Newmont (ASX:NEM) estimates the Red Chris Block Cave Project in Canada will require US$4.2–4.8 billion ($5.99–6.84 billion) in development capital.
The estimate is presented on a 100% ownership basis, stated in real terms, and includes contingency, according to Newmont’s latest update.
It is net of an anticipated C$500 million ($508.8 million) contribution from the Canadian Government but excludes costs associated with transitioning from open-pit to block-cave mining. The contribution’s terms remain under negotiation.
Newmont is finalising a Feasibility Study ahead of a full-funds investment decision expected in early 2027.
Subject to approval from Newmont and the Red Chris joint venture board, construction is expected to increase during 2027 before targeted commercial production in 2033.
The project includes an underground block-cave mine, an expansion of processing capacity to 15 million tonnes annually, and associated infrastructure upgrades.
Its first phase is expected to produce 3 million ounces of gold and more than 850,000 tonnes of copper over an initial 13-year cave life.
Production is forecast to average 275,000–325,000 ounces of gold and 65,000–85,000 tonnes of copper annually between 2035 and 2040.
CEO Natascha Viljoen says the development supports Newmont’s strategy of expanding its copper exposure.
“We are advancing the Red Chris block cave project, a fully permitted, shovel-ready gold-copper development in British Columbia’s Golden Triangle, and the next major reinvestment in our business,” Viljoen says.
The update accompanied Newmont’s third-quarter results, which beat analysts’ profit estimates.
Separately, Newmont recently sold its Northumberland Gold Project in Nevada to StrikePoint Gold (TSX-V:SKP) for US$70 million ($100.13 million), as reported by Mining.com.au.
Newmont operates and owns 70% of Red Chris, while Imperial Metals (TSX:III) holds the remaining 30%.
Write to France Pinzon at Mining.com.au
Main image: Newmont
