Exploration Strategy

Exploration Strategy
Colin Moorhead - EGM Minerals
Contents
•
•
•
Track Record
Newcrest’s Advantage
Exploration Strategy
- Province Approach
- Property Generation
- Exploration Portfolio
•
•
2
Resources & Reserves
Conclusion
Exploration & Growth History
Significant growth success
driven by:
-
•
Greenfields exploration
consisted of:
-
•
autonomous regional “hunting
parties”
a diverse portfolio of low level
grassroots exploration plays
Future growth will build on
Newcrest strengths
-
3
organic brownfields growth
successful application of leading
technologies
Discovery capability
Fast cycle times
Low cost producer/finder
Newcrest Gold Resources History
80
70
60
Gold Resource (Moz)
•
HarmonyJV
Marsden
Cracow
Gosowong
CVO
Boddington
NewCel
Telfer
50
40
30
20
10
1997
1998
1999
2000
2001
2002
2003
Year
2004
2005
2006
2007
2008
Newcrest Advantage
1. Successful growth record
2. Low cost of discovery
3. Fast cycle time to
production
4. Relatively “easy”
replenishment
5. Rich growth portfolio
6. Leverage off Newcrest
strengths
4
Mode of Growth
•
Until 2008, Newcrest has grown
entirely organically
•
Every mine we operate was
discovered and developed by
Newcrest
•
Newcrest has grown at 3.2 times
production depletion since 2000
(3.9 in FYE08)
Industry competitors have largely
grown through acquisitions
•
5
Reserves Growth > Depletion
•
•
Growth has exceeded
depletion by 3:1
Relatively low “effort” to
replace reserves
Enables high % focus on
growth.
Newcrest Mine Reserves vs Production
45
40
35
Reserve Au (Moz)
•
30
25
20
15
10
5
0
2004
2005
2006
2007
Year
Telfer
6
CVO
Gosowong
Cracow
Harmony
Depleted from 2004 Benchmark
2008
Exploration Strategy
Tactical changes to augment growth
1. Province approach adopted
2. Portfolio refreshed to focus
on fewer/better projects
3. Re-organised functionally
with Brisbane “hub”
4. Dedicated Property
Generation team
5. Budget focused 90% in
Asia Pacific region (>50% drilling)
7
←
Fast Cycle Time
→
Exploration Strategy
Province Approach
1. Determine the provinces where
we want to be.
2. Gain control of the best
properties.
3. Quickly and systematically
explore.
4. Rapidly progress and develop
opportunities.
5. Sustain and grow existing
provinces.
←
8
Fast Cycle Time
→
Property Generation Group
9
•
Dedicated team of proven
explorers with track record of
discovery
•
Seeking high value mineral
opportunities
•
Asia Pacific focus with a global
outlook
•
Innovation and collaboration
Property Generation Group
•
Process
–
–
–
–
•
Filters
–
–
–
–
•
10
Efficient intelligence & knowledge
management
Fast filtering – multi functional
Broad network & relationship building
Review major belts worldwide
Province (growth) potential
Ability for Newcrest to compete and
lever of company strengths
Ability to develop and operate low cost
mines
Time to and rate of production
Results & Outlook
–
–
–
–
Morobe Mining JV (Harmony PNG)
Horse Mountain (NV)
Croy Bloom (BC)
More new property deals in 2009!
Croy Bloom JV - British Columbia Canada
11
•
Located 80km south of the
Kemess Mine
•
Joint Venture with Serengeti
Resources – Newcrest can earn
up to 65%.
•
Porphyry Au-Cu potential
– Cadia Scale
•
Large undrilled
geochemical/geophysical
anomalies
Bloom Cirque
CPY
Cb
infill
PYR
Mo
12
•
First phase of drilling completed. Four holes
drilled.
•
Drilling tested several large geochemical
anomalies and coincident geophysical
anomalies
•
Drilling at Bloom Cirque intersected a 250m
wide zone of modest porphyry related
mineralisation
Exploration - Asia Pacific Focus
Budget Allocation
13
•
•
~ 90% in this region
•
>50% on drilling
~ 2/3 growth v 1/3
replacement
Provinces
•
Emerging
– Namosi Province (Fiji)
– Morobe Province (PNG)
•
Existing
–
–
–
–
14
Patterson Province (WA)
Lachlan Fold Belt (NSW)
Gosowong Province (Indo)
Tasman Fold Belt (QLD)
Provinces
•
Emerging
– Namosi Province (Fiji)
– Morobe Province (PNG)
•
Existing
–
–
–
–
15
Patterson Province (WA)
Lachlan Fold Belt (NSW)
Gosowong Province (Indo)
Tasman Fold Belt (QLD)
Provinces
•
Emerging
– Namosi Province (Fiji)
– Morobe Province (PNG)
•
Existing
–
–
–
–
16
Patterson Province (WA)
Lachlan Fold Belt (NSW)
Gosowong Province (Indo)
Tasman Fold Belt (QLD)
Exploration – Emerging Provinces
17
Namosi JV - Fiji
Fiji
Suva
N
18
•
Newcrest earning 65% interest in JV by
spending $21.5M over 5 years
•
Joint Venture partners Nittetsu Mining Co. Ltd
& Mitsubishi Materials Corp.
•
•
Lease covers approximately 725 sq km
•
Emerging pipeline of prospects
– 15 identified to date.
Province contains significant known porphyry
deposits and epithermal potential
Waisoi Deposits
Waisoi
Wainabama
•
•
Waisoi West & Waisoi East
•
Drilling has confirmed an open pit
Exploration Target in this range
•
Higher grade domains have been
intersected at Waisoi West
•
Mineralisation remains open at depth
Waivaka
5km
N
1.Newcrest has not verified the classification of historical resource
references and is not treating it as a JORC compliant resource
19
Contains a resource estimated by Placer
in excess 900Mt at 0.43% copper &
0.14g/t gold
Waisoi Deposits
• Initial open pit resource estimate
expected December 2008.
• Waisoi West –- deep Exploration
Target identified
– NSW002 80m @ 0.80% Cu,
0.78g/t Au
– Potential for a bulk
underground deposit.
20
Waisoi Drilling - NSW002
210m @
0.24g/t Au,
1.0% Cu
259.8m @
0.21g/t Au,
0.79% Cu
240m @
0.16g/t Au,
0.57% Cu
221m @
0.17g/t Au,
0.50% Cu
195m @
0.08g/t Au,
0.57% Cu
NSW002
0.3% Cu
MINERALISATION
NSW001
NSW004
200m
21
751m @ 0.36% Cu, 0.18g/t Au
(0.1% Cu cutoff) (56-807m)
Incl. 459m @ 0.45% Cu,
0.28g/t Au (134-593m)
(0.3% Cu cutoff)
Incl. 80m @ 0.80% Cu,
0.78g/t Au
(497-577m)
Namosi - Regional Potential
Waisoi
Wainabama
Waivaka
5km
Porphyry / epithermal targets
22
•
15 porphyry and/or epithermal targets
have been identified to date outside of
the Waisoi area
•
These include higher grade mineralization
at Waivaka & Wainabama.
•
The Waivaka Corridor is a 1.6km zone of
anomalous copper & gold geochemistry
•
Exploration is targeting higher grades and
relatively gold rich systems
The PNG Region – Well Endowed!
Grasberg
Frieda
Porgera
Bismarck Sea
Morobe
Mining JV
Projects
New
Ireland
Lihir
Madang
New Britain
Panguna
FLY PLATFORM
Aure
Trough
Yandera
Ok Tedi
Porphyry Belt
Mining Locations
23
Lae
Bougainville
Solomon
Sea
Port Moresby
Coral
Sea
Tolukuma
Misima
Morobe Mining JV (PNG)
Significant growth potential – largely
untested with modern exploration
1. Hidden Valley
2. Wafi-Golpu
3. Morobe Region
(1) Harmony Gold Mining Company Limited. JORC
compliant estimate as at 30 June 2007. For
details refer to Harmony website.
24
Hidden Valley
•
Hidden Valley Project resource
94Mt @ 1.9g/t Au – 5.7Moz.
•
Target growth in asset and
production profile through discovery
and resource definition.
•
Several prospects located adjacent
to the known resources.
•
Recent trenching at Hidden Valley
South included 42m @ 3.7g/t Au
Hamata
HamataPit
Pit
Yafo
Yafo
East
EastMill
Mill Site
Site
Hidden
Hidden
Valley
ValleyPit
Pit
Pihema
Pihema
Bulldog
Bulldog
Nosave
Nosave
Puruwang
Puruwang
Big
Big Wau
Wau
Awei
Awei Tuwe
Tuwe
Apu
Apu
Upper
Upper Bulolo
Bulolo
Tais
Tais Ck
Ck
Salemba
Salemba
25
Wafi
Nambonga Nth
Wafi-Gold
Deposits
Golpu
Cu-Au
Deposit
Priority
Targets
1km
26
•
Centred on a district scale hydrothermal system
– extends over an 15 x 10km.
•
Contains Wafi Golpu deposits (6.5Moz Au) and
Golpu porphyry Cu-Au deposits (2.96Moz Au,
3.9B lb Cu).
•
Several untested porphyry targets – potential to
host multi million ounce deposits.
•
Nambonga North – recently discovered
porphyry Au – Cu system. Resource Estimate
December 2008.
Wafi-Golpu – System
Wafi Gold Deposits
(1)
103Mt @ 1.88g/t Au
6.2Moz Au
Diatreme
Breccia
Golpu Resource (1)
163Mt @ 0.57g/t Au
1.08% Cu
3.0Moz Au, 1.76Mt Cu
Exploration
Target
Nambonga Nth
WR275
181m @ 1.04g/t Au
0.26% Cu
Open
Open
Open
500m
(1) Harmony Gold Mining Company Limited. JORC compliant estimate as at 30 June 2008. For details refer Harmony website.
27
Regional Exploration
0
Nambonga
Prospect
2.5
5
kilometers
Wafi + Golpu: 3.9 Billion pounds Cu,
9.3 Moz Au
• Regional exploration program also
underway for major porphyry and
epithermal systems with
multi-million ounce potential
– Biamena, Kauri, Morobe Coast, Bawaga.
• Biamena – located 12km southeast
of Wafi.
Biamena
Prospect
Stream sediments
Cu (ppm)
350 to 2000
100 to 350
79 to 100
55 to 79
48 to 55
32 to 48
-2 to 32
28
– Target multi-million ounce porphyry
deposit
– Trench results – 15m @ 24.2g/t Au,
1.44% Cu.
– Drilling results – 24m @ 3.4g/t Au
– Drilling commenced in Nov 2008
Exploration – Existing Provinces
Cracow
Gosowong
Telfer
Cadia
29
Emerging Telfer Options
Growing suite of options
West Dome
Decline
Main Dome
Pit
Deeps Cave
VSC
30
•
•
•
•
•
•
•
Vertical Stockwork Corridor
O’Callaghans
Camp Dome
West Dome
West Dome Deeps
Trotmans Dome
Minyari
Patterson Province – Telfer WA
A number of local
opportunities
•
•
•
•
•
•
•
31
Vertical Stockwork Corridor
O’Callaghans
Camp Dome
West Dome
West Dome Deeps
Trotmans Dome
Minyari
O’Callaghans
Main Dome
Telfer Concentrator
Telfer Tailings
Storage Facility
km
10
2km
O’Callaghans Project
32
O’Callaghans - Advanced Exploration Target
surface
•
Flat lying poly-metallic deposit
containing Tungsten,
Molybdenum, Lead, Zinc,
Copper
•
•
Gold equivalent of 3 - 3.5g/t
•
300m below surface with widths
of 20 to 80 metres.
•
Envisage an underground caving
style operation
300m
Untested
Skarn Minera
lisation
OR
C2
00
69
OR
C0
05
OC
C9
10
1
OR
14
09
0
OR
OR
C0 OR
18
04 16
08
09
2
1
OR
O
OR
RC
C0
C0
0
02
06
01
Plan View
OR
C0
03
500 Metres
Section
Exploration
Target 120Mt
500metres
33
Untested
Gold equivalent calculated on the following
A$ metal prices Pb $1.25/Ib, Zn $1.25/Ib, Mo
$33/Ib, W $14/Ib, Cu $1.70/Ib, Au $600/oz
11 drill holes demonstrate the
deposit is open in all directions
across a 2.5km strike length
VSC – Long section 60500E
North
Telfer Deeps
Mining Shape
MUC13613 - 66m @
2.60g/t Au, 0.37% Cu
?
?
MUC13614 - 32m @
1.49g/t Au, 0.83% Cu
MUC13611 - 33m @
1.89g/t Au, 1.02% Cu
MUC13612 - 31m @
2.23g/t Au, 0.74% Cu
MUC13616 - 59m @
1.82g/t Au, 0.90% Cu
200m
Previous reported
Recent Results
34
MUC13615 - 29m @
2.39g/t Au, 0.61% Cu
Open at depth
Looking West
Cadia Valley
Continuing low cost replacement and
real growth.
-
Cadia East
Cadia Hill
Ridgeway Deeps
Big Cadia
Marsden
Exploration Targets
Surface
Cadia Hill Pit
1200m
800m
Lift 0
Lift 1
1600 m
Lift 2
35
690,000 mE
6,320,000 mN
675,000 mE
Cadia Exploration Targets
Orange
Orange
6
6,305,000 mN
5
FR
FR
Surrounds
Surrounds
9
10
Nashdale
Nashdale
FOREST REEFS JV
8
7
CADIA PROJECT
Four Mile
Mile
Creek
Creek
Forest
Reefs
Cadia Valley
Valley
MLs
1
4
6,290,000 mN
Panuara
Panuara
Prospective EL targets (Discovery):
• Forest Reefs JV: Porphyry Au/Cu
• Junction Reefs JV - Panuara: Porphyry Cu/Au
• Junction Reefs JV - Southern Leases
• Cadia Project – Four Mile Creek
Mine Lease Exploration targets (Resource):
• Cadia Central
• RW North
• Cadia Quarry West
2
Southern
Southern ELs
JUNCTION REEFS JV
3
6,275,000 mN
Cadia Exploration Tene m e nts
Junctions Ree fs JV Tene m ents
0
7.5
15
Fore st Reefs JV Tene m e nt
Cadia Valley MLs
kilometres
36
Mine Lease Projects (Growth):
• Big Cadia – convert Inferred to Indicated
• Cadia Hill Deeps – add significant new ounces
• Cadia East Extensions - add significant new ounces
Gosowong
•
•
•
High grade epithermal
•
COW covers 30,000 hectares
Gold Ounces (Millions)
GOSOWONG
30 year tenure
Newcrest 82.5% interest
- no sell-down requirement
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2003
2004
2005
2006
Cumulative Discovered Ounces
37
2007
Kencana Growth – Near Mine Targets
K1; 1.8Moz
contained Au metal
K Link; 0.3Moz
•
The Kencana System
(+3.5Moz @ 1oz/t) remains
open at depth.
•
Drilling below K1 and K1 North
have intersected bonanza grade
intercepts
K2; 1.4Moz
KL-4
K1-North
K1-Deeps
K2-Deeps
K1-South Deeps
38
– 15.7m @ 45g/t Au
– 3m @ 50g/t Au
•
Drilling is ongoing to test the
extent of this high grade
mineralization and to determine
if K1 Deeps and K1 North join.
depth.
Kencana Near Mine – K1
Longitudinal projection
Existing Mine Decline
K1 Resource
(including mined)
= 1.8 Moz
Target 0.2 – 0.6 Moz
26m (15.7m true) @ 45 g/t Au
3.3m (3m true) @ 50 g/t Au
Target 0.2 – 0.6 Moz
22.3m (14.5m true) @ 21 g/t Au
High grade intercept
13.1m @ 170 g/t Au
OPEN AT DEPTH
0
39
100m
Gosowong South Exploration Targets
• Gosowong South Area– contains
Toguraci, Gosowong and Kencana –
approximately 5Moz
• Aim to significantly increase resource
base. Targeting +1Moz high grade
epithermal ore shoot.
• Targeting strike extent of the known
gold bearing structures and the depth
extent of the known shoots.
40
Cracow Goldfield
• Endowment to date >2Moz
• Newcrest has discovered
GOLDEN
GOLDEN
WEST
WEST
ROSES
ROSES
PRIDE
PRIDE
1.2Moz
ORANGE
ORANGE
CREEK
CREEK
Sterling
Sterling
Structure
Structure
• Significant potential to grow
Empire
Empire
Structure
Structure THE
THE RIDGE
RIDGE
Sovereign
Sovereign
Structure
Structure
Crown
Crown
Shoot
Shoot
Kilkenny
Kilkenny
Structure
Structure
Central
Central
Extended
Extended
Pit
Pit
FORDEE
FORDEE
KLONDYKE
KLONDYKE
• The best little gold mine in QLD?
GOLDEN
GOLDEN PLATEAU
PLATEAU
FERNEYSIDE
FERNEYSIDE
Bradshaws
Bradshaws
Pit
Pit
Phoenix
Phoenix
Structure
Structure
NS8
NS8
Royal
Royal Shoot
Shoot
MYLES
MYLES
CORRIDOR
CORRIDOR
41
further
WHITE
WHITE
HOPE
HOPE
GOLDEN
GOLDEN
MILE
MILE
RAINBOW
RAINBOW
Warrego
Warrego
Pit
Pit
REVIVAL
REVIVAL
Cracow Long Section
ROYAL SHOOT
Initial Resource:
390,000 oz Au
Remaining Resource:
90,000oz Au
KLONDYKE NORTH
Initial Resource:
26,000 oz Au
CROWN SHOOT
Initial Resource:
400,000 oz Au
Remaining Resource:
180,000oz Au
ROSES PRIDE
to the west
SOVEREIGN SHOOT
Inferred Resource:
200,000 oz Au
PHOENIX
to the west
EMPIRE
to the west
STERLING
to the west
KILKENNY SHOOT
to the west
Inferred Resource:
200,000 oz Au
ROYAL SHOOT – KLONDYKE – CROWN – ROSES PRIDE MINERALISATION
COMPOSITE LONG SECTION PROJECTION
42
500m
Kilkenny
To Por
ta
PHOENIX
43
l
•
The Kilkenny resource has been
identified as a possible replacement
for ore stocks depleted by mining
activity.
•
The identified resource is located
~450m west of the Crown Shoot.
•
Mineralisation has similar
characteristics to the other epithermal
veins currently exploited.
Kilkenny Long Section
CBK252 *
12.15m (9.05m) @ 6.84
incl. 3.05m (2.04m) @ 19.86
CBK246
NSA
CBK246
NSA
CBK241
NSA
CBK240
7.9m (5.6m) @ 5.7
CBK226
42.1m (19.75m) @ 6
incl. 12.35m (5.8m) @ 12
Incl. 0.7m (0.35m) @ 19
* Provisional Intercept Only (subject to QA/QC checks)
44
LEGEND
Lode Intersection
NSA
1-20 m.g/t Au
20-50 m.g/t Au
>50 m.g/t Au
m.g/t = g/t Au x true width (m)
Shear
Altered shear
Breccia
Lode Breccia
Lode
Resources & Reserves
• Expected resource additions FYE09
1.
2.
3.
4.
Nambonga Nth
Waisoi East & West
O’Callaghans
Vertical Stockwork Corridor
• Additional upgrades
1.
2.
3.
4.
45
Kencana
Cadia East
Marsden
Cracow
Governance
A steering committee ensures proper functioning of the company’s Resource
and Reserve development activity
Four level compliance
• Corporate standards and guidelines (competent
persons and operation of steering committee)
• External Reporting, JORC
• Risk assessment – internal and external reviews
• Business units reports, plans, financial models
46
Conclusion – a solid platform for growth
1. Strong track record of low cost
success
2. Rich growth portfolio
3. Focused, agile and capable
exploration team
4. Dedicated property generation
and M&A teams
5. Fast cycle time from discovery
to production
Asia Pacific focus
+ Global outlook
47