Ushering in the new year with a bang,
Situated in north-central Nevada, Phoenix is now slated to begin production in 2006, a year earlier than anticipated. The mine also is expected to crank out 8% more gold than originally projected, with annual output to top 400,000-450,000 oz., plus 18-20 million lbs. copper.
Phoenix is being developed as an open-pit mine with crushing, grinding, flotation and carbon-in-leach circuits. Dor bars will be produced on site, with recovery rates of 80-84%, whereas copper will be concentrated for shipment elsewhere.
Capital costs are pegged at US$205 million, up slightly from previous projections. However, the operation’s life expectency is now 15 years instead of 13.
At steady-state production, total cash costs are expected to vary from US$200 to US$225 per oz., net of copper credits. The estimate is based on a gold price of US$340 per oz.
Newmont also is continuing with its exploration efforts, focusing on known resources. By the end of 2004, the company expects to have spent US$2.8 million.
At last report, Phoenix hosted 174.2 million tons of reserves grading 0.034 oz. per ton and 73.8 million tons of resources grading 0.026 oz. About 156.3 million tons of reserve material also carried 0.16% copper.
Reserves are based on a gold price of US$300 per oz. and a copper price of US95 per lb.
Newmont acquired the Phoenix project in 2001 through its takeover of Battle Mountain Gold. The merger also came with the Golden Giant and Holloway mines in northern Ontario, as well as an 88% interest in the Kori Kollo mine in Bolivia, a half-interest in the Vera-Nancy mine in Australia, and a 9% stake (since sold) in
Meanwhile, also in Nevada, Newmont has completed the Turquoise Ridge joint-venture agreement with
The major secured a 25% stake in Placer’s Turquoise Ridge and neighbouring Getchell deposits, and in return, has relinquished a 2% net smelter return royalty and agreed to process 2,000 tons of joint-venture ore per day at its nearby, wholly owned Twin Creeks mill.
As part of the deal, both companies will cover their pro rata share of mine-development costs, as well as environmental-closure expenses related to future joint-venture operations. For Placer, this translates into a US$40-million reduction in sustaining costs at Turquoise Ridge.
Production at Turquoise Ridge got under way in 2003 and is expected to reach steady-state output of 300,000 oz. annually by the end of the current year. Reserves are sufficient to support nine years of operation.
Life-of-mine cash costs are projected at US$190 per oz., or US$25 less than before the signing of the joint-venture agreement. Total cost are pegged at US$230 per oz., or US$35 less.
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