Newcrest Mining delays Havieron study as it pushes deeper into US gold exploration
Newcrest Mining has pushed back the completion of feasibility studies at its Havieron gold project in WA, one of its most advanced development prospects.
Newcrest Mining has pushed back the completion of feasibility studies at its Havieron gold project in Western Australia, but the company says it has stepped up its exploration push in the US as it looks to find the next generation of gold mines.
Newcrest released its September quarter production report on Thursday, with the company’s gold output slumping 17 per cent on the back of planned maintenance work across most of its major mines, and average all-in sustaining costs up 23 per cent on the back of lower output.
The company’s mines produced 527,115 ounce of gold in the quarter, down from 637,032 ounces in the June period, with AISC of $US1098 an ounce, up from $US895.
Maintenance shutdowns at its flagship Cadia mine in NSW resulted in output falling 24 per cent to 142,000 ounces, and production at its Lihir operations fell 22 per cent to 165,000 ounces on the back of lower ore grades, maintenance work and water shortages that forced the company to slow processing through its mill.
Newcrest said it had also pushed back the delivery of a feasibility study at its emerging Havieron project, a joint venture with UK-listed Greatland Gold. The two companies had promised to deliver the study by the end of 2022, but Newcrest said it would now take additional time to “maximise value and de-risk the project”.
But while work at Havieron has been pushed back, Newcrest said it had finally resumed talks with the PNG government over the terms of the development of its giant Wafi-Golpu deposit in the country. The talks were temporarily halted this year during PNG’s national elections.
And the miner said it had extended its exploration push into the US, as it pushes deeper in the North American mining sector.
Newcrest already owns the Red Chris and Brucejack mines in Canada, and said on Thursday it had cut deals with exploration juniors in the US to acquire a stake in a suite of four projects in Nevada and a separate group of gold tenements in Oregon.
Newcrest shares closed up 56c at $17.93 on Thursday.