The Quecher Main project at Newmont Goldcorp's (TSX: NGT; NYSE: NEM) Yanacocha gold mine in Peru has achieved commercial production ahead of schedule and under budget.
The project will extend the life of the Yanacocha operation to 2027.
Quecher Main, 800 km northeast of Lima, is expected to contribute an average of 200,000 oz. gold annually from 2020 through 2024, at all-in sustaining costs (AISCs) between US$900 and US$1,000 per ounce.
The project includes the development of the Quecher Main pit, two smaller oxide deposits and a heap leach pad.
Tom Palmer, Newmont Goldcorp's president and CEO, says the Quecher Main project leverages on Yanacocha's existing infrastructure to add profitable production from remaining oxide ores.
Yanacocha began commercial production in 1993 and has produced more than 38 million oz. gold from open-pit oxide and transitional ores processed at Yanacocha's gold mill and leach pad. The operation is a joint venture between Newmont Goldcorp (51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation (5%).
At press time, Newmont Goldcorp was trading at $52.08 per share with a 52-week range of $40.01 to $54.87. The company has 820 million common shares outstanding for a $42.7-billion market capitalization.