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Newcrest Mining Ltd NCMGF


Primary Symbol: A.NCM

Newcrest Mining Limited is an Australia-based mining company. The Company's principal activities are exploration, mine development, mine operations and the sale of gold and gold/copper concentrate. The Company owns and operates a portfolio of brownfields and greenfields exploration projects. The Company’s assets include Brucejack, Cadia, Havieron, Lihir, Red Chris, Telfer and Wafi-Golpu. The Brucejack asset is located approximately 950 kilometers (km) from Vancouver, Canada. The Cadia asset is located approximately 25 km from Orange, New South Wales (NSW). The Havieron asset is located approximately 45 km east of Telfer. The Lihir asset is located on the Niolam Island, approximately 900 km from Port Moresby, Papua New Guinea (PNG). The Red Chris asset is located approximately 1,700 km from Vancouver, Canada. The Telfer asset is located approximately 400 km from Port Hedland, WA. The Wafi-Golpu asset is located approximately 65 km from the city of Lae, PNG.


ASX:NCM - Post by User

Bullboard Posts
Comment by miningmanon Dec 17, 2018 1:31pm
208 Views
Post# 29124699

RE:RE:RE:sorry to disappoint the bears

RE:RE:RE:sorry to disappoint the bears VOKBLVR,  your  post here was a bit of an eye opener for me.  Untill last week ,  I understood that the $25 million upgrade was primarily to be spent within the mill building ,  upgrade flotation and filtering,  and other  relatively minor  upgrades that could be done without major disruptions to daily production.

However  over the weekend I started to suspect that it was indeed  increases to the mining and development  that  are to be the focus over the next six months or so.  You seem to have confirmed this.   I agree 100%   that AISC  costs will rise  not fall,  and  the necessary upgrades will be a huge challenge for the miners.

Development   rates of 700 metres per month  are probably stretching their abilities already ...   Im guessing  850 -900   metres will be required.  Joe  O's  speculation as to the feasibility of doubling the number of active stopes does not inspire confidence....... not saying it cant be done but the difficulties inrease exponentially.

In no particular order,  if three long hole drills are required to support 2700 tpd ,  then one more drill has to be necessary  to support 3500+  tpd.  To get 900 metres of development ,  at least one more truck and one more LHD  will be necessary.  Plus at least one more rock bolter.,  Round numbers   about $1 million  each.   But  this is trivial.   The  main mine ventilation system was designed  for 2700  TPD.   Legal minimum is 100 cfm  per diesel HP.  This system  is getting stetched big time and the Mines Inspection Dept tends to pay a lot of attention to this matter.


Then there is the paste fill distribution . This is a lot more complicated than air or watersystems.  The paste must be kept moving at quite a well defined speed.  Too  slow , and the material sets up in the pipes,  too fast and  the pipes wear out,  provided the electric motors dont burn out first.  I suspect the existing system will have to be duplicated to support 3800tpd.

We   know  right now there are  about 6 active stopes ,  plus three more being drilled off,  plus at least one being filled.  plus one or two more being prepped at any one time....... say 12 total,  as previosly  reported.  To  say that  6  increases to 10-12,  three goes to 4,  etc  etc ,  we now need 18  or more.

I just cant see it.    This is a new mine of limited size.  I have no doubt the crusher and conveyors can  handle 3800tpd,  but the support services that have to move along the main ramp rapidly become a major bottleneck.  Regardless ,  the operators will  continue to move towards their goal , and by this time next year we will see whether they have bitten off more than is possible within a rather small ,  tight environment
Bullboard Posts