Yahoo Finance

Study Outcomes

Area

Measure

Unit

Block Cave^1,2

LOM^[10]

Production

Average ore milled / throughput (max)

Mtpa

13.6

13.6

LOM

Years

31

36

Ore Mined:
Ore Mined - Open Pit
Ore Mined - Stockpile
Ore Mined - Block Cave

Mt

406
406

480
63
11
406

Average gold grade

g/t

0.56

0.53

Average copper grade

%

0.46

0.45

Gold produced

Moz

4.9

5.3

Copper produced

Mt

1.5

1.7

Average annual gold production

koz

158

148

Average annual copper production

kt

48.5

48.6

Capital

Project capital⁷

C$m (real)

2,632

2,758

Operating

AISC

C$/oz sold

(180)

(60)

Economic
assumptions

Gold price

US$/oz

1,500

1,500

Copper price

US$/lb

3.30

3.30

CAD:USD exchange rate

0.80

0.80

Financials

NPV³

C$m (real)

2,283

IRR

% (real)

17

Payback period⁸

Years

3.2

Free cash flow generation (post tax)

C$m (real)

5,030

Red Chris Block Cave - Key Project Milestones

Date

Gating Feasibility Study to Execution

2H FY23

First Ore

2H FY26

First Production of Gold/Copper

FY27

Area

Start Construction

First Production⁶

Ore (Mt)²

Exploration Decline

In Progress

-

-

Access & Conveyor Decline

FY23

-

-

MB1

FY24

FY27

156

MB2

FY36

FY36

76

MB3

FY40

FY41

173

Production Complete

FY57

-

-

Year

Ore Source

Total Material Movement
(Mt)

Plant Feed
(Mt)

Average Gold
Grade (g/t)

Average
Copper
Grade (%)

FY22 - 26

Open Pit, Stockpile

~222

~54

0.42

0.48

FY27 - 29

Stockpile, MB1

~45

~39

0.66

0.48

FY30 - 35

MB1

~82

~82

0.94

0.68

FY36 - 39

MB1, MB2

~59

~54

0.45

0.45

FY40 - 41

MB1, MB2, MB3

~28

~27

0.34

0.35

FY42 - 48

MB2, MB3

~100

~95

0.38

0.34

FY49 - 57

MB3

~120

~120

0.46

0.39

FY22

FY23

FY24

FY25

FY26

FY27

FY28

FY29

FY30+

Total

MB1 Capital Expenditure (C$m)

76

354

417

515

338

152

40

-

-

1,893

MB2 Capital Expenditure (C$m)

-

-

-

-

-

-

-

-

240

240

MB3 Capital Expenditure (C$m)

-

-

-

-

-

-

-

-

499

499

Total Project Capital Expenditure (C$m)

76

354

417

515

338

152

40

-

739

2,632

Total Project Capital Expenditure (US$m)

61

283

334

412

271

122

32

-

591

2,106

Scenario

Assumption

IRR

Gold price
(US$/oz)

1,200

15%

1,800

19%

Copper price
(US$/lb)

2.60

15%

4.00

20%

CAD:USD

0.77

18%

0.83

17%

Criteria

Commentary

Sampling techniques

All samples are obtained from core drilling. Diamond core sizes range from PQ, HQ, NQ, and BQ for some older shallow drilling. PQ, HQ and NQ diameter diamond core was drilled on a 3m, or 6m runs. Core was cut using either a manual or automatic core-cutter and half core sampled at either 2m or 2.5m intervals. Some older shallow drilling was sampled at 10 foot intervals from manually split core.

All historical sampling used in the Mineral Resource estimate is considered to have been collected by acceptable practices.

Drilling techniques

All drilling undertaken at Red Chris is diamond core ranging in diameter configuration from PQ3, HQ3, NQ2, and BQ2. Shallow areas of older BQ core size have now been mined, with all deeper drilling undertaken by Imperial Metals or Newcrest.

Newcrest core from inclined drill holes are oriented on 3m or 6m runs using an electronic core orientation tool (Reflex ACTIII). At the end of each run, the bottom of hole position is marked by the driller, which is later transferred to the whole drill core run length with a bottom of hole reference line. Historical core from inclined drill holes and vertical drill holes were not oriented.

Drill sample recovery

Core recovery is systematically recorded from the commencement of coring to end of hole, by reconciling against driller's depth blocks in each core tray with data recorded in the database. Drillers depth blocks provided the depth, interval of core recovered, and interval of core drilled.

Core recoveries were typically 100%, with isolated zones of lower recovery.

Logging

Geological logging recorded qualitative descriptions of lithology, alteration, mineralisation, veining, and structure for all core drilled.

Geotechnical measurements were recorded including Rock Quality Designation (RQD) fracture frequency, solid core recovery and qualitative rock strength measurements. Magnetic susceptibility measurements were recorded every metre by Newcrest and Imperial Metals.

All geological and geotechnical logging was conducted at the Red Chris site. Digital data logging is now captured, validated, and stored in an acQuire database. Imperial Metals logging data was recorded into a Lagger database and has been transferred into acQuire. All historical logging data was transferred into acQuire.

All drill cores were photographed, prior to cutting and/or sampling the core.

The logging is of sufficient quality to support the Mineral Resource estimate.

Sub-sampling techniques and sample preparation

Sampling, sample preparation and quality control protocols are considered appropriate for the material being sampled.

Core was cut or split and sampled at the Red Chris site core processing facility that was established by each of the various operators. Half core samples were collected in either plastic or poly-ore bags together with pre-numbered sample tags and grouped in plastic bags and strapped for dispatch to the laboratory. Sample weights typically varied from 5 to 10kg. Sample sizes are considered appropriate for the style of mineralisation. Drill core samples were freighted by road to the various laboratories used by each of the operators via secure transport. Chain of Custody management was achieved through solid boxing of samples with tamper proof tags.

Sample preparation for Newcrest samples was conducted at the independent ISO 9001 certified and ISO 17025 accredited Bureau Veritas Commodities Canada Ltd Laboratory, Vancouver (Bureau Veritas). Samples were dried at 650C, and crushed to 95% passing 4.75 mm, and the split to obtain up to 1kg sub-sample, which was pulverised (using LM2) to produce a pulped product with the minimum standard of 95% passing 106μm. Duplicate samples were collected from crush and pulp samples at a rate of 1:20. Duplicate results show an acceptable level of variability for the material sampled and style of mineralisation. Periodic size checks (1:20) for crush and pulp samples and sample weights are provided by the laboratory and recorded in the acQuire database.

Sample preparation for historical samples was conducted by various independent preparation labs in Smithers. Samples were dried, crushed to 4-5 mm, and then split to obtain a sub-sample, which was pulverised in a ring pulveriser to produce a pulped product with the minimum standard of either 85% passing 75μm or 95% passing 105μm. The sample pulps were then dispatched to the parent laboratories in Vancouver for analysis.

Quality of assay data and laboratory tests

Assaying of Newcrest drill core samples was conducted at Bureau Veritas. All samples were assayed for 59 elements using a 4-acid digestion followed by ICP-ES/ICP-MS determination (method MA250). Gold analyses were determined by 50g fire assay with ICP-ES finish (method FA350). Carbon and Sulphur were determined by Leco (method TC000) and mercury using aqua regia digestion followed by ICP-ES/MS determination (method AQ200).

Assaying of historical drill core samples was conducted at various independent ISO 9001 certified laboratories in Vancouver. All samples were assayed for gold via fire assay fusion by ICP-ES on 30g samples. All samples were analysed for copper by ICP-ES or AAS with an aqua regia digestion. Additional analysis was undertaken by Imperial Metals with pulps analysed via ICP-MS with an aqua regia digestion for a 36 element suite.

Sampling and assaying quality control procedures consisted of inclusion of certified reference material (CRMs), coarse residue and pulp duplicates with each batch (at least 1:20). Assays of quality control samples were compared with reference samples and verified as acceptable prior to use of data from analysed batches.

Laboratory quality control data, including laboratory standards, blanks, duplicates, repeats and grind size results are currently captured in acQuire database and assessed for accuracy and precision for recent data. Imperial Metals quality control data has been imported into acQuire, whilst historical quality control data was reviewed from numerous technical reports. Samples have been periodically resubmitted to the primary laboratory and sent to a secondary laboratory.

Analysis of the available quality control sample assay results indicates that an acceptable level of accuracy and precision has been achieved and the database contains no analytical data that has been numerically manipulated.

The assaying techniques and quality control protocols used are considered appropriate for the data to be used for estimation of Mineral Resources.

Verification of sampling and assaying

Sampling intervals defined by the geologist are electronically assigned sample identification numbers prior to core cutting. Corresponding sample numbers matching pre-labelled sample tags are assigned to each interval. All sampling and assay information are currently stored in a secure acQuire database with restricted access.

Currently electronically generated sample submission forms providing the sample identification number accompany each submission to the laboratory. Assay results from the laboratory with corresponding sample identification are loaded directly into the acQuire database.

No adjustments are made to assay data, and no twinned holes have been completed. Drilling intersects mineralisation at various angles. Historical sampling and assaying has been verified via the 5 years of production reconciliation from the current open pit operations.

There are no currently known drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data.

Location of data points

Newcrest drill collar locations were surveyed using a RTK GPS with GNSS with a stated accuracy of +/- 0.025m. Drill rig alignment was attained using an electronic azimuth aligner (Reflex TN14 GYROCOMPASS). Downhole survey was collected at 9 to 30m intervals of the drill hole using single shot survey (Reflex EZ-SHOT). At the end of hole, all holes have been surveyed using a continuous gyro survey to surface (Reflex EZ-GYRO).

Historical drill collar locations were surveyed using either total station instrument tied into established property grid control, a survey quality GPS, or a handheld Garmin GPS with accuracy of +/- 3m. Downhole survey was collected at 9m intervals of the drill hole using various single shot Reflex survey methods.

Topographic control is established from PhotoSat topographic data and derived digital elevation model. The topography is generally low relief to flat, with an average elevation of 1500 m, with several deep creek gullies.

All collar coordinates are provided in the North American Datum (NAD83 Zone 9).

Data spacing and distribution

Drill hole spacing varies through the deposit, with the overall drill hole spacing ranging from 50 x 50m within the East Zone up to 100 x 200m in the Gully Zone.

Both historical and recent Newcrest drilling intersects the mineralisation at various angles. The data spacing and distribution of drill holes is considered sufficient to define both the geological and grade continuity for the porphyry style mineralisation and to support the Mineral Resource estimate. Geological and grade continuity has been demonstrated during the 5 years of production from the current open pit operations.

Orientation of data in relation to geological structure

Newcrest drilling is oriented perpendicular to the intrusive complex. The intrusive complex has an east-northeast orientation, with drilling established on a north-northwest orientation. Historical drilling is oriented predominantly north-south along grid or are vertical.

Drill holes exploring the extents of the East Ridge, East Zone, Main Zone and Gully Zone mineral system intersected moderately dipping volcanic and sedimentary units cut by sub-vertical intrusive lithologies. Steeply dipping mineralised zones with an east-northeast orientation have been interpreted from historic and Newcrest drill holes.

Sample security

Chain of Custody management has been achieved by all operators through solid boxing of samples with tamper proof tags. The current security of samples is controlled by tracking samples from drill rig to database. Drill core was delivered from the drill rig to the Red Chris site core yard every shift. Geological and geotechnical logging, high resolution core photography and cutting of drill core was undertaken at the Red Chris core processing facility.
Samples were freighted in sealed bags with security tags by road to the laboratory, and in the custody of Newcrest representatives. Historical samples were freighted by road to the various laboratories used by each of the operators via secure packaging and transport.

Sample numbers have been generated from pre-labelled sample tags. All samples are collected in pre-numbered plastic bags. Sample tags are inserted into prenumbered plastic bags together with the sample.

Verification of sample numbers and identification is conducted by the laboratory on receipt of samples, and sample receipt advice is currently issued to Newcrest.

Details of all sample movement are now recorded in a database table. Dates, Hole ID sample ranges, and the analytical suite requested are recorded with the dispatch of samples to the laboratory analytical services. Any discrepancies logged at the receipt of samples into the laboratory analytical services are validated.

Audits or reviews

Internal verification and audit of Newcrest exploration procedures and databases are periodically undertaken. Reviews of assay laboratories are conducted on a regular basis by both project personnel and owner representatives. Historical data has been validated against public domain reports and is currently being digitally recaptured.

In the Competent Persons opinion the sample preparation, security, and analytical procedures are consistent with current industry standards and are entirely appropriate and acceptable for the styles of mineralisation identified and is appropriate for use in Mineral Resource estimates. There are no identified drilling, sampling or recovery factors that materially impact the adequacy and reliability of the results of the drilling programmes.

Criteria

Commentary

Mineral tenement and land tenure status

Red Chris comprises 77 mineral tenures including five mining leases and is a joint venture between subsidiaries of Newcrest Mining Limited (70%) and Imperial Metals Corporation (30%). Newcrest Red Chris Mining Limited is the operator of Red Chris.

Newcrest Red Chris Mining Limited and the Tahltan Nation (as represented by the Tahltan Central Government, the Tahltan Band and Iskut First Nation) signed an amended and restated IBCA covering Red Chris on 15 August 2019.
All obligations with respect to legislative requirements including minimum expenditure are maintained in good standing.

Exploration done by other parties

Conwest Exploration Limited, Great Plains Development Co. of Canada, Silver Standard Mines Ltd, Texasgulf Canada Ltd. (formerly Ecstall Mining Limited), American Bullion Minerals Ltd and bcMetals Corporation conducted exploration in the areas between 1956 and 2006.

Imperial Metals Corporation acquired the project in 2007 and completed deeper drilling at the East and Main Zones between 2007 and 2012.

Geology

The Red Chris Project is located in the Stikine terrane of north-western British Columbia, 80 km south of the town of Dease Lake.

Late Triassic sedimentary and volcanic rocks of the Stuhini Group host a series of Late Triassic to Early Jurassic 204−198 Ma diorite to quartz monzonite stocks and dykes.

Gold and copper mineralisation at Red Chris consists of vein, disseminated and breccia sulphide typical of porphyry-style mineralisation. Mineralisation is hosted by diorite to quartz monzonite stocks and dykes. The main mineral assemblage contains well developed pyrite-chalcopyrite-bornite sulphide mineral assemblages as vein and breccia infill, and disseminations. The main mineralisation event is associated with biotite and potassium feldspar-magnetite wall rock alteration.

Drill hole Information

No new exploration results are reported in this release. A total of 487 drill holes for 287,534 metres drilled have been used to inform the resource estimate.

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/7614/99286_d29920b964b02b90_015full.jpg

Data aggregation methods

No new exploration results are reported in this release, therefore this section is not relevant.

Relationship between mineralisation widths and intercept lengths

No new exploration results are reported in this release, therefore this section is not relevant.

Diagrams

As provided above.

Balanced reporting

No new exploration results are reported in this release, therefore this section is not relevant.

Other substantive exploration data

No new exploration results are reported in this release, therefore this section is not relevant.

Further work

Growth drilling is underway within the Main Zone and east of the East Zone including the recent East Ridge discovery.

Criteria

Commentary

Database integrity

Data are stored in a SQL acQuire database. Over 90% of IMC assay data has been electronically loaded into acQuire from the original laboratory assay files, whilst historical assay data prior to IMC has been imported and validated against historical public reports. The Red Chris JV assay and geological data are electronically loaded into acQuire and the database is replicated in Newcrest's centralised database system in Melbourne. Regular reviews of data quality are conducted by site and corporate teams prior to resource estimation.

Site visits

The Competent Person for the Mineral Resource estimate is an employee of Newcrest Mining Limited and is based in Melbourne. The Competent Person has remained closely linked with the project and completed multiple site inspections during 2019. The Competent Person has reviewed the open pit mining and processing operations, historical core storage and sampling systems, and has monitored drilling, sampling, sample security, drill logging, and data management and is satisfied with the quality of the measures undertaken.

Geological interpretation

The geology model for the Red Chris deposit comprises a cover Bowser Lake Group of siltstone, sandstones and conglomerates, and the Upper Triassic clastic sedimentary and mafic volcanic rocks of the Stuhini Group that was intruded by the late Triassic to early Jurassic Redstock monzonite to quartz monzodiorite intrusions. Broadly three phases of intrusive have been recognised as part of the Redstock that typically hosts the mineralisation and have been used as estimation domains. The confidence in the geological volumes used that were used to define the estimation domains is reflected in the resource classification.

Dimension

The mineralised zone defined by the drilling to date occupies an area with dimension around 0.3 km in width x 3.4 km in length and 1.3 km in a vertical extent. Currently three zone of mineralisation have been identified to date that includes the Gully, Main, and East Zones.

Estimation and modelling techniques

Geostatistical testing of the copper and gold grade distributions showed that the Redstock domain is highly diffusive in nature and satisfies the bi-gaussianity assumption of the data. Additionally the grade distribution for sulphur, iron, calcium, and magnesium are also diffusive in nature. Therefore, gaussian based estimation is considered appropriate to be implemented for copper, gold, sulphur, iron, calcium, and magnesium within the Redstock domain.

All drillhole samples were composited to 12 metre intervals downhole and honouring the domain boundary. In the Redstock domain, Localised Uniform Conditioning of copper, gold, sulphur, iron, calcium, and magnesium are undertaken into a panel size of 80 m x 80 m x 12 m blocks and localised into the selective mining unit (SMU) of 20 m x 20 m x 12 m blocks in a single pass run using a discretisation of 4x4x1, search radii for copper and gold were typically around 300-400 m (major), 400-600 m (intermediate) and 140-150 m (minor). The minimum and maximum number of informing composites were 12 and 16-20 respectively, depending on the domain and variable being estimated. Due to weak to moderate skewed nature of the grade distribution, no grade capping has been applied, however, to make sure that the potential smearing of the outliers grade is reduced, when necessary a grade and distance restriction is applied for some variables. Additionally, Ordinary Kriging (OK) estimation of silver, mercury, antimony, arsenic, and carbon was undertaken within the Redstock domain directly into the SMU blocks respectively.

The estimation for other domains including the sediment, volcanic and Bowser domain has utilised OK estimation for copper, gold, sulphur, iron, calcium, magnesium, silver, mercury, antimony, arsenic, and carbon directly into the SMU blocks respectively. Due to the very limited number of carbon data within the Bowser domain a Nearest Neighbour estimation was used.

The block model used for interpolation was populated with local rotations for the Redstock domain based on the local orientation of the Redstock mineralisation and the orientation of the main structures. A soft boundary was applied between the Redstock domains, and a hard boundary with all other domains.

The model has been validated using visual, statistical, and geostatistical methods, including statistical comparison, metal at risk analysis, swath plots, global change of support comparison, metal at panel and SMU comparison, and visual comparison of the drillholes and the blocks by sections and plan views. A ground truth model (GTM) within the current open pit area has also been estimated utilising the existing copper and gold blasthole data, where the comparison of the GTM and the resource estimate is considered acceptable.

Moisture

All tonnages are calculated and reported on a dry tonnes basis.

Cut-off parameters

A value algorithm is used to calculate the NSR for each block using revenue and cost assumptions as at December 2020. The NSR calculation takes into account the Mineral Resource revenue factors, metallurgical recovery assumptions, transport costs, refining charges and royalty charges with a gold price of US$1400/oz, copper price of US$3.40/lb, and a CAD:USD exchange rate of 0.80.

The cut-off value for reporting within the open pit mining area is based on an NSR value above C$12.2/t that takes into consideration actual processing and general & administration costs.

The cut-off value for reporting within the proposed underground mining area is based on an NSR value above C$21.0/t that takes into consideration proposed mining, processing, and general & administration costs based on Studies completed to date.

Mining factors or assumptions

Red Chris open pit is a surface bulk mining operation, so SMU mining assumptions are based on the current site parameters that are used in the open pit truck and shovel operation. An open pit optimisation footprint constraint is used, which is based on a maximum undiscounted cashflow at revenue factor 1.0 but with a relative level restriction of 1,112mRL to define the open pit to underground interface at approximately 50 metres below the current life of mine open pit design.

For the proposed underground, the geometry, grade, indicative geotechnical properties, and size of the resource suggest an amenability to a mass underground mining method such as block caving based on the defined SMU with no internal selectivity. The underground footprint is based on a contiguous area with NSR value above C$ 21.0/t with a nominal minimum footprint of 160 x 160 m with assumed vertical walls and variable height of draw.

These two contiguous footprints for open pit and underground are deemed appropriate to be used for the base of the reasonable prospect of eventual economic extraction test at Red Chris.

Metallurgical factors or assumptions

Metallurgical amenability is derived from current operating Red Chris JV plant performance for the open pit areas and additional composite test work samples derived from recent drilling for proposed underground areas. Metallurgical factors for gold and copper have been incorporated into the NSR value algorithm which defines the resource footprint. Domain specific metallurgical recoveries can range on average from 50-61% for Au and 81-83% for Cu.

Environmental factors or assumptions

Conventional waste management of potentially acid forming and non-acid forming rock and tailings is currently undertaken at the Red Chris JV operations in accordance with permit requirements. Relevant variables are estimated to determine both acid and neutralising potential to determine waste material types.

Bulk Density

All bulk density measurements are carried out in accordance with site standard procedure. Intervals for bulk density determination are selected according to lithology/alteration/mineralisation type to best represent certain intervals as defined by the geologist.

Historically, the measurement were undertaken at ACME laboratory using the Archimedes method. Since the Red Chris JV commenced, the measurements are performed on site by geologists or geological assistants as part of the logging process using the Archimedes method. Both historical and recent measurements are generally taken at 100 metre intervals down hole.

Bulk density from several thousand measurements has been interpolated using an inverse distance method within the relevant geological domains.

Classification

The resource classification is based on drillhole spacing and geological and grade continuity including the assessment of average weighted distance of informing samples and the quality of estimation. Additionally, the mining method, mining selectivity, mining rate and the cut-off value are also taken into consideration. Generally, Indicated Resources are classified within the average weighted distance of informing data less than 100 metres and a slope of regression (SOR) greater than 0.7, while Inferred Resources are classified outside of the Indicated classification, with an average weighted distance less than 175 metres and a SOR greater than 0.4.

The Indicated and Inferred Mineral Resource classification appropriately reflects the view of the Competent Person referred to below.

Audits or reviews

Derisk Geomining Consultants has conducted an independent review of the Red Chris Mineral Resource estimate and concluded that the estimate has been prepared using accepted industry practice, has been completed in accordance with the JORC Code guidelines, is suitable for preparing a public report documenting the Mineral Resource estimate, and as a basis for developing Ore Reserves.

Discussion of relative accuracy/ confidence

For the open pit and underground, Indicated Resources are considered reasonable for the relative uncertainty to be +/- 15% in tonnage, grade and metal (exclusive of each other, i.e., each variable has to satisfy the criteria) for an annual production volume at a 90% confidence level. Geostatistical evaluations indicate that based on the annual processing throughput these criteria are satisfied. Relative uncertainties and confidence level estimates are considered for both copper and gold.

For the open pit, detailed monthly mine reconciliations have been maintained since production commenced in 2015. The mine reconciliations confirm that the in situ tonnage, grade and metal variances are well within the Indicated Resource relative uncertainty band.

Criteria

Commentary

Mineral Resource Estimate for conversion to Ore Reserves

The Red Chris Project is located in the Stikine terrane of north-western British Columbia, 80 km south of the town of Dease Lake.

Gold and copper mineralisation at Red Chris consists of vein, disseminated and breccia sulphide typical of porphyry-style mineralisation. Mineralisation is hosted by diorite to quartz monzonite stocks and dykes. The main mineral assemblage contains well developed pyrite-chalcopyrite-bornite sulphide mineral assemblages as vein and breccia infill, and disseminations. The main mineralisation event is associated with biotite and potassium feldspar-magnetite wall rock alteration.

The mineralised zone defined by the drilling to date occupies an area with dimension around 0.3 km in width x 3.4 km in length and 1.3 km in a vertical extent. Currently three zones of mineralisation have been identified to date that includes the Gully, Main, and East Zones. The underground reserves are derived from the East Zone resource directly below the East Zone pit.

The Mineral Resource grades were estimated using Localised Uniform Conditioning of 12 m composites within the Redstock domain for six elements: gold, copper, sulphur, iron, calcium, and magnesium. The grades were estimated into a panel size of 80 m x 80 m x 12 m blocks and localised into the selective mining unit of 20 m x 20 m x 12m blocks.

The Mineral Resource consists of both Indicated Mineral Resources and Inferred Mineral Resources. Classification is based on an assessment of geological confidence as a function of geological and mineralisation continuity, with reported resources constrained within a 'value' shell representing the limit for a reasonable prospect of eventual economic extraction.

The reported Red Chris Mineral Resources are inclusive of Ore Reserves. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability.

Site Visits

The Competent Person for the Ore Reserve estimate is an employee of Newcrest Mining Limited based in Melbourne and completed multiple site visits during 2019.

Study Status

The Red Chris Block Cave Pre-Feasibility Study completed in 2021 and is the supporting basis for the Red Chris underground Ore Reserve estimate. The Pre-Feasibility Study shows that the mine plan is technically achievable and economically viable taking into consideration all material Modifying Factors.

Cut-off Parameters

The Red Chris Ore Reserve employs a value-based cut-off determined from the Net Smelter Return (NSR) value equal to the site operating cost derived from the Pre-feasibility study. The NSR calculation takes into account Ore Reserve revenue factors, metallurgical recovery assumptions, transport costs, refining charges, and royalty charges. The site operating costs include mining cost, processing cost, relevant site general & administration costs and relevant sustaining capital costs. This results in shut off values for each block of; MB1 = C$22.00/t Milled, MB2 and MB3 C$22.80/t Milled.

Mining factors or assumptions

Estimation of the Red Chris Ore Reserve involved standard steps of mine optimisation, mine design, production scheduling and financial modelling. Factors and assumptions have been based on Newcrest's block cave operating experience and the Red Chris site conditions determined through geotechnical data collection programmes completed in 2020 and 2021. The basis of the analysis is considered at Pre-Feasibility Study level.

Newcrest's block cave operating and construction experience in conjunction with the Pre-Feasibility geotechnical studies provided the direction for key Mine Design Parameters, including:

• Undercut design and Strategy - High Post Undercut

• Extraction Level Layout - El Teniente

• Extraction Spacing - 32m x 20m

• Maximum Heights of Draw - 830m (MB1), 790m (MB2), 780m (MB3)

• Average Heights of Draw - 600m (MB1), 560m (MB2), 530m (MB3)

The following Modifying Factors have been applied:

• All development has mining factors for dilution and recovery applied to accurately represent the expected mined tonnes; and

• PCBC software is used for estimation of material grades as material is progressively drawn from the block caves. The parameters used for material mixing within the software is based on operations of similar characteristics to that of the Red Chris resource and mining layout and dimensions.

No additional mining modifying factors have been applied to the Ore Reserve estimate.

The resource estimate has been classified as Indicated Mineral Resources and Inferred Mineral Resources. The Ore Reserve estimate is based on Indicated Mineral Resource metal only. Dilution enters the ore stream and is estimated to be approximately 5% tonnes grading 0.1g/t Au and 0.1% Cu. Dilution is defined as material entering the ore stream from beyond the in-situ (No mixing) height of draws that has a value <C$$20.70/t.

The Red Chris Block cave project is an underground greenfield mining project and will require the following mine infrastructure that has been included within the cost estimate:

• Declines, accesses to the footprints, ventilation raises and other underground excavations,

• Material handling system including, underground crushing facilities and conveyor system to surface,

• Underground workshop and refuelling facilities,

• Ventilation fans, regulators and heating equipment; and

• Dewatering, electrical and other service equipment.

Metallurgical factors or assumptions

The anticipated recoveries for underground ore are 81 to 86% for copper and 60 to 75% for gold across the life of the project. Test samples focused mostly on the first 15 years of underground production but included some material from the remainder of the anticipated mine life. The mineralogy of underground samples was found to be more favourable for gold recovery than for current Red Chris open pit operations. Underground ore mineralogy was shown to have some upside for producing high copper concentrate grades due to the presence of enriched copper minerals such as bornite in certain zones in the orebody.

The currently approved TIA has sufficient volume to accommodate tailings generated when mining the remaining open pit and MB1 ore. The PFS design provides increased capacity to the facility to accommodate up to 550 Mt of life-of-mine tailings (including since the start of Red Chris operations in 2015) through centre-line dam raises.

Environmental

Studies in the PFS identified potential areas of impact for the proposed Block Cave Project including the wildlife, soil, vegetation, and terrestrial ecosystems due to the limited incremental increase in the footprint of the mine. Potential impacts identified in the PFS were primarily associated with hydrogeology and hydrology surrounding the Block Cave, and to the aquatic receiving environment in the footprint of the proposed TIA expansion. Work will be carried out as part of the Feasibility Study to further develop our understanding of these impacts and potential management strategies.

Findings of the water balance model indicate that the demands for water for operation of the Block Cave Project can be met under specific water management conditions aimed at improving reclaim during operations and recycling of water. A conceptual closure plan was developed for the Block Cave Project; this plan currently requires long-term water treatment of pit and block cave water with limited-duration treatment of TIA effluent seepage treatment. Forward works have been developed to address these risks and challenges in the Feasibility Study.

Infrastructure

Red Chris is an operating open pit mine producing ~10Mtpa of ore. There are existing facilities that support this operation. With the transition to underground mining and increased processing rate, upgrades to existing site infrastructure are required.

The major infrastructure upgrade is the processing facility. The upgrade includes additional coarse ore stockpile, additional rougher flotation capacity, an upgraded regrind circuit, a new cleaner scalping systems, and duplication of existing concentrate thickening and filtration equipment.

Other site infrastructure upgrades or inclusions to support the underground project are:

• Operational Accommodations Complex

• New Mine Dry

• Site office and control centre

• Expansion of the TIA (Tailing Impoundment Area)

• Upgrade to the on-site power facilities

• Provision for upgrade of services such as onsite roads, water, sewage and communications.

These items have all been included within the Capital cost estimate.

Costs

Capital and operating costs have been determined as part of the Study and support the Ore Reserve.

Capital cost estimates are based on multiple market prices across all technical disciplines and include processing upgrade and mine development costs along with associated infrastructure, project establishment and sustaining capital costs. These provisions have been allowed for during the life of the mine based on most recent Pre-Feasibility plan estimates. Contingency has also been factored into the project capital cost estimate consistent with the level of accuracy of the study.

The operating cost estimate includes mining, processing, transportation and site general and administration costs. The existing open pit operation provides a strong basis for site general and administration and processing and transportation with the Study assessing these costs and updating them with the revised mining plan. The Ore Reserve cost estimates have been reviewed as part of the study execution, are reviewed annually and are considered to be to a Pre-Feasibility Study level.

Transport and refining charges have been developed from first principles consistent with the application and input assumptions for these costs used by the current operation. These included charges for deleterious elements where applicable.

Royalties are calculated as 1% NSR royalty payable to Royal Gold.

Revenue factors

The financial assessment of the Ore Reserve estimate is based on long term metal prices and exchange rate assumptions of US$1,300/oz for gold, US$$3.00/lb for copper at a CAD:USD exchange rate of 0.80. These Ore Reserve revenue factors are consistent with Newcrest metal price guideline for the December 2020 Ore Reserve reporting.

The NSR calculation considers the Ore Reserve revenue factors, metallurgical recovery assumptions, transport costs and refining charges and royalty charges.

Market assessment

Newcrest is a price taker. The copper, gold and silver prices are determined by international markets and the sales revenue is based on these prices. These are open markets and subject to price fluctuations. Projected supply and demand for copper and gold suggests strong market interest for concentrate from the Red Chris open pit operation. It is not a constraint in the estimation of the Ore Reserve.

Red Chris has sold copper concentrate for its operational life to the world concentrate markets. This will continue, with the expanded tonnage resulting in a broader smelter customer base. The focus of the Marketing team will continue to be the use of its skills, experience, and resources to ensure successful placement of concentrate at maximum prices while mitigating and reducing identified risks.

Concentrate volume forecasts were sourced from the Study production schedule.

Economic

The Ore Reserve has been evaluated through a financial model. All operating and capital costs as well as Ore Reserve revenue factors stated in this document were included in the financial model. A discount factor of 4.5% real was applied. This process demonstrated the Red Chris Ore Reserve to have a positive NPV.

Sensitivities were conducted on the key input parameters including commodity prices, capital and operating costs, ore grade, discount rate, exchange rate and recovery which confirmed the estimate to be robust. The NPV range has not been provided as it is commercially sensitive.

Social

The proposed Red Chris Block Cave Project requires an approach that generates support from the Tahltan Nation and leadership as well as the provincial government. This approach includes:

• Open and transparent consultation and communication in describing the Project's activities and assessment of alternatives

• Working partnerships with Tahltan and government

• Recognizing and respecting Tahltan rights and interests

• Compliance with statutory and regulatory obligations

Other

The permitting plan proposes a staged approach to permitting, appropriate to the long-term nature of the Project. The Energy, Mines & Low Carbon Innovation, Environmental Assessment Office, and Tahltan Central Government through its representatives have been consulted by Newcrest on the permit applications submitted by Newcrest to date. Newcrest will continue to engage and consult with the Tahltan Central Government and government agencies on the development of the permitting plan for the Project.

Findings of the water balance model indicate that the demands for water for operation of the Block Cave Project can be met under specific water management conditions aimed at improving reclaim during operations and recycling of water. A conceptual closure plan was developed for the Block Cave Project. This plan currently requires long-term water treatment of pit and block cave water with limited-duration treatment of TIA effluent seepage treatment. Forward works have been developed to address these risks and challenges in the Feasibility Study.

The currently approved TIA has sufficient volume to accommodate tailings generated when mining the remaining open pit and MB1 ore. The PFS design provides increased capacity to the facility to accommodate up to 550Mt of life-of-mine tailings (including since the start of Red Chris operations in 2015) through centre-line dam raises.

Newcrest has identified a pathway to obtain the required regulatory approvals for the Project and is actively engaging with the Tahltan Central Government and government agencies to obtain the regulatory approvals required to enable execution of the Project in a phased manner.

Classification

The Probable Ore Reserve is based on Indicated Mineral Resources. No Measured Mineral Resources are stated for this deposit. The resource classification is based on an assessment of geological confidence as a function of geological and mineralisation continuity, with reported resources constrained within a 'value' shell representing the limit for a reasonable prospect of eventual economic extraction. It is the Competent Persons view that the classifications used for the Ore Reserves are appropriate.

Audits or reviews

Golder Associates Pty Ltd (Golder) was commissioned to conduct an independent review of the Ore Reserve estimation processes and results.

Golder concluded that the Ore Reserve had been prepared using accepted industry practice and is considered suitable and reported in accordance with the JORC Code, 2012 Edition.

Discussion of relative accuracy/ confidence

The accuracy of the estimates within this Ore Reserve is mostly determined by the order of accuracy associated with the Mineral Resource model, the geotechnical input and the cost factors used.

The Competent Person views the Red Chris Ore Reserve as a reasonable assessment of the global estimate. Some risks and opportunities are associated with the Ore Reserve process due to the underground greenfield nature of the project transitioning from open pit mining. Remaining areas of uncertainty at this stage are associated with:

• Cost base assumptions rely on current technology and macroeconomic factors. Changes to these assumptions will have an impact on the Ore Reserve estimate.

• Definitive flow parameters for the Red Chris ore body.

• The Modifying Factors (key inputs) for Ore Reserve estimation rely upon the geology and geotechnical data inherent to the orebody. This data, such as geological structures and rock mass properties, is to the appropriate definition and has been applied within the Study. However further orebody data is required to confirm the geological and geotechnical information and is planned as part of the Forward Works Programme.

Due to the Red Chris block cave being a greenfields underground project, reconciled data for underground production is not available.

Criteria

Commentary

Mineral Resource Estimate for conversion to Ore Reserves

A technical description of the Mineral Resource estimate that provided the basis for the Red Chris Open Pit Ore Reserve estimate is presented in the preceding sections.

The Red Chris orebody is located in the province of British Columbia, Canada and is 18km southeast of the town of Iskut and 80km south of Dease Lake.

The conversion of resource to reserve is driven by modifying factors assigning practical and value drivers to available resource inventories. Pit optimisation, pit design and cut-off grades are the primary tool for the conversion of Measured and Indicated Mineral Resources into Probable Ore Reserves. Inferred Mineral Resources and unclassified material are treated as waste and given zero grade.

The Red Chris mine is an operating mine and has recently completed Newcrest life of province plan and updated mine production schedules and pit designs per quarterly forecasts.

Ore Reserves are reported on a 100% basis rather than the 70:30 ownership condition between Newcrest Mining Limited (70%) and Imperial Metals Corporation (30%).

The nominated and company approved Competent/Qualified Person (QP/CP) for Reserves is Brett C Swanson, BE (Min) MMSAQP #04418QP.

The reported Red Chris Mineral Resources are inclusive of Ore Reserves.

Site Visits

The Competent Person for the Ore Reserve estimate is an employee of Newcrest Mining Limited and at the time of the Ore Reserve preparation was the Principal Open Pit Mining Engineer (Group). The Competent Person has not visited the Red Chris mine due to COVID-19 restrictions.

Study Status

Production at Red Chris commenced in 2012 and it is now a mature and stable operation with well-established mining and processing performance. Inputs for the Ore Reserve estimate have been determined as part of the life of province planning cycle and FY22 Q1 Forecast. The results are also included in the 2021 Pre-Feasibility Study on the potential Red Chris Underground.

Cut-off Parameters

Red Chris open pit employs a multi-metal NSR based cut-off considering metallurgical recovery assumptions, transport costs, refining and royalty charges. The site operating costs include processing cost, relevant site general and administration costs and relevant sustaining capital costs.

A value algorithm is used to calculate the NSR for each block using revenue and cost assumptions as at June 30^th 2021 with a gold price of US$1300/oz, copper price of US$3/lb, and a CAD:USD exchange rate of 0.75. The cut-off value for reporting within the open pit mining area is based on an NSR value above C$16.5/tonne milled. These Ore Reserve revenue factors are consistent with Newcrest metal price guideline for the December 2020 Ore Reserve reporting.

Mining factors or assumptions

Estimation of the Red Chris Reserve involved standard steps of pit optimisation, mine design, production scheduling and financial modelling. Factors and assumptions have been determined as part of a prefeasibility level study or are based on operating experience and performance.

Current mining activity at Red Chris is via conventional truck and shovel operation, with segregated disposal of non acid generating (NAG) and potentially acid generating (PAG) waste. The current mining activities demonstrate the appropriateness of this mining method as the basis of the Ore Reserve estimate.

Mine design parameters are:

• A minimum mining width (MMW) of 70m is targeted for all benches in both Main pit and East pit, including upper benches.

• Single lane ramps for bottom four benches in Main and East Zone

• 5m fractional bench access provided on either side of ramp for services vehicles

• Single lane ramps target 28m width at 10% grade

• Default dual ramp width targets 35m width at 10% grade

• Ramps are circular around pit limits with no switchbacks

Geotechnical zones within the pit are assigned specific slope parameters based on detailed analysis of ground conditions and other factors which influence geotechnical performance. These design parameters are based on current geotechnical experience and ongoing studies. Global stability analysis confirms conservative factor of safety estimates with applied pit slopes.

The Red Chris Resource Model utilises Localised Uniform Conditioning (LUC) to estimate block metal content. This process allows for ore dilution and recovery to be built into the resource model based on the assumption of the selective mining unit (SMU) as the block size. The SMU assumption (20m x 20m x 12m) is based on the mining fleet size and is consistent with a high mill throughput/bulk mining strategy. Due to the LUC approach adopted in the resource model no additional mining dilution or recovery factors have been applied to the Ore Reserve estimate. This assumption is supported by the actual reconciliation between resource model and mill performance at Red Chris project to date being within an acceptable uncertainty range for the style of mineralisation under consideration.

Adequate tailings and waste storage areas have been defined to support the reported open pit Ore Reserves.

Metallurgical factors or assumptions

The open pit Ore Reserve estimate is based on a maximum 11Mtpa comminution rate plant producing copper concentrate with gold and silver credits. Ore processing at Red Chris involves a plant design based on a standard porphyry copper flow sheet employing SAG and ball milling, flotation, regrinding, thickening and filtering to produce a copper concentrate at a moisture content of 8% for export.

Concentrate is thickened and filtered, and then loaded on trucks of nominal 40 tonne capacity for hauling to the Port of Stewart, for subsequent shipment to Asian smelters.

Mill tailings are gravity fed; rougher or NAG tailings to the NAG trench and cleaner scavenger or PAG tailings and sulphide concentrate to the PAG trench. The TIA is located in a valley to the northeast of the processing plant and at present consists of a North Dam and South Dam.

The metallurgical recovery assumptions for ore feed are dependent on the gold and copper grade that varies by pit location. Overall metallurgical recovery is based on historic production data and laboratory test samples and has been estimated as:

• Gold Recovery = 50.8%

• Copper Recovery = 79.3%

Potential deleterious elements of mercury and antimony in concentrate are managed through ore control, pit blending and stockpiling.

Environmental

Red Chris open pit is an operating mine and is in material compliance with its granted environmental permits.

Infrastructure

The Red Chris operation is an operating mine and has the necessary infrastructure is in place for its continued operation.

No additional infrastructure pertaining to open pit operations are expected at Red Chris.

Costs

Capital and operating costs have been determined based on the current operating cost base modified for changing activity levels and reasonable cost base reductions over the life of the mine.

Supported by operating history and planned infrastructure investments, Ore Reserve cost estimates are considered to be Pre-Feasibility level.

Given the short mine life remaining for the Red Chris open pit, sustaining capital is predominately associated with the TIA.

Cost impact expected from deleterious elements has been considered in the value descriptor (NSR) calculation and is supported by current operating conditions and saleability of concentrate.

Transport and refining charges have been developed from first principles consistent with the application and input assumptions for these costs used by the current operation.

Costs are calculated on a 100% basis rather than 70:30 ownership condition.

Royalties are calculated as 1% NSR royalty payable to Royal Gold.

Revenue factors

Long term metal prices and exchange rate assumptions adopted in the 2021 reserve estimation process are US$1,300/oz for gold, US$3/lb at a AUD:USD exchange rate of 0.75. These Ore Reserve revenue factors are consistent with Newcrest metal price guideline for the December 2020 Ore Reserve reporting

Market assessment

Newcrest is a price taker gold and copper is sold on the open market after refining and subject to price fluctuations. Supply and demand for gold and silver from Red Chris is not a constraint in the estimation of the Ore Reserve.

Economic

The Ore Reserve has been evaluated through a financial model. All operating and capital costs as well as revenue factors stated in this document were included in the financial model. This process demonstrated the Red Chris Open Pit Ore Reserve to have a positive NPV.

Sensitivity of +/-10% was conducted on the key input parameters of costs, grade and recovery which confirmed the estimate to be robust. The NPV range has not been provided as Newcrest considers that it is commercially sensitive information.

Social

Newcrest Red Chris Mining Limited and the Tahltan Nation (as represented by the Tahltan Central Government, the Tahltan Band and Iskut First Nation) signed an amended and restated IBCA covering Red Chris on 15 August 2019.

All obligations with respect to legislative requirements including minimum expenditure are maintained in good standing.

Other

Red Chris Operations and the Red Chris Open pit are in material compliance with all legal and regulatory requirements.

Naturally occurring risks that might have a material impact upon the Red Chris Ore Reserve are discussed in the risks section of Newcrest's Operating and Financial Review included in the Appendix 4E and Financial Report for the year ended 30 June 2021 which is available to view at www.asx.com.au under the code "NCM" and on Newcrest's SEDAR profile.

Classification

All of the in-situ Ore Reserve is currently derived from Indicated Mineral Resources. This classification is based on the density of drilling, the ore body experience and the mining method employed. Measured Mineral Resources defined in low grade stockpiles are converted to Probable Ore Reserves to account for stockpile ageing and material tracking.
It is the Competent Person's view that the classifications used for the Ore Reserves are appropriate.

Audits or reviews

Golder was commissioned to conduct an independent review of the Ore Reserve estimation processes and results.

Golder concluded that the Ore Reserve had been prepared using accepted industry practice and is considered suitable and reported in accordance with the JORC Code, 2012 Edition.

Discussion of relative accuracy/ confidence

The accuracy of the estimates within this Ore Reserve is mostly determined by the order of accuracy associated with the Mineral Resource model, the metallurgical input, geotechnical slope angles, mine equipment, metal prices and the cost factors used.

Red Chris Open Pit Ore Reserves are based on proven operating history of ore metal grade, operating cost, geotechnical stability, and metallurgical recoveries. Estimated operating and sustaining capital costs developed for the remaining open pit mine life have been calculated to a pre-feasibility level of accuracy.

The Competent Person is not aware of any modifying factor that may materially impact the Ore Reserve Statement (as of 30 June 2021) and the Ore Reserves are supported by a positive cash flow analysis.

The Competent Person views the Red Chris Open Pit Ore Reserve to be a reasonable and appropriate global estimate.