GHANA – Newmont Goldcorp, one of the world’s leading gold mining company as measured by assets, prospects and talent has in October this year announced on that the Ahafo Mill Expansion in Ghana achieved commercial production.

The gold mining company added that the expansion project was on schedule and within estimated budget of around US$175 million.

Newmont Goldcorp’s average annual gold production is expected to rise to between 550,000 and 650,000 ounces per year through 2024 as a result of this new expansion combined with the Subika Underground, which was successfully completed in November 2018.

 “The Ahafo Mill Expansion represents our third profitable project delivered on schedule and within budget in 2019, along with the Tanami Power project in Australia and the Borden mine in Canada,” said Tom Palmer, Newmont Goldcorp’s President and Chief Executive Officer.

“The mill expansion is expected to generate an internal rate of return of more than 20 percent at a $1,200 gold price, while also extending profitable production at Ahafo through at least 2029,” added Palmer.

He further added that he continued to be encouraged by Ahafo’s and Ghana’s mineral prospectus and the potential for ongoing, profitable growth.

Features and benefits of the mill expansion include: Increasing mill capacity at Ahafo by more than 50 percent to nearly 10 million tonnes per year.

This has been made possible with the addition of a crusher, grinding mill and leach tanks to the circuit and will add an annual gold production of 75,000 to 100,000 ounces per year for the first five full years beginning in 2020.

This according to Newmont Goldcorp will  accelerate efficient processing of ore from stockpiles and the Subika Underground mine, as well as harder, lower-grade ore from Ahafo’s existing pits.

The expansion will also support the profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside.

Ahafo is expected to deliver record production this year – with improved costs – driven by higher grades from the Subika open pit, a full year of mining from the Subika Underground and the completion of the Ahafo Mill Expansion.

Commercial production began at Ahafo in 2006, and in 2018 the operation sold 436,000 ounces of gold at all-in sustaining costs of $864 per ounce.i

Newmont Goldcorp has the strongest and most sustainable portfolio of operations, projects and exploration prospects in Ghana’s gold sector.

 These assets allow the Company to sequence profitable projects in its unmatched pipeline to sustain six to seven million ounces of steady gold production over a decades-long time horizon.