Name and Location
Golpu gold project, Papua New Guinea (PNG).

Client
Wafi-Golpu Joint Venture, comprising Harmony and Newcrest Mining, each with a 50% stake in the project.

The PNG government retains the right to buy its pro rata share of historical costs, up to a 30% equity interest in any mineral discovery at the project at any time before the start of mining.

If government decides to take up its full 30% interest, Newcrest and Harmony’s shares will both decrease to 35% each.

Project Description
The Golpu project has a reserve estimated to contain 5.5-million ounces of gold and 2.4-million tonnes of copper.

A Stage 1 feasibility study and a Stage 2 prefeasibility study (PFS) on the project have confirmed a robust investment case – one that supports proceeding with the project.

Both studies indicate that the project is amenable to staged development.

The Stage 1 feasibility study justifies the development of twin exploration declines, with two proposed block caves designed to extract about 50% of the contained copper and gold metal of the Golpu reserve.

The remaining reserve is expected to be extracted by a deeper block cave below Block Cave 2 (BC2), in Stage 2.

The common path mining and processing infrastructure of Stage 1 will be used in the development of Stage 2.

Net Present Value/Internal Rate of Return
The Stage 1 feasibility has an estimated net present value of $1.1-billion and an internal rate of return of about 16%.

Value
Stage 1 capital on a 100% basis is estimated at $2.6-billion.

Duration
Not stated.

Latest Developments
The project will progress into execution only when a special mining lease is granted, which will include all necessary permits, approvals and consents required from the PNG government, landowners and relevant stakeholders.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Newcrest Mining, tel +61 3 9522 5333, fax +61 3 9525 2996 or email corporateaffairs@newcrest.com.au.