Newcrest Mining Limited – Annual Mineral Resources and Ore Reserves Statement – as at 31 December 2020

Newcrest Mining Limited has updated its Mineral Resource and Ore Reserve estimates for the twelve month period ending 31 December 2020 following a review of all production sources. The review has taken into account divestments and acquisitions, long-term metal prices, foreign exchange rates and cost assumptions, as well as mining and metallurgy performance to inform cut-off grades and physical mining parameters. …

Newcrest Mining Limited (ASX: NCM) (TSX: NCM) has updated its Mineral Resource and Ore Reserve estimates for the twelve month period ending 31 December 2020 following a review of all production sources. The review has taken into account divestments and acquisitions, long-term metal prices, foreign exchange rates and cost assumptions, as well as mining and metallurgy performance to inform cut-off grades and physical mining parameters.

Newcrest listed on the Toronto Stock Exchange in October 2020, retaining its primary listing on the Australian Stock Exchange and its secondary listing on PNGX Exchange Market. As a result, Newcrest’s Annual Mineral Resources and Ore Reserves Statement has been modified to conform with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves by the Australasian Joint Ore Reserves Committee Code (the JORC Code) ASX Listing Rules and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) of the Canadian Securities Administrators and TSX reporting requirements.

Key developments in 2020

On 5 March 2020 Newcrest announced that it had completed the divestment of its 75% interest in Gosowong[1]. As such the Mineral Resources and Ore Reserves relating to Gosowong have been removed from the portfolio as at 31 December 2020.

On 10 December 2020 Newcrest announced an initial Inferred Mineral Resource estimate for the Havieron Project, which it owns in joint venture with Greatland Gold Plc. Newcrest’s proportional Mineral Resources represented by its equity interest of 40%[2] have been included in the Inferred Mineral Resources for the Telfer Province.

The Red Chris planned work program continued during CY2020. Studies to define the optimum high value plan for open pit and underground mining scenarios are continuing and are on track to be completed within the previously announced three year timeframe (from acquisition in August 2019[3]). This work program will continue during 2021 and is expected to enable Newcrest to report Red Chris in accordance with the JORC Code, with a Mineral Resource estimate in March 2021 and an Ore Reserve estimate by September 2021, on completion of the supporting Pre-Feasibility Study.

Group Ore Reserves

As at 31 December 2020, Group Ore Reserves are estimated to contain approximately 49 million ounces of gold, 6.8 million tonnes of copper, 35 million ounces of silver and 0.12 million tonnes of molybdenum. This represents a decrease of approximately 2.6 million ounces of gold (~5%), 0.1 million tonnes of copper (~2%) and 1.3 million ounces of silver (~4%) compared with the estimate as at 31 December 2019. The Group Ore Reserve estimates as at 31 December 2020 are set out in Tables 11 to 15.

The Group Ore Reserves as at 31 December 2020 includes the following changes as compared to
31 December 2019:

  • Estimated mining depletion of approximately 2.5 million ounces of gold, 0.1 million tonnes of copper,
    1 million ounces of silver and minor molybdenum
  • Removal of 0.3 million ounces of gold and 0.4 million ounces of silver following divesture of Newcrest’s 75% interest in Gosowong
  • Minor changes at Telfer and Lihir due to updated input assumptions for net increase of 0.3 million ounces of gold.

Group Mineral Resources

As at 31 December 2020, Group Measured and Indicated Mineral Resources are estimated to contain approximately 97 million ounces of gold, 17 million tonnes of copper, 87 million ounces of silver and 0.19 million tonnes of molybdenum. This represents a decrease of approximately 4.2 million ounces of gold (~4%),
0.2 million tonnes of copper (~1%) and 2 million ounces of silver (~2%), compared with the estimate as at 31 December 2019. Group Measured and Indicated Mineral Resources are reported inclusive of Ore Reserves.

The Group Measured and Indicated Mineral Resources as at 31 December 2020 includes the following changes as compared to 31 December 2019:

  • Estimated mining depletion of approximately 2.6 million ounces of gold, 0.1 million tonnes of copper,
    1 million ounces of silver and minor molybdenum
  • Decrease at Telfer, post mining depletion, of approximately 0.7 million ounces of gold following removal of 0.3 million ounces of gold from Main Dome open pit at the end of operation and updated metal prices, exchange rates, costs assumptions, resource models, and re-optimisation of the West Dome open pit and Main Dome Underground resources
  • Removal of 0.9 million ounces of gold and 1.2 million ounces of silver following divesture of Newcrest’s 75% interest in Gosowong.

As at 31 December 2020, Group Inferred Mineral Resources are estimated to contain approximately 11 million ounces of gold, 2.3 million tonnes of copper and 5.4 million ounces of silver. This represents an increase of approximately 1.7 million ounces of gold (~20%), 0.1 million tonnes of copper (~5%) and decrease of 0.1 million ounces of silver (~3%), compared with the estimate as at 31 December 2019.

The Group Inferred Mineral Resources as at 31 December 2020 includes the following changes as compared to 31 December 2019:

  • Increase at Telfer of 1.8 million ounces of gold due to the inclusion of the Initial Havieron Inferred Mineral Resource (~1.35 million ounces of gold reflecting Newcrest’s 40% equity interest) and an increase at the West Dome open pit and Telfer underground due to updated metal prices, exchange rates, cost assumptions, resource models and the re-optimisation of the West Dome open pit and Main Dome Underground resources
  • Minor decrease of 0.1 million ounces of gold and 0.1 million ounces of silver following divesture of Newcrest’s 75% interest in Gosowong.

The Group Measured and Indicated Mineral Resources and Inferred Mineral Resources as at 31 December 2020 are set out in Tables 2 to 10.

Mineral Resources and Ore Reserves Assumptions

Updated mining, metallurgical and long-term cost assumptions were developed with reference to recent performance data. The revised long-term assumptions include changes in performance consistent with changing activity levels at each site over the life of the operation and the latest study for each deposit.

Long-term metal prices and foreign exchange assumptions for Mineral Resources and Ore Reserves are set out in Table 1. For long mine life assets the gold price has been increased by US$100/oz for both Mineral Resources and Ore Reserves from those used for December 2019 reporting. Copper and silver metal price assumptions remain unchanged from those used for December 2019 reporting. The AUD:USD exchange rate assumption for long life assets remain unchanged at 0.75 and local currency assumptions for the PNG Kina remain unchanged. In consideration of Telfer’s current comparatively short mine life the gold price assumption has been increased by US$200/oz and the copper price assumption has been decreased by US$0.20/Ib for Ore Reserves compared to that used for December 2019 reporting. The AUD:USD exchange rate for Telfer, considering its comparatively short mine life, has been lowered to 0.70 for Ore Reserves and remains at 0.75 for Mineral Resources. Note that Havieron Mineral Resource uses the long term metal price and exchange rate assumptions. Where appropriate, Mineral Resources are also spatially constrained within notional mining volumes based on metal prices of US$1,400/oz for gold and US$4.00/lb for copper. This approach is adopted to eliminate mineralisation that does not have reasonable prospects of eventual economic extraction from Mineral Resource estimates.

Note that the increased long-term gold price assumptions have been applied to re-optimise the Lihir and Telfer operating Mineral Resource and Ore Reserve and Havieron Project and Namosi JV Mineral Resource estimates for this reporting period. Remaining assets of Cadia and the undeveloped projects at Wafi Golpu and Telfer will be progressively re-optimised when the full supporting studies are updated and are currently optimised on the more conservative 2019 gold price assumption.

Table 1

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_015.jpg

To view an enhanced version of Table 1, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_015full.jpg

JORC Code and ASX Listing Rules Requirements

This annual statement of Mineral Resources and Ore Reserves has been prepared in accordance with the JORC Code. Mineral Resources and Ore Reserves reported for the Wafi-Golpu Joint Venture (WGJV) are based on Competent Persons’ statements provided by the WGJV and are quoted as Newcrest’s 50% interest.

JORC and CIM Comparison

Mineral Resources and Ore Reserves are classified using the JORC Code. The confidence categories assigned under the JORC Code were reconciled to the confidence categories in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards – for Mineral Resources and Mineral Reserves May 2014 (the CIM Definition Standards). As the confidence category definitions are the same, no modifications to the confidence categories were required.

There are differences in terminology from JORC compared to the CIM Definition Standards. Terminology differences are the term “Ore Reserves” in the JORC Code is equivalent to “Mineral Reserves” using the
CIM Definition Standards, and the term “Proved Ore Reserves” in the JORC Code is equivalent to “Proven Mineral Reserves” using the CIM Definition Standards. There are no other material differences between JORC and the CIM Definition Standards.

Note that NI 43-101 reporting requirements do not allow for Inferred Mineral Resources to be added to other Mineral Resource categories. Therefore, Measured and Indicated Mineral Resources have been reported separately from Inferred Mineral Resources which is different from past practice.

Mineral Resources that are not Ore Reserves do not have demonstrated economic viability. Due to lower certainty, the inclusion of Mineral Resources should not be regarded as a representation by Newcrest that such amounts can necessarily be totally economically exploited, and investors are cautioned not to place undue reliance upon such figures. Therefore, no assurances can be given that the estimates of Mineral Resources presented in this statement will be recovered at the tonnages and grades presented, or at all.

NI 43-101 Technical Reports

In connection with the TSX Listing, Technical Reports have been prepared in accordance with NI 43-101 for the following operations and projects, which are Newcrest’s material mineral properties for the purposes of
NI 43-101:

  • Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date
    30 June 2020.
  • Lihir Operations, Aniolam Island, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  • Wafi-Golpu Project, Morobe Province, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.

These reports can be found on Newcrest’s website at www.newcrest.com and on Newcrest’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

Table 2 – 31 December 2020 Gold Measured and Indicated Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_001.jpg

To view an enhanced version of Table 2, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_001full.jpg

NOTE: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Mineral Resource Endnotes for additional information on each Mineral Resource listed.

Table 3 – 31 December 2020 Gold Inferred Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_002.jpg

To view an enhanced version of Table 3, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_002full.jpg

NOTES: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Mineral Resource Endnotes for additional information on each Mineral Resource listed.

Table 4 – 31 December 2020 Copper Measured and Indicated Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_003.jpg

To view an enhanced version of Table 4, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_003full.jpg


Table 5 – 31 December 2020 Copper Inferred Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_004.jpg

To view an enhanced version of Table 5, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_004full.jpg

NOTES: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Mineral Resource Endnotes for additional information on each Mineral Resource listed.

Table 6 – 31 December 2020 Silver Measured and Indicated Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_005.jpg

To view an enhanced version of Table 6, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_005full.jpg


Table 7 – 31 December 2020 Silver Inferred Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_006.jpg

To view an enhanced version of Table 7, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_006full.jpg


Table 8 – 31 December 2020 Molybdenum Measured and Indicated Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_007.jpg

To view an enhanced version of Table 8, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_007full.jpg

NOTES: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Mineral Resource Endnotes for additional information on each Mineral Resource listed.

Table 9 – 31 December 2020 Polymetallic Measured and Indicated Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_008.jpg

To view an enhanced version of Table 9, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_008full.jpg


Table 10 – 31 December 2020 Polymetallic Inferred Mineral Resources

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_009.jpg

To view an enhanced version of Table 10, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_009full.jpg

NOTES: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Mineral Resource Endnotes for additional information on each Mineral Resource listed.

Mineral Resource Endnotes

  1. Cadia East Underground Mineral Resource-JORC Competent Person: Luke Barbetti. Underground block cave operation, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020.
  2. Ridgeway Underground Mineral Resource-JORC Competent Person: Luke Barbetti. Underground block cave on Care and Maintenance, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020.
  3. Cadia Extended Underground Mineral Resource-JORC Competent Person: Luke Barbetti. Underground undeveloped project, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020.
  4. Cadia Hill Stockpiles Ridgeway Underground Mineral Resource-JORC Competent Person: Luke Barbetti. Open pit stockpiles from completed Cadia Hill Open pit operation, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020
  5. Big Cadia Open Pit Mineral Resource-JORC Competent Person: Luke Barbetti. Open pit undeveloped project, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020.
  6. Main Dome Stockpiles Mineral Resource-JORC Competent Person: Ashok Doorgapershad. Open pit stockpiles from completed Main Dome open pit operation, Telfer, WA, Australia. Mineral Resource is reported at a Net Smelter Return cut-off of A$17.8/t milled based on variable gold and copper contributions.
  7. West Dome Open Pit Mineral Resource-JORC Competent Person: Ashok Doorgapershad. Open pit operation, Telfer, WA, Australia. Mineral Resource is reported at a Net Smelter Return cut-off of A$20.1/t milled based on variable gold and copper contributions.
  8. Telfer Underground Mineral Resources-JORC Competent Person: Ashok Doorgapershad. Underground comprising sub-level cave and Western Flanks, South West and M Reef stoping operations and Vertical Stockwork Corridor
    sub-level cave undeveloped project, Telfer, WA, Australia. Mineral Resource is reported at a Net Smelter Return cut-off of AUD53.0/t milled for sub-level caves, A$60.0/t milled for Western Flanks and A$115.0/t milled for M Reefs based on variable gold and copper contributions.
  9. Havieron Underground Mineral Resource-JORC Competent Person: Cameron Switzer. Underground undeveloped joint venture project (Newcrest equity 40%, Greatland Gold Plc equity 60%), Telfer, WA, Australia. Mineral Resource is reported at a Net Smelter Return cut-off of A$50.0/t milled based on variable gold and copper contributions.
  10. Satellites Open Pit Mineral Resources-JORC Competent Person: Ashok Doorgapershad. Open pit undeveloped project, Telfer, WA, Australia. The Mineral Resource comprised of three deposits (Ironclad, Big Tree and Dolphy) is reported above marginal cut-off grades of 0.20g/t Au in Oxide material and 0.56g/t Au for transitional or fresh material based on dump leach processing.
  11. O’Callaghans Underground Mineral Resource-JORC Competent Person: Ashok Doorgapershad. Underground polymetallic underdeveloped project, Telfer, WA, Australia. Mineral Resource is reported at a Net Smelter Return
    cut-off of A$$54.9/t milled based on variable copper, tungsten, lead and zinc contributions.
  12. Camp Dome Mineral Resource-JORC Competent Person: Ashok Doorgapershad. Open pit undeveloped project, Telfer, WA, Australia. Mineral Resource has been reported above a 0.13% copper cut-off based on dump leach processing.
  13. Lihir Open Pit Mineral Resource-JORC Competent Person: Ben Likia. Open pit operation, Aniolam Island, PNG. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Lihir Operations, Aniolam Island, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  14. Lihir Open Pit Stockpiles-JORC Competent Person: Ben Likia. Open pit stockpiles from current operation, Aniolam Island, PNG. For key assumptions, parameters and methods used to estimate the Mineral Resources refer to Lihir Operations, Aniolam Island, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  15. Gosowong Mineral Resource. Gosowong is owned and operated by PT Nusa Halmahera Minerals, an incorporated joint venture company (Newcrest 75%). The figures shown represent 100% of the Mineral Resource at 31 December 2019. On 5 March 2020 Newcrest announced that it had completed the divestment of Gosowong (refer to Market release “Finalisation of Gosowong Sale” dated 5 March 2020) and therefore the resource has been removed.
  16. Golpu Underground Mineral Resource-JORC Competent Person David Finn. Underground block cave undeveloped project, Morobe, PNG. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Wafi-Golpu Project, Morobe Province, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  17. Wafi Open Pit Mineral Resource-JORC Competent Person Greg Job. Open pit undeveloped project, Morobe, PNG. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Wafi-Golpu Project, Morobe Province, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  18. Nambonga Underground Mineral Resource-JORC Competent Person Greg Job. Underground block cave undeveloped project, Morobe, PNG. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Wafi-Golpu Project, Morobe Province, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  19. Waisoi Open Pit Mineral Resource-JORC Competent Person Vik Singh. Open pit undeveloped project, Namosi, Fiji. Mineral Resource is reported at a Net Smelter Return cut-off of US$11.0/t based on variable gold and copper contributions.
  20. Wainaulo Underground Mineral Resource-JORC Competent Person Vik Singh. Underground block cave undeveloped project, Namosi, Fiji. Mineral Resource is reported at a Net Smelter Return cut-off of US$23.2/t.

Table 11 – 31 December 2020 Gold Ore Reserves

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_010.jpg

To view an enhanced version of Table 11, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_010full.jpg


Table 12 – 31 December 2020 Copper Ore Reserves

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_011.jpg

To view an enhanced version of Table 12 please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_011full.jpg

NOTES: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Ore Reserve Endnotes for additional information on each Mineral Resource listed.

Table 13 – 31 December 2020 Silver Ore Reserves

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_012.jpg

To view an enhanced version of Table 13, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_012full.jpg


Table 14 – 31 December 2020 Molybdenum Ore Reserves

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_013.jpg

To view an enhanced version of Table 14, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_013full.jpg


Table 15 – 31 December 2020 Polymetallic Ore Reserves

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_014.jpg

To view an enhanced version of Table 15, please visit:
https://orders.newsfilecorp.com/files/7614/74178_2832d630b4871916_014full.jpg

NOTES: Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals
Refer Ore Reserve Endnotes for additional information on each Mineral Resource listed.

Ore Reserve End Notes

  1. Cadia East Underground Ore Reserve-JORC Competent Person: Ian Austen. Underground block cave operation, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Ore Reserves refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020.
  2. Ridgeway Underground Ore Reserve-JORC Competent Person: Geoffrey Newcombe. Underground block cave on Care and Maintenance, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Ore Reserves refer to Cadia Operations, New South Wales, Australia, NI 43-101 Technical Report, Report effective date 30 June 2020.
  3. Main Dome Stockpiles Ore Reserve-JORC Competent Person: Glenn Paterson-Kane. Open pit stockpiles from completed Main Dome open pit operation, Telfer, WA, Australia. Ore Reserve is reported at a Net Smelter Return
    cut-off of A$17.8/t milled based on variable gold and copper contributions.
  4. West Dome Open Pit Ore Reserve-JORC Competent Person: Glenn Paterson-Kane. Open pit operation, Telfer, WA, Australia. Ore Reserve is reported at a Net Smelter Return cut-off of A$20.1/t milled based on variable gold and copper contributions.
  5. Telfer Underground Ore Reserve-JORC Competent Person: Gito Patani. Underground comprising sub-level cave and Western Flanks, South West and M Reef stoping operations, Telfer, WA, Australia. Ore Reserve is reported at a Net Smelter Return cut-off of A$53.0/t milled for sub-level cave, A$60.0/t milled for Western Flanks and A$115.0/t milled for M Reefs based on variable gold and copper contributions.
  6. O’Callaghans Underground Ore Reserve-JORC Competent Person: Michael Sykes. Underground polymetallic underdeveloped project, Telfer, WA, Australia. Ore Reserve is reported at a Net Smelter Return cut-off of A$54.9/t milled based on variable copper, tungsten, lead and zinc contributions
  7. Lihir Open Pit Ore Reserve-JORC Competent Person: David Grigg. Open pit operation, Lihir, PNG. For key assumptions, parameters and methods used to estimate the Ore Reserve refer to Lihir Operations, Aniolam Island, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  8. Lihir Open Pit Stockpiles Ore Reserve-JORC Competent Person: David Grigg. Open pit stockpiles from current operation, Lihir, PNG. For key assumptions, parameters and methods used to estimate the Ore Reserve refer to Lihir Operations, Aniolam Island, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.
  9. Gosowong Ore Reserve. Gosowong is owned and operated by PT Nusa Halmahera Minerals, an incorporated joint venture company (Newcrest 75%). The figures shown represent 100% of the Ore Reserve at 31 December 2019. On 5 March 2020 Newcrest announced that it had completed the divestment of Gosowong (refer to Market release “Finalisation of Gosowong Sale” dated 5 March 2020) and therefore the reserve has been removed.
  10. Golpu Underground Ore Reserve-JORC Competent Person: Pasqualino Manca. Underground block cave undeveloped project, Morobe, PNG. For key assumptions, parameters and methods used to estimate the Ore Reserve refer to Wafi-Golpu Project, Morobe Province, Papua New Guinea, NI 43-101 Technical Report, Report effective date 30 June 2020.

Disclaimer

Forward Looking Statements

This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “objectives”, “targets”, “outlook” and “guidance”, or other similar words and may include, without limitation, statements regarding estimated reserves and resources, certain plans, strategies, aspirations and objectives of management, anticipated production, study or construction dates, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. Newcrest continues to distinguish between outlook and guidance. Guidance statements relate to the current financial year. Outlook statements relate to years subsequent to the current financial year.

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Newcrest’s actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Newcrest operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. For further information as to the risks which may impact on Newcrest’s results and performance, please see the risk factors included in the Annual Information Form dated 13 October 2020 lodged with ASX and SEDAR.

Forward looking statements are based on Newcrest’s good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Newcrest’s business and operations in the future. Newcrest does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Newcrest. Readers are cautioned not to place undue reliance on forward looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward looking statements in this document speak only at the date of issue. Except as required by applicable laws or regulations, Newcrest does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in assumptions on which any such statement is based.

Ore Reserves and Mineral Resources Reporting Requirements

As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act 2001 and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia is in accordance with the JORC Code and that Newcrest’s ore reserve and mineral resource estimates comply with the JORC Code.

Newcrest is also subject to certain Canadian disclosure requirements and standards, as a result of its secondary listing on the TSX, including the requirements of NI 43-101. Investors should note that it is a requirement of Canadian securities law that the reporting of Mineral Reserves and Mineral Resources in Canada and the disclosure of scientific and technical information concerning a mineral project on a property material to Newcrest comply with NI 43-101. Newcrest’s material properties are currently Cadia, Lihir and Wafi-Golpu.

Competent Person’s Statement

The information in this document that relates to Group Mineral Resources, Ore Reserves, and related scientific and technical information, is based on and fairly represents information compiled by Mr K. Gleeson. Mr Gleeson is Newcrest’s Head of Mineral Resource Management and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest and is entitled to participate in Newcrest’s executive equity long term incentive plan, details of which are included in Newcrest’s 2020 Remuneration Report. He is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Gleeson has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person under NI 43-101. Mr Gleeson has reviewed and approves the disclosure of scientific and technical information contained in this document and consents to the inclusion of material of the matters based on his information in the form and context in which it appears.

The information in this report that relates to specific Mineral Resources, Ore Reserves, and related scientific and technical information, is based on and fairly represents information compiled by the Competent Persons as named in Tables 2 to 15 endnotes. Each of these persons, other than Mr G. Job, was at the reporting date a full-time employee of Newcrest Mining Limited or its relevant subsidiaries, holds options (and in some cases, shares) in Newcrest Mining Limited and is entitled to participate in Newcrest’s executive equity long term incentive plan, details of which are included in Newcrest’s 2020 Remuneration Report. Mr Job is a full time employee of Harmony Gold Mining Company Limited, Newcrest’s joint venture partner in the WGJV.

All Competent Persons named in this document are Members or Fellows of The Australasian Institute of Mining and Metallurgy and / or The Australian Institute of Geoscientists, and have sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the JORC Code. Each Competent Person consents to the inclusion of material of the matters based on their information in the form and context in which it appears.

Authorised by the Newcrest Board Executive Committee

For further information please contact

Investor Enquiries

Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au

Ben Lovick
+61 3 9522 5334
+61 407 269 478
Ben.Lovick@newcrest.com.au

North American Investor Enquiries

Ryan Skaleskog
+1 866 396 0242
+61 403 435 222
Ryan.Skaleskog@newcrest.com.au

Media Enquiries

Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au

Annie Lawson
+61 3 9522 5750
+61 409 869 986
Annie.Lawson@newcrest.com.au

This information is available on our website at www.newcrest.com


[1] Refer to Market Release “Finalisation of Gosowong Sale” dated 5 March 2020

[2] Refer to Market Release “Newcrest signs Havieron Joint Venture Agreement and expand its presence in the highly prospective Paterson Province”, which announced that Newcrest has met the Stage 3 expenditure requirement (US$45 million) and is entitled to earn an additional 20% joint venture interest in addition to its existing 40% interest, resulting in an overall joint venture interest of 60% (Greatland Gold 40%). As at date of this release Newcrest has not exercised this right to increase its equity interest

[3] Refer to market release “Newcrest completes 70% acquisition of Red Chris” dated 16 August 2019

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/74178

News Provided by Newsfile via QuoteMedia

Featured

On 2 March 2021 the Australian Taxation Office issued Rio Tinto Limited with amended assessments related to the denial of interest deductions on an isolated borrowing used to pay an intragroup dividend in 2015. The borrowing was repaid in 2018. The ATO has today issued further assessments in relation to the same transaction levying penalties of A$352m and reducing the original interest assessment from A$47m to A$27m …

On 2 March 2021 the Australian Taxation Office (ATO) issued Rio Tinto Limited with amended assessments related to the denial of interest deductions on an isolated borrowing used to pay an intragroup dividend in 2015. The borrowing was repaid in 2018.

The ATO has today issued further assessments in relation to the same transaction levying penalties of A$352m (US$257.9m) and reducing the original interest assessment from A$47m to A$27m (US$19.8m).

read more Show less

Ioneer Ltd is pleased to announce that the Company has reached an agreement to establish a joint venture with Sibanye Stillwater Limited to develop the flagship Rhyolite Ridge Lithium-Boron Project located in Nevada, USA . Under the terms of the agreement, Sibanye-Stillwater will contribute US$490 million for a 50% interest in the Joint Venture, with ioneer to maintain a 50% interest and retain operatorship. ioneer …

Ioneer Ltd (“ioneer" or the “Company") (ASX: INR) is pleased to announce that the Company has reached an agreement to establish a joint venture (the " Joint Venture “) with Sibanye Stillwater Limited ( “Sibanye-Stillwater" ) to develop the flagship Rhyolite Ridge Lithium-Boron Project located in Nevada, USA (the “Project" ). Under the terms of the agreement, Sibanye-Stillwater will contribute US$490 million for a 50% interest in the Joint Venture, with ioneer to maintain a 50% interest and retain operatorship. ioneer has also agreed to provide Sibanye-Stillwater with an option to participate in 50% of the North Basin 1 upon the election of Sibanye-Stillwater to contribute up to an additional US$50 million subject to certain terms and conditions.

read more Show less

Perth, Australia – Australia’s next rare earths producer Hastings Technology Metals Ltd is pleased to announce that it has received the commendation of Premier Mark McGowan and the Western Australian Government for the Company’s development of the Yangibana Rare Earths Project in the State’s Gascoyne region. Premier McGowan said Hastings’ development of Yangibana was expressly aligned with the State’s Future Battery …

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is pleased to announce that it has received the commendation of Premier Mark McGowan and the Western Australian Government for the Company’s development of the Yangibana Rare Earths Project (Yangibana), in the State’s Gascoyne region.

Premier McGowan said Hastings’ development of Yangibana was expressly aligned with the State’s Future Battery Industry Strategy, which aims to expand the range of future battery minerals that are extracted and processed in Western Australia. Appendix 1 provides a copy of the public commendation that Hastings has received.

The Premier’s commendation follows the West Australian Department of Jobs, Tourism, Science and Innovation (JTSI) acknowledging that the Yangibana Project represents a strategic opportunity for investment and growth to position the State as a reliable supplier of speciality rare earth minerals.

read more Show less

Australia took a stand against Facebook and Google earlier this year, and the move could have long-term implications for tech investors.

It was a ban that sent Australians wild and had the whole world watching.

Back in February, Facebook (NASDAQ:FB) stopped users in Australia from posting news in a week-long blackout, reacting to proposed legislation that would have forced the social media behemoth to pay publishers for content.

What prompted Facebook to "friend" Australia again, and what are the potential long-term implications of the squabble? Read on to learn what tech-focused investors in Australia should know about the situation.


Australia squares off against Facebook

On February 25 of this year, Australia's federal government passed the News Media and Digital Platforms Mandatory Bargaining Code. It was developed after extensive analysis by the Australian Competition and Consumer Commission, and is aimed at ensuring that news media businesses are fairly remunerated for their content.

It stipulates that digital platforms such as Facebook and Google (both named in the documentation) must pay news outlets whose content they feature — for example, if content is shared on Facebook or shows up in Google search results. The idea is that this will help to sustain journalism in Australia.

Unsurprisingly, Facebook and Google didn't react well to the code, which was first introduced in 2020.

Google didn't make any moves after it passed, but Facebook quickly made it impossible for Australian users to share news content, and pages for both local and international news organisations went blank — a major concern given the COVID-19 and wildfire concerns that were circulating at the time.

Australian Prime Minister Scott Morrison was scathing about Facebook's decision — which he ironically shared in a Facebook post — declaring the tech giant's actions "as arrogant as they were disappointing." He added, "These actions will only confirm the concerns that an increasing number of countries are expressing about the behaviour of BigTech companies who think they are bigger than governments and that the rules should not apply to them."

Despite strong feelings from both Australia and Facebook, the dispute was resolved fairly quickly, with the country agreeing to make four amendments to the legislation and Facebook restoring Australian's access to news.

Implications for Big Tech and news organisations

Both Australia and Facebook have claimed victory in the dispute, with a Facebook representative saying the company will be able to decide if news appears on the platform — meaning it won't automatically have to negotiate with any news businesses. Changes were also made to the arbitration process.

Tech experts have pointed out that larger news companies may ultimately benefit from the changes, but smaller ones could be pushed to the side. Major publishers that have struck agreements with tech giants, such as News Corp, Nine Entertainment (ASX:NEC,OTC Pink:NNMTF), Seven West Media (ASX:SWM) and Guardian Australia, may be able to increase their market share while smaller independent players lose out.

A business that is in full support of the laws is Microsoft (NASDAQ:MSFT). During the conflict, President Brad Smith came out loudly in favour of Australia's law, and advised that his company is willing to step up with search engine Bing should Google and/or Facebook pull out of the Australian market.

"In Australia, Prime Minister Scott Morrison has pushed forward with legislation two years in the making to redress the competitive imbalance between the tech sector and an independent press. The ideas are straightforward. Dominant tech properties like Facebook and Google will need to invest in transparency, including by explaining how they display news content," he said in a blog post.

"The United States should not object to a creative Australian proposal that strengthens democracy by requiring tech companies to support a free press. It should copy it instead."

Global reach and tech investor impact

Six months down the road from Australia's landmark legislation, it's tough to say what the long-term impact may be.

That said, market watchers do believe the country is part of a new precedent of forcing Big Tech into paying for journalism — something giants Facebook and Google are not used to.

Countries looking to pursue similar legislation include Canada, where Facebook agreed in May to pay 14 publishers to link to their articles on its COVID-19 and climate science pages, as well as other unspecified use cases. Canada is pursuing other avenues too. Meanwhile, in France, Google said it will pay publishers for news content after the country took up new EU copyright laws that make digital platforms liable for infringements.

For investors, the takeaway is perhaps that while companies like Facebook and Google may seem too big too fail, they too can fall subject to new regulations that can change how they do business. As nations around the world look to take back control from these mega companies, it's important to be aware of possible effects on their bottom lines.

Don't forget to follow @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.

Queensland is the 16th most attractive jurisdiction in the world, sneaking in above BC and the Yukon in Canada, and just behind New Mexico in the US.

Queensland is one of the top three Australian jurisdictions for copper.

While it's well behind South Australia, a behemoth in the country for resources and production, Queensland hosts some 12 percent of all known Australian copper deposits, level with its southern neighbour New South Wales.

A premier mining jurisdiction globally, Queensland is ranked third out of all Australian jurisdictions for mining investment attractiveness, according to the Fraser Institute. Globally, it's ranked as the 16th most attractive jurisdiction, sneaking in above BC and the Yukon in Canada, and just behind New Mexico in the US.


The state is renowned for its mining prowess in Australia, and is known as one of the resource states, with a large chunk of its economic heft coming from the mining industry and its operations across the vast state.

Overall, mining accounts for 11.7 percent of Queensland's economy, with coal and liquefied natural gas being the primary focus of output. Together, coal, gas and mineral exports account for over 80 percent of Queensland's exports, according to the state government.

Having said that, copper plays a large role, and Queensland is home to the second biggest producer of copper in Australia in the form of Glencore's (LSE:GLEN,OTC Pink:GLCNF) Mount Isa mining complex in the northwest of the state. There, Glencore owns and operates the Enterprise and X41 mines.

Aside from Mount Isa, Glencore owns the nearby Ernest Henry copper mine. Combined, Glencore's Queensland operations produced 138,800 tonnes of copper in 2020 — accounting for a little over 10 percent of the company's global copper production. Glencore isn't listed on the ASX, but can be found on the LSE.

Besides the Mount Isa complex itself, there's also a handful of other operational mines in the northwestern portion of the state, although most of them are privately owned, such as the Capricorn copper project, which is a joint venture between EMR Capital and Lighthouse Minerals; it secured itself "prescribed project" status in 2017.

Other privately owned projects include Round Oak's Barbara project (in care and maintenance), Chinese-backed CuDECO's Rockland copper project (mothballed, CuDECO in liquidation) and Chinova's Osborne mine — which was originally set up by Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF). There's also the Balcooma mine, which Royal Gold (NASDAQ:RGLD) has copper royalties on, and the privately owned Mount Cuthbert mine.

Many of the mentioned projects ran into trouble in 2020, with the COVID-19 pandemic limiting company operations.

All in all, Queensland has 13 operational copper mines, but as can be seen many are in private hands, making investment opportunities somewhat slim. Aside from previously mentioned Glencore operations, there's Red River Resources (ASX:RVR,OTC Pink:RRRDF), which owns the Thalanga operations near Charters Towers. Red River acquired Thalanga in 2014, and has been working to develop the legacy site back into a viable investment.

From the beginning of production in 2017, the operations have a lifespan of some 10 years, according to Red River, with further development and exploration options on the table. In its most recent quarterly report, Thalanga reported output of 3,086 tonnes of copper concentrate.

The remainder of the options on the table for investors are exploration focused, such as Copper Mountain Mining (ASX:C6C,OTC Pink:CPPMF) with interests in the Eva copper project, which is — unsurprisingly — in the northwest of the state, near the town of Cloncurry. Eva is in the development phase, with a feasibility study completed in early 2020 envisaging a 15 year mine life with an annual expected output of 106 million pounds of copper equivalent.

There's also Global Energy Metals (TSXV:GEMC,OTCQB:GBLEF), which like Glencore isn't on the ASX, but has interests in the Millenium cobalt-copper-gold project and others near Mount Isa — all in the exploration stage.

Aside from that, Strategic Energy Resources (ASX:SER) acquired exploration licences from Newcrest Mining (ASX:NCM,OTC Pink:NCMGF) in May 2021 for licences around Mount Isa, and Zenith Minerals (ASX:ZNC) is exploring the Develin Creek copper-zinc project. Zenith recently divested from another copper project, Flannagans, in June 2021 by selling its interests to a private company for $450,000.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Scott Tibballs, currently hold no direct investment interest in any company mentioned in this article.

Top News