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Newcrest Mining Ltd.
Summary
| Project: | Cadia Valley Operations | |
|---|---|---|
| Deposit: | Cadia | |
| Location: | Australia | |
| Commodities: | Gold-Silver-Copper | |
| Date: | 8/22/2018 | |
| Report Code: | JORC | |
| Report Type: | Pre-Feasibility Study | |
| Project Stage: | Active Mining & Production | |
| Report details: | 22-8-2018: Newcrest Mining Ltd. announces a Pre-Feasibility Study report for its Cadia deposit at the Cadia Valley Operations project. PFS results incl. pre-tax NPV of AUD $887M, IRR of 21%, 45yr LOM, updated resource at project.. The Newcrest Board has a | |
| Resources: | ||
| CP/QP: | [Resources]: Vik Singh (Internal) | |
| ABSTRACT: | The Newcrest Board has approved gating of the Cadia Expansion Pre-Feasibility Study (“Study”) to the Feasibility phase. The Study establishes Cadia’s future mine design, mine sequence and sustainable production rate. Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “Two years ago we set out to expand Cadia to 32mtpa for an expected cost of $310m, today we announce expanding the plant to 33mtpa for $58m with potential to grow to 35mtpa. The study has delivered a $252m saving and an additional 1mtpa of throughput capacity. The project team have applied an ‘owner’s mindset’ in delivering an expansion plan with a low capital intensity which has the potential to deliver an impressive 21% return on capital and ensures Cadia remains a tier 1 producer for a long time to come.” The Study assessed a number of expansion cases, ranging from the current 30mtpa base up to 40mtpa, having regard to the capacity of the mine, processing facilities and major infrastructure. The mining rate profile analysis showed that a long term sustainable mining rate of 33mtpa is achievable and that 35mtpa represents the upper limit of Cadia’s caving footprint capability until approximately FY27 when PC1-2 production ramps up. To reliably expand the processing plant beyond 35Mtpa would require a third concentrator and an additional $440m of capex. The Study is predicated on a low-cost expansion to 33mtpa with potential further debottlenecking to 35mtpa. The selected 33mtpa rate is based on detailed mine production rate analysis utilising simulation modelling and shows that spatial constraints within each mining area and the impacts of fragmentation during ramp up periods are key mining constraints. | |
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