Newcrest (ASX: NCM) has released its exploration and guidance update for March 2020, announcing that drilling at Red Chris has confirmed the presence of a discrete ‘pod’ of high grade mineralisation within the East Zone, about 100m long, 100m wide and 200m high.
Last Australia’s largest gold producer, Newcrest Mining (ASX: NCM), is acquired a 70% joint-venture interest in Imperial Metals’ (TSX: III) Red Chris copper and gold mine in British Columbia, Canada, as part of an ongoing push by the world’s top bullion miners to get even bigger.
Infill drilling is planned to fully define the extent of the high-grade pod and to search for additional high grade pods within the East Zone. The underground mining concept study, currently in progress, will evaluate the option of stoping any high grade pods ahead of other bulk underground mining methods to bring high grade ore into production earlier.
Infill drilling is planned to fully define the extent of the high-grade pod and to search for additional high grade pods within the East Zone
Work also continues on evaluating the commencement of a decline late in the 2020 calendar year to further enhance and accelerate exploration efforts, with such a decline also being of use for any underground mining operation, Newcrest said.
Drilling at Havieron in the Paterson region of Western Australia continues to expand and demonstrate the continuity of high grade mineralisation which extends over 450m, to vertical depths of 600m and remains open at depth and to the northwest. A further 20,000 metres are planned to be drilled to support the objective of delivering of a maiden resource estimate in the second half of calendar year 2020.
Studies are underway to investigate the potential of starting an exploration decline by the end of calendar year 2020 or early 2021, and the potential to achieve commercial production within two to three years from the commencement of the decline.
Guidance for FY20 has been adjusted to reflect the recently completed divestment of Gosowong, the commencement of commercial production at Fruta del Norte and the projections of all operations, in particular, Lihir.
Updated group gold production guidance for FY20 is 2,100 – 2,200koz.