Found this article on mining news, looking like Newmont keen to expand resource
Newmont eyes further lift at Tanami
NEWMONT Mining will make a final investment decision on a stage two expansion of the Tanami gold mine in the Northern Territory by the second half of next year.
Tanami was Australia's fifth-largest gold producer in 2017, delivering 419,000 ounces of gold, just as Newmont completed the US$125 million Tanami Expansion 1 to add 80,000oz per year between 2018 and 2020.
Newmont has previously flagged a potential further expansion, but provided more details on an investor call overnight.
"We remain excited about the long-term growth opportunities at Tanami and the potential upside from a second expansion," Tanami chief operating officer Tom Palmer said.
"Tanami is a highly productive mine capable of delivering stable production of approximately 500,000 ounces per year well into the future."
Palmer said Tanami Expansion 2 included a shaft from 1600-2600m below surface and supporting infrastructure, along with plant improvements to allow throughput of 3.2 million tonnes per annum from 2.6Mtpa.
The project moved to a definitive feasibility study in October.
"The project will be a staged investment in the range of $650 million to $750 million over a three-year construction period," Palmer said.
"Tanami Expansion 2 has the potential to extend mine life to 2040, reduce operating costs by approximately 10% and at an incremental 100,000 ounces per year from 2023 through 2027."
The expansion would make Tanami Australia's fourth-largest producer behind Newmont's Boddington, Newmont and Barrick Gold's Super Pit, and Newcrest Mining's Cadia.
Newmont's Australian operations are set to produce 1.47 million ounces of gold in 2019 at all-in sustaining costs of $945 an ounce. Guidance for this year is 1.42-1.56Moz at $840-900/oz.
"As the largest gold producer in Australia, Newmont maintains a distinct competitive advantage with our highly capable teams focused on improving profitability," Palmer said.
Tanami should produce close to 500,000oz as the Tanami power project is commissioned in the first quarter.
Palmer said an optimised mill maintenance strategy had improved the cost structure at Boddington, but stripping would continue through 2020 as the S05A and S09 laybacks in the South Pit are completed.
"We will reach higher grades again in 2021," he said.
Remediation will continue at the Super Pit after wall slips in May, during which stockpiled ore will continue to be drawn down.
The company recently approved the Morrison starter pit, a smaller version of the planned Morrison layback.
"First production from Morrison starter is expected in the first quarter of 2019 with total production of 150,000oz to 200,000oz from 2019 to 2021," Palmer said.
"We plan to recover the remaining Morrison resource as part of KCGM's broader Golden Mile growth study, which focuses on future potential in the open pit, underground and processing plant."
Palmer said Australia continued to deliver improvements in line with Newmont's Full Potential program, and was leading the way in digital initiatives.
"In Perth, I recently had the opportunity to see our new processing support hub, which we've implemented to sustain benefits from advanced process control initiative," he said.
"By centralising supporting process operations, the team in Perth can analyse data, make recommendations and actively collaborate across sites to deliver best-in-class performance."
Newmont has partnered with Caterpillar and Minetec at Tanami to pilot an underground dispatch system, and has started a feasibility study into converting Boddington's 39-truck fleet to autonomous.
Newmont flagged group 2019 production of 5.2Moz, around the midpoint of its previous estimate.
The company expected production to fall to 4.9Moz in 2020 and in the longer-term, to stabilise at between 4.4-4.9Moz per annum through 2023, excluding development projects which were yet to be approved.
Group all-in sustaining costs are expected to be $935/oz in 2019. AISC is expected to fall to $975/oz in 2020 and between $875-$975 in the longer-term through 2023.
Newmont guided for total consolidated capital guidance for 2019 of $1.07 billion and $730 million in 2020. Capital is expected to range between $500-$600 million through 2023.
Newmont remains the largest gold producer by market capitalisation at $17.4 billion, but is expected to be eclipsed once the $6.5 billion Barrick Gold-Randgold Resources merger closes early in 2019.
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