Newmont Announces First Production at Boddington; Ramp-up To Full Production Continues
DENVER, Aug 13, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or "the Company") is pleased to announce that its Boddington mine in Western Australia successfully produced its first gold and copper concentrate, processing approximately 100,000 tonnes of ore during the first two weeks of August.
Richard O'Brien, President and Chief Executive Officer of Newmont said, "I am proud to have been at site to witness the production of our first concentrate, which is a testament to the dedication and focus of the talented Newmont employees and contractors who have worked so diligently to safely complete this project. As we continue to ramp-up toward commercial production, Boddington will become a cornerstone asset in our portfolio."
Key operating highlights for Boddington are expected to include:
-- First five year average annual gold production: ~1,000,000 ounces;
-- First five year average costs applicable to sales (net of by-product credits): $300 per ounce;
-- Proven and probable gold reserves: 20.1 million ounces; and
-- Estimated mine life in excess of 24 years.
Boddington is a large, open pit mine in Western Australia, located 130 kilometers southeast of Perth. The Company continues to expect total capital costs to be between $2.8 and $2.9 billion on a 100% basis.
Boddington will be Australia's largest gold producer upon completion. Newmont believes Boddington has significant exploration potential with gold reserves increasing from 16.6 million ounces in 2007 to 20.1 million ounces in 2008.
In June, Newmont completed the acquisition of the remaining 33.33% interest in the Boddington project from AngloGold Ashanti Australia Limited, a wholly-owned subsidiary of AngloGold Ashanti Ltd.
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 that are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements include, without limitation (i) estimates of gold and copper production and sales; (ii) estimates of costs applicable to sales; (iii) estimates of capital expenditures, project costs, and expenses; (iv) estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration results, exploration expenditures, and reserves; and (vi) expectations regarding the start-up time, design, mine life, production, costs applicable to sales and exploration potential of the Boddington mine. 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, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such 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 and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's 2008 Annual Report on Form 10-K, filed February 19, 2009, as amended by Annual Report on Form 10-K/A filed June 8, 2009, on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement" 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.
SOURCE Newmont Mining Corporation