DENVER, Feb. 24, 2011 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or "the Company") today announced it increased attributable gold reserves by 1.7 million ounces to 93.5 million ounces in 2010. Highlights include:
Attributable gold reserves of 93.5 million ounces, an increase of 2% from 2009;
Average grade of gold reserves unchanged from 2009 at 0.029 ounces per ton;
Record attributable copper reserves of 9.4 billion pounds, an increase of 3% from 2009; and
Reserves calculated at $950 per ounce and $2.50 per pound, respectively.
Attributable gold Measured and Indicated non-reserve mineralization ("NRM")(1) for 2010 was 1.3 billion tons at an average grade of 0.019 ounces per ton, up from 1.1 billion tons at an average grade of 0.020 ounces per ton for 2009. In addition, attributable gold Inferred NRM was 504 million tons at an average grade of 0.026 ounces per ton. Attributable copper Measured and Indicated NRM for 2010 was 849 million tons at an average grade of 0.15%, up from 796 million tons at a grade of 0.17% from 2009. In addition, attributable copper Inferred NRM was 390 million tons at an average grade of 0.15%. Gold and copper NRM were calculated using prices of $1,150 per ounce and $3.00 per pound, respectively.
North America was the largest contributor to higher gold reserves in 2010, with significant additions at Leeville-Turf, Twin Creeks, Phoenix and La Herradura. Other significant reserve additions were at Tanami in the Asia Pacific region and at Ahafo in the Africa region. North America also had the largest contribution to NRM, with significant additions at Greater Gold Quarry, Leeville-Turf, Buffalo Valley and Twin Creeks. Initial NRM was declared at the Merian project in Suriname. Other significant contributors to NRM included KCGM and Tanami in the Asia Pacific region.
For 2011, Newmont has budgeted $360 million (on a consolidated basis, including capitalized expenditures) for its exploration program, an increase of approximately 44% from 2010. The significant increase allows for accelerated exploration in all regions including at Leeville-Turf and Hope Bay in North America, Merian and Yanacocha Sulfides in South America, and Elang in Asia Pacific.
"We are proud of our recent exploration efforts delivering significant organic additions to our reserves," said Guy Lansdown, EVP of Discovery & Development. "These results have encouraged us to significantly increase our exploration spending in 2011. We believe our global portfolio of land positions offers considerable opportunity for continued reserve growth in our operating districts through the drill bit. Additionally, our generative exploration activities continue to allow us to look beyond current geographies into exciting new opportunities."
Near-Mine Exploration: 2010 Highlights and 2011 Planned Activity
Newmont's 2010 Near Mine Exploration program produced strong results from more than 100 drill rigs and one million meters of drilling. Results spanned the breadth of the resource pipeline, including replacement of depleted reserves from the drill bit. Newmont's resource pipeline is well-positioned for aggressive development in 2011 with a 44% budget increase, which will allow Newmont to aggressively develop known targets, determine the full extent of emerging targets, test the viability of new early stage projects and explore for new discoveries.
Highlights of the 2010 Near-Mine Exploration Program
Leeville-Turf: Reserves and NRM were added through an extensive surface and underground drilling campaign;
Subika Expansion: An underground exploration drift was initiated in 2010 and advanced to 2,635 meters, while open pit reserves increased by 1.1 Moz; and
Merian: Initial NRM of 1.8 Moz was added in Suriname. A mineral agreement is currently being negotiated.
Leeville-Turf, Nevada
At the Leeville-Turf underground mine, 59.5 km of combined surface and underground drilling contributed to expansion of reserves and NRM in 2010. Underground programs added 364 core holes with positive outcomes adding 1.8 Moz of attributable reserves, 0.6 Moz of NRM and expanded known mineralization in all directions. Following the discovery of ore-grade mineralization up to 1 km from existing workings in early 2010, $25 million was added to the exploration budget for 20 km of deep surface exploration drilling (as deep as 1,200 meters) up to 2.4 kilometers north of the Turf orebody. Drill intercepts located approximately 450 and 2,700 meters north of the Turf workings encountered 9 m of 14.6 g/t and 10 m of 14 g/t, respectively.
Greater Gold Quarry, Nevada
Expansion of the Greater Gold Quarry pit contributed to a 1.0 Moz attributable NRM addition in 2010 drawing from a 326 hole (59 km) drilling program and phased layback re-design. There is excellent potential to expand reserves of oxide and refractory ore at Gold Quarry as large-scale drilling programs will continue for at least the next 2-4 years.
Twin Creeks, Nevada
Drilling at Twin Creeks in 2010 included 74 holes (11.5 km). The program supported cutoff grade changes, pit re-designs and stockpile assignments that combined to add 1.4 Moz of attributable reserves and 0.44 Moz of attributable NRM.
Western Oxides, Peru
At Yanacocha in Peru, the Western District Oxides program at La Quinua Sur, El Tapado and Cerro Negro added 0.6 Moz of attributable reserves. Higher gold price, new metallurgical results and 89 holes drilled in 2008-2009 provided context for updated layback designs and reserve additions.
Merian, Suriname
Based on a total of 179 km drilled in 1,494 holes over the life of the project and positive 2010 prefeasibility studies, 1.8 Moz of attributable NRM was added at the Merian project joint venture. In parallel, the Company is working to finalize a Mineral Agreement with the government of Suriname.
Subika Expansion, Ghana
At the Subika Expansion project, drilling of 28 km in 41 holes aimed at expanding underground and open pit mineral extensions, added 1.1 Moz of attributable open pit reserves in 2010. The calculation of underground NRM from 91 holes with 25 km of underground core drilling in 2010 will be confirmed through model and stope design updates in mid-2011. Concurrently, the exploration drift initiated in 2010 advanced 2,635 meters, vent raises were completed and initial test stope production is anticipated in early 2011. Completion of an underground pre-feasibility study is anticipated in the second quarter of 2011.
Tanami, Australia
At the Tanami underground mine, the 2007 discovery of the Auron orebody and accelerated drill development has expanded 2010 attributable reserves by 0.7 Moz and attributable NRM by 1.1 Moz. Drill totals in 2010 added 51 km in 130 core holes. The Auron orebody sits stratigraphically beneath the Callie mine with potential to access ore from existing underground workings. Auron has potential to significantly expand mine life at Tanami. Drilling is designed to continue to prove continuity of this orebody and add resources in 2011.
Hope Bay, Nunavut (Canada)
At Hope Bay, underground drilling, drifting and preparation for test mining will continue in 2011 along with continued exploration of the belt for new discoveries. Overall drill productivity throughout Hope Bay will increase approximately 50% to an estimated 70-90 km in 2011. The program will focus on confirmation and expansion of known ore bodies plus exploration on the 90 currently identified district targets.
2011 New Near-Mine Activity
Higher metal prices combined with new drilling, metallurgical testing and study work in 2010 led to renewed evaluations on several projects with strong potential to advance in the resource portfolio. These include the Sleeping Giants (Mike, Fiberline, Copper Basin and Greater Phoenix) in Nevada, Yanacocha Verde in South America and Elang in Indonesia.
In 2010, a series of internal pre-scoping assessments were completed on the Sleeping Giants in Nevada to evaluate these assets in the context of current metal pricing, current global portfolio opportunities and approximately 20 km of new drilling information. Positive results on these efforts resulted in four of these very large assets advancing into scoping studies and further exploration as part of the early development pipeline.
Elang is a copper and gold porphyry deposit lying 60 km east of the Batu Hijau mine in Indonesia. Increased gold and copper prices enabled the Company to re-evaluate economic potential with positive preliminary results in an early-stage conceptual setting. Drill permits are approved for the deposit and a 6-10 km drill program is anticipated in 2011 to improve confidence in and possibly expand the consolidated 25 Moz gold and 16 Blb copper target (based on a 3rd party JORC-compliant resource estimate effective June 2010).
At the Yanacocha Verde project in Peru, exciting new metallurgical results may unlock gold and copper mineralization directly below the oxide deposits in the Yanacocha district. The exploration program is focused on quickly advancing to pilot-scale testing and resource conversion drilling.
Generative Exploration: 2010 Results and 2011 Planned Activity
In 2010, Newmont continued to position its Generative Exploration program in the top five percent most prospective geological domains worldwide, where the potential exists for district size opportunities. With a $50 million budget, the Generative Exploration program continued its success of finding and delivering district potential targets into the project pipeline as part of its commitment to organic growth.
Highlights include:
A new discovery with significant potential at Cassador(2) in Suriname, building on the previous discoveries at Merian and Saramacca and confirming the potential of the district;
Highly promising early stage scout drilling results in the West African program;
Generation of twenty quality targets with significant potential for the 2011 drilling program; and
Further consolidation of land positions in Peru, Alaska and Mali.
The new discovery at Cassador in Suriname in the Guiana Shield is a good example of Newmont's successful exploration ventures in discovering and building the next mineral district. Limited exploration scout drilling to date confirmed the target potential over a 1 km strike length and down to a depth of approximately 200 meters. In addition, there is evidence from scout drilling that the mineralized system extends at least 3 km along strike; it contains a number of blind shoots parallel to the main structure and it extends for at least another 100 meters at depth with the system getting stronger. There are also a number of structures parallel to the main structure with encouraging soil geochemical and trench results.
Based on the size and quality of the current portfolio of undrilled targets the Company has increased the Generative Exploration budget to approximately $60 million in 2011, representing a 20% increase relative to 2010. Highlights of the 2011 program include:
Further test the upside potential at Cassador in Suriname;
Follow up on early stage promising results in West Africa;
Drill test 15 to 20 quality targets totaling approximately 95,000 meters in PNG, Solomon Islands, Haiti, Peru and West Africa; and
Generate 15 to 20 quality new targets to sustain a strong worldwide portfolio.
Supplemental Information:
Attributable Proven, Probable, and Combined Gold Reserves(1)
December 31, 2010
December 31, 2009
Deposits/Districts by Reporting Unit
Proven Reserves
Probable Reserves
Proven and Probable Reserves
Metallurgical Recovery
Proven + Probable Reserves
Newmont Share
Tonnage
Grade
Gold
Tonnage
Grade
Gold
Tonnage
Grade
Gold
Tonnage
Grade
Gold
(000 tons)
(oz/ton)
(000 ozs)
(000 tons)
(oz/ton)
(000 ozs)
(000 tons)
(oz/ton)
(000 ozs)
(000 tons)
(oz/ton)
(000 ozs)
North America
Carlin Open Pits, Nevada(2)
100%
36,600
0.064
2,340
226,900
0.040
8,980
263,500
0.043
11,320
75%
259,300
0.044
11,400
Carlin Underground, Nevada
100%
5,800
0.272
1,570
8,800
0.330
2,910
14,600
0.307
4,480
88%
9,700
0.311
2,990
Midas, Nevada(3)
100%
200
0.394
100
300
0.264
90
500
0.319
190
95%
700
0.425
300
Phoenix, Nevada
100%
0
0
329,800
0.018
6,090
329,800
0.018
6,090
73%
285,000
0.020
5,670
Twin Creeks, Nevada
100%
11,400
0.097
1,110
46,400
0.071
3,280
57,800
0.076
4,390
79%
50,200
0.077
3,850
Turquoise Ridge, Nevada(4)
25%
1,400
0.458
640
1,700
0.456
770
3,100
0.457
1,410
92%
2,600
0.507
1,360
Nevada In-Process(5)
100%
28,500
0.022
610
0
0
28,500
0.022
610
62%
33,800
0.021
730
Nevada Stockpiles(6)
100%
33,900
0.077
2,630
2,800
0.028
80
36,700
0.074
2,710
78%
29,500
0.075
2,210
Total Nevada
117,800
0.076
9,000
616,700
0.036
22,200
734,500
0.042
31,200
78%
670,800
0.042
28,510
La Herradura, Mexico(7)
44%
44,600
0.023
1,010
61,100
0.021
1,280
105,700
0.022
2,290
66%
93,200
0.019
1,780
TOTAL NORTH AMERICA
162,400
0.062
10,010
677,800
0.035
23,480
840,200
0.040
33,490
77%
764,000
0.040
30,290
SOUTH AMERICA
Conga, Peru(8)
51.35%
0
0
317,200
0.019
6,080
317,200
0.019
6,080
79%
317,200
0.019
6,080
Yanacocha Open Pits(9)
51.35%
23,500
0.028
650
118,800
0.032
3,790
142,300
0.031
4,440
70%
131,500
0.036
4,750
Yanacocha In-Process(5)
51.35%
21,300
0.025
540
0
0
21,300
0.025
540
74%
26,400
0.025
660
Total Yanacocha, Peru
44,800
0.027
1,190
118,800
0.032
3,790
163,600
0.030
4,980
71%
157,900
0.034
5,410
La Zanja, Peru(10)
46.94%
10,100
0.018
180
10,500
0.016
160
20,600
0.017
340
66%
18,800
0.018
340
TOTAL SOUTH AMERICA
54,900
0.025
1,370
446,500
0.022
10,030
501,400
0.023
11,400
75%
493,900
0.024
11,830
Asia Pacific
Batu Hijau Open Pit(11)
48.50%
168,800
0.014
2,420
124,600
0.006
700
293,400
0.011
3,120
78%
368,800
0.010
3,780
Batu Hijau Stockpiles(6)(11)
48.50%
0
0
170,700
0.004
610
170,700
0.004
610
69%
193,800
0.004
720
Total Batu Hijau, Indonesia
48.50%
168,800
0.014
2,420
295,300
0.004
1,310
464,100
0.008
3,730
76%
562,600
0.008
4,500
Boddington, Western Australia
100%
181,900
0.021
3,760
885,900
0.019
16,540
1,067,800
0.019
20,300
82%
966,400
0.022
20,960
Duketon, Western Australia(12)
16.2%
1,800
0.056
100
4,500
0.055
250
6,300
0.055
350
94%
0
0
Jundee, Western Australia
100%
3,100
0.051
160
1,600
0.373
600
4,700
0.160
760
91%
7,400
0.159
1,170
Kalgoorlie Open Pit and Underground
50%
15,000
0.061
910
40,700
0.059
2,390
55,700
0.059
3,300
85%
60,800
0.062
3,750
Kalgoorlie Stockpiles(6)
50%
15,100
0.031
470
0
0
15,100
0.031
470
78%
14,300
0.031
440
Total Kalgoorlie, Western Australia
50%
30,100
0.046
1,380
40,700
0.059
2,390
70,800
0.053
3,770
84%
75,100
0.056
4,190
Tanami, Northern Territories
100%
6,400
0.151
970
7,900
0.134
1,070
14,300
0.142
2,040
95%
13,100
0.125
1,640
Waihi, New Zealand
100%
0
0
4,200
0.110
460
4,200
0.110
460
89%
4,000
0.101
410
TOTAL ASIA PACIFIC
392,100
0.022
8,790
1,240,100
0.018
22,620
1,632,200
0.019
31,410
83%
1,628,600
0.020
32,870
Africa
Ahafo Open Pits(13)
100%
0
0
148,300
0.064
9,540
148,300
0.064
9,540
87%
128,700
0.068
8,810
Ahafo Stockpiles(6)
100%
14,100
0.033
460
0
0
14,100
0.033
460
86%
9,300
0.034
320
Total Ahafo, Ghana
100%
14,100
0.033
460
148,300
0.064
9,540
162,400
0.062
10,000
87%
138,000
0.066
9,130
Akyem, Ghana(14)
100%
0
0
137,900
0.052
7,200
137,900
0.052
7,200
88%
147,200
0.052
7,660
TOTAL AFRICA
14,100
0.033
460
286,200
0.059
16,740
300,300
0.057
17,200
88%
285,200
0.059
16,790
TOTAL NEWMONT WORLDWIDE
623,500
0.033
20,630
2,650,600
0.027
72,870
3,274,100
0.029
93,500
81%
3,171,700
0.029
91,780
(1)
Reserves are calculated at a gold price of US$950, A$1100, or NZ$1,350 per ounce unless otherwise noted. 2009 reserves were calculated at a gold price of US$800, A$1000, or NZ$1,200 per ounce unless otherwise noted. Tonnage amounts have been rounded to the nearest 100,000 unless they are less than 50,000, and gold ounces have been rounded to the nearest 10,000.
(2)
Includes undeveloped reserves at the Emigrant deposits for combined total undeveloped reserves of 1.2 million ounces.
(3)
Also contains reserves of 2.8 million ounces of silver with a metallurgical recovery of 88%.
(4)
Reserve estimates provided by Barrick, the operator of the Turquoise Ridge Joint Venture.
(5)
In-process material is the material on leach pads at the end of each year from which gold remains to be recovered. In-process material reserves are reported separately where tonnage or contained ounces are greater than 5% of the total site-reported reserves and contained ounces are greater than 100,000.
(6)
Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material in the mills. Stockpiles increase or decrease depending on current mine plans. Stockpile reserves are reported separately where tonnage or contained ounces are greater than 5% of the total site-reported reserves and contained ounces are greater than 100,000.
(7)
Includes undeveloped reserves at Noche Buena totaling 0.3 million attributable ounces.
(8)
Deposit is currently undeveloped.
(9)
Reserves include the currently undeveloped deposit at La Quinua Sur, which contains reserves of 0.8 million attributable ounces.
(10)
Reserves estimates were provided by Buenaventura, the operator of the La Zanja project.
(11)
Percentage reflects Newmont’s economic interest at December 31, 2010. In April 2010 our economic interest decreased from 52.44% to 48.50% as a result of the divestiture required under the Contract of Work
(12)
Reserve estimates provided by Regis Resources Ltd, in which Newmont holds a 16.2% interest.
(13)
Includes undeveloped reserves at Yamfo South, Yamfo Central, Techire West, Subenso South, Subenso North, Yamfo Northeast, and Susuan totaling 3.2 million ounces.
(14)
Deposit is undeveloped.
Attributable Gold Mineralized Material Not in Reserves(1)(2)
December 31, 2010
Deposits/Districts
Measured Material
Indicated Material
Measured + Indicated Material
Inferred Material
Newmont Share
Tonnage
Grade
Tonnage
Grade
Tonnage
Grade
Tonnage
Grade
(000 tons)
(oz/ton)
(000 tons)
(oz/ton)
(000 tons)
(oz/ton)
(000 tons)
(oz/ton)
North America
Buffalo Valley, Nevada
80%
0
18,300
0.020
18,300
0.020
900
0.017
Carlin Trend Open Pit, Nevada
100%
12,900
0.024
78,900
0.019
91,800
0.020
22,100
0.024
Carlin Trend Underground, Nevada
100%
3,700
0.283
500
0.330
4,200
0.29
1,300
0.345
Lone Tree Complex, Nevada
100%
0
4,200
0.022
4,200
0.022
0
Midas, Nevada
100%
20
0.152
100
0.172
120
0.167
0
0.214
Phoenix, Nevada
100%
0
0.000
150,900
0.013
150,900
0.013
54,300
0.015
Twin Creeks, Nevada
100%
3,300
0.060
34,600
0.037
37,900
0.039
12,000
0.019
Turquoise Ridge(3), Nevada
25%
300
0.422
400
0.392
700
0.406
1,200
0.494
Nevada Stockpiles(4), Nevada
100%
1,100
0.077
1,100
0.077
2,300
0.043
Total Nevada
21,320
0.083
287,900
0.019
309,220
0.024
94,100
0.029
La Herradura, Mexico
44%
8,500
0.018
27,600
0.007
36,100
0.010
20,900
0.014
TOTAL NORTH AMERICA
29,820
0.065
315,500
0.018
345,320
0.022
115,000
0.026
SOUTH AMERICA
Conga, Peru
51.35%
0
58,000
0.013
58,000
0.013
79,000
0.011
Yanacocha, Peru
51.35%
4,300
0.012
120,400
0.021
124,700
0.021
23,000
0.018
Merian, Suriname
50%
0
28,900
0.039
28,900
0.039
18,400
0.036
La Zanja(5), Peru
46.94%
200
200
0.000
400
0.000
3,800
0.014
TOTAL SOUTH AMERICA
4,500
0.012
207,500
0.016
212,000
0.016
124,200
0.011
ASIA PACIFIC
Batu Hijau(6), Indonesia
48.50%
23,800
0.017
130,500
0.007
154,300
0.008
47,700
0.002
Boddington, Western Australia
100%
39,300
0.014
420,500
0.013
459,800
0.013
160,200
0.014
Jundee, Western Australia
100%
0
1,000
0.178
1,000
0.178
3,600
0.077
Kalgoorlie, Western Australia
50%
1,900
0.064
45,000
0.023
46,862
0.025
1,100
0.146
Tanami, Northern Territory
100%
0
900
0.067
900
0.067
10,300
0.170
Waihi, New Zealand
100%
0
0
0
300
0.140
TOTAL ASIA PACIFIC
65,000
0.016
597,900
0.013
662,862
0.013
223,200
0.021
AFRICA
Ahafo, Ghana
100%
0
81,000
0.042
81,000
0.042
39,900
0.084
Akyem, Ghana
100%
0
14,900
0.019
14,900
0.019
1,900
0.032
TOTAL AFRICA
0
95,900
0.038
95,900
0.038
41,800
0.082
TOTAL NEWMONT WORLDWIDE
99,320
0.031
1,216,800
0.018
1,316,082
0.019
504,200
0.026
(1)
Mineralized material is reported exclusive of reserves.
(2)
Mineralized Material calculated at a gold price of US$950, A$1,200, or NZ$1,400 per ounce unless otherwise noted. 2009 Mineralized material was calculated at a gold price of US$850, A$1,000, or NZ$1,175 per ounce. Tonnage amounts have been rounded to the nearest 100,000.
(3)
Mineralized material estimates were provided by Barrick, the operator of the Turquoise Ridge Joint Venture.
(4)
Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material in the mills. Stockpiles increase or decrease depending on current mine plans.
(5)
Mineralized material estimates were provided by Buenaventura, the operator of the La Zanja Project.
(6)
Percentage reflects Newmont's economic interest at December 31, 2009. In November and December 2009 our economic interest increased from 45% to 52.44% as a result of transactions with a noncontrolling partner, partially offset by divestiture required under the Contract of Work.
Attributable Copper Reserves(1)
December 31, 2010
December 31, 2009
Proven Reserves
Probable Reserves
Proven + Probable Reserves
Proven + Probable Reserve
Deposits/Districts
Newmont Share
Tonnage
Grade
Copper
Tonnage
Grade
Copper
Tonnage
Grade
Copper
Metallurgical
Tonnage
Grade
Copper
(000 tons)
(Cu%)
(million pounds)
(000 tons)
(Cu%)
(million pounds)
(000 tons)
(Cu%)
(million pounds)
Recovery
(000 tons)
(Cu%)
(million pounds)
North America
Phoenix, Nevada
100%
0
0
332,600
0.15%
1,030
332,600
0.15%
1,030
61%
287,500
0.16%
900
Phoenix Copper Leach, Nevada (2)
100%
0
0
132,900
0.23%
610
132,900
0.23%
610
53%
0
0
TOTAL NORTH AMERICA
0
0
465,500
0.18%
1,640
465,500
0.18%
1,640
58%
287,500
0.16%
900
South America
Conga, Peru(3)
51.35%
0
0
317,200
0.26%
1,660
317,200
0.26%
1,660
85%
317,200
0.26%
1,660
TOTAL SOUTH AMERICA
0
0
317,200
0.26%
1,660
317,200
0.26%
1,660
85%
317,200
0.26%
1,660
Asia Pacific
Batu Hijau(3)
48.50%
168,800
0.50%
1,700
124,600
0.34%
860
293,400
0.44%
2,560
80%
368,800
0.42%
3,130
Batu Hijau, Stockpiles(3)(4)
48.50%
0
0
170,700
0.35%
1,200
170,700
0.35%
1,200
66%
193,800
0.36%
1,390
Batu Hijau, Indonesia
48.50%
168,800
0.50%
1,700
295,300
0.35%
2,060
464,100
0.40%
3,760
76%
562,600
0.40%
4,520
Boddington, Western Australia (5)
100.00%
181,900
0.10%
380
885,900
0.11%
1,980
1,067,800
0.11%
2,360
84%
966,400
0.11%
2,040
TOTAL ASIA PACIFIC
350,700
0.30%
2,080
1,181,200
0.17%
4,040
1,531,900
0.20%
6,120
79%
1,529,000
0.21%
6,560
TOTAL NEWMONT WORLDWIDE
350,700
0.30%
2,080
1,963,900
0.19%
7,340
2,314,600
0.20%
9,420
76%
2,133,700
0.21%
9,120
(1)
Reserves are calculated at US$2.50 or A$2.95 per pound copper price unless otherwise noted. 2009 reserves were calculated at US$2.00 or A$2.40 per pound copper price unless otherwise noted. Tonnage amounts have been rounded to the nearest 100,000 and pounds have been rounded to the nearest 10 million.
(2)
Project is undeveloped. Leach reserves are within Phoenix Reserve Pit.
(3)
Deposit is undeveloped. Reserve estimates will be recalculated in 2011 upon completion of Feasibility Study Update.
(4)
Percentage reflects Newmont's economic interest at December 31, 2010. In April 2010 our economic interest decreased from 52.44% to 48.50% as a result of the divestiture required under the Contract of Work.
(5)
Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material. Stockpiles increase or decrease depending on current mine plans. Stockpiles are reported separately where tonnage or contained metal are greater than 5% of the total site reported reserves.
(6)
Newmont acquired the remaining 33.33% of Boddington from AngloGold in June 2009.
Attributable Copper Mineralized Material Not in Reserves(1)(2)
December 31, 2010
Deposits/Districts
Measured Material
Indicated Material
Measured + Indicated Material
Inferred Material
Newmont Share
Tonnage
Grade
Tonnage
Grade
Tonnage
Grade
Tonnage
Grade
(000 tons)
(Cu%)
(000 tons)
(Cu%)
(000 tons)
(Cu%)
(000 tons)
(Cu%)
NORTH AMERICA
Phoenix, Nevada
100%
0
0.00%
150,900
0.13%
150,900
0.13%
56,600
0.12%
Phoenix Copper Leach, Nevada
100%
0
0.00%
25,900
0.19%
25,900
0.19%
45,900
0.22%
TOTAL NORTH AMERICA
176,800
0.14%
176,800
0.14%
102,500
0.17%
SOUTH AMERICA
Conga, Peru
51.35%
0
0.00%
58,000
0.18%
58,000
0.18%
79,000
0.17%
TOTAL SOUTH AMERICA
58,000
0.18%
58,000
0.18%
79,000
0.17%
ASIA PACIFIC
Batu Hijau, Indonesia(3)
48.50%
23,800
0.42%
130,500
0.32%
154,300
0.34%
47,700
0.26%
Boddington, Western Australia
100.00%
39,300
0.07%
420,500
0.09%
459,800
0.08%
160,200
0.11%
TOTAL ASIA PACIFIC
63,100
0.21%
551,000
0.14%
614,100
0.15%
207,900
0.14%
TOTAL NEWMONT WORLDWIDE
63,100
0.21%
785,800
0.14%
848,900
0.15%
389,400
0.15%
(1)
Mineralized material is reported exclusive of reserves.
(2)
Mineralized material calculated at a copper price of US$3.00 or A$3.50 per pound unless otherwise noted. 2009 mineralized material was calculated at a copper price of US$2.50 or A$3.00 per pound. Tonnage amounts have been rounded to the nearest 100,000.
(3)
Percentage reflects Newmont's economic interest at December 31, 2010. In April 2010 our economic interest decreased from 52.44% to 48.50% as a result of the divestiture required under the Contract of Work.
To view more detailed financial disclosure, including regional mine statistics, Results of Consolidated Operations, Liquidity and Capital Resources, Management's Discussion & Analysis, relevant Risk Factors, and a complete outline of the 2010 Operating and Financial guidance by region, please see the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 24, 2011, available at www.newmont.com.
The Company's fourth quarter and 2010 earnings and exploration update conference call and web cast presentation will be held on Thursday, February 24, 2011 beginning at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time).
To participate:
Dial-In Number
888.566.1822
Intl Dial-In Number
312.470.7119
Leader
John Seaberg
Passcode
Newmont
Replay Number
800.879.5507
Intl Replay Number
203.369.3989
Replay Passcode
2011
The conference call also will be simultaneously carried on our web site at www.newmont.com under Investor Relations/Presentations and will be archived there for a limited time.
Cautionary Statement:
Cautionary statement regarding forward-looking statements: This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended which are intended to be covered by the safe harbor created by such sections and other applicable laws. Forward-looking statements in this news release include, without limitation: (i) 2011 budget estimates, including estimates of future expenditures; (ii) statements regarding future exploration potential, results, Reserves and non-reserve mineralization (NRM); (iii) expectations regarding the ability to enter into future mineral agreements; and (iv) expectations regarding future drilling and testing. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's early stage and other projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current Mineral Reserve and NRM estimates. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by the "forward-looking statements". Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation. For additional information regarding key risk factors and assumptions, please see Newmont's most recent Annual Report on Form 10-K and other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.
Defined terms and statement regarding Reserves and NRM: Ian Douglas, Newmont's Group Executive of Reserves and Geostatistics, is the qualified person responsible for the preparation of the Reserve and NRM estimates in this presentation. The Reserves disclosed in this presentation have been prepared in compliance with Industry Guide 7 published by the SEC. As used in this news release, the term "Reserve" means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term "economically," as used in this definition, means that profitable extraction or production has been established or analytically demonstrated in a full feasibility study to be viable and justifiable under reasonable investment and market assumptions. The term "legally," as used in this definition, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Newmont must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Newmont's current mine plans. Reserves in this news release may be aggregated from the Proven and Probable classes. As used in this news release, the term "non-reserve mineralization" or "NRM" refers to Measured, Indicated and/or Inferred materials, which are exclusive of reserves. Newmont has determined that such NRM would be substantively the same as those prepared using the Guidelines established by the Society of Mining, Metallurgy and Exploration and defined as Resources. Estimates of NRM are subject to further exploration and development, are subject to additional risks, and no assurance can be given that they will eventually convert to future Mineral Reserves of the company. In addition, our current or future reserves and exploration and development projects may not result in new mineral producing operations. Even if significant mineralization is discovered and converted to reserves, it will likely take many years from the initial phases of exploration to development and ultimately to production, during which time the economic feasibility of production may change. Additionally, references to "attributable ounces," "attributable pounds" and "attributable mineralization" in this news release are intended to mean that portion of gold or copper produced, sold or included in Proven and Probable Reserves or NRM that is attributable to our ownership or economic interest.
(1) For detailed information on the Company's year-end attributable Proven and Probable Reserves and Measured, Indicated and Inferred NRM, please refer to the Supplemental Information below and the cautionary statement at the end of this release.
(2) NEM currently 50% owner with option to earn into 80% by completing a Feasibility Study
SOURCE Newmont Mining Corporation
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