{"id":1151917,"date":"2019-11-26T14:43:32","date_gmt":"2019-11-26T20:43:32","guid":{"rendered":"https:\/\/resourceworld.com\/?p=56993"},"modified":"2019-11-26T14:43:32","modified_gmt":"2019-11-26T20:43:32","slug":"newmont-goldcorp-sells-historic-red-lake-mine","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1151917","title":{"rendered":"Newmont Goldcorp sells historic Red Lake mine"},"content":{"rendered":"

Newmont Goldcorp Corp.<\/strong> [NGT-TSX, NEM-NYSE] is moving to streamline its asset base by selling its Red Lake complex in northwestern Ontario to Evolution Mining Ltd.<\/strong> [EVN-ASX] of Australia for $375 million in cash. Under the deal, Newmont Goldcorp can also receive contingent payments of up to an additional $100 million. The additional payments are tied to new resource discoveries.<\/p>\n

Red Lake is an underground gold mining complex, which has been in production since 1949, producing 25 million ounces of gold at an average grade of 20 g\/t. It now consists of the Red Lake and Campbell complexes.<\/p>\n

Each complex consists of an underground mine and associated processing facility as well as the nearby Cochenour mine. There are currently 1,180 employees and contractors on the payroll.<\/p>\n

The complex was a key asset in the portfolio of Vancouver-based Goldcorp before the company was acquired by US giant Newmont Mining Corp. in April, 2019. The combined company now ranks as the world\u2019s largest gold producer.<\/p>\n

In 2018, Red Lake produced 276,000 ounces of gold at an all-in-sustaining cost (AISC) of US$988 per ounce. This year, Red Lake is expected to produce 150,000 to 160,000 ounces of gold at an AISC of approximately US$1,600 an ounce.<\/p>\n

It has been rumoured widely that the Red Lake operation was up for sale. On Tuesday, Newmont Goldcorp shares were unchanged at $50.27. The shares are trading in a 52-week range of $40.01 and $54.87.<\/p>\n

Evolution is an Australian gold miner which operates five wholly-owned mines in Western Australia. Evolution also holds an economic interest in the Ernest Henry mine in Queensland, Australia that will deliver 100% of the future gold and 30% of the future copper and silver produced from an agreed life of mine area.<\/p>\n

Evolution has said it expects to produce between 725,000 and 775,000 ounces of gold next year.<\/p>\n

Under the terms of the $100 million contingent payment, Evolution will pay Newmont $20 million for each one million ounces of new gold resources added to the existing Red Lake resource base over a 15-year period. The contingent payment is applicable to the first five million ounces of new resources.<\/p>\n

Meanwhile, Evolution has committed to invest US$100 million on existing operations and an additional US$50 million on exploration at Red Lake over a three-year period after the acquisition is complete. Evolution said it is planning to complete over 100,000 metres of drilling annually.<\/p>\n

\u201cEvolution is excited to be adding Red Lake to its portfolio, providing the company with a high-grade, long-life gold mine in Canada,\u201d said Evolution Executive Chairman Jake Klein. He described the complex as an under-capitalized asset and said it will become a cornerstone asset in the Evolution portfolio.<\/p>\n

As of June 20, 2018, Red Lake ore reserves still at 2.1 million ounces, grading 7.0 g\/t gold. On top of that is a significant mineral resource (including ore reserves) of 7.0 million ounces at a grade of 11.2 g\/t gold.<\/p>\n","protected":false},"excerpt":{"rendered":"

Newmont Goldcorp Corp. [NGT-TSX, NEM-NYSE] is moving to streamline its asset base by selling its…<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[445,622],"tags":[48],"class_list":["post-1151917","post","type-post","status-publish","format-standard","hentry","category-ontario","category-resources","tag-gold"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1151917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1151917"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1151917\/revisions"}],"predecessor-version":[{"id":1151918,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1151917\/revisions\/1151918"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1151917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1151917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1151917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}