Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) poured first gold from Long Canyon ore on Tuesday, 8 November, and expects to declare commercial production next week. The operation is located 100 miles from Newmont's existing Nevada complex and was completed two months ahead of schedule for just under $225 million - about $50 million or 18 percent below budget. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20161111005346/en/
First gold poured at Newmont's Long Canyon mine in Nevada (Photo: Business Wire)
Long Canyon is the most significant oxide gold discovery in Nevada in more than a decade, with characteristics similar to the Carlin Trend where Newmont has been operating for more than 50 years. During the first phase, the Company will produce between 100,000 and 150,000 ounces of gold annually over an eight-year mine life at some of the lowest costs in its portfolio. Costs applicable to sales are expected to average between $400 and $500 per ounce and all-in sustaining costs are expected to average between $500 and $600 per ounce. i "Our team built the first phase of Long Canyon safely, ahead of schedule and below budget. Taking a phased approach lowered initial development capital, helping to generate a 26 percent rate of return and reducing the payback period to just over four years," said Gary Goldberg, President and Chief Executive Officer. "The project was further optimized by using refurbished equipment instead of new, building a leach facility instead of a mill, and leveraging our established infrastructure, expertise and stakeholder relationships in Nevada. We appreciate the strong support we have received from neighboring communities and government leaders including Nevada Governor Brian Sandoval, who dedicated the site on 28 September. We also acknowledge and thank local Goshute Tribe and Wells Band members for their collaboration in guiding a culturally sensitive approach to developing our newest mine."