technical report on telfer property december 31 2013-final

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Technical ReportNewcrest MiningMarch 2014

TECHNICAL REPORT ONTHE

TELFER PROPERTY

IN

WESTERN AUSTRALIA AUSTRALIA

Prepared by Newcrest Mining Limited,

in accordance with the requirements of National Instrument 43-101,

Standards for Disclosure of Mineral Projects,

of the Canadian Securit ies Administrators.

Qualified Persons:

Mr Colin Moorhead BSc (Hons), FAusIMM

Effective Date of Report: 31 December 2013


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i Newcrest Mining – Technical Report on the Telfer Property - 31 December 2013

CONTENTS

1

SUMMARY .................................................................................................................1

Introduction and Terms of Reference ........................................................................ 1 1.1 Geology ........................................................................................................ 1 1.2 Mine Production ............................................................................................ 1 1.3 Mineral Resources ........................................................................................ 1

1.4

Mineral Reserves .......................................................................................... 2

1.5 Mining Operations ......................................................................................... 3 1.5.1 Main Dome and West Dome (Open Pit) ............................................. 3 1.5.2 Telfer Main Dome Underground (Underground) ................................ 4

1.6

Infrastructure and Concentrate Handling ....................................................... 6

1.7 Environment and Community Management .................................................. 6 1.8 Capital and Operating Costs ......................................................................... 6 1.9 Conclusions .................................................................................................. 7 1.10

Recommendations ........................................................................................ 7

2

INTRODUCTION ........................................................................................................ 8

2.1

General and Terms of Reference .................................................................. 8

2.2

Report Authors ..............................................................................................8

2.3 Units of Measure and Currency ..................................................................... 9

3 RELIANCE ON OTHER EXPERTS ........................................................................... 11

4 PROPERTY DESCRIPTION AND LOCATION.......................................................... 12 4.1 Property Location ........................................................................................ 12 4.2

Land Tenure ............................................................................................... 13

4.3 Relevant Agreements.................................................................................. 18 4.3.1 Westwin Option Agreement ............................................................. 18 4.3.2 Acebell Option Agreement ............................................................... 18 4.3.3 Cape Lambert Withdrawal and Royalty Agreement ......................... 18 4.3.4 Martu Agreements ........................................................................... 19

4.4

Royalties Payable ....................................................................................... 19

4.4.1

Mount Isa Mines Limited .................................................................. 19

4.4.2 Mineral Commodities Limited .......................................................... 19 4.5 Environmental Liabilities ............................................................................. 19

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE ANDPHYSIOGRAPHY ..................................................................................................... 20

5.1 Accessibility ................................................................................................ 20 5.1.1 Road ............................................................................................... 20 5.1.2 Air Strip ........................................................................................... 20

5.2

Climate ....................................................................................................... 20

5.3

Local Resources ......................................................................................... 20

5.4 Infrastructure ............................................................................................... 20

5.4.1

Water Supply ................................................................................... 20 5.4.2

Electricity Generation ...................................................................... 21

5.4.3

Gas Supply ...................................................................................... 21

5.4.4 Port Facilities ................................................................................... 21 5.4.5 Mining Camp ................................................................................... 21 5.4.6 Auxiliary Infrastructure ..................................................................... 21

6 HISTORY .................................................................................................................. 22 6.1

Discovery .................................................................................................... 22


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6.2

Telfer Gold Mine Development History ........................................................ 22

6.2.1 Introduction ..................................................................................... 22 6.2.2 Oxide Mining ................................................................................... 22 6.2.3 Sulphide Reef Mining ...................................................................... 23 6.2.4

High Cyanide Soluble Copper Mining .............................................. 23

6.2.5 Telfer Main Dome Underground (Deeps) ......................................... 23 6.3 Historic Mineral Resources ......................................................................... 24 6.4

Summary .................................................................................................... 24

7 GEOLOGICAL SETTING AND MINERALIZATION ................................................... 26 7.1

Telfer .......................................................................................................... 29

7.1.1 Geology ........................................................................................... 29 7.1.2 Mineralization .................................................................................. 32

7.2 O'Callaghans .............................................................................................. 36 7.2.1 Geology ........................................................................................... 36 7.2.2 Mineralization .................................................................................. 37

7.3 Camp Dome ................................................................................................ 37 7.3.1 Geology ........................................................................................... 37 7.3.2 Mineralization .................................................................................. 38

8

DEPOSIT TYPES ..................................................................................................... 39

8.1

Telfer .......................................................................................................... 39

8.2 O'Callaghans .............................................................................................. 39 8.3 Camp Dome ................................................................................................ 40

9 EXPLORATION ........................................................................................................ 41 9.1 Telfer .......................................................................................................... 41 9.2

O'Callaghans .............................................................................................. 41

9.3 Camp Dome ................................................................................................ 42

10 DRILLING ................................................................................................................. 43 10.1

Drilling Programmes.................................................................................... 43

10.2 Survey Control ............................................................................................ 47

10.3

Geological Logging ..................................................................................... 48

10.4 Sampling Procedures .................................................................................. 48

11 SAMPLE PREPARATION, ANALYSES AND SECURITY ......................................... 49 11.1

Historical Sample Preparation, Analysis and Security ................................. 49

11.2 Sample Preparation and Analyses .............................................................. 50 11.3 Sample Security .......................................................................................... 53 11.4 Main Dome QAQC ...................................................................................... 54

11.4.1

Certified Reference Materials .......................................................... 54

11.4.2

Coarse Duplicates and Pulp Replicates ........................................... 55

11.4.3 Second Laboratory Checks ............................................................. 57 11.5 West Dome QAQC ...................................................................................... 58

11.5.1 Certified Reference Materials (CRMs) ............................................. 58 11.5.2


11.5.3 Second Laboratory Checks ............................................................. 61 11.6 Satellite Projects ......................................................................................... 62

11.6.1 Certified Reference Materials (CRMs) ............................................. 62 11.6.2


11.6.3 Second Laboratory Checks ............................................................. 63 11.7 Summary of QAQC January 2011 to December 2013 ................................. 63

12 DATA VERIFICATION .............................................................................................. 64


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13

MINERAL PROCESSING AND METALLURGICAL TESTING .................................. 65

14

MINERAL RESOURCE ESTIMATES ........................................................................ 67

14.1 Telfer Main and West Dome Mineral Open Pit Resource Estimate Summary68 14.2 Telfer Underground Mineral Resource Estimate .......................................... 72

14.2.1 Geology Model ................................................................................ 72 14.2.2

Drill Data and Compositing .............................................................. 74

14.2.3

Bulk Domain Grade Modelling ......................................................... 74 14.2.4 Reef Grade Modelling ...................................................................... 82

14.2.5 Density Modelling ............................................................................ 87 14.2.6

Final Model Construction and Validation .......................................... 88

14.2.7 Resource Classification ................................................................... 90 14.3 Comparison to Previous Mineral Resource Estimate................................... 91 14.4 Factors Affecting Mineral Resource Estimate .............................................. 91

15 MINERAL RESERVE ESTIMATES ........................................................................... 92 15.1

Introduction ................................................................................................. 92

15.2

Mineral Reserve Assumptions ..................................................................... 93

15.2.1 Commodity Prices and Exchange Rates .......................................... 93 15.2.2 Cost Estimates ................................................................................ 93

15.3

Telfer Main Dome Open Pit Mineral Reserve .............................................. 93

15.4

Telfer West Dome Open Pit Mineral Reserve .............................................. 94

15.5 Telfer Main Dome Underground Mineral Reserves ..................................... 96 15.5.1 Telfer UG SLC Mineral Reserve ...................................................... 96 15.5.2 Telfer UG Western Flanks Mineral Reserve .................................... 97 15.5.3

Telfer UG M Reef Mineral Reserve .................................................. 99

15.6 Comparison to Previous Mineral Reserve Estimate .................................. 100 15.6.1 Factors Affecting the Mineral Reserve Estimates .......................... 101

16

MINING METHODS ................................................................................................ 102

16.1 Telfer Main Dome and West Dome Open Pit ............................................ 102 16.2 Telfer Main Dome Underground ................................................................ 103

16.2.1

Telfer UG Sub-level Cave (SLC) .................................................... 103

16.2.2

Telfer UG Western Flanks ............................................................. 103

16.2.3

Telfer UG M Reefs Selective Mining .............................................. 104

17

RECOVERY METHODS ......................................................................................... 105

18

PROJECT INFRASTRUCTURE .............................................................................. 108

18.1 Access Roads ........................................................................................... 108 18.2 Tailings Management ................................................................................ 108 18.3 Water Supply ............................................................................................ 108 18.4

Power Supply ............................................................................................ 108

18.5 Gas Supply ............................................................................................... 109 18.6 Port Facilities ............................................................................................ 109 18.7 Other Site Infrastructure ............................................................................ 109

19 MARKET STUDIES AND CONTRACTS ................................................................. 110 19.1

Newcrest Concentrate Characteristics ...................................................... 110

19.2 Transport and Storage .............................................................................. 110 19.3 Newcrest Concentrate Destination Smelters ............................................. 110 19.4 Concentrate Treatment and Copper Refining Charges.............................. 110 19.5

Precious Metal Terms and Refining Charges ............................................ 111

19.6

Weighing, Sampling and Moisture Determination and Assays and Analyses111

19.7 Doré .......................................................................................................... 111


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19.8

Marketing Resources ................................................................................ 111

20

ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITYIMPACT .................................................................................................................. 112

20.1 Overview ................................................................................................... 112 20.2 Individual Environmental Issues ................................................................ 112

20.2.1

Environmental Approvals ............................................................... 112

20.2.2

Management of Acid Forming Waste ............................................. 113 20.2.3 Water Supply and Management .................................................... 114

20.2.4 Closure and Rehabilitation ............................................................. 114 20.2.5

Community and Social Issues ....................................................... 115

20.2.6 Other Environmental Issues .......................................................... 115

21

CAPITAL AND OPERATING COSTS ..................................................................... 116

22 ECONOMIC ANALYSIS .......................................................................................... 118

23

ADJACENT PROPERTIES ..................................................................................... 119

24 OTHER RELEVANT DATA AND INFORMATION ................................................... 120

25

INTERPRETATION AND CONCLUSIONS ............................................................. 121

26

RECOMMENDATIONS ........................................................................................... 122

27

REFERENCES ....................................................................................................... 123

28

QUALIFIED PERSONS' CERTIFICATES ............................................................... 126

TABLES

Table 1.1 Telfer Copper and Gold Mineral Resources at 31 December 2013 ................2 Table 1.2 O'Callaghans Polymetallic Mineral Resource at 31 December 2013 .............2 Table 1.3 Telfer Copper and Gold Mineral Reserves at 31 December 2013 ..................3 Table 1.4 Telfer Operations FY2013 Actual Production and Operating Costs* ..............7 Table 1.5

Telfer Operations FY2014 Cost and Capital Guidance ..................................7

Table 2.1

Persons who Prepared or Contributed to this Technical Report .....................8

Table 2.2 Key Terms and Abbreviations........................................................................9 Table 4.1 Telfer Tenure Details ...................................................................................13 Table 4.2 Telfer Details of Licence Holders ................................................................. 16 Table 6.1 Summary of Project History .........................................................................25 Table 10.1

Main Dome Drilling up to December 2013 ...................................................44

Table 10.2 West Dome Drilling up to December 2013 ...................................................45 Table 10.3 Telfer Main Dome Underground Drilling up to December 2013 ....................45 Table 14.1 Telfer Copper and Gold Mineral Resources at 31 December 2013 ..............67 Table 14.2

O'Callaghans Polymetallic Mineral Resource at 31 December 2013 ...........68

Table 14.3 Wireframes for Geological Model ................................................................74

Table 14.4

Basic statistics for gold grade (ppm) for all bulk domains (undeclustered) ... 77

Table 14.5 Example Indicator variogram models used in the MIK estimation of goldgrade for the VSC domain. ..........................................................................78

Table 14.6

Search neighbourhood parameters for MIK estimation of gold and coppergrade in the bulk domains. ..........................................................................79

Table 14.7 Variogram models used in the OK estimation of gold and copper grade forthe LLU and Oakover domains. ...................................................................79


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Table 14.8

Search neighbourhood parameters for OK estimation of gold and coppergrade in the LLU and Oakover bulk domains. ..............................................80

Table 14.9 Grade caps implemented for bulk domains during the OK estimation ofsulphur, arsenic and cobalt grade ................................................................80

Table 14.10

The linear regression equations used to estimate sulphur as a function ofcopper 81

Table 14.11 The linear regression equations used to estimate arsenic as a function ofsulphur 81

Table 14.12

The linear regression equations used to estimate cobalt as a function ofsulphur 82

Table 14.13 Basic statistics for gold grade (ppm) and intercept length (m) for all reefdomains ......................................................................................................82

Table 14.14

Variogram, models for the estimation of gold and copper grade in the reefestimation domains .....................................................................................84

Table 14.15 Search parameters for OK Tetra Modelling of gold and copper grade in thereef domains ...............................................................................................84

Table 14.16 Variogram, models for the estimation of sulphur, arsenic and cobalt grade inreef domains ...............................................................................................85

Table 14.17 Search parameters for OK Tetra Modelling of sulphur, arsenic and cobalt

grade in the reef domains ............................................................................85

Table 14.18 The linear regression equation used to estimate sulphur as a function ofcopper ........................................................................................................86

Table 14.19 The linear regression equation used to estimate arsenic and cobalt asfunctions of sulphur .....................................................................................86

Table 14.20 Basic statistics for density data, by domain, with no length-weighting applied........................................................................................................87

Table 14.21

Constant density values assigned to bulk domains ......................................88

Table 15.1 Telfer Main Dome Open Pit Mineral Reserve Estimate at 31 December 2013........................................................................................................94

Table 15.2

Telfer West Dome Open Pit Mineral Reserve Estimate at 31 December 2013........................................................................................................95

Table 15.3

Telfer UG SLC Mineral Reserve Estimate at 31 December 2013 ................97

Table 15.4 Telfer Deeps Western Flanks Mineral Reserve Estimate at 31 December2013 ........................................................................................................98

Table 15.5

Telfer UG M50 Reef Mineral Reserve Estimate at 31 December 2013 ...... 100

Table 17.1 Telfer Gold Production...............................................................................106 Table 17.2 Telfer Production Statistics ........................................................................107 Table 21.1 Historical Production and Costs per Ounce of Gold Produced ................... 116 Table 21.2

Telfer Operations Gold and Copper Production, FY 2013* ........................ 116

Table 21.3 Telfer Operations Historical Capital Expenditure ....................................... 116 Table 21.4 Telfer Operations FY 2014 Cost and Capital Guidance .............................117

FIGURES

Figure 4.1 Telfer Location Map ..................................................................................... 12 Figure 7.1 Telfer Regional Geology .............................................................................. 26 Figure 7.2

Telfer Regional Stratigraphy ........................................................................ 27

Figure 7.3 Telfer Regional Geology .............................................................................. 28 Figure 7.4 Location of O'Callaghans and Camp Dome ................................................. 29 Figure 7.5 Telfer Local Stratigraphy ............................................................................. 30 Figure 7.6

Telfer Pre-Mining Structural and Stratigraphic Setting ................................. 32


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Figure 7.7

Oblique Schematic View Looking North showing Key Mineralized Systems 33

Figure 7.8 Schematic Cross Section of O'Callaghans Skarn Deposit ........................... 36 Figure 10.1 Cross Section 11300N through Main Dome (Open pit & UG) ...................... 43 Figure 10.2 Cross Section 11300N through West Dome (Open pit)................................ 44 Figure 10.3

Telfer Drill Location Plan ............................................................................. 46

Figure 11.1 BZ Assay Protocol ....................................................................................... 51 Figure 11.2 AY Assay Protocol ....................................................................................... 52 Figure 11.3

O'Callaghans Assay Protocol ...................................................................... 53

Figure 11.4

Gold Z-Scores from Main Dome January 2011 to December 2013 .............. 54

Figure 11.5 Copper Z-Scores from Main Dome January 2011 to December 2013.......... 55 Figure 11.6 Main Dome Gold in Coarse Duplicates ........................................................ 56 Figure 11.7 Main Dome Gold in Pulp Replicates ............................................................ 56 Figure 11.8

Main Dome Gold in Second Laboratory Checks .......................................... 57

Figure 11.9

Main Dome Copper in Second Laboratory Checks ...................................... 58

Figure 11.10 Gold Z-Scores from West Dome January 2011 to December 2013 ............. 59 Figure 11.11 Copper Z-Scores from West Dome January 2011 to December 2013 ......... 59 Figure 11.12 West Dome Gold in Coarse Duplicates ....................................................... 60 Figure 11.13

West Dome Gold in Pulp Replicates ............................................................ 60

Figure 11.14 West Dome Gold in Second Laboratory Checks .......................................... 61

Figure 11.15

West Dome Copper in Second Laboratory Checks ...................................... 62

Figure 11.16 Gold Z-Scores from Satellites from January 2011 to December 2013 ......... 62 Figure 11.17

Copper Z-Scores from Satellites from January 2011 to December 2013 ..... 63

Figure 14.1 Cross Section 13000N through West Dome Open Pit ................................. 71 Figure 14.2 Cross Section 11300N through West Dome Open Pit ................................. 71 Figure 14.3 The reef domains (red) and bulk domains estimated (E-W section looking

north at 11300mN). ..................................................................................... 73

Figure 14.4

The reef and bulk domains estimated .......................................................... 76

Figure 14.5 Log-probability plot for composite gold grade, per bulk domain ................... 77 Figure 14.6

Log-probability plot for composite gold grade, per bulk domain ................... 83

Figure 14.7 Cross Section 11300N through Main Dome UG .......................................... 90 Figure 15.1 Telfer West Dome Location Relative to Main Dome and Telfer Deeps ........ 95

Figure 15.2

Telfer UG SLC remaining Life of Mine Design - Isometric View ................... 97

Figure 15.3

Plan View showing Telfer UG Western Flanks ............................................ 99

Figure 15.4 Typical Cross Section through M Reefs ..................................................... 100 Figure 16.1 Western Flanks Proposed Mine Layout - Isometric View ........................... 104 Figure 17.1 Telfer Treatment Plant - Basic Process Flow ............................................. 106 Figure 18.1

Natural Gas Supply Network ..................................................................... 109


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1 Newcrest Mining - Telfer Property Report - 31 December 2013

1 SUMMARY

Introduction and Terms of Reference

The annual Mineral Resources and Mineral Reserves update of Newcrest Mining Limited(Newcrest) of Melbourne, Australia has recently been completed and includes materialchanges to the Telfer property (Telfer or the Property).

This Technical Report (the Report) on Telfer in the State of Western Australia, Australia hasbeen prepared by Newcrest as an update in response to material changes in the TelferMineral Resource and Mineral Reserve released on the 14 February 2014 in Newcrest’s

Annual Resources and Reserves Statement-31 December 2013, which can be found on itswebsite at www.newcrest.com.au and at www.sedar.com.

The Report was prepared in accordance with the requirements of National Instrument 43-101 (NI 43-101), “Standards of Disclosure for Mineral Projects”, of the Canadian Securities

Administrators (CSA) for lodgement on CSA’s “System for Electronic Document Analysisand Retrieval” (SEDAR).

1.1 Geology

The Telfer Gold Mine is 100% owned by Newcrest and is located within the Great SandyDesert of Western Australia, approximately 450km by road southeast of Port Hedland and680km northeast of Newman.

The project area is comprised of granted mining leases that contain gold and coppermineralization characterized as bimodal in nature with relatively high grade strataboundreefs and spatially associated lower grade stockworks hosted within Proterozoic sediments.Deep weathering depleted the copper in the upper sections of the orebody, whilst theunderlying resource retained both copper and gold content.

Historical gold production was processed using gravity and cyanide leaching processes.The current operation consists of both open pit and underground operations. Oreprocessing facilities now exploit the large gold and copper sulphide resources by flotationproducing a gold rich copper concentrate and doré recovered from gravity circuits.

Additional small tonnages of oxide material are processed through dump leach circuits.

1.2 Mine Production

In the financial year (FY) ending 30 June 2013, Telfer milled 21.5Mt of ore producing525koz of gold and 26.5kt of contained copper. Cash costs for the year are reported at

A$1,022/oz Au after other by-product credits.

1.3 Mineral Resources

The 31 December 2013 Mineral Resource update has been based on a detailed reviewcompleted by Newcrest of all Telfer production sources to take into account Newcrest’scurrent view of long term metal prices, foreign exchange and cost assumptions, and miningand metallurgy performance to inform cut-off grades and physical mining parameters. Thishas resulted in the most marginal ounces being removed and this has been reflected inchanges to Mineral Resource estimates. The Measured and Indicated Mineral Resourcesfor Telfer as at 31 December 2013 include a material reduction of approximately 5.2Moz ofgold to 13Moz of gold, compared with the 31 December 2012 estimate of 18.2Moz of gold.

http://www.newcrest.com.au/http://www.newcrest.com.au/http://www.newcrest.com.au/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.newcrest.com.au/


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This reduction has primarily come from West Dome and Main Dome open pit MineralResources as a result of the review of long term economic assumptions.

Table 1.1 lists Telfer gold and copper Mineral Resources at 31 December 2013. The MainDome and West Dome open pit Mineral Resources are reported inside optimization shellsto reflect that part of the resource model for which there are reasonable prospects foreventual economic extraction. Mineral Resources are reported inclusive of Mineral

Reserves. Vertical Stockwork Corridor ("VSC"), Sub-Level Cave ("SLC"), Western Flanksand underground selective reefs external to the SLC are reported as Telfer UndergroundMineral Resources.

Table 1.1 Telfer Copper and Gold Mineral Resources at 31 December 2013

Tonnes(Mt)

Au(g/t)

Cu

(%)

Au(Moz)

Cu(Mt)

Measured Resource

Main Dome Stockpiles 24 0.40 0.09 0.3 0.02

Total Measured Resource 24 0.40 0.09 0.3 0.02

Indicated Resources

Main Dome Open Pit 210 0.67 0.09 4.5 0.18

West Dome Open Pit 170 0.66 0.06 3.6 0.10

Telfer Underground 96 1.5 0.33 4.7 0.31

Other Satellite Deposits 0.57 4.2 0.03 0.1


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compared with the 31 December 2012 estimate of 10.9Moz of gold. This reduction hasprimarily come from the West Dome and Main Dome open pit Mineral Reserves as a resultof the review of long term economic assumptions.

Table 1.3 lists Telfer gold and copper Mineral Reserves at 31 December 2013.

Table 1.3 Telfer Copper and Gold Mineral Reserves at 31 December 2013

Tonnes(Mt)

Au(g/t)

Cu(%)

Au(Moz)

Cu(Mt)

Proven Mineral Reserves

Main Dome Open Pit Stockpiles 24 0.40 0.09 0.3 0.02

Total Proven Mineral Reserves 24 0.40 0.09 0.3 0.02

Probable Mineral Reserves

Main Dome Open Pit 74 0.95 0.10 2.3 0.08

West Dome Open Pit 73 0.68 0.06 1.6 0.05

Telfer Underground 37 1.2 0.21 1.5 0.08

Total Probable Mineral Reserves 180 0.90 0.11 5.3 0.20

Notes: 1. The cut offs applied are variable and are described in the text of the report2. Metal prices used, gold - US$1,250/oz, copper - US$2.70/lb3. Rounding may cause some apparent computational discrepancies

1.5 Mining Operations

The original mining operations at Telfer commenced in 1977 and continued until October2000 over which time they produced approximately 6Moz of gold. Production wassuspended due to escalating costs, with the operations placed on care and maintenanceuntil feasibility studies for redevelopment of the mine were completed.

Modern operations recommenced with mining production from the open pits in late 2004and commissioning of two process trains recovering gold as well as recovering copper as a

valuable by-product.

The recommencement of underground operations in 2006 created opportunities to augmentproduction from the main open pits through the selective mining of deeper, dispersed,higher grade areas that could not be economically extracted with surface miningtechniques. There are numerous aspects to the current and developing underground miningareas within the Telfer operation with differing mining techniques matched to specificground conditions.

The original design production capacity of the redeveloped open pit production was 17Mtpawith an additional 4Mtpa scheduled for production from underground mining. The feasibilitystudy recognized that the mining rate could achieve in excess of 18Mtpa when softer orewas being mined. Since commissioning, the production from underground operations hasincreased to approximately 6Mtpa and open pit ore makes up the remainder of the plantfeed. The combined open pit and underground mining operations fed the mill with 21.5Mt ofore in the year ending 30 June 2013.

1.5.1 Main Dome and West Dome (Open Pit)

Mining methods at Main Dome and West Dome are the same. Current mining activities atthe Telfer open pits are conducted via conventional truck and shovel operations, standardwaste rock dumps and stockpiling and reclaim of lower grade ore. An excavator configured


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load fleet is utilised to selectively extract ore material from a total twelve metre designbench height via three 4m high ‘flitches’. The 4m ‘flitches’ are used in order to reduce oredilution and loss. Bulk waste is stripped via two 6m ‘flitches’. Productivities, availabilities andutilisations used within the production schedule have been based on current performance.

The current mining fleet employed within the Telfer open pit includes:

• 2 x CAT 6060 excavators;

• 2 x Caterpillar 994 class front end loaders;

• Up to 32 x Caterpillar 793 class rigid body off-highway dump trucks; and

• Various ancillary equipment (drills, dozers, graders, etc.)

Open pit operations within the Main and West Dome pits have traditionally focused on the

selective extraction of the ore material within the Mineral Reserve through the use of the

site excavator fleet. This configuration of this equipment, and selective ore mining approach

adopted for ore mining, has led to the use of 12m benches comprising of three 4m ‘flitches’.

Reef and adjacent waste, as well as the edges of stock work ore, are selectively mined,while broad areas of stock work ore and waste are bulk mined. Some near-surface oxidisedstock work is dump leached and this is bulk mined. All other ore is fed to the processingplant and is referred to as direct float ore. Direct float ore is hauled to the ROM andnormally direct tipped into the two gyratory crushers, but with allowance for stockpiling andrehandling a percentage of the direct float ore on the ROM pad. Dump leach ore is dumpedfor leaching on existing pads to the west of Main Dome and to the east of West Dome.Waste is used for tailings storage facility construction or delivered to a dump south of theMain Dome pit and west of the West Dome pit. Of the total waste to be mined,approximately 20% has been identified as potentially acid-forming and will continue to besegregated into confined cells within the waste dump and encapsulated using non-acid-forming waste.

Ore and waste zones are all blasted on standard pattern spacing with 12m benchesirrespective of the subsequent mining method being either a selective approach utilizing theexcavator flitch extraction or a bulk shovel/loader configuration. However, blast drill holediameter and explosive powder factors are adjusted to account for the varying miningmethods. All blast hole drilling is undertaken with either hammer or rotary drill rigsdepending upon the required hole size and rock characteristics.

Geological and geotechnical conditions are complex and a number of batter failures, and insome cases multiple batter failures, have occurred. The pit has an extensive array ofsensing equipment providing real time monitoring of pit wall stability. Mining practicesinclude standoff periods after blasting against a high wall and installation of wallreinforcement in places. Back analysis of these failures informs future pit slope designparameters for pit optimization and design.

1.5.2 Telfer Main Dome Underground (Underground)

The Telfer underground consists of the Telfer Sub-level Cave (SLC) and selective M Reefoperations. The Western Flanks is yet to be mined. The deposits are beneath the MainDome open pit and previously known as Telfer Deeps

The Telfer SLC is being mined using the sub-level cave method. SLC involves thedevelopment of a series of parallel cross-cuts through the orebody in a regular geometrical


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pattern. Ore is progressively recovered from drawpoints developed in the crosscuts. Asmaterial is loaded from a drawpoint, broken ore above the extraction level progressivelymixes with material from higher levels in the cave. Once a predetermined draw tonnage isloaded from the drawpoint, loading ceases and the next ring is fired. As the processcontinues the rock overlying the mining footprint progressively caves, as does the rockimmediately adjacent to the caved area.

Loaded ore is tipped down an ore pass system to the haulage level where it is trucked tothe underground crushing station. A hoisting shaft facilitates transport of ore to surface,from a hoist depth of approximately 1,100m.

A decline provides access for the transport of personnel and materials from a portal entry inthe open pit to the base of the underground mine.

All major infrastructure is in place to service the current mine plan. Development is well inadvance of the current production horizons with all main orebody access points in place.Production level development is currently being carried out on the penultimate plannedproduction level.

The mine design layout follows an established geometry employed since productioncommenced in 2006. As the design and operation of the Telfer Deeps SLC are maturethere is minimal risk associated with the mining method and design used in the preparationof the Mineral Reserve estimate.

The mining method for extraction of M Reef resources is narrow vein, shallow dipping sub-level open stoping (SLOS). Electric scraping is employed to recover blasted material due tothe shallow dip of the orebody. The extraction design incorporates a 1.1m slot rise thatestablishes each stope, with a 5m wide square rib pillar between adjacent stopes. The slotrises are excavated as a blasted whinze rise. Where geotechnical considerations allow,intermediate rib pillars are incorporated to facilitate maximum extraction.

A minimum mining width of 1.8m was used to estimate planned dilution. All dilution materialwas assumed to have zero grade and a density of 2.7 t/m 3. M Reef material is trucked to asurface stockpile in the vicinity of the portal. The open pit mining fleet rehandles thematerial to ROM stockpiles.

The planned mining method for the Western Flanks is a flat-dipping modified SLC. Themining process for the Telfer SLC and Western Flanks SLC are essentially the same, withthe key difference being the flat dipping nature of the Western Flanks resource requiring aseries of steps in the SLC layout. This modification impacts the draw rate and miningrecovery assumptions and the planned Western Flanks assumptions are appropriatelyadjusted relative to the Telfer Deeps SLC cave draw assumptions.

It is planned that material mined from the Western Flanks will be extracted by trucking ashort distance to the existing 1,100m hoisting shaft facility where it will then be hoisted tosurface. The Western Flanks will also be serviced by the existing single portal entry fortransport of material and men into the mine.


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1.6 Infrastructure and Concentrate Handling

On-site mineral processing infrastructure includes a gravity circuit, carbon-in-leach (CIL)circuit, and dump leach pads produce a doré which accounts for approximately 25% of themine's gold production. Production from these circuits is smelted on site prior to beingtransported securely to a third party refinery.

The flotation circuit produces a copper-gold concentrate that is trucked to Port Hedland forshipping to smelters. Newcrest has long term relationships with most regional smelters inJapan and Korea and well as with certain smelters in China. Newcrest also has contractswith merchants in Switzerland and Singapore.

Electrical power requirements for mining and processing equipment are met by two powerstations at Telfer. The Primary Power Station (PPS) comprises three GE LM6000 gasturbines and the Secondary Power Station (SPS) comprises eight diesel generators. Thisprovides a maximum rating of installed power generation at Telfer of 150MW. Natural gassupply for the turbines is fed from a dedicated 450km purpose-built pipeline.

The site is a fly-in fly-out operation with a work force of approximately 1,100 full time

equivalent (FTE) staff and contractors. The accommodation facilities on site comprise atotal of 1,733 rooms to service the numerous rosters in place for these personnel. Theoperation is serviced by an all-weather airstrip.

1.7 Environment and Communi ty Management

Telfer is a relatively large (total disturbance more than 4,000ha) and complex operation, butis not confronted by environmental or community challenges likely to significantly constraincurrent and future operations. This reflects its remote, desert location and an absence ofsignificant biodiversity and conservation issues, together with a proven history ofresponsible environmental management. Sound relationships have been developed withthe indigenous traditional landowners (Martu), who hold one of the largest Native Title

Determinations in Australia over Telfer and its associated tenements.

Statutory environmental approvals are obtained and environmental performance is reportedto regulators through standard protocols for assessment of monitoring results. Complianceis supported by the ongoing implementation of environmental management plans tomanage key risks.

A closure plan was developed in 2010 for Telfer and is scheduled to be updated in 2014.

Agreements were in place with the Martu people in respect of Telfer for the purposes of theTelfer expansion project (2002-2005). There are current negotiations underway to seek toput in place a comprehensive agreement to support future operations at Telfer.

1.8 Capital and Operating Costs

Telfer actual production and operating costs for FY 2013 are shown in Table 1.4. TheNewcrest financial year closes on 30 June each year.


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Table 1.4 Telfer Operations FY2013 Actual Production and Operating Costs*

Telfer Unit FY13 Actual

Gold Production koz 525

Copper Production kt 26

Total Site Cash Costs A$M 850

Waste Stripping and Ore Inventory A$M -198

Third Party Smelting, Refining and Transporting A$M 60

Royalty A$M 29

Depreciation A$/oz 389

*Costs included in table exclude applicable by-product credits.

FY2014 cost and capital guidance for Telfer, as released 12 August 2013, is shown in Table1.5.

Table 1.5 Telfer Operations FY2014 Cost and Capital Guidance

Telfer Unit FY14 Guidance

Cash cost (including by-product credits)

1

A$M 490-540On-site exploration expenditure A$M 10-11

Production Waste stripping A$M 20-25

Sustaining capital A$M 60-70

Corporate, rehabilitation, other A$M 11-17

Al l-i n sus taining cost A$M 590-660

Production Waste Stripping2 A$M 20-25

Sustaining Capital2 A$M 60-70

Projects and development capital A$M -

Total capital expenditure A$M 80-90 1 Costs assume AUD:USD 0.96, copper price US$3.30/lb, silver price US$22.0/oz

2

Duplicated above under All-in sustaining costs and under Capital expenditure

1.9 Conclusions

Telfer Gold Mine is an established operation with a long history to support development ofplans to exploit the available Mineral Resources.

Factors that may have a material impact on the Telfer Gold Mine include those discussed inthe risks section of Newcrest’s annual operating and performance review which forms partof Newcrest’s Full Year Financial Results for the year ended 30 June 2013, which can befound on its website at www.newcrest.com.au and at www.sedar.com.

1.10 Recommendations

Telfer is an established mining operation with Mineral Reserves sufficient for an extendedmine life. In view of the nature of Telfer's mining operations and the substantial MineralReserve inventory, no recommendations are included.

http://www.newcrest.com.au/http://www.newcrest.com.au/http://www.newcrest.com.au/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.newcrest.com.au/


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2 INTRODUCTION

2.1 General and Terms of Reference

This Technical Report (the Report) on the Telfer Property (Telfer) in the State of Western Australia, Australia has been prepared by Newcrest Mining Limited (Newcrest) ofMelbourne Australia, as an update in response to material change in the Telfer Mineral

Resource and Mineral Reserve.

The Report was prepared in accordance with the requirements of National Instrument 43-101 (NI 43-101), "Standards of Disclosure for Mineral Projects", of the Canadian Securities

Administrators (CSA) for lodgement on CSA's "System for Electronic Document Analysisand Retrieval" (SEDAR).

2.2 Report Authors

The overall Report was assembled by Mr Kevin Gleeson under the direction of the QualifiedPerson (QP) Colin Moorhead, with contributions from other Newcrest employees. A listingof details of the authors of the Report, together with those who assisted and sections for

which they are responsible or to which they contributed is contained in Table 2.1.

Table 2.1 Persons who Prepared or Contributed to this Technical Report

QualifiedPerson

Position Employer Independentof Newcrest

Date ofLast Site

Visit

ProfessionalDesignation

Sections ofReport

Qualified Persons responsible for the preparation and signing of this Technical Report

C Moorhead Executive GeneralManager Minerals

NewcrestMining Limited

No Jan 13-14 2014

FAusIMM (CP) All Sections

Other persons who assisted the Qualified Person

K Gleeson Head of MineralResource

Management


No Aug 2013 MAusIMM Compilationof Report

L Bowyer Manager LandTenure


No - N/A 4

P Griffin Head of ProcessingOperations


No Aug 2013 MAusIMM 13, 17

J BiggamMineral ResourceManager-Telfer

NewcrestMining Limited No Site

basedMAusIMM 14

R SecisManager-TelferMine Planning

NewcrestMining Limited No Dec 2013 MAusIMM 15, 16

A de Sousa General Manager -

Marketing andLogistics


No Sept

2011

NA 19

Blair Sands Head of Health andEnvironment


No - N/A 20

K Kerr General Manager-Commercial andPlanning

NewcrestMining Limited No July 2011 CA (Chartered

Accountant)

21,22


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Mr Colin Moorhead was employed at Telfer between 1991 and 1997 and has visited theTelfer site on numerous occasions in his current role including several occasions during2013 at which time he inspected both underground and surface aspects of the miningoperations in addition to the processing and infrastructure facilities. Mr Moorhead iscurrently an employee of Newcrest and accepts Qualified Person responsibility for theReport. Mr Moorhead last visited the Telfer operations in January 2014. Mr Kevin Gleesonand Mr Paul Griffin are employees of Newcrest who visit Telfer to review relevant aspects ofthe operation. Mr James Biggam is an employee of Newcrest and has been appointed asthe Competent Person for reporting Telfer Mineral Resources under the JORC Code 1. MrRon Secis is an employee of Newcrest and has been appointed as the Competent Personfor reporting Telfer Ore Reserves under the JORC Code1.

This Report is based on internal information (listed in Section 27), site visits undertaken bythe Qualified Person, and discussions with other Newcrest personnel.

This Report is effective as of 31 December 2013.

2.3 Units of Measure and Currency

Throughout this Report, measurements are shown in metric units and currency in Australiandollars unless otherwise stated. Table 2.2 includes key terms used and their abbreviations.

Table 2.2 Key Terms and Abbreviations

Abbreviation Uni t/Term Abbreviation Uni t/Term

AHD Australian height datum NSR Net Smelter Return

AAS Atomic Absorption Spectrometry NAF Non-Acid Forming

BWI Bond Ball Work Index µm One millionth of a meter

Cu Copper PC Panel Caves

m3 Cubic metres % Percent

CN Cyanide pa Per annum

DWi Drop Weight /oz Per ounce (Troy)

EA Environmental Assessment /lb Per pound (avdp)

ELs Exploration Licenses /t Per tonne

Au Gold ICP-OES Plasma-optical Emission Spectrometry

g/t Grams /t PAF Potentially Acid Forming

g/t Au Grams /t of gold lb Pound (avdp)

HGPR High Pressure Grinding Rolls PFS Prefeasibility study

ICP Inductively-Coupled Plasma QAQC Quality Assurance Quality Control

Fe Iron RPD Relative Paired Difference

kg Kilogram(s) RWi Rod Mill Work Index

km Kilometre(s) NPV Net Present Value

koz Kilo ounce SAG Semi-autogenous grinding

ktpa Kilotonne per annum km2 Square kilometres

kWh/t Kilowatt-hours per tonne m2 Square metres

1 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code 2012,

effective 1 December 2013, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining andMetallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).


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Abbreviation Uni t/Term Abbreviation Uni t/Term

Pb Lead SLC Sub-Level Caving

l Litre S Sulphur

m Metre(s) t Tonne(s)

Mt Million tonnes TJ Terra Joule(s)

Mtpa Million tonnes per annum TSF Tailings Storage Facility

MW Megawatts t/m3 Tonnes per cubic metre

mm Millimetres W Tungsten

Moz Million ounces (troy) WO3 Tungsten trioxide

MLsMining Leases

WSMD Weighing, Sampling and MoistureDetermination

Mo Molybdenum wmt Wet metric tonnes

mRL Metres above a Reduced Levelset at 5,000m below AHD

ZnZinc


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3 RELIANCE ON OTHER EXPERTS

The Qualified Persons relied, in respect of legal and environmental aspects, upon the workof certain Experts listed below. To the extent permitted under NI 43-101, the QualifiedPersons disclaim responsibility for these sections of the Report.

The following disclosure is made in respect of each of these Experts:

Ms L Bowyer, Manager Land Tenure, Newcrest:

• Report, opinion or statement relied upon: Information on mineral tenure and status,title issues, royalty obligations, etc.

• Extent of reliance: full reliance following a review by the Qualified Person.

• Portion of Technical Report to which disclaimer applies: Section 4, excludingSection 4.3.

Mr B Sands, Head of Health and Environment, Newcrest:

•

Report, opinion or statement relied upon: Information on environmental, permitting,and social/community matters.

• Extent of reliance: full reliance following a review by the Qualified Person.

• Portion of Technical Report to which disclaimer applies: Section 20.

Mr A de Sousa, General Manager, Marketing & Logistics, Newcrest:

• Summary report on Newcrest marketing.

• Extent of reliance: status of Newcrest’s sales arrangements.

• Portion of Technical Report to which disclaimer applies: Section 19.


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4 PROPERTY DESCRIPTION AND LOCATION

4.1 Property Location

The 100% owned Telfer Gold Mine is located in the Great Sandy Desert in the PatersonProvince of Western Australia, approximately 450km east-southeast of Port Hedland. Theproject site is 1310km by air and 1900km by road from Perth and falls within the boundaries

of the East Pilbara Shire, an area covering 386,000km2. The project is located at 21º42'44"S latitude, 122º12'25" E longitude. The location of the project is illustrated in Figure 4.1.

Figure 4.1 Telfer Location Map


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4.2 Land Tenure

Newcrest currently has tenure over the mine site through a series of mining leases,exploration licenses, general purpose leases and miscellaneous licenses that cover all theinfrastructure in the immediate vicinity of the mine site, including the open pit andunderground mining areas, village, plant site, power station and bore fields. All the miningleases on which development for the project will take place were granted before 1994. The

extensions to the bore fields are located on miscellaneous licenses granted more recently.

Currently held leases at 31 December 2013 consist of 34 granted mining leases, 17 grantedexploration licenses and 18 granted prospecting licenses. Newcrest also has 22 mininglease applications and 5 exploration license applications in progress. Total tenement area isapproximately 1,696 km2. Tables 4.1 and 4.2 summarize the details of each of the leasesand the licenses held.

Table 4.1 Telfer Tenure Details

Lease Lease Type LeaseStatus

Grant Date Expiry Date Area(km

2)

E45/975 E - Exploration License Granted 10/05/1990 9/05/1998 8.30

















E45/3425 E - Exploration License Application - - 103.60


G45/1 G - General Purpose Lease Granted 18/12/1982 17/12/2024 2.00







L45/3 L - Miscellaneous License Granted 12/01/1983 17/12/2024 1.00






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2)





L45/104 L - Miscellaneous License Granted 19/02/2001 18/02/2022 0.59L45/106 L - Miscellaneous License Granted 15/06/2001 14/06/2022 45.45





M45/6 M - Mining Lease Granted 18/12/1982 17/12/2024 10.00





M45/11 M - Mining Lease Granted 18/12/1982 17/12/2024 10.00M45/33 M - Mining Lease Granted 22/08/1984 21/08/2026 10.00




























M45/709 M - Mining Lease Application - - 9.50



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2)





M45/738 M - Mining Lease Application - - 2.55M45/739 M - Mining Lease Application - - 2.07










M45/861 M - Mining Lease Application - - 7.90M45/862 M - Mining Lease Application - - 0.90




P45/2596 P - Prospecting License Granted 16/01/2009 15/01/2017 0.17

















P45/2860 P - Prospecting License Application - - 1.83


Total 1,696.44

Total Granted 1,235.12

Total Appli cations 461.32


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Table 4.2 Telfer Details of Licence Holders

Lease Holder % Holder %

E45/975 Newcrest Mining Limited 100 - -




E45/1957 Newcrest Mining Limited 70 Newcrest Operations Limited 30

E45/2448 Westwin Investments Pty Ltd 100 - -

E45/2727 Acebell Holdings Pty Ltd 100 - -




E45/2962 Newcrest Operations Limited 100 - -












G45/1 Newmont Pty Ltd 70 Newcrest Operations Limited 30




L45/3 Newmont Pty Ltd 70 Newcrest Operations Limited 30

L45/68 Newcrest Mining Limited 100 - -

L45/69 Newmont Pty Ltd 70 Newcrest Operations Limited 30












L45/165 Newcrest Operations Limited 100 - -

M45/6 Newmont Pty Ltd 70 Newcrest Operations Limited 30






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M45/206 Newmont Pty Ltd 70 Newcrest Operations Limited 30M45/207 Newmont Pty Ltd 70 Newcrest Operations Limited 30





M45/247 Newcrest Mining Limited 70 Newcrest Operations Limited 30




M45/399 Newcrest Mining Limited 100 - -

M45/400 Newcrest Mining Limited 100 - -M45/532 Newcrest Mining Limited 100 - -





























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P45/2596 Newcrest Mining Limited 70 Newcrest Operations Limited 30

P45/2597 Newcrest Mining Limited 70 Newcrest Operations Limited 30P45/2681 Newcrest Operations Limited 100 - -

P45/2698 Newcrest Operations Limited 100 - -









P45/2855 Newcrest Operations Limited 100 - -P45/2856 Newcrest Operations Limited 100 - -






4.3 Relevant Agreements

4.3.1 Westwin Option Agreement

Westwin Investments Pty Ltd granted Newcrest an option to purchase E45/2448 for $1Mand a 1.5% NSR royalty. An option payment of $20,000 per year is payable. The option isdue to expire in November 2014. This agreement does not relate to producing tenements.

4.3.2 Acebell Option Agreement

Acebell Holdings Pty Ltd granted Newcrest an option to purchase E45/2727 for $500,000and a 1.5% NSR royalty. Option payments of $10,000 on satisfaction of the conditionsprecedent, $15,000 one year thereafter and $20,000 the following year are payable. Theoption is due to expire in March 2014 and negotiations are continuing to extend this optionagreement. This agreement does not relate to producing tenements.

4.3.3 Cape Lambert Withdrawal and Royalty Agreement

Cape Lambert Iron Ore Ltd agreed to withdraw a prior mining tenement application in favourof an application by Newcrest Operations Limited (E45/3100). Consideration forwithdrawing the application is an annual exploration payment of $10,000 and a royalty of1.5% NSR in the event of mineral production from the tenement area. This agreement doesnot relate to producing tenements.


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4.3.4 Martu Agreements

Agreements were in place with the holders of native title in respect of Telfer for thepurposes of the Telfer expansion project (2002-2005). There are current negotiations withthe holders of native title to seek to put in place a comprehensive agreement to supportfuture operations at Telfer.

4.4 Royalties Payable

4.4.1 Mount Isa Mines Limited

The royalty is in favour of Mount Isa Mines Limited. In respect of gold, it is $10/oz and inrespect of minerals (other than gold) it is 2% of the NSR. This agreement does not relate toproducing tenements.

4.4.2 Mineral Commodities Limited

The royalty is in favour of Minerals Commodities Limited. In respect of gold it is $10/oz andin respect of minerals (other than gold) it is 1.5% of the NSR. This agreement does not

relate to producing tenements.

4.5 Environmental Liabili ties

The Department of Mines & Petroleum in Western Australia holds a total of $33,894,900 asunconditional performance bonds.


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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE ANDPHYSIOGRAPHY

5.1 Accessibility

5.1.1 Road

Road access to the Telfer site consists of public roads vested in Main Roads Western Australia and the Shire of East Pilbara along with a section of private roadway owned andmaintained by the Telfer Mining Operations. Road transport to and from Telfer generallyfocuses on the approximately 450km route to Port Hedland for heavy haulage of copper-gold concentrates and import of consumables to the mine site.

A secondary route is available to the south through Newman and ultimately Perth.

5.1.2 Air Strip

Telfer is located approximately 1,300km from Perth via air travel and the site is serviced bya Newcrest-owned dedicated all-weather air strip capable of handling small to medium

sized aircraft. The site is a fly-in fly-out (FIFO) operation serviced by personnel living inPerth and other centres with regular flights as the primary means of access to the site. Theairstrip also facilitates urgent supply access for mission critical items and emergencyrecovery capabilities via the Royal Flying Doctor Service.

5.2 Climate

The climate of the region is characterized by hot summers (January average dailytemperatures exceed 40°C) and warm winters (July average daily temperatures exceed10°C). Rainfall is strongly seasonal and occurs between December and March and isusually associated with remnant cyclones and thunderstorm activity. Average annual rainfallis 366mm and average annual evaporation is 4160 mm.

5.3 Local Resources

The remote Telfer mine site is located in a sparsely populated area at the edge of the GreatSandy Desert. Seasonal conditions vary between arid and semi-arid, with vegetation coverbeing limited to sparse drought-tolerant low ground cover. These environmental conditionsessentially offer little value to the requirements of an active mine site, which in turnnecessitates the importation of the vast majority of materials and personnel to operate thesite.

5.4 Infrastructure

5.4.1 Water Supply

Telfer mine site relies on abstraction of groundwater from a series of proximately locatedbores for both raw and potable water requirements. Current abstraction rates averageapproximately 57Ml/d from an installed total bore field peak capacity of 80Ml/d.

Non-potable applications of the abstracted water include the mine processing circuits, dustsuppression, wash down and fire fighting. Treated potable water is supplied to the campfacilities and strategically located personnel access points throughout the mining project.


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5.4.2 Electricity Generation

There are currently two permanent power stations at Telfer. The Primary Power Station(PPS) comprises three GE LM6000 gas turbines and the Secondary Power Station (SPS)comprises eight diesel generators. The PPS was originally designed to operate in an N+1configuration, that is, two duty and one standby. As the power demand has increased sincecommissioning of the PPS, there are currently 12 approximately 1MW Aggreko rental gas

engines supplementing the LM6000s. The SPS is available as a backup.

The rated output of each gas turbine in normal mode is 43MW, but can be operated at47MW in SPRINT mode. This provides a maximum rating of installed permanent powergeneration at Telfer of approximately150MW.

5.4.3 Gas Supply

The volume of feed gas required to supply the electrical generation gas turbine plant wasimpractical to transport to site by road or rail. Therefore, a dedicated, purpose built 450kmnatural gas pipeline was installed to feed natural gas from Port Hedland to the Telfer site.Newcrest has contracted pipeline capacity of 26TJ/day.

The pipeline is operated by APA Group for sole supply of gas to the Telfer and Nifty mines.Gas is supplied under contract by Santos and Apache Energy. The contract is valid forsupply to December 2019.

5.4.4 Port Facilit ies

Copper-gold concentrate produced from the Telfer site is exported to customers, mainly inEast Asia, via the Port Hedland harbour facilities. The substantial municipal port facilities atPort Hedland cater for the export of various mineral types from around the Pilbara region.

Telfer mineral concentrates are transferred from road transportation to storage and onto

ship via a dedicated facility owned by the Port Hedland Port Authority.

5.4.5 Mining Camp

Telfer was historically operated as a live-in township of dedicated mine workers and supportstaff prior to the suspension of operations in 2000. Today the site is designated as a FIFOoperation with a work force of approximately 1,100 full time equivalent (FTE) staff andcontractors. The accommodation facilities on site comprise a total of 1,733 rooms.Numerous rosters are in place for these personnel.

The original permanent camp was converted to provide transient accommodation under theFIFO arrangements.

5.4.6 Auxil iary Infrastructure

Operation of a large scale mine in a remote locality requires the site to be largely self-sufficient. Specific items of infrastructure are required to supply, maintain and service therequirements of machinery and personnel. Therefore, numerous items of significantinfrastructure are located and maintained as part of the ongoing Telfer mining operations.Items include fuel storage, laboratory, workshops, stores buildings, lay-down areas, effluentdisposal systems and administration offices.


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6 HISTORY

6.1 Discovery

The Bureau of Mineral Resources (Australian Geological Survey organization) firstgeologically mapped the Telfer district in 1959. Gold and copper mineralization was notidentified during this mapping.

Prospectors and exploration companies targeted the Telfer district in the late 1960s andearly 1970s as a copper province.

In 1971, Day Dawn Minerals NL undertook a regional sampling program in the district underthe direction of R Thompson. Anomalous copper and gold values were returned fromgossanous outcrops that were sampled at Main Dome (Tyrwhitt, 1995).

6.2 Telfer Gold Mine Development History

6.2.1 Introduction

From the recognition of gold-bearing gossans in 1971 and the commencement of miningactivities in 1977 up to the suspension of operations in 2000, Telfer Gold Mine producedalmost 6Moz of gold.

Five million ounces of gold were produced from the oxidized and leached cap of a largegold-copper system using open pit mining methods, and almost 1Moz came from sulphideore produced using underground mining methods to extract high grade mineralization. Priorto suspension of operations in late 2000, the annual gold production from both the open pitand underground operations was approximately 300koz.

6.2.2 Oxide Mining

An intensive exploration and resource drilling program was undertaken by Newmont Pty Ltdfrom 1972 to 1975. This program defined an open pit reserve of 3.8Mt @ 9.6 g/t Aucontaining in excess of 1Moz of contained gold (Turner, 1982) mainly comprising oxide orefrom the Middle Vale Reef (MVR).

In 1975, BHP Gold bought into the project with 30% ownership as a consequence of theforeign ownership legislation introduced by the Australian Federal Government at the time.Newmont and BHP Gold subsequently merged their Australian assets to form NewcrestMining Limited in 1990.

Mining commenced during 1975 at Main Dome and reached full production of 0.5 Mtpa in1977. Mineral Resources and Mineral Reserves were maintained at 2Moz and 1Moz ofcontained gold respectively in the early part of Telfer's mine life (Chamberlain, 1990).

Initially, ore processing was by milling, cyanidation and Merrill-Crowe type gold recovery.During the 1980s, the potential was recognized for a large, low grade oxide resource inMain Dome and to the northwest in West Dome. This resulted in the introduction of a millexpansion in 1986 to increase crushing and grinding capacity, including conversion fromMerrill-Crowe type gold recovery to a carbon in leach (CIL) circuit.

Further extensive metallurgical testwork led to the establishment of a dump leach operationwhich commenced in 1988, with an initial processing rate of 4Mtpa. Dump leach feed cut-off


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A conceptual study was established in early 1998 to review the mining potential of the I30Quartz Reef and associated high grade reefs. This study was designated the I SeriesProject (ISP). The ISP Prefeasibility Study defined the existence of gold and coppermineralization on the eastern limb of the I30 Quartz Reef as well as an additional eighthanging wall reefs and three footwall reefs. Underground mining studies defined cut and filland room and pillar on the western flank of the I30 Quartz Reef, up-hole retreat miningmethod in the vertical limb of the I30 Quartz R

technical report on telfer property december 31 2013-final

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