Newmont is continuing the legacy of successful operation in Nevada by building the first phase of Long Canyon.
Newmont celebrates 50 years of successful operation in Nevada this year, and yesterday announced plans to continue that legacy by building the first phase of Long Canyon – a new oxide mine with significant upside potential in an emerging gold district less than 100 miles from the company’s existing operations.
The project will leverage Newmont’s existing equipment, infrastructure and personnel and will be funded through free cash flow and available cash balances.
Project highlights include:
- High grade oxide ore processed by heap leaching
- Gold reserves of 1.2 million ounces at an average grade of 2.29 grams per tonne and highly prospective mineralization over a three-mile strike length
- Estimated annual gold production of between 100,000 and 150,000 ounces over an eight-year mine life for the first phase of operation
- Estimated average costs applicable to sales of between $400 and $500 per ounce and all-in sustaining costs of between $500 and $600 over the life of the mine, representing the lowest cost quartile for gold production
By taking a phased approach to developing Long Canyon, Newmont was able to lower development costs to between $250 million and $300 million. At current gold prices, the project is expected to generate around $100 million in EBITDA annually beginning in 2017 and an internal rate of return of 17 percent.
Once in operation, Long Canyon Phase 1 is expected to directly employ about 260 people, and the company will continue to engage and partner with local and regional stakeholders throughout construction, operations and closure. Federal and state permits necessary to proceed with development of the project were secured following a 36-month study and public comment period.
For more information about Newmont’s operations in Nevada, please visit our website.