Name and Location
Lihir gold mine pit optimisation project, Papua New Guinea.

Client
Newcrest Mining.

Project Description
Newcrest Mining has approved the Lihir pit optimisation feasibility study, following a prefeasibility study (PFS) on a new plan that has proven to be viable.

Lihir comprises the Minifie, Lienetz and Kapit deposits.

A project is being undertaken to optimise the integrated life-of-mine plan for Lihir, including seepage barrier options, different mine sequencing and ore scheduling options, the most appropriate mining methods and civil engineering options.

The mine plan, which will be examined under the feasibility study, is based on three main stages:

• Stage 1 – mining the Minifie and Lienetz deposits using medium-grade stockpiles and prestrip work for successive cutbacks.
• Stage 2 – mining the Lienetz and Kapit deposits, medium- and low-grade stockpiles and prestrip for successive cutbacks.
• Stage 3 – mining Lienetz and Kapit, as well as low-grade stockpiles.

The average feed grade increases in this phase, owing to access to higher-grade Kapit ore.

Mining of the remaining reserves remains subject to ongoing studies.

The PFS has indicated that the lateral development mine plan could provide additional time to cool geothermally active areas to a more manageable level and construct the lower-cost cutoff wall, compared with a more costly cofferdam, and enable filling and compacting of the inner harbour.

Net Present Value/Internal Rate of Return
Not stated.

Value
The PFS estimates a forecast reduction in the estimated capital expenditure requirement for the seepage barrier to $125-million, compared with $1.29-billion in the 2013 PFS, which included a cofferdam.

Duration
Stage 1 will be in progress from 2017 to 2021, Stage 2 from 2022 to 2026 and

Stage 3 from 2027 to 2031.

Latest Developments
The lateral mining mine plan has started and will continue throughout the life-of-mine.

Subject to the outcomes of the feasibility study and obtaining all the necessary approvals, it is intended that, from 2025, Newcrest will access the Kapit ore within the NSCO.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Newcrest Mining investor enquiries, Chris Maitland, tel +61 3 9522 5717 or email Chris.Maitland@newcrest.com.au.