadian securities regulatory authorities. The estimates of the Mineral Resources contain Measured and Indicated Mineral Resources of 1.0Bt at 0.35 g/t Au and 0.35% Cu for 12Moz contained gold and 8.0Blb contained copper and Inferred Mineral Resources of 0.7Bt at 0.32 g/t Au and 0.29% Cu for 8.1Moz contained gold and 5.0Blb contained copper. (Data reported to two significant figures and this may cause discrepancies in totals.) Note that under Newcrest reporting convention for copper, 13Blb contained copper is equivalent to 5.9Mt contained copper. See also Red Chris foreign estimates – clarifying statements on page 80 of this report.
(3) Subject to market and operating conditions, further drilling and study, all necessary permits, regulatory requirements and Board approvals.