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Newcrest in new Red Chris discovery

Newcrest Mining continues to advance its two key growth projects, Red Chris in British Columbia, and Havieron in Western Australia.
Newcrest in new Red Chris discovery Newcrest in new Red Chris discovery Newcrest in new Red Chris discovery Newcrest in new Red Chris discovery Newcrest in new Red Chris discovery

Drilling at Red Chris in BC, Canada

The company reported a new discovery, East Ridge at Red Chris, 300m east of East Zone.

A diamond hole returned 198m at 0.89 grams per tonne gold and 0.83% copper from 800m, including 76m at 1.8gpt gold and 1.5% copper, open in all directions.

Drilling at East Zone also intersected higher grade mineralisation south of the South Boundary Fault, which defines the southern extent of mineralisation.

An intercept of 524m at 0.37gpt gold and 0.39% copper from 528m included 156m at 0.71gpt gold and 0.59% copper and 10m at 1.5gpt gold and 0.88% copper.

Newcrest managing director Sandeep Biswas said the company was excited by the results at East Ridge.

"The initial intercept is open in all directions, with mineralisation displaying similar characteristics to that of the high-grade pods in the East Zone," he said.

"Drilling to determine the significance of this new zone is underway, with the results from this initial intercept highlighting the potential for additional discoveries at Red Chris."

The first JORC resource for Red Chris, which is 70% owned by Newcrest in joint venture with Imperial Metals, is due this month.

Six rigs have been operating at the site since the start of the year, which will be increased to eight next quarter.

Newcrest bought into Red Chris, a small-scale open pit producer, two years ago due to its porphyry potential and to expand its presence in North America.

To further that goal, the company overnight signed an option and earn-in agreement with TSXV-listed Discovery Harbour Resources Corp over the Fortuity 89 project in Nevada.

Newcrest can earn 65% within five years by spending US$31.5 million on exploration, and can get to 75% by completing a positive preliminary economic assessment, based on a minimum resource of 1 million ounces of gold.

Fortuity 89 is an early stage epithermal gold target covering 34sq.km.

Newcrest is also awaiting results from recently completed drilling at the Jarbidge project in northern Nevada.

In Western Australia's Paterson Province, infill drilling at the Havieron discovery to support the delivery of an indicated resource have been in line with expectations.

New results included 97m at 3.9gpt gold and 0.5% copper from 500m, including 15m at 9.7gpt gold and 1.8% copper; 169.5m at 3.4gpt gold and 0.33% copper from 711.5m, including 58.9m at 6.2gpt gold and 0.23% copper, including 3.1m at 95gpt gold and 0.5% copper; 79.3m at 4.5gpt gold and 1.4% copper from 537m, including 41.7m at 8.4gpt gold and 2.6% copper; and 109.4m at 5.9gpt gold and 0.63% copper from 622m, including 24m at 17gpt gold and 1.4% copper.

Mineralisation remains open at depth below the inferred resource of 3.4Moz of gold and 160,000 tonnes of copper.

Drilling has been impacted by recent seasonal wet weather, but eight drill rigs are running. Construction of a decline is also underway.

Newcrest has earned 60% of the project from Greatland Gold and further targets have been defined within the joint venture area.

Field activities at the Juri joint venture with Greatland outside Havieron are expected to begin this month.

At nearby Wilki, a farm-in with Antipa Minerals, RC drill testing of initial greenfield targets intersected minor zones of anomalous gold, copper, silver and other pathfinder elements.

Newcrest is funding A$6 million over the two years to February 2022, as part of a broader $60 million farm-in.

A total of 12 new geophysical targets have been identified for drill testing this year.

Newcrest has a global exploration budget of US$115-125 million for this financial year.

Shares in Newcrest were up 2.3% to A$24.25, valuing the miner at $19.8 billion.