A global exploration effort has enabled Newmont Gold (NGN-N) to boost its gold reserves for the sixth consecutive year.
The company ended 1996 with 37.1 million equity ounces of proven and probable reserves — a 29% increase over reserves reported at the end of 1995.
Chairman Ronald Cambre notes that recent additions to the company’s reserve base represent “low-cost ounces.” As a result, the company is projecting a 10% drop in its total cash cost this year to about US$200 per oz.
Newmont added reserves, net of depletion, at its mines in Carlin, Nevada and Yanacocha, Peru. Reserves were also reported for the first time from the Batu Hijau project in Indonesia and La Herradura in Mexico.
Batu Hijau gave the largest boost to 1996 reserves, with the conversion of 12.1 million oz. (5.4 million equity ounces) from the previously defined resource category. Also placed in reserves at this project were 10.6 billion lb. (4.8 billion equity pounds) of copper. Production at the operation is expected to start in late 1999.
An additional 1.7 million oz. gold (740,000 equity ounces) were converted from resources to reserves at La Herradura in northern Mexico. The company has a 44% interest in this project, which is scheduled to start production in 1998.
Be the first to comment on "Newmont reports boost in reserves"