Newcrest seems to have found a whole new area of interest at its 70% owned Red Chris gold and copper mine in British Columbia in Western Canada.
Newcrest bought its controlling stake in Red Chris in August 2019, paying $US806 million (or around $A1.1 billion at the time). The remaining 30% is held by Imperial Metals Corp.
Newcrest is stepping up its drilling at Red Chris with the discovery of a new area of mineralisation for what could become a major underground gold/copper mine.
In the update, Newcrest revealed that it had struck a whole new area of gold and copper mineralisation called East Ridge which is adjacent to the existing East Zone at Red Chris.
Newcrest CEO Sandeep Biswas was upbeat in Thursday’s exploration update: “We are excited to announce the discovery of the East Ridge which is a new zone of higher-grade mineralisation at Red Chris.”
“The initial intercept is open in all directions, with mineralisation displaying similar characteristics to that of the high-grade pods in the East Zone.
“Drilling to determine the significance of this new zone is underway, with the results from this initial intercept highlighting the potential for additional discoveries at Red Chris,” the CEO said.
Since the end of 2020 Newcrest has stepped up the drilling at red Chris and on the new area of interest with up to six rigs operating at one time.
“A further 4,742m of drilling has been completed from 4 drill holes. All drill holes intersected mineralisation. This contributed to a total of 109,177m of drilling from 92 drill holes since Newcrest acquired its interest in the joint venture (in August 2019),” Newcrest said in the update.
“Drilling continues to return significant intercepts across the entire porphyry corridor,” the company said.
Newcrest said its first hole drilled on the East Ridge prospect “discovered a new zone of higher-grade mineralisation” with one hole returning an intersection returned 198 metres with an average of 0.89 grams of gold to the tonne and 0.83% copper from 800 metres.
Included in this intersection was a smaller intercept of 76 metres averaging 1.8 grams to the tonne of gold and 1.5% copper. That was from 908 metres
“The style of mineralisation and grade tenor is similar to that seen in the high-grade pods from the East Zone (previously reported). The intercept, a 300m step out east of the East Zone, is located south of the South Boundary Fault, is open in all directions and extends the eastern side of the porphyry corridor … Drilling to define the extent and continuity of this high-grade mineralisation is underway,” Newcrest said.
And Newcrest says there have also been good results from drilling on existing areas of mineralisation such as the East Zone.
Newcrest said one drill hole (which went through a big fault in the zone) returned 524 metres at 0.37 grams to the tonne of gold and 0.38% copper from 528 metres. That included 156 metres at 0.71 grams of gold to the tonne and 0.59% copper from 638 metres.
“This interval also includes 10m @ 1.5g/t Au & 0.88% Cu from 784m which is located on the south side of the fault. Located 300m west of East Ridge, drilling to define the extent and continuity of this potential high-grade mineralisation is underway,” Newcrest said.
And in the Main Zone similar results have been obtained.
“… drilling has confirmed the potential for further higher-grade mineralisation which could support additional mining fronts, beneath and to the south west of the open pit,” Newcrest said in the update.
Results from one drill hole, “which followed up historic results south west of the Main Zone pit, returned 438 metres @ 0.32grans of gold to the tonne and 0.41% copper from 264 metres.
“The mineralisation is located immediately adjacent to the South Boundary Fault and is open at depth and along strike. Drilling to define the extent and continuity of this potential high-grade mineralisation is underway.”
Mr Biswas told the company’s AGM last November that the Red Chris mine in Canada has the potential to be added to its list of Tier 1 assets.
“These results have given us the confidence to progress work on a decline which we hope to have started by early next year,” he told shareholders.
“We are aiming to provide a JORC and NI 43-101 compliant mineral resource statement for Red Chris by the end of March 2021 and complete a pre-feasibility study by the end of September 2021.
“The study is looking at a range of mining options, including a block cave, as well as the option of exploiting the higher-grade pods with a stopping operation, ahead of bulk underground mining.”
In February Newcrest announced the start of the $A101 million construction of the box cut for the exploration decline at its Red Chris mine in British Columbia, following receipt of the necessary regulatory approvals.
“The commencement of construction of the box cut is a significant milestone in the objective of having a block cave in operation at Red Chris “in the next five to six years,” Mr Biswas said in a statement on February 21.
That work is continuing at Red Chris but there was no mention of any resource figure in Thursday’s update.
Newcrest also reported promising results from a drilling campaign at the Havieron prospect in WA’s East Pilbara (near its Telfer mine) where it is spending around $146 million on preparatory works.
“At Havieron, infill drilling (within the Inferred Mineral Resource Boundary) designed to support the delivery of an Indicated Mineral Resource estimate in the South East Crescent Zone and adjacent Breccia Zones has been completed. The results are in line with expectations and increase confidence in the continuity of the higher-grade mineralisation.
Newcrest shares ended at $24.42 yesterday for a gain of nearly 2%.
