Newcrest Mining Limited - Quarterly Exploration Report for the three months ended 30 September 2020

MELBOURNE, Australia, Oct. 28, 2020 /CNW/ -

Highlights

• Drilling results have returned the best intercept to date at the Havieron Project from infill drilling of the South East Crescent Zone with 120.7m @ 9.3g/t Au & 0.18% Cu from 1349.3m, including 26.6m @ 34g/t Au & 0.23% Cu from 1384.4m (HAD065W2).
• A potential new target termed the "Eastern Breccia" has been identified at the Havieron Project.
• Further infill drilling was completed in the period to support the estimation of an initial Inferred Mineral Resource for Havieron in the December 2020 quarter from the South East Crescent and adjacent breccia mineralisation.
• Exploration activities commenced at the Wilki Project in the Paterson Province.
• Resource definition infill drilling at Red Chris has confirmed the presence of discrete high grade mineralisation in the East Zone.

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas said "Havieron continues to expand its mineralisation with its best high grade intercept to date of 120.7m @ 9.3g/t gold. Drilling results at Havieron have also identified a potential new target termed the Eastern Breccia, highlighting the potential for a new region of breccia development. We expect to deliver our initial Inferred Mineral Resource for Havieron in the December quarter. At Red Chris, drilling results continue to confirm the presence of discrete high grade mineralisation in the East Zone."

Havieron - Significant results since the June Quarterly Exploration Report:

• HAD043W2^^ 
• 116.2m @ 2.6g/t Au & 0.65% Cu from 607m
• Including 18m @ 6.3g/t Au & 0.92% Cu from 671m
• HAD047^^ 
• 309m @ 0.99g/t Au & 0.07% Cu from 915m
• Including 44m @ 3.3g/t Au & 0.15% Cu from 1157m
• Including 1m @ 100g/t Au & 0.85% Cu from 1158m
• HAD057W5
• 212m @ 2g/t Au & 0.11% Cu from 981m
• Including 30.2m @ 5.6g/t Au & 0.17% Cu from 1115m
• HAD065W2*
• 120.7m @ 9.3g/t Au & 0.18% Cu from 1349.3m
• Including 26.6m @ 34g/t Au & 0.23% Cu from 1384.4m
• Including 6m @ 57g/t Au & 0.06% Cu from 1386m
• Including 3.4m @ 131g/t Au & 0.06% Cu from 1398.6m
• HAD077^^ 
• 127.6m @ 2.0g/t Au & 0.33% Cu from 551m
• Including 29.8m @ 6.7g/t Au & 0.86% Cu from 616m
• HAD078^^ 
• 208.6m @ 1.2g/t Au & 0.22% Cu from 832.4m
• Including 10.4m @ 4.0g/t Au & 0.11% Cu from 1002.6m
• HAD083   
• 183.7m @ 1.8g/t Au & 0.18% Cu from 1098m
• Including 17.2m @ 8.8g/t Au & 0.47% Cu from 1165.2m
• 134m @ 1.4g/t Au & 0.04% Cu from 1529m
• 98.2m @ 1.9g/t Au & 0.14% Cu from 1677m
• Including 41.1m @ 3.7g/t Au & 0.1% Cu from 1723.9m
• HAD084   
• 342.2m @ 2.0g/t Au & 0.11% Cu from 1536.8m
• Including 14m @ 19g/t Au & 0.2% Cu from 1572m
• HAD085*  
• 74.2m @ 2.0g/t Au and 0.09% Cu from 568.8m
• Including 19.1m @ 7.0g/t Au & 0.23% Cu from 594m
• HAD089   
• 116m @ 2.9g/t Au & 0.07% Cu from 1136m
• Including 13m @ 13g/t Au and 0.17% Cu from 1136m

* partial results, assays pending ** partial intercept, assays pending; ^ updated intercept or ^^ previously reported.

Red Chris - Significant results since the June Quarterly Exploration Report:

• RC625:
• o  426m^^ @ 0.62g/t Au & 0.48% Cu from 640m
• o  including 76m^^ @ 1.9g/t Au & 1.2% Cu from 734m
• o  including 60m^^ @ 2.2g/t Au & 1.3% Cu from 736m
• RC634
• o  514m^ @ 1.3g/t Au & 0.77% Cu from 650m
• o  including 202m^^ @ 2.7g/t Au & 1.3% Cu from 802m
• o  including 166m^^ @ 3.0g/t Au & 1.5% Cu from 806m
• o  including 26m^^ @ 8.8g/t Au & 3.4% Cu from 888m
• o  including 12m^^ @ 12g/t Au & 4.4% Cu from 890m
• o  including 12m^^ @ 1.5g/t Au & 0.93% Cu from 988m
• o  including 144m^ @ 0.64g/t Au & 0.48% Cu from 1016m
• o  including 10m^ @ 1.0g/t Au & 0.71% Cu from 1022m
• RC637:
• 446m @ 0.51g/t Au & 0.45% Cu from 618m
• including 134m @ 1.0g/t Au & 0.8% Cu from 692m
• including 60m @ 1.5g/t Au & 1.1% Cu from 694m
• RC638
• 488m @ 0.61g/t Au & 0.50 % Cu from 536m
• including 104m @ 1.0g/t Au & 0.76% Cu from 646m
• including 54m @ 1.3g/t Au & 0.96% Cu from 668m
• including 100m @ 1.3g/t Au & 1.0% Cu from 778m
• including 86m @ 1.5g/t Au & 1.1% Cu from 778m

** partial intercept, assays pending; ^ updated intercept or ^^ previously reported.

Havieron Project, Western Australia

The Havieron Project is operated by Newcrest under a farm-in agreement with Greatland Gold Plc. Newcrest has earned a 40% interest in the project and is now progressing Stage 3 work programs, including ongoing exploration drilling and studies to support early development options. Newcrest can earn up to a 70% joint venture interest through expenditure of US$65 million and the completion of a series of exploration and development milestones in a four-stage farm-in over a six year period that commenced in May 2019. Newcrest may acquire an additional 5% interest at the end of the farm-in period at fair market value. The farm-in agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program and feasibility study, the resulting joint venture mineralised material will be processed at Telfer.

The Havieron Project is centred on a deep magnetic anomaly located 45km east of Telfer in the Paterson Province. The target is overlain by more than 420m of post mineral Permian cover. Newcrest commenced drilling during the June 2019 quarter and has progressively increased its drilling activities to the extent that up to nine drill rigs are now in operation. A further 34 drill holes for 35,037m of drilling has been completed since 30 June 2020, with all drill holes intersecting mineralisation. This contributes to a total of 111,913m of drilling from 120 drill holes since Newcrest commenced exploration activity in May 2019.

At Havieron, exploration activities have focused on an infill drilling program to support the estimation of an initial Inferred Mineral Resource from the South East Crescent and adjacent breccia, expected in the December 2020 quarter, together with step out drilling to define the extents and growth potential of the Havieron mineralised system.

Drilling since May 2019 has outlined an ovoid shaped zone of variable brecciation, alteration and sulphide mineralisation with dimensions of 650m x 350m trending in a north west orientation. Breccia mineralisation was initially identified internal to the Crescent Zone but most recently has been recognised external to the Crescent sulphide zone on the east, northwest and southeast.

Within this ovoid shaped zone (at this stage) exploration has identified four key target regions, which are:

• South East Crescent and Breccia
• North West Crescent
• Northern Breccia
• Eastern Breccia

Within the South East Crescent and Breccia region, infill drilling is focused on a nominal drill spacing of 50 – 100m laterally, and 100m vertically. A total of 73 drill holes have been completed to support the estimation of an initial Inferred Mineral Resource in the December 2020 quarter. The majority of this drilling is located in the upper 600m vertical extent of the zone. Interpretation of data in the South East Crescent area suggests:

• The upper levels of the system (-170m to -400mRL) have an internal unfolded strike of 550m, an average width estimate of 20m and a height of 230m.
• The mid level of the system (-400m to -600mRL) has an internal unfolded strike of 400m, an average width estimate of 20m and a height of 200m.
• The lower levels (-600m to -900mRL) where drill tested, hosts the Crescent Zone which tapers in strike length to 300m, with a width of approximately 20m and a height of 300m.

Infill drilling continues to demonstrate the continuity of higher grade mineralisation within the South East Crescent and Breccia including HAD065W2 which returned 120.7m @ 9.3g/t Au & 0.18% Cu from 1349.3m, including 26.6m @ 34g/t Au & 0.23% Cu from 1384.4m. This result confirms the presence of higher grade shoots within the Crescent Zone and remains open at depth.    

In the North West Crescent target, a total of eight drill holes have been completed, of which three have intersected higher grades as part of the initial growth drilling phase. Results and interpretation from the drilling highlighted:

• The presence of high grade sulphide mineralised zones in three drill holes including:
• HAD085 returned 74.2m @ 2.0g/t Au & 0.09% Cu from 568.8m, including 19.1m @ 7.0g/t Au & 0.23% Cu from 594m,
• HAD089 returned 116m @ 2.9g/t Au & 0.07% Cu from 1136m, including 13m @ 13.0g/t Au & 0.17% Cu from 1136m.
• These intercepts follow on from previously reported drill hole HAD066, 82.1m^^ @ 2.4g/t Au & 0.08% Cu from 557.6m.
• Further drill testing is required to determine the continuity and extent of the higher grade mineralisation.

Mineralisation on the limbs between the south-east and north-west closure is irregularly developed.

The Northern Breccia has been identified in 15 drill holes to date. Mineralisation is observed from -550 to -850mRL (open at depth) striking to the North West over 300m and between 100-150m in width. Ongoing extensional drilling has confirmed and further expanded the footprint of the Northern Breccia hosted mineralisation. Additional drilling is required to understand the grade continuity and metal distribution.

• Additional results from this breccia include:
• HAD047 returned 309m^^ @ 0.99g/t Au and 0.07% Cu from 915m including 44m^^ @ 3.3g/t Au and 0.15% Cu from 1157m, and
• HAD078, 208.6m^^ @ 1.2g/t Au & 0.22% Cu from 832.4m including 10.4m^^ @ 4.0g/t Au & 0.11% Cu from 1002.6m.

Growth drilling from two drill holes has identified an emerging early-stage target termed the Eastern Breccia. This drilling is encouraging as it highlights the potential for a new region of breccia development not previously recognised and extends mineralisation externally to the Crescent sulphide mineralisation.

• Significant results from the initial two drill holes include:
• HAD083 returned 134m @ 1.4g/t Au & 0.04% Cu from 1529m, and 98.2m @ 1.9g/t Au & 0.14% Cu from 1677m Including 41.1m @ 3.7g/t Au & 0.1% Cu from 1723.9m, and
• HAD084 returned 342.2m @ 2.0g/t Au & 0.11% Cu from 1536.8m, including 14m @ 19.0g/t Au & 0.2% Cu from 1572m.
• Additional drilling is required to assess the potential of this new zone of breccia mineralisation.

* partial results, assays pending ** partial intercept, assays pending; ^ updated intercept or ^^ previously reported.

Table 1: Significant Havieron intercepts

Refer to Appendix 1 for additional information.
* partial results, assays pending ** partial intercept, assays pending; ^ updated intercept or ^^ previously reported.

Red Chris, British Columbia, Canada

Red Chris is a joint venture between Newcrest (70%) and Imperial Metals Corporation (30%). Newcrest acquired its interest in, and operatorship of, Red Chris on 15 August 2019.

There are two drilling campaigns presently underway at Red Chris. The first is the East Zone Resource Definition program which is designed to obtain geological, geotechnical and metallurgical data to support future studies for underground block cave mining. The second is the Brownfields Exploration program which is focused on the discovery of additional zones of higher grade mineralisation within the Red Chris porphyry corridor. Drilling activity increased during the period with eight diamond drill rigs in operation. A further 34,409m of drilling has been completed since 30 June 2020 from 27 drill holes. All drill holes intersected mineralisation, except eight that were dedicated geotechnical holes. This contributed to a total of 86,366m of drilling from 69 drill holes since Newcrest acquired its interest in the joint venture.

The East Zone Resource Definition program which comprised a further 10 follow up infill drill holes is now complete. Results confirm the presence of multiple discrete high grade pods of mineralisation with infill resource definition hole RC634 returning 514m^ @ 1.3g/t Au & 0.77% Cu from 650m including 166m^^ @ 3g/t Au & 1.5% Cu from 806m.

Drilling during the reporting period continued to confirm the footprint of the western high grade pod, which was first intersected in RC616 (previously reported) continued during the reporting period. A program of 100m spaced holes is designed to confirm the lateral and vertical extent. Final results for step-out hole RC625, located 100m south west of RC616 returned 426m^^ @ 0.62g/t Au and 0.48% Cu from 640m including 60m^^ @ 2.2g/t Au and 1.3% Cu from 736m. Results received during the quarter continued to confirm the high grade mineralisation with RC637 located 100m above RC625, returning 446m @ 0.51g/t Au and 0.45% Cu from 618m including 60m @ 1.5g/t Au and 1.1% Cu from 694m. Drilling to define the extent and continuity of this high grade pod is ongoing. These discrete pods (refer to figures 5-9 below) sit within the larger footprint of the overall porphyry system.

The Brownfields Exploration program has been expanded with drilling underway across the East Zone, Main Zone and Gully Zone. The program is following up on historic drilling results along a 3km segment of the porphyry corridor in search for zones of mineralisation which could support additional mining fronts.

A property wide Airborne Electro-Magnetic (AEM) and gravity survey was completed during the period. A high-resolution airborne magnetics survey was also completed over a portion of the property to provide complete coverage. The survey aims to generate drill targets across the entire claim package.

** partial intercept, assays pending; ^ updated intercept or ^^ previously reported.

Table 2: Significant Red Chris intercepts

Refer to Appendix 2 for additional information

** partial intercept, assays pending; ^ updated intercept or ^^ previously reported. 

GJ Project, British Columbia, Canada

During the September quarter, an airborne geophysical survey of ZTEM and gravity data collection was completed over the entire GJ property. In addition, a collection of high-resolution airborne magnetics commenced over the northern portion of the property. This data will be combined with historical exploration and geological information to define new drill targets for the next summer field season. 

Nevada, USA

At the Jarbidge project in northern Nevada, the US Forest Service Plan of Operations permit was issued covering the Jack Creek area, an early-stage exploration target for low-sulfidation epithermal gold. The US Forest Service permit is valid for a six-year period. Access earthworks and other site preparation commenced during the September quarter and an initial core drilling program consisting of 2,000 – 3,000m is planned for the December quarter.

Central Andes, Northern Chile

In Chile, exploration activity remained suspended during the September quarter due to the COVID-19 pandemic. At the Gorbea project, an option and farm-in agreement with Mirasol Resources Ltd, drilling is planned at several target areas for high-sulfidation epithermal gold, including Atlas, Dorado and Titan, when COVID-19 pandemic conditions and local regulations allow.

At the Mioceno project, an option and farm-in agreement with Cornerstone Capital Resources Inc., initial drill-testing of a high-sulfidation epithermal gold target is planned when COVID-19 pandemic conditions allow field work to resume safely.

At the Altazor high-sulfidation epithermal gold and porphyry project, which is an option and farm-in agreement with Mirasol Resources Ltd, engagement with the local communities to secure project access will advance when safe interaction with community leaders can resume when COVID-19 pandemic conditions and local regulations allow.

Additionally, the next stage of field work at the Vicuna high-sulfidation epithermal and porphyry-style gold target in Northern Chile will commence when pandemic conditions and local regulations allow. The Vicuna project is an option and farm-in agreement with Compania Minera del Pacifico S.A (CAP).

Northern Andes, Ecuador

In Ecuador, all exploration activity remains suspended due to the COVID-19 pandemic. The ability to safely resume activities will depend on local conditions and regulations, which will be monitored during the December quarter. 

Wilki Project, Western Australia

The Wilki Project is an exploration farm-in and joint venture with Antipa Minerals Limited (Antipa) which commenced on 11 March 2020. This project forms part of the broader Paterson strategy in this region. The Wilki Project, which is currently managed by Antipa, covers a strategic landholding of ~2,200km² surrounding the Telfer operation and is also in close proximity to the Havieron project. Under the next stage of the farm-in, Newcrest has an option to manage future work programs.

Work programs have included an initial AEM survey which was completed during the period. This survey has identified several high priority targets. Cultural heritage surveys have been completed for these targets and drill testing is currently planned for the December 2020 quarter.

Tanami Province, Northern Territory and Western Australia

No activities were completed in the Tanami Province during the quarter due to COVID-19 restrictions.

Tennant East, Northern Territory

Newcrest is the holder of granted titles as well as four application areas in the recently recognised Tennant East domain. Planning for future work programs including drill testing covering the granted title has commenced.

Queensland

No activities were completed in the Mt Isa North region or the Bulimba region in north east Queensland.

Brownfield Exploration

Brownfields exploration activities within Newcrest's existing mining provinces included:  

• Cadia – There has been no exploration activity completed within the Cadia Mine Corridor, which includes both Newcrest title as well as the Junction Reefs Joint Venture area.  Future work programs will be focused within the Junction Reefs Joint Venture area at the Randall's prospect. Data compilation in the Glendale region continues.
• Telfer – Ranking and prioritising drill targets within the satellite regions south of Telfer has identified the Mobius AEM target for drill testing. Planning for the drilling of Mobius in the December quarter is advanced. Processing of the AEM survey flown in the previous quarter is ongoing.
• Lihir – No activities were completed due to COVID-19 restrictions.

COVID-19 Measures

Newcrest has implemented and maintained measures to reduce and mitigate the risks of the COVID-19 pandemic to its project workforce and key stakeholders. Potential impacts of the COVID-19 pandemic on the drilling activity at all of our exploration projects are being actively managed. There have been no confirmed cases of COVID-19 at Newcrest's exploration projects.

Appendix 1

Havieron Project (Greatland Gold plc farm-in agreement): JORC Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

Drillhole data

Havieron Project, Paterson Province, Western Australia

Reporting Criteria: Intercepts reported are downhole drill width (not true width) Au >0.20ppm (0.2g/t Au) and minimum 20m downhole width with maximum consecutive internal dilution of 10m. Also highlighted are high grade intervals of Au >1.0ppm (1g/t Au) and minimum 10m downhole width with maximum consecutive internal dilution of 5m, and intervals of >30g/t with no internal dilution which are greater or equal to 30 gram metres (Au_ppm x length) are tabled. Gold grades are reported to two significant figures, the downhole lengths are rounded to 0.1m which may cause some apparent discrepancies in interval widths. Samples are from core drilling which is PQ, HQ or NQ in diameter. Core is photographed and logged by the geology team before being cut. Half core PQ, HQ and NQ samples are prepared for assay and the remaining material is retained in the core farm for future reference. Each assay batch is submitted with duplicates and standards to monitor laboratory quality. Total depth (end of hole) is rounded to one decimal place for reporting purposes. Collars denoted with a * show partial results, with further significant assays to be reported in subsequent exploration updates.