Strategic Mine Planning at Newmont's Twin Creeks Operation

"INTRODUCTION Newmont’s Twin Creeks operation, part of its Nevada operations, produces gold from two large open pit mines. Mined ore is processed at one of three on-site facilities: a refractory mill with two autoclaves, an oxide mill and heap leaching facilities. Twin Creeks also processes various off-site sourced concentrates and ore including high grade underground ore from the Turquoise Ridge joint venture with Barrick Gold Corporation. This paper discusses Twin Creeks’ strategic mine planning process which is part of an in-depth continuous improvement program called “Full Potential.” The process involves cost analysis, phase design validations, life-of-mine production scheduling optimization, mill blending strategy and stockpile management. Through this Full Potential strategic planning, Twin Creeks is creating significant value by increasing near term free cash flow and life of mine net present value (“NPV”) and achieving cost reductions. TWIN CREEKS OPERATION Twin Creeks is one of the major gold producers in Newmont’s Nevada operations (see Figure 1, 2 and 3). Located approximately 15 miles north of Golconda, Twin Creeks produced approximately 28 % of the Nevada operation’s 2013 gold production of 1.8 million ounces (Newmont 2014). The production included Turquoise Ridge sourced gold ore from the joint venture (75% Barrick Gold Corporation, 25% Newmont).At Twin Creeks, there are two large open pits, named Mega Pit and Vista Pit (see Figure 4, 5 and 6). There are 3 to 5 phases in Mega Pit and 2 to 5 phases in Vista Pit depending on the gold price assumption. There is also an underground exploration project at the bottom of the Vista Pit. Twin Creeks produces gold from a variety of ore types requiring different processing techniques depending on economic and metallurgical characteristics. To ensure the best use of processing assets, engineering and processing groups at Twin Creeks utilize a Mixed Integer Linear Programming (“MILP”) model to guide the flow of mine sequences and material routing to various process facilities (Kawahata, Schumacher and Hufford 2013)."