Newmont’s $42 million Twin Creeks expansion complete; commercial production underway
ELKO, Nev. — On July 3, Newmont Mining Corp. announced it has achieved commercial production at its Twin Creeks Underground expansion project located near Battle Mountain in Nevada.
The project was completed on schedule for $42 million, slightly below guidance of between $45 and $55 million, according to a Newmont press release.
The Twin Creeks Underground mine will reportedly add between 30,000 and 40,000 ounces of gold production per year, estimated at $650-$750 per ounce for its first five years of production. According to Newmonth, this new ore will also allow the company to process stockpiled ore that had previously been classified as waste, and extend processing life to 2030.
“The expansion extends profitable production and improves recoveries at Twin Creeks, and serves as a platform to further explore the deposit, which remains open along strike and at depth,” Gary Goldberg, President and Chief Executive Officer, said in a statement. “This project marks the sixth that Newmont has completed on or ahead of schedule and at or below budget over the last five years, and generates an internal rate of return of about 20 percent.”
The Twin Underground mine is mechanized, featuring remotely operated loaders to improve safety and efficiency. Twin Underground ore will also be blended with ore from Turquoise Ridge.
In early 2018, Newmont and Barrick Gold Corporation approved the Turquoise Ridge Mine Optimization project, which involves sinking a production shaft to access the richest part of the deposit.
The new shaft is expected to increase ventilation capacity and lower unit costs by more than 20 percent, while increasing ore production rates to at least 1.1 million tons per annum when it comes on line in 2022.
The $625,000 deal included a low-interest SBA 504 loan facilitated by Nevada State Development Corp., the state’s largest SBA 504 loan provider. City National Bank partnered in the financing package.