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Newcrest completes acquisition of Pretium Resources

Published by
Global Mining Review,


Newcrest Mining Ltd has completed its acquisition of Pretium Resources Inc.

Pretium owns the Brucejack mine in the highly prospective Golden Triangle region of British Columbia, Canada. Brucejack began commercial production in July 2017 and is one of the highest-grade operating gold mines in the world.

Highlights:

  • Addition of a Tier 1, large scale, long life, low cost mine in a world class jurisdiction to Newcrest’s unrivalled asset portfolio.
  • Immediate increase in Newcrest’s gold production and cash flows.
  • Three phase transformation program initiated to optimise operations, realise full uplift potential, and grow the mineral resource.
  • Targeted mill throughput capacity upside in the range of 4500 to 5000 tpd.
  • Aggressive drilling program planned to explore significant near mine and district-scale opportunities.
  • Expected synergy benefits of approximately C$15 million to $20 million (US$12 million to $16 million) per annum.

Sandeep Biswas, Newcrest Managing Director and Chief Executive Officer, comments:

“We are delighted to reach this major milestone and I welcome our new shareholders, employees, First Nations partners, local communities, and business partners resulting from the transaction. We are very excited to add Brucejack to Newcrest’s portfolio, which now includes exposure to six Tier 1 assets. Through this acquisition and the continued development of our outstanding organic growth pipeline, Newcrest’s base case gold production is expected to remain strong until at least 2030, and we have a range of further upside opportunities being progressed across the portfolio. This production profile is also expected to drive a major reduction in all-in sustaining costs, which makes Newcrest unique in the industry.

“We have a proud history and depth of experience in operating epithermal gold mines over many years. We will pursue efficiencies to simplify mining and increase productivity through a holistic view of the Brucejack operations and orebody.

“In parallel, our exploration team will be progressing an extensive drilling campaign across the Brucejack mineral claims, which make up one of the largest epithermal footprints we have ever seen. The land package is largely unexplored and very early in its life, and we see significant upside potential beyond Valley of the Kings and Golden Marmot.

“The combined team is driven and has the capability to deliver our three phase transformation program which we believe will generate significant long-term value for our shareholders.”

Read the article online at: https://www.globalminingreview.com/mining/10032022/newcrest-completes-acquisition-of-pretium-resources/

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