Investor Centre / Annual Report 2020

Organic Growth Opportunities

Havieron

  • High grade deposit located 45km east of Telfer.

The Havieron tenement is located 45km east of Telfer in the Paterson Province of Western Australia.

The Havieron project is operated by Newcrest via a farm-in agreement with Greatland Gold Plc. Under the agreement, Newcrest can earn up to a 70% interest through total expenditure of US$65 million and the completion of a series of exploration and development milestones across a four-stage farm-in, over a six year period that commenced in May 2019. Newcrest may acquire an additional 5% interest at the end of the farm-in period at fair market value. The farm-in agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program and feasibility study, the resulting joint venture ore will be processed at Telfer.

On 1 April 2020, Newcrest announced that it had earned a 40% interest in the Havieron project under its farm-in agreement and was progressing to Stage 3.

Drilling results in the financial year continue to expand and demonstrate, the continuity of higher grade mineralisation which extends over 450m and to vertical depths of 600m. Drilling has also identified mineralised breccias proximal to higher grade mineralisation.

Studies are underway to investigate the potential for the following1:

  • potential to start an exploration decline by the end of calendar year 2020 or early 2021;
  • selective and bulk underground mining options;
  • potential to achieve commercial production within two to three years from the commencement of the decline.

Newcrest will continue drilling activities in the 2021 financial year to support the objective of delivering an initial resource estimate in the December 2020 quarter.

The higher grade ore extracted from Havieron could materially improve Telfer’s All-In Sustaining Cost per ounce and increase its operational life.

Telfer is the largest processing facility in the Paterson Province and has sufficient capacity and capability to process other discoveries in this region. Newcrest believes that the Paterson Province presents significant additional opportunities for Telfer in the future.  

  1. Subject to market and operating conditions and receipt of all necessary permits, consents and approvals.
Red Chris

Red Chris

  • Potential long-life, low-cost block cave opportunity.

On 15 August 2019, Newcrest successfully completed the acquisition of a 70% interest in, and operatorship of, the Red Chris mine in British Columbia, Canada.

There are currently two drilling programs underway at Red Chris. The first is the East Zone Resource Definition Program which is designed to obtain geological, geotechnical and metallurgical data to support future studies for underground block cave mining. The second is the Brownfields Exploration Program which is focused on searching for higher grade mineralisation within the Red Chris porphyry corridor.

In the East Zone, infill resource drilling results since acquisition have confirmed the presence of multiple discrete higher grade ‘pods’ of mineralisation. Drilling results returned to date continue to confirm the potential of finding additional discrete high grade ‘pods’ of mineralisation in the porphyry corridor.

Pre-Feasibility Study expected to be completed in the September 2021 quarter.

Infill resource drilling confirms the presence of discrete higher grade ‘pods’ in the East Zone.

The Block Cave concept study was completed during the financial year and was based on historical drilling data received from Imperial Metals. The Pre-Feasibility Study is underway and will incorporate recent drilling data. The Pre-Feasibility Study is expected to be completed in the September 2021 quarter.

Newcrest is preparing for its early works program which includes the commencement of exploration/geotechnical decline work, expected to occur by the end of calendar year 2020 or early 20211.

As announced in May 2020, Newcrest completed the purchase of the GJ Project located in the Golden Triangle of British Colombia. The land holding is located adjacent to Red Chris and covers the south west extent of the Red Chris GJ‑Donnelly porphyry trend. An initial program of 2,146 line kilometres of Airborne Electro-Magnetic and Gravity surveys has commenced, aimed at generating drill targets.

  1. Subject to market and operating conditions and receipt of all necessary permits, consents and approvals.

Overview