Australia’s largest ASX-listed gold producer, Newcrest Mining Ltd [ASX:NCM], released an exploration update today for both Red Chris in British Columbia, Canada, and Havieron in Western Australia.
Red Chris is a joint venture with Imperial Metals Corporation, of which Newcrest acquired 70% of in August 2019.
Havieron is located in the Paterson Province, about 45km east from Newcrest’s Telfer. Newcrest is operating there under a farm-in agreement with Greatland Gold Plc. Newcrest has so far earned 40% interest in the project and has been carrying out exploration and drilling to develop the project.
So far since August 2019, they’ve completed 67,690m of drilling out, of which 17,874m has happened since the June 2020 quarter.
What did Newcrest announce today?
In Havieron they’ve extended mineralisation by expanding the northern Breccia. This area includes higher-grade sulphide zones.
At Red Chris there are two drilling programs taking place at the moment. One is at the East Zone Resource, which is looking to get geological, geotechnical and metallurgical data to support future studies for underground block cave mining. Then there’s the Brownfields Exploration program looking for additional zones of higher-grade mineralisation within the Red Chris porphyry corridor.
The announcement today concerns the East Zone, where the company confirmed the existence of multiple high-grade pods.
As Sandeep Biswas, Newcrest’s Managing Director and Chief Executive Office summarised it:
‘Havieron has continued to expand its mineralisation with further high grade intercepts including 1m @ 100 g/t gold. Drilling results at Red Chris have returned 166m @ 3.0 g/t gold and 1.5% copper, which is significantly higher than we would expect to find in porphyry systems.’
What could happen next?
At time of writing, the NCM share price are trading at $31.76, 1.7% higher.
Newcrest has flagged both Havieron and Red Chris as their growth projects in the short term with gold on a run.
Gold has increased over 28% since the beginning of the year…even with the recent drops in price. Newcrest has definitely benefitted from higher gold prices. In FY20 Newcrest got a 15% bump in profits even with lower production than the previous year from the Cadia mine in Australia and Lihir in Papua New Guinea.
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