The board of Newcrest Mining has approved an outlay of $214 million to extend the life of its Telfer operation in Western Australia.
The company will proceed with the West Dome Stage 8 cutback, with the mine now expected to extend operations into early FY25.
The cutback is located adjacent to the current West Dome Stage 2 and West Dome Stage 5 pits, and first ore production is expected in the December 2022 quarter.
Newcrest managing director Sandeep Biswas said the move highlighted the company’s ability to maximise the full potential of its assets through its strong technical expertise.
“Telfer is strategically positioned in the highly prospective Paterson Province and we are continuing to progress several potential options to expand the resource base in the open pits and underground to unlock additional value,” he said.
Following the approval of the West Dome Stage 8 cutback, Newcrest has completed further hedging of a portion of Telfer’s future planned production for FY23 and FY24 to secure margins and support investment in cutbacks and mine development.
A further 432,479 ounces of planned gold sales have been hedged in the form of Australian dollar gold zero cost collars.