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Thursday, 25th January 2007 (3300 views)

The troubled Telfer gold mine, which is owned by Newcrest Mining Limited, has been hit by new production downgrades and had its reserves guidance slashed.

Telfer production guideline was cut from 780,000 ounces down to between 675,000 and 700,000 ounces due to detailed grade control drilling and mill-feed sampling which forced the cuts at Newcrest's flagship operation.

Ian Smith, the managing director of Newcrest Mining, said: "It is still one of the great ore bodies and one of the great gold mines in the world, but there's been an overhang and a question mark ever since it started."

He said that cost-cutting measures were being taken which means it is not the most economic extractive of reserves but for now it is the right cost structure and it remains a world-class mining operation.

Mr Smith added: "As far as the other operations are concerned, they are going well ... the overall profile of Newcrest is still solid."

A revised estimate for Telfer will be available in July for the underground reserve and summer 2008 for the primary open pit reserve.

 

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