Kevin Lines Regional Exploration Manager Eastern Australia. 3 rd December 2004

Transcription

1 SA Explorers Conference Tanami Update Kevin Lines Regional Exploration Manager Eastern Australia 3 rd December 2004

2 Newmont in the Tanami It s getting lonely up in the desert!!!! So why does Newmont stay?

3 Newmont Australia 2003 Gold Sales 26% of Global Newmont s Equity Gold Sales 22% 12% 40% 26% Australia North America South America Other Gold sales (million ounces) Total cash costs (US$/ounce) $191 $233

4 Australia 2003 Principal Operations Equity Total Gold Sales Cash Costs ( 000oz) (US$/oz) Kalgoorlie (50%) 405 $263 Pajingo (100%) 330 $125 Tanami (100%) (1) 606 $240 Yandal (100%) 566 $273 1,907 $235

5 Tanami Operations me me me 40km mn 30km Halls Creek 20km Haulroad Borefield 10km MLS 180 Molech TMJV MINERAL LEASES Lajam Lajam Lajam Lajam Lajam Lajam Lajam Lajam Lajam amanu amanu amanu amanu amanu amanu amanu amanu amanu MLS 167 Matilda MLS 153 Tanami Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Tanami Mine JV Mineral Leases ML Groundrush Darwin Tanami Northern Territory Ta n a m i Operations Alice Springs Darwin mn Alice Springs MLS 168 Enterprise mn Tanami Tanami Tanami Tanami Tanami Tanami Tanami Tanami Tanami Road Road Road Road Road Road Road Road Road The Granites Gold Mine Mineral Leases Haulroad Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad Haulroad ML(A) Minotaur mn MLS 154 Dead Bullock Soak MLS 8 TGGM The Granites MINERAL LEASES Alice Alice Alice Alice Alice Alice Springs Springs Springs Springs Springs Springs kilometers Alice Alice Alice Springs Springs Springs me me me

6 Tanami Ounces Produced Ounces Produced - Tanami l -Koz's Annua ,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ive - Koz's Cumulat Granites Koz's Groundrush Koz's Cumulative Koz's

7 Mining Operations status life Dead Bullock Soak (DBS) - Callie U/G 2mtpa ongoing 10yrs - Callie O/Pits complete - Granites O/pits complete - Windy Hill O/pit complete - Groundrush O/pit 1mtpa ongoing mining complete Titania feasibility? Tanami Mine O/pits complete -

8 Tanami - Capital Improvements New 4.5 MW mill at Granites Accelerated Decline - Callie New Loaders - Callie Ventilation Upgrade - Callie Larger U/G Haul Trucks -Callie

9 Callie stopes

10 DBS Composite Long Section Callie Villa F? DBR F CALLIE SOUTH AREA F F Proven WILSON SHOOT?? FEDERATION SHOOT 19m@5.7g/t Au? Probable? WILSON SHOOT? 10m@54.6g/t Au NRM UNCUT

11 Tanami Tenement Status (May 2004) WA NT Exploration Licences Granted: 22,000 km² Application: 22,500 km² Groundrush Tanami Mill Callie Granites Mill 100 km

12 Tanami - Gold Deposits > 5 Moz Callie U/G > 1 Moz > 0.1 Moz 4 million ounces have 4 million ounces have been produced to date from Newmont s Tanami Operations

13 Tanami Exploration Team Dedicated team of twelve geoscientists (Adelaide based) - specialist support in geophysics, geochemistry, indigenous relations etc. Budget of $8 to $9 million on regional exploration (exclusive of near mine expenditures) Strong support from Newmont executive for sustained exploration in the Tanami Three separate exploration camps to cater for vast distances and remoteness of Tanami exploration

14 Mineralisation Styles Disseminated, stratabound / structurally controlled Au hosted by banded iron formations and siliceous sediments (resistant units) - Granites, Windy Hill, Dead Bullock Soak Discordant stockwork / sheeted quartz veins hosted by fine-grained reactive sediments (recessive units) - Callie, Titania, Coyote, Old Pirate Discordant stockwork late stage? quartz veins hosted by reactive mafic intrusives / extrusives - Groundrush, Tanami, Hyperion, Crusade, East Ptilotus Intrusive-hosted late stage stockwork quartz veins, with bulk tonnage potential - Twin Bonanza, Galifrey, Happy Jack Deposits in regolith concentrated by alluvial, eluvial or lateritic processes - Titania, Tanami, Coyote

15 Exploration challenges We are still very heavily dependant on surface geochemistry as our primary exploration tool. - better understanding of the regolith (depletion), improved Bleg techniques We have to get more out of our geophysical data sets - including finding new applications, better magnetics, regional resistivity mapping (EM) Consolidation of companies/data is allowing greater understanding of structure/stratigraphy - terrain scale structural analysis, prospectivity mapping Better understanding of mineralisation styles - using our global understanding of Proterozoic mineralising systems in the Tanami

16 Tanami Regional Exploration OH&S, Environment, Community Relations As we are the first into new areas, tight environmental control required, to look after the land, and minimise the environmental impact of exploration (toilets, choppers, washdown bay)

17 uu

18 The End