Newmont adds 1.3 million oz to Carlin area gold reserves

“The 1.34 million oz increase in reserves during 1988 reflects the net gain in reserves after the consumption of approximately 1.33 million oz of gold contained in the ore that was processed in 1988,” Newmont added.

Last year’s exploration effort led to the classification of 2.67 million oz of gold as new reserves.

Geologic reserves now stand at 37.1 million oz, a 20% increase from the previous year, a large portion of which Newmont attributed to the Post deposit in the northern sector of its Carlin operations. The Post and Deep Post zones had combined geologic reserves of 8.6 million oz gold by year end, double that tabulated in March, 1988.

The Gold Quarry deposit, Newmont’s largest gold producer, has approximately 10.3 million oz of proven and probable reserves and the Post/Deep Post some 1.6 million oz. Exploration drilling in 1988 encountered a 1,600-ft extension of leach-grade gold mineralization near Newmont’s producing Rain deposit; that drill program returned mineralized intercepts ranging from 60-200 ft.

At Gold Quarry, a thick zone of mineralization was encountered averaging 0.185 oz gold per ton beginning at 1,130 ft, suggesting deep-seated potential below existing mine workings.

Record gold sales and earnings were reported by Newmont Gold for 1988 and during the last quarter. Gold sales were ahead 52% to 895,500 oz for the year and cash production costs jumped almost 15% to $230(US) per oz because more lower grade material was mined. Full year net income was $108.1 million(US) or $1.03 per share, a 26% rise from 1987. Fourth quarter income was $37.2 million or 35 cents per share compared to $23.9 million or 23 cents a year earlier.

Repairs were completed to Mill No 2 at Gold Quarry in early March and production losses were limited to 4,000 oz during the first quarter. A fire heavily damaged the primary crusher there in late December. Mill No 5, adjacent to Mill No 2, began operations in November and is expected to reach design capacity of 16,000 tons per day in the first quarter. Mill No 4 is progressing on schedule with a targeted completion date of mid-1989. This will add 4,500 tons of daily capacity, said Newmont.

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