Page 2 - AHAFO DIGEST trial

2018 AHAFO DIGEST
Ahafo mine… bracing up for a golden future
In 2004, Ms. Cindy Williams, a
Geologist was sent to Ahafo from
the Corporate Office to do one
thing – evaluate the Ahafo
property to sell.
After spending six months in
Ghana, Cindy’s mission changed
after she and her team of Geolo-
gists begun to look at the models
differently leading to a rethink
by the leadership of Newmont to
keep the property and to invest in
it. The rest is history that is still in
the making.
It has been 12 years since Ahafo
achieved commercial production
with nearly six million ounces
produced. Ahafo still has huge
potential and thereby earning
acclaim as a significant asset in
Newmont’s portfolio. A little peep
into the following projects under-
lines this assertion.
Subika Underground (SUG)
Subika Underground has
achieved commercial production
adding higher-grade, lower-cost
gold production. Subika Under-
ground represents Newmont’s
third profitable expansion in 2018
and its tenth completed project
since 2013. Subika Underground
was delivered on schedule and
within budget for approximate-
ly $186 million in development
capital.
This provides the platform to
explore other underground
potential in Ahafo. From 2019,
Subika Underground will add
average annual gold production
of between 150,000 and 200,000
ounces per year for the first five
years and has an initial mine life
of around 10 years.
Ahafo Mill Expansion
Work is progressing at the project
site. Ahafo Mill
Expansion is designed to
maximize resource value by
improving production margins and
accelerating stockpile processing.
The project also supports
profitable development of Ahafo’s
highly prospective underground
resources. First production is
expected in the second half of
2019 with commercial production
also expected in the second half
of 2019. The expansion is
expected to increase average
annual gold production by be-
tween 75,000 and 100,000
ounces per year for the first five
years beginning in 2020. Capital
costs for the project are estimated
Looking ahead
between $140 and $180 million
with expenditure of approximately
$35 to $45 million in 2019.
The Ahafo Mill Expansion,
together with the recently
completed Subika Underground
project, will improve Ahafo’s
production to between 550,000
and 650,000 ounces per year for
the first five full years of produc- Together we can make Ahafo the
tion (2020 to 2024). During this
period Ahafo’s CAS is
expected to be between $650
and $750 per ounce and AISC is
2
expected to be between $800 and
$900 per ounce. This represents
average production improvement
of between 200,000 and 300,000
ounces at CAS improvement
of between $150 and $250 per
ounce and AISC improvement of
$250 to $350 per ounce, com-
pared to 2016 actuals.
Ahafo North Project
The project is progressing
steadily. Next year is a significant
phase in the life of the project as
the team work towards obtaining
an Environmental Permit.
In conclusion, next year Ahafo’s
production forecast is 700,000
ounces. There are exciting times
ahead that require extra
commitment and focus on safety,
managing our costs and to show
that we are a credible destination
for Newmont’s future development
capital. We must all play our part
by honouring our commitments,
sustain a good performance and
a healthy relationship with our
stakeholders.
safest and most profitable mine in
Newmont.
Let’s do it!