Newmont Mining Corp. announced that it received approval from the U.S. Bureau of Land Management to proceed with the construction of its Long Canyon Mine in Nevada.
The mine site less than 100 miles from Newmont’s existing Nevada operations.
“We are very excited to have received the record of decision for our Long Canyon project,” Newmont Director of External Relations Mary Korpi told the Elko Daily Free Press. “This important milestone is due to the efforts of the Newmont Long Canyon team, the work of our federal and state regulatory agencies and the support of key stakeholders. Long Canyon will be an important asset for Newmont, Elko County, our local cities and the state of Nevada.”
Newmont Regional Environmental Affairs Manager Dan Anderson said after the company receives the authorization to proceed from state and federal agencies “assuring the reclamation surety is in place, Newmont will start issuing contracts for initial construction activities in the coming months.”
“This includes vegetation clearing, topsoil stockpiling, and preparation of the pit and site facilities,” he said.
Newmont said the first phase of the development will consist of an openpit mine and heap leach with expected gold production of 100,000 to 150,000 oz/year over an eight-year mine life. The company expects the all-in sustaining costs of production to range between $500 and $600/oz.
At current gold prices, the mine is expected to generate about $100 million annually, starting in 2017.
Construction will employ about 300 people and the mine should employ almost 300 people during operations.
“Taking a phased approach to developing Long Canyon gave us the means to lower development capital to between $250 million and $300 million; generate an internal rate of return of about 17 percent at current gold prices; and reduce the payback period to just over four years after first commercial production, which we expect to reach in the first half of 2017,” said Gary Goldberg, president and chief executive officer. “ I’m confident that we have the engineering, ore body knowledge and community agreements in place to deliver this project safely, on time and on budget.”
The deposit is about three miles in length and 2,500 feet at its widest in the proposed mine plan, Anderson said previously. It is high-grade oxide ore, about three-quarter ounce per ton, and the end of the mineralization has yet to be found.