PERTH (miningweekly.com) – Gold miner Newcrest Mining has pushed back the delivery of a feasibility study (FS) into the Havieron project from the December quarter of this year to allow for time to "maximise value and de-risk" the project.

A prefeasibility study (PFS) into the Stage 1 operation was released earlier this month, and estimated a capital expenditure of A$529-million to deliver the project, which has the capacity to produce 160 000 oz/y of gold and 6 900 t/y of copper over an initial nine-year mine life.

The study was based on using the existing Telfer processing infrastructure, which is located 45 km away.

The PFS was also based on an ore reserve of 14-million tonnes, and did not consider a 37-million-tonne inferred mineral resource. The PFS estimated a pay-back period of four years from commercial production, a net present value of A$304-million and an internal rate of return of 16%.

“It is an incredible achievement that, within two years of starting the Havieron drilling programme, we have been able to deliver this significant project milestone and demonstrate financial returns that comfortably exceed our hurdle rate, even in this first stage,” Newcrest MD and CEO Sandeep Biswas said earlier this month.

“The PFS underpins an initial ore reserve estimate for the upper section of the South East Crescent zone which increases our confidence in achieving first production in 2024 and triggers our entitlement to a cumulative 70% joint venture (JV) interest.

“We believe that this is just the first stage of a bright and profitable future for Havieron. Our extensive drilling programme continues to assess the extent of the South East Crescent zone and further test the Northern and Eastern Breccia for mineralisation which may be suitable for bulk mining methods. We have recently delivered several new and exciting high-grade intercepts which extend the high-grade mineralisation beneath the initial mineral resource estimate and highlights the potential for further resource growth.”

“Notably, the PFS assumes that Havieron is the sole ore feed for the Telfer plant and does not assume any potential upside from the extension of Telfer’s mine life beyond 2024. We continue to assess the potential for further openpit and underground opportunities at Telfer to extend its life and supplement production from Havieron in 2024 and beyond,” said Biswas.

While the FS was initially due for completion in the December quarter of this year, Newcrest this week told shareholders the study deadline would be extended beyond the December quarter to allow further time to maximise value and derisk the project. A further update will be provided as value-enhancing options are assessed.

The company also said that the growth drilling programme has continued to identify and expand high-grade extensions to the mineralisation in the Eastern Breccia, South East Crescent zone and Northern Breccia with potential for further incremental resource growth. Exploration activities are also underway at Newcrest’s other joint ventures in the region, including the Wilki JV and Juri JV.