Newmont Increases Gold Reserves ~6% to Record 99 Million Ounces; Copper Reserves Also a Record at ~10 Billion Pounds
DENVER, Feb. 23, 2012 /CNW/ - Newmont Mining Corporation
('Newmont' or 'the Company') today announced it increased attributable gold reserves by 5.3 million ounces, net of depletion, to 98.8 million ounces in 2011. Highlights include:(Photo: http://photos.prnewswire.com/prnh/20120223/LA58701-a)
(Photo: http://photos.prnewswire.com/prnh/20120223/LA58701-b)
(Photo: http://photos.prnewswire.com/prnh/20120223/LA58701-c)
-- Record gold reserves of 98.8 million ounces, an increase of
5.6% from 2010;
-- Record copper reserves of 9.7 billion pounds, an increase of
3.2% from 2010; and
-- Reserves calculated at $1,200 per ounce and $3.00 per pound,
respectively.
'We are pleased to report a 6% increase in our gold reserves to a record 98.8 million ounces and a record 9.7 billion pounds of copper in 2011, highlighting the potential of our extensive land positions in each of our four operating regions,' commented Richard O'Brien, President and CEO. 'Over the last 10 years, we have added an industry leading 85 million ounces of reserves through organic growth alone, more than offsetting the 75 million ounces of depleted reserves through production.'
North America was the largest contributor to higher gold and copper reserves in 2011, up 10% and 24%, respectively, as exploration activity drove increases in gold reserves at Carlin, Phoenix, and Turquoise Ridge, and copper reserves at Phoenix.
Attributable gold Measured and Indicated non-reserve mineralization ('NRM')(1) for 2011 was 1.4 billion tons at an average grade of 0.019 ounces per ton, up from 1.3 billion tons at an average grade of 0.019 ounces per ton for 2010. In addition, attributable gold Inferred NRM was 650 million tons at an average grade of 0.024 ounces per ton. Attributable copper Measured and Indicated NRM for 2011 was 1.0 billion tons at an average grade of 0.14%, up from 849 million tons at a grade of 0.15% from 2010. In addition, attributable copper Inferred NRM was 410 million tons at an average grade of 0.15%. Gold and copper NRM were calculated using prices of $1,400 per ounce and $3.50 per pound, respectively. Total gold and copper NRM increased 12% and 9%, respectively, over 2010 on a contained metal basis. Attributable silver Measured and Indicated NRM for 2011 was 690 million tons at an average grade of 0.92 ounces per ton, with additional inferred NRM of 520 million tons at an average grade of 0.10 ounces per ton.
Exploration: 2011 Highlights and 2012 Planned Activity
Newmont's 2011 exploration program produced strong results for a fourth consecutive year from more than 125 drill rigs and approximately 1.3 million meters of drilling. Drill programs focused on the entire resource pipeline and led to success in early-stage exploration while converting more than enough reserves to replace depletion. With more than 150 projects in 2011 and 175 projects in 2012, our exploration programs are gaining momentum and are designed to fully support our strategic growth plan not only to 2017, but also for years beyond.
Our North American region converted the largest gold reserve (6.2 million ounces) and NRM (5.5 million ounces) led by open pit expansions at Gold Quarry, Phoenix, and underground expansion at Turf-Leeville. We continue to expect strong exploration results from the North America region again in 2012 as we expect to declare the first NRM ounces at our newly acquired Long Canyon asset. Early stage exploration yielded very encouraging results at Long Canyon, Leeville, Carlin Mine area, Mike, Phoenix and Fiber Line, and we will further advance these opportunities in 2012. Outside Nevada in 2011 we have further built our land position and advanced our target generation programs in Mexico, Alaska and BC/Yukon that we expect to continue this effort as well as to complete some scout drilling in 2012.
Our South America region converted 0.25 million ounces of gold reserves and 0.97 million ounces of gold NRM primarily from the Conga region. A number of exploration targets have been generated at the Yanacocha district and are planned for drilling in 2012. A number of targets have also been generated in the Conga region that await development outcomes. Extensive infill drilling at the Merian project in Suriname is targeted to add reserves in 2012 while follow-up drill programs at the nearby Sabajo project are accelerating with promising results.
Our Australia-Pacific region converted 2.3 million ounces of gold reserves and 1.6 million ounces of gold NRM with the largest contributions coming from our Callie underground mine in the Tanami and at KCGM. Jundee and Waihi drill programs added new underground mine life from surface and underground drill programs. Boddington successes were seen in early-stage work expected to be reflected in potentially new NRM in the near future. Each of these sites has significant exploration upside that we expect to aggressively test in 2012. Outside Australia, drill programs will accelerate at the Elang project in Indonesia and we will continue the target generation and scout-drilling in New Zealand, Papua New Guinea and Solomon Islands.
Our Africa region converted 2.8 million ounces of gold reserve and 2.0 million ounces of gold NRM primarily from Ahafo open pit layback expansions and from the Subika underground. Drill programs successfully expanded the wingspan of early-stage Subika underground mineralization and we began drilling extensions of the Apensu open pit. Early-stage exploration around Ahafo North demonstrated potential for additional open pit and underground mineralization near the existing reserve. Drill programs at Akyem suggest potential for underground mineralization that will be further explored in 2012. Future reserve and NRM growth looks promising and will be addressed by more than doubling the Ghanaian exploration budget in 2012. Outside Ghana we have a potential new discovery in Guinea and have scout-drilled a number of targets in Burkina Faso with encouraging results that will be followed up in 2012.
Newmont's 2012 attributable exploration budget increased 9% over the prior year to $369 million with the largest portion assigned to North America (~$138 million). Budgets for 2012 in Australia-Pacific (~$87 million), Africa (~$58 million) and South America (~$54 million) have seen a significant increase relative to 2011 due to growth-related opportunities. Approximately $32 million is allocated to other strategic programs. Of the total attributable exploration budget, approximately two-thirds is expected to be directed towards brownfields exploration activity, with the balance of approximately one-third to be spent on greenfields programs.
(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.
Proven and probable reserves are based on extensive drilling, sampling, mine modeling and metallurgical testing from which we determined economic feasibility. Metal price assumptions follow SEC guidance not to exceed a three year trailing average. The price sensitivity of reserves depends upon several factors including grade, metallurgical recovery, operating cost, waste-to-ore ratio and ore type. Metallurgical recovery rates vary depending on the metallurgical properties of each deposit and the production process used. The reserve tables included in this release list the average metallurgical recovery rate for each deposit, which takes into account the relevant processing methods. The cut-off grade, or lowest grade of mineralized material considered economic to process, varies with material type, price, metallurgical recoveries, operating costs and co- or by-product credits. The proven and probable reserve figures presented herein are estimates based on information available at the time of calculation. No assurance can be given that the indicated levels of recovery of gold and copper will be realized. Ounces of gold or pounds of copper included in the proven and probable reserves are calculated without regard to any losses during metallurgical treatment. Reserve estimates may require revision based on actual production. Market fluctuations in the price of gold and copper, as well as increased production costs or reduced metallurgical recovery rates, could render certain proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves.
We publish reserves annually, and will recalculate reserves at December 31, 2012, taking into account metal prices, changes, if any, in future production and capital costs, divestments and depletion as well as any acquisitions and additions during 2012.
Attributable Proven, Probable, and Combined Gold Reserves(1)
December 31, 2011 December 31, 2010
Deposits/Districts Proven and Probable Metallurgical Proven + Probable
by Reporting Unit Proven Reserves Probable Reserves Reserves Recovery Reserves
Newmont
Share Tonnage Grade Gold Tonnage Grade Gold Tonnage Grade Gold Tonnage Grade Gold
(000 (000 (000 (000 (000 (000 (000 (000
tons) (oz/ton) ozs) tons) (oz/ton) ozs) tons) (oz/ton) ozs) tons) (oz/ton) ozs)
North America
Carlin Open Pits, Nevada(2) 100% 92,600 0.058 5,410 239,100 0.030 7,210 331,700 0.038 12,620 77% 263,600 0.043 11,320
Carlin Underground, Nevada 100% 11,300 0.271 3,070 6,700 0.300 2,020 18,000 0.282 5,090 86% 14,600 0.307 4,480
Midas, Nevada 100% 300 0.315 80 500 0.177 80 800 0.226 160 95% 600 0.319 190
Phoenix, Nevada 100% 24,900 0.018 460 422,200 0.016 6,790 447,100 0.016 7,250 72% 329,800 0.018 6,090
Twin Creeks, Nevada 100% 10,600 0.097 1,020 37,700 0.073 2,760 48,300 0.078 3,780 80% 57,800 0.076 4,390
Turquoise Ridge, Nevada(3) 25% 1,700 0.444 740 2,300 0.440 1,020 4,000 0.442 1,760 92% 3,100 0.457 1,410
Nevada In-Process(4) 100% 23,000 0.020 460 0 0 23,000 0.020 460 65% 28,500 0.022 610
Nevada Stockpiles(5) 100% 65,100 0.053 3,440 3,100 0.028 90 68,200 0.052 3,530 76% 36,700 0.074 2,700
Total Nevada 229,500 0.064 14,680 711,600 0.028 19,970 941,100 0.037 34,650 78% 734,600 0.042 31,200
La Herradura, Mexico 44% 51,000 0.021 1,090 60,400 0.020 1,240 111,400 0.021 2,330 62% 105,700 0.022 2,290
TOTAL NORTH AMERICA 280,500 0.056 15,770 772,000 0.027 21,210 1,052,500 0.035 36,980 77% 840,300 0.040 33,490
South America
Conga, Peru(6) 51.35% 0 0 303,400 0.021 6,460 303,400 0.021 6,460 75% 317,200 0.019 6,080
Yanacocha Open Pits(7) 51.35% 34,200 0.050 1,710 85,700 0.022 1,860 119,900 0.030 3,570 72% 142,300 0.031 4,440
Yanacocha In-Process(3) 51.35% 13,100 0.025 330 2,100 0.027 60 15,200 0.025 390 78% 21,300 0.025 540
Total
Yanacocha,
Peru 47,300 0.043 2,040 87,800 0.022 1,920 135,100 0.029 3,960 72% 163,600 0.030 4,980
La Zanja, Peru(8) 46.94% 7,300 0.016 120 14,100 0.015 210 21,400 0.016 330 66% 20,600 0.017 350
TOTAL SOUTH AMERICA 54,600 0.040 2,160 405,300 0.021 8,590 459,900 0.023 10,750 73% 501,400 0.023 11,410
Asia Pacific
Batu Hijau Open Pit(9) 48.50% 127,600 0.017 2,110 196,100 0.005 1,040 323,700 0.010 3,150 75% 293,400 0.011 3,110
Batu Hijau Stockpiles(5)(9) 48.50% 0 0 156,900 0.003 490 156,900 0.003 490 70% 170,700 0.004 610
Total Batu
Hijau,
Indonesia 48.50% 127,600 0.017 2,110 353,000 0.004 1,530 480,600 0.008 3,640 75% 464,200 0.008 3,720
Boddington, Western Australia 100% 181,800 0.020 3,600 871,700 0.018 15,890 1,053,500 0.019 19,490 81% 1,067,700 0.019 20,300
Duketon, Western Australia
(10) 16.85% 2,000 0.044 90 8,800 0.045 400 10,800 0.045 490 95% 6,300 0.055 350
Jundee, Western Australia 100% 3,100 0.160 490 700 0.237 160 3,800 0.174 650 91% 4,700 0.160 750
Kalgoorlie Open Pit and
Underground 50% 13,300 0.059 790 41,700 0.056 2,350 55,000 0.057 3,140 85% 55,700 0.059 3,300
Kalgoorlie Stockpiles(5) 50% 53,900 0.023 1,260 0 0 53,900 0.023 1,260 78% 15,100 0.031 470
Total
Kalgoorlie,
Western
Australia 50% 67,200 0.030 2,050 41,700 0.056 2,350 108,900 0.040 4,400 83% 70,900 0.053 3,780
Tanami, Northern Territories 100% 6,200 0.156 960 10,500 0.149 1,560 16,700 0.152 2,520 94% 14,400 0.142 2,040
Waihi, New Zealand 100% 0 0 3,200 0.112 360 3,200 0.112 360 89% 4,200 0.110 460
TOTAL ASIA PACIFIC 387,900 0.024 9,300 1,289,600 0.017 22,250 1,677,500 0.019 31,550 82% 1,632,300 0.019 31,400
Africa
Ahafo Open Pits(11) 100% 0 0 194,700 0.055 10,790 194,700 0.055 10,790 87% 148,300 0.064 9,540
Ahafo Underground (12) 100% 0 0.000 0 5,900 0.11 660 5,900 0.112 660 89% 0 0.000 0
Ahafo Stockpiles(5) 100% 21,000 0.030 630 0 0 21,000 0.030 630 86% 14,100 0.033 460
Total Ahafo,
Ghana 100% 21,000 0.030 630 200,600 0.057 11,450 221,600 0.055 12,080 87% 162,400 0.062 10,000
Akyem, Ghana(13) 100% 0 0 144,500 0.051 7,390 144,500 0.051 7,390 88% 137,900 0.052 7,200
TOTAL AFRICA 21,000 0.030 630 345,100 0.055 18,840 366,100 0.053 19,470 87% 300,300 0.057 17,210
TOTAL NEWMONT WORLDWIDE 744,000 0.037 27,860 2,812,000 0.025 70,890 3,556,000 0.028 98,750 80% 3,274,300 0.029 93,500
(1) Reserves are calculated at a gold price of US$1,200, A$1,250, or NZ$1,600 per ounce unless otherwise noted. 2010 reserves were calculated at a gold
price of US$950, A$1,100, or NZ$1,350 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 reserves under development at the Emigrant deposits for combined total undeveloped reserves of 1.6 million ounces.
(3) Reserve estimates provided by Barrick, the operator of the Turquoise Ridge Joint Venture.
(4) 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.
(5) 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.
(6) Project is under development.
(7) Reserves include the currently undeveloped deposit at La Quinua Sur, which contains reserves of 0.8 million attributable ounces.
(8) Reserves estimates were provided by Buenaventura, the operator of the La Zanja project.
(9) Percentage reflects Newmont’s economic interest at December 31, 2011.
(10) Reserve estimates provided by Regis Resources Ltd, in which Newmont holds a 16.85% interest.
(11) Includes undeveloped reserves at Yamfo South, Yamfo Central, Techire West, Subenso South, Subenso North, Yamfo Northeast, and Susuan totaling 3.2
million ounces.
(12) Subika Underground project is under development.
(13) Project is under development.
Attributable Gold Mineralized Material Not in Reserves(1)(2)
December 31, 2011
Measured Measured + Inferred
Deposits/Districts Material Indicated Material Indicated Material Material
Newmont
Share Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade
(000 (000 (000 (000
tons) (oz/ton) tons) (oz/ton) tons) (oz/ton) tons) (oz/ton)
North America
Buffalo Valley,
Nevada 70% 0 0.000 16,500 0.019 16,500 0.019 2,900 0.014
Carlin Trend Open Pit,
Nevada 100% 28,200 0.035 84,400 0.022 112,600 0.026 15,300 0.020
Carlin Trend
Underground, Nevada 100% 4,700 0.221 2,900 0.272 7,600 0.241 1,300 0.264
Lone Tree Complex,
Nevada 100% 0 2,200 0.023 2,200 0.023 5,000 0.016
Sandman, Nevada 100% 0 600 0.050 600 0.050 2,100 0.048
Midas, Nevada 100% 10 0.094 100 0.066 110 0.070 100 0.049
Phoenix, Nevada 100% 0 216,400 0.012 216,400 0.012 132,300 0.012
Twin Creeks, Nevada 100% 3,600 0.081 42,400 0.042 46,000 0.045 13,500 0.026
Turquoise Ridge (3),
Nevada 25% 400 0.358 400 0.338 800 0.348 500 0.451
Nevada Stockpiles (4),
Nevada 100% 3,100 0.039 3,100 0.039 2,300 0.043
Total
Nevada 40,010 0.065 365,900 0.020 405,910 0.025 175,300 0.018
La Herradura, Mexico 44% 200 0.016 400 0.015 600 0.016 38,300 0.016
TOTAL NORTH AMERICA 40,210 0.065 366,300 0.020 406,510 0.025 213,600 0.018
South America
Conga, Peru 51.35% 0 89,300 0.012 89,300 0.012 130,500 0.011
Yanacocha, Peru 51.35% 7,000 0.015 18,400 0.017 25,400 0.016 106,100 0.023
Merian, Suriname 50% 0 28,900 0.039 28,900 0.039 18,400 0.036
La Zanja(5), Peru 46.94% 300 0.004 300 0.004 600 0.008 2,100 0.015
TOTAL SOUTH AMERICA 7,300 0.014 136,900 0.018 144,200 0.018 257,100 0.018
Asia Pacific
Batu Hijau (6),
Indonesia 48.50% 3,400 0.018 157,400 0.007 160,800 0.008 37,300 0.002
Boddington, Western
Australia 100% 25,100 0.012 493,400 0.014 518,500 0.013 53,100 0.016
Jundee, Western
Australia 100% 0 700 0.194 700 0.194 1,000 0.224
Kalgoorlie, Western
Australia 50% 6,100 0.035 17,200 0.032 23,300 0.033 300 0.078
Duketon (7), Western
Australia 16.85% 1,260 0.030 6,200 0.026 7,460 0.000 15,200 0.024
Tanami, Northern
Territory 100% 500 0.113 3,600 0.109 4,100 0.109 10,400 0.168
Waihi, New Zealand 100% 0 2,100 0.243 2,100 0.243 900 0.195
TOTAL ASIA PACIFIC 36,360 0.019 680,600 0.014 716,960 0.014 118,200 0.029
Africa
Ahafo Open Pit, Ghana 100% 0 91,200 0.037 91,200 0.037 44,300 0.042
Ahafo Underground, Ghana 100% 0 0 0 0.000 14,500 0.116
Akyem, Ghana 100% 0 13,300 0.016 13,300 0.016 3,400 0.030
TOTAL AFRICA 0 104,500 0.034 104,500 0.034 62,200 0.059
TOTAL NEWMONT WORLDWIDE 83,870 0.040 1,288,300 0.018 1,372,170 0.019 651,100 0.024
(1) Mineralized material is reported exclusive of reserves.
(2) Mineralized Material calculated at a gold price of US$1,400, A$1,475, or NZ$1,850 per ounce unless
otherwise noted. 2010 Mineralized material was calculated at a gold price of US$1150, A$1,350, or
NZ$1,600 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, 2011.
(7) Mineralized material estimates provided by Regis Resources Ltd, in which Newmont holds a 16.85%
interest.
Attributable Copper Reserves(1)
December 31, 2011 December 31, 2010
Proven + Probable Proven + Probable
Proven Reserves Probable Reserves Reserves Reserve
Newmont
Deposits/Districts Share Tonnage Grade Copper Tonnage Grade Copper Tonnage Grade Copper Metallurgical Tonnage Grade Copper
(000 (million (000 (million (000 (million (000 (million
tons) (Cu%) pounds) tons) (Cu%) pounds) tons) (Cu%) pounds) Recovery tons) (Cu%) pounds)
North America
Phoenix, Nevada 100% 24,900 0.15% 70 425,400 0.15% 1,230 450,300 0.15% 1,300 61% 332,600 0.15% 1,030
Phoenix Copper
Leach, Nevada (2) 100% 9,900 0.24% 50 160,300 0.21% 690 170,200 0.21% 740 52% 132,900 0.23% 610
TOTAL NORTH
AMERICA 34,800 0.17% 120 585,700 0.16% 1,920 620,500 0.16% 2,040 58% 465,500 0.18% 1,640
South America
Conga, Peru(3) 51.35% 0 0 303,400 0.28% 1,690 303,400 0.28% 1,690 85% 317,200 0.26% 1,660
TOTAL SOUTH
AMERICA 0 0 303,400 0.28% 1,690 303,400 0.28% 1,690 85% 317,200 0.26% 1,660
Asia Pacific
Batu Hijau(3) 48.50% 127,600 0.51% 1,300 196,100 0.35% 1,370 323,700 0.41% 2,670 76% 293,400 0.44% 2,560
Batu Hijau,
Stockpiles(3)(4) 48.50% 0 0 156,900 0.34% 1,060 156,900 0.34% 1,060 66% 170,700 0.35% 1,200
Batu
Hijau,
Indonesia 48.50% 127,600 0.51% 1,300 353,000 0.34% 2,430 480,600 0.39% 3,730 73% 464,100 0.40% 3,760
Boddington,
Western Australia 100.00% 181,800 0.10% 350 871,700 0.11% 1,910 1,053,500 0.11% 2,260 83% 1,067,800 0.11% 2,360
TOTAL ASIA PACIFIC 309,400 0.27% 1,650 1,224,700 0.18% 4,340 1,534,100 0.20% 5,990 77% 1,531,900 0.20% 6,120
TOTAL NEWMONT
WORLDWIDE 344,200 0.26% 1,770 2,113,800 0.19% 7,950 2,458,000 0.20% 9,720 74% 2,314,600 0.20% 9,420
(1) Reserves are calculated at US$3.00 or A$3.15 per pound copper price unless otherwise noted. 2010 reserves were calculated at US$2.50
or A$2.95 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 under development. Leach reserves are within Phoenix Reserve Pit.
(3) Project is under development.
(4) Percentage reflects Newmont's economic interest at December 31, 2011.
(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.
Attributable Copper Mineralized Material Not in Reserves(1)(2)
December 31, 2011
Measured
+
Measured Indicated Indicated Inferred
Deposits/Districts Material Material Material Material
Newmont
Share Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade
(000 (000 (000 (000
tons) (Cu%) tons) (Cu%) tons) (Cu%) tons) (Cu%)
North
America
Phoenix,
Nevada 100% 0 0.00% 216,400 0.09% 216,400 0.09% 132,300 0.10%
Phoenix
Copper
Leach,
Nevada 100% 0 0.00% 14,100 0.20% 14,100 0.20% 54,100 0.20%
TOTAL
NORTH
AMERICA 230,500 0.10% 230,500 0.10% 188,700 0.13%
South
America
Conga,
Peru 51.35% 0 0.00% 89,300 0.19% 89,300 0.19% 130,480 0.19%
TOTAL
SOUTH
AMERICA 89,300 0.19% 89,300 0.19% 130,480 0.19%
Asia
Pacific
Batu
Hijau,
Indonesia
(3) 48.50% 3,400 0.36% 157,400 0.33% 160,900 0.33% 37,300 0.25%
Boddington,
Western
Australia 100.00% 25,100 0.07% 493,400 0.09% 518,500 0.09% 53,100 0.08%
TOTAL
ASIA
PACIFIC 28,500 0.10% 650,800 0.15% 679,400 0.15% 90,400 0.15%
TOTAL
NEWMONT
WORLDWIDE 28,500 0.10% 970,600 0.14% 999,200 0.14% 409,580 0.15%
(1) Mineralized material is reported exclusive of reserves.
(2) Mineralized material calculated at a copper price of US$3.50 or A$3.70
per pound unless otherwise noted. 2010 mineralized material was calculated at
a copper price of US$3.00 or A$3.50 per pound. Tonnage amounts have been
rounded to the nearest 100,000.
(3) Percentage reflects Newmont's economic interest at December 31, 2011.
Attributable Proven, Probable, and Combined Silver Reserves(1)
December 31, 2011
Deposits/Districts Proven and Probable Metallurgical
by Reporting Unit Proven Reserves Probable Reserves Reserves Recovery
Newmont
Share Tonnage Grade Silver Tonnage Grade Silver Tonnage Grade Silver
(000 (000 (000 (000 (000 (000
tons) (oz/ton) ozs) tons) (oz/ton) ozs) tons) (oz/ton) ozs)
North America
Midas, Nevada 100% 300 4.624 1,200 500 8.629 4,050 800 7.201 5,250 88%
Phoenix, Nevada 100% 24,900 0.250 6,250 425,400 0.244 103,730 450,300 0.244 109,980 36%
TOTAL NORTH
AMERICA 25,200 0.296 7,450 425,900 0.253 107,780 451,100 0.255 115,230 38%
South
America
Conga,
Peru 51.35% 0 0 303,400 0.064 19,400 303,400 0.064 19,400 70%
Yanacocha Open
Pits 51.35% 18,500 0.081 1,490 71,100 0.137 9,750 89,600 0.125 11,240 25%
Yanacocha
Stockpiles (2) 51.35% 1,300 0.363 460 4,800 1.466 6,970 6,100 1.235 7,430 36%
Yanacocha
In-Process(3) 51.35% 0 0 59,500 0.485 28,840 59,500 0.485 28,840 12%
Total
Yanacocha,
Peru 19,800 0.099 1,950 135,400 0.337 45,560 155,200 0.306 47,510 19%
TOTAL SOUTH
AMERICA 19,800 0.099 1,950 438,800 0.148 64,960 458,600 0.146 66,910 34%
Asia
Pacific
Batu Hijau Open
Pit(4) 48.50% 127,600 0.047 5,940 196,100 0.023 4,470 323,700 0.032 10,410 78%
Batu Hijau
Stockpiles(2)(4) 48.50% 0 0 156,900 0.015 2,430 156,900 0.015 2,430 72%
Total Batu
Hijau,
Indonesia 48.50% 127,600 0.047 5,940 353,000 0.020 6,900 480,600 0.027 12,840 76%
TOTAL ASIA PACIFIC 127,600 0.047 5,940 353,000 0.020 6,900 480,600 0.027 12,840 76%
TOTAL NEWMONT
WORLDWIDE 172,600 0.089 15,340 1,217,700 0.148 179,640 1,390,300 0.140 194,980 39%
(1) Reserves are calculated at a silver price of US$22.00, A$23.00, or NZ$29.00 per ounce unless otherwise noted. 2010
reserves were calculated at a silver price of US$15.00, A$17.50, or NZ$21.50 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) 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.
(3) 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.
(4) Percentage reflects Newmont’s economic interest at December 31, 2011.
Attributable Silver Mineralized Material Not in Reserves(1)(2)
December 31, 2011
Measured +
Measured Indicated Indicated Inferred
Deposits/Districts Material Material Material Material
Newmont
Share Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade
(000 (000 (000 (000
tons) (oz/ton) tons) (oz/ton) tons) (oz/ton) tons) (oz/ton)
North America
Sandman, Nevada 100% 0 600 0.238 600 0.238 2,100 0.167
Midas, Nevada 100% 0 1.719 100 4.762 100 4.352 100 9.560
Phoenix, Nevada 100% 0 216,400 0.173 216,400 0.173 132,300 0.197
Phoenix
Stockpiles (3),
Nevada 100% 9,900 0.423 196,000 0.051 205,900 0.069 230,300 0.075
TOTAL NORTH
AMERICA 9,900 0.425 413,100 0.116 423,000 0.123 364,800 0.123
South America
Conga, Peru 51.35% 0 0 89,300 0.047 89,300 0.047 99,100 0.033
Yanacocha, Peru 51.35% 5,100 0.423 11,400 0.083 16,500 0.188 19,200 0.292
TOTAL SOUTH
AMERICA 5,100 0.423 100,700 0.051 105,800 0.069 118,300 0.075
Asia Pacific
Batu Hijau (4),
Indonesia 48.50% 3,400 0.039 157,400 0.026 160,800 0.026 37,300 0.015
TOTAL ASIA PACIFIC 3,400 0.039 157,400 0.026 160,800 0.026 37,300 0.015
TOTAL NEWMONT
WORLDWIDE 18,400 0.353 671,200 0.085 689,600 0.092 520,400 0.104
(1) Mineralized material is reported exclusive of reserves.
(2) Mineralized Material calculated at a silver price of US$26.00, A$27.50, or NZ$34.50 per
ounce unless otherwise noted. 2010 Mineralized material was calculated at a gold price of
US$18.00, A$21.00, or NZ$25.50 per ounce. Tonnage amounts have been rounded to the nearest
100,000.
(3) 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.
(4) Percentage reflects Newmont's economic interest at December 31, 2011.
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 2011 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 23, 2012, available at www.newmont.com.
Newmont Mining Corporation
announced it will report Fourth Quarter and Year-End 2011 results after the market closes on Thursday, February 23, 2012. A conference call will be held on Friday, February 24 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company’s website.
Conference
Call
Details
Dial-In
Number 888.566.1822
Intl
Dial-In
Number 312.470.7116
Leader John Seaberg
Passcode Newmont
Replay
Number 866.396.4180
Intl
Replay
Number 203.369.0506
Replay
Passcode 2012
Webcast
Details
URL http://services.choruscall.com/links/newmont120224.html
Cautionary Statement Regarding Forward-Looking Statements: This 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. Such forward-looking statements may include, without limitation: (i) estimates of future mineral production and sales; (ii) estimates of future costs applicable to sales; (iii) estimates of future capital expenditures and consolidated advanced projects, research and development expenditures; and (iv) expectations regarding the development, growth and exploration potential of the Company’s projects. 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 projects being consistent with current expectations and mine plans; (iii) political, social and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (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 mineral resource 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, projected 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 and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2011 Annual Report on Form 10-K, filed on February 24, 2012, 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,” 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.
Cautionary Statement regarding Reserves and NRM: Ian Douglas, Newmont’s Group Executive of Reserves, 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.
SOURCE Newmont Mining Corporation
Newmont Mining Corporation
CONTACT: Investors, John Seaberg, +1-303-837-5743,
john.seaberg@newmont.com, or
Karli Anderson, +1-303-837-6049, karli.anderson@newmont.com, or Media,
Omar Jabar, +1-303-837-5114, omar.jabara@newmont.com, or Diane
Reberger, +1-303-967-9455, diane.reberger@newmont.com, all of Newmont
Mining Corporation
http://www.newmont.com
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