Name of the Project
Lihir Phase 14A project.

Location
Niolam Island, Papua New Guinea.

Project Owner/s
Newcrest Mining.

Project Description
A prefeasibility study (PFS) on Lihir Phase 14A has confirmed the project’s pathway to become a more than one-million-ounce gold producer for at least ten years from the 2024 financial year.

In February 2021, Newcrest announced the findings of the Lihir mine optimisation study, which included the identification of a new, essentially brownfield opportunity, called Phase 14A. The Phase 14A study focused on extending the Phase 14 cutback and safely steepening the walls of the pit using civil engineering techniques to access existing indicated mineral resources, which would have otherwise been inaccessible if standard mining techniques had been used.

The Phase 14A cutback is expected to provide an additional mining front, allowing for further flexibility for fresh competent ore feed. The cutback is fully permitted and is within the existing mine lease.

The PFS envisages the mining of Phase 14A to take place between the 2022 and 2026 financial years. Ore mined from this phase will replace lower-grade ore feed to the processing plant, with an initial 13-million tonnes of high- and medium-grade ore from

Lower-grade material will be stockpiled and fed progressively over the remaining life-of-mine (LoM). This is expected to deliver an additional 965 000 oz of gold production over the LoM.

Lihir Phase 14A is expected to have a five-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a (real) 6% discount rate, of $284-million and an internal rate of return of  37%, with a payback of 2.6 years.

Capital Expenditure
Capital expenditure is estimated at $179-million.

Planned Start/End Date
Not stated.

Latest Developments
A feasibility study on the project is expected to be completed in the 2022 financial year.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Newcrest Mining, tel +61 3 9522 5333 or email investor.relations@newcrest.com.au.