Newcrest Mining Ltd NCMGF

Primary Symbol: A.NCM

Metals & Mining Gold

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.

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Newcrest Mining Ltd

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Post by sailor8on Dec 15, 2020 1:15pm

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Post# 32109849

Rudi about his Snwofield deal...

...Dr. Allen Alper: Great! They're in good hands. Could you tell our readers/investors a little bit about your new acquisition, how important it is, your plans for it and how it strengthens Seabridge and the synergy it gives you?

Rudi Fronk: As a bit of background, we've been working diligently on our KSM project since 2006, which is now defined as the largest undeveloped gold-copper project in the world, as measured by our reserves and resources. We finished a pre-feasibility study on KSM in 2016 that captured 38.8 million ounces of gold and 10 billion pounds of copper, in proven and probable reserves. These reserves come from four deposits, which would be sequentially mined over a 50 year mine period, incorporating both open-pit and block cave mining.

Just east of KSM, sits the Snowfield deposit, owned by Pretivm Resources since 2010. They’ve concentrated their efforts over the past decade on their 100% owned Brucejack project, which is now a successful high-grade underground mine.
We've been studying Snowfield for years, thinking that it would make sense to one day incorporate Snowfield into the greater KSM. In fact, in 2011, we did a joint study with Pretivm to look at how Snowfield could improve KSM’s economics and came to the conclusion that yes, it could have a meaningful positive impact on KSM. However, it took us another 9 years to reach an agreement with Pretivm that satisfies each of our objectives. The reality is that Snowfield really has no logistical way forward, except as part of KSM, so this sale was inevitable.

In the deal we just announced, we get Snowfield at a great price and Pretivm gets US$100 million up front in cash that they will use to pay down debt, plus Pretivm retains a 1.5% royalty on future production from Snowfield. We also agreed to a future conditional payment of US$20 million, at the point when a bankable feasibility study is completed on KSM that incorporates reserves from Snowfield into KSM’s mine plan. US$15 million of that payment will be in the form of an advanced royalty, credited against future royalty payments.

Snowfield already hosts 25.9 million ounces of gold in the measured and indicated categories, plus an additional 9 million ounces of inferred gold resources. At an upfront purchase of US$100 million, we are buying existing gold resources at about US$3 per ounce. Previous studies by Pretivm show that Snowfield could be mined as an open pit, with waste to ore ratios of less than 1:1. In our joint studies with Pretivm in 2011, we conducted metallurgical tests showing that material from Snowfield could successfully be blended with ore from KSM...