Newcrest Mining to invest $2.8bn into Wafi-Golpu project, feasibility study shows

Newcrest Mining has released an updated Feasibility Study at one of its flagship mines, revealing that the company is prepared to invest close to $3 billion in the development stage.

The Feasibility Study, for the company’s advanced exploration “Wafi-Golpu” project which released this week, is an update on the previous study in place which had been completed in February 2016.

The report finds that the initial capital expenditure to commercial production will cost $2.8 billion, with a total Life of Mine (LoM) capital expenditure totalling close to $5.4bn.

This $5.4bn will be spread across its 28 years LoM.

Total expenditure has been reduced by $1bn from the previous 2016 study.

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Owned by the Wafi-Golpu joint venture, (Newcrest 50% and Harmony Gold 50%) the Wafi-Golpu project is located in Papua New Guinea and contains a number of world class deposits that were identified in 2008 following deep drilling.

The project has Mineral Resources estimated to contain 26 million ounces of gold, 8.8 million tonnes of copper and 48 million ounces of silver. This includes Ore Reserves for the Golpu deposit estimated to contain 11 million ounces of gold and 4.8 million tonnes of copper.

Annual production would be expected to peak in 2025 at 320,000 ounces of gold and 150,000 tonnes of copper.