BC - Cadia East

To:
Company Announcements Office
From:
Peter Larsen
Date:
2 March 2012
Subject:
Toronto Stock Exchange Listing Cadia Valley

Operations Technical Report
LEVEL 9
600 ST KILDA ROAD
MELBOURNE
VICTORIA 3004
AUSTRALIA
PO BOX 6213
ST KILDA ROAD CENTRAL
MELBOURNE 8008
T +613 9522 5333

F +613 9525 2996
www.newcrest.com.au
In relation to Newcrest Mining Limiteds secondary listing on the Toronto

Stock Exchange (TSX), please find attached for immediate release and for
the information of the market:
Technical Report on the Cadia Valley Operations Property in New

South Wales, Australia dated December 31, 2011.
The attached Report is referred to in the Newcrest Annual Information Form

(AIF) for the Fiscal Year Ended June 30, 2011 dated as of February 27,
2012, lodged on the ASX contemporaneously and as filed with the Canadian
regulatory authorities.
Important note:
With respect to the reporting of Newcrests resources and reserves which are
required to be reported in accordance with the Australasian Code for
Reporting of Exploration Results, Minerals Resources and Ore Reserves
(The JORC Code) 2004 edition, readers of the AIF and accompanying
technical reports are expressly referred to Newcrests December 2011
Resources and Reserves Statement lodged with ASX on 10th February 2012.
Canadian regulations require Ore Reserves and Mineral Resources to be
reported in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects of the Canadian Securities Administrators (NI
43-101) and the provisions of the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM) Definition Standards for Mineral Resources and Ore
Reserves 2010 (CIM Definition Standards).
As noted above, Australian regulations require ore reserves and resources to
be reported in accordance with The JORC Code.
A comparison of the respective requirements of NI 43-101 and The JORC
Code is contained at page 14 (and following) of the AIF under the heading
Mineral Reserves and Mineral Resources.
Yours sincerely
Peter Larsen
Deputy Company Secretary
A MEMBER OF THE
NEWCREST MINING GROUP
ABN 20 005 683 625
AMC Mining Consultants (Canada) Ltd

BC0767129
Suite 1330, 200 Granville Street

Vancouver BC V6C 1S4
CANADA
T
F
E
+1 604 669 0044

+1 604 669 1120
amccanada@amcconsultants.ca
TECHNICAL REPORT ON THE CADIA VALLEY

OPERATIONS PROPERTY
IN
NEW SOUTH WALES
AUSTRALIA
Prepared for Newcrest Mining Limited

by
AMC Mining Consultants (Canada) Ltd in accordance with the requirements of
National Instrument 43-101, Standards for Disclosure of Mineral Projects, of the
Canadian Securities Administrators.
Qualified Persons:
Mr Michael Thomas HND (Mining) MAusIMM (CP)
Mr Colin Moorhead Bsc (Hons), FAusIMM
AMC 711037
Effective Date of Report:
ADELAIDE
+61 8 8201 1800
BRISBANE
+61 7 3839 0099
MELBOURNE
+61 3 8601 3300
31 December 2011
PERTH
+61 8 6330 1100
www.amcconsultants.com
UNITED KINGDOM
+44 1628 778 256
VANCOUVER
+1 604 669 0044
NEWCREST MINING LIMITED

Technical Report on the Cadia Valley Operations Property
CONTENTS
1
SUMMARY ................................................................................................................... 8
1.1
Geology .......................................................................................................... 8
1.2
Mine Production ............................................................................................. 9
1.3
Mineral Resources ......................................................................................... 9
1.4
Mineral Reserves ......................................................................................... 10
1.5
Cadia Hill Mine ............................................................................................. 10
1.6
Ridgeway Mine ............................................................................................. 10
1.7
Cadia East Project ........................................................................................ 11
1.8
Infrastructure and Concentrate Handling ..................................................... 11
1.9
Environmental Management ........................................................................ 11
1.10 Capital and Operating Costs ........................................................................ 12
1.11 Conclusions .................................................................................................. 12
1.12 Recommendations ....................................................................................... 13
INTRODUCTION ........................................................................................................ 14
2.1
General and Terms of Reference ................................................................. 14
2.2
Report Authors ............................................................................................. 14
2.3
Units of Measure and Currency .................................................................... 15
RELIANCE ON OTHER EXPERTS ............................................................................ 17
PROPERTY DESCRIPTION AND LOCATION .......................................................... 18

4.1
Property Location ......................................................................................... 18
4.2
Land Tenure ................................................................................................. 19
4.3
Relevant Agreements ................................................................................... 21
4.3.1 Junction Reefs Joint Venture ............................................................ 21
4.3.2 Forest Reefs Joint Venture ............................................................... 21
4.4
Environmental Liabilities ............................................................................... 22
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY....................................................................................................... 23
5.1
Topography Elevation and Vegetation ......................................................... 23
5.2
Access .......................................................................................................... 23
5.3
Climate ......................................................................................................... 23
5.4
Surface Rights .............................................................................................. 24
HISTORY .................................................................................................................... 26
6.1
Initial Discovery ............................................................................................ 26
6.2
Cadia Hill Open Pit ....................................................................................... 26
6.3
Ridgeway Underground Mine ....................................................................... 27
6.4
Cadia East Project ........................................................................................ 29
GEOLOGICAL SETTING AND MINERALIZATION .................................................... 31

7.1
Regional Geology ......................................................................................... 31
7.2
CVO Deposit Geology .................................................................................. 33
7.2.1 Cadia Hill Geology ............................................................................ 33
7.2.2 Cadia Hill Alteration .......................................................................... 33
Cadia Valley Property December 31 2011.docx

7.2.3 Cadia Hill Mineralization ................................................................... 34

7.2.4 Ridgeway Geology ........................................................................... 34
7.2.5 Ridgeway Alteration .......................................................................... 34
7.2.6 Ridgeway Mineralization ................................................................... 34
7.2.7 Cadia East Geology .......................................................................... 35
7.2.8 Cadia East Alteration ........................................................................ 35
7.2.9 Cadia East Mineralization ................................................................. 36
7.2.10 Big Cadia and Little Cadia Geology .................................................. 36
7.2.11 Cadia Extended (Cadia Quarry) Geology ......................................... 36
8
DEPOSIT TYPES ....................................................................................................... 38
EXPLORATION .......................................................................................................... 39
9.1
Exploration History ....................................................................................... 39
9.2
Near Mine Exploration Projects .................................................................... 39
9.2.1 Big Cadia .......................................................................................... 39
9.2.2 Cadia Extended ................................................................................ 40
10
DRILLING ................................................................................................................... 41
10.1 Drilling .......................................................................................................... 41
10.2 Core Recovery ............................................................................................. 41
10.3 Logging......................................................................................................... 41
11
SAMPLE PREPARATION, ANALYSES AND SECURITY.......................................... 42

11.1 Sample Preparation ...................................................................................... 42
11.2 Assay Laboratory ......................................................................................... 42
11.3 QA/QC Procedures ...................................................................................... 43
11.4 Ridgeway QA/QC Performance ................................................................... 44
11.4.1 Ridgeway Standards ........................................................................ 44
11.4.2 Ridgeway Duplicates ........................................................................ 45
11.4.3 Ridgeway Repeat Assay QA/QC Performance ................................ 46
11.4.4 Ridgeway Check Assays .................................................................. 46
11.5 Cadia East QA/QC Performance .................................................................. 46
11.5.1 Cadia East Standards QA/QC Performance..................................... 46
11.5.2 Cadia East Duplicates QA/QC Performance .................................... 47
11.5.3 Cadia East Repeat Assay QA/QC Performance............................... 47
11.5.4 Cadia East Check Assay QA/QC Performance ................................ 50
11.6 Data Entry and Data Security ....................................................................... 50
12
DATA VERIFICATION ................................................................................................ 51
13
MINERAL PROCESSING AND METALLURGICAL TESTING................................... 52

13.1 Introduction................................................................................................... 52
13.2 Ridgeway Ore Metallurgy ............................................................................. 52
13.2.1 Introduction ....................................................................................... 52
13.2.2 Ridgeway Deeps Metallurgical Test Work Samples ......................... 52
13.2.3 Test Work Results and Interpretation ............................................... 53
13.3 Cadia East Metallurgical Test Work ............................................................. 54
ii

13.3.1 Background ...................................................................................... 54

13.3.2 Ore Sampling .................................................................................... 54
13.3.3 Ore Mineralogy ................................................................................. 56
13.3.4 Metallurgical Test Work .................................................................... 57
13.3.5 Comminution Test Work Results and Interpretation ......................... 58
13.3.6 Gravity Gold Recovery Test Work Results and Interpretation .......... 59
13.3.7 Flotation Test Work Results and Interpretation ................................ 59
13.3.8 Summary of Cadia East Test Work Implications .............................. 60
14
MINERAL RESOURCE ESTIMATES ......................................................................... 62

14.1 CVO Mineral Resource Estimates ................................................................ 62
14.2 Cadia Hill Mineral Resource Estimate .......................................................... 62
14.2.1 Background ...................................................................................... 62
14.2.2 Cadia Hill Domains ........................................................................... 63
14.2.3 Cadia Hill Statistics ........................................................................... 63
14.2.4 Cadia Hill Variography ...................................................................... 64
14.2.5 Cadia Hill Estimation Parameters ..................................................... 65
14.2.6 Cadia Hill Resource Classification .................................................... 66
14.3 Ridgeway Mineral Resource Estimate ......................................................... 66
14.3.1 Background ...................................................................................... 67
14.3.2 Ridgeway Grade Estimation Domains .............................................. 67
14.3.3 Ridgeway Composites ...................................................................... 69
14.3.4 Ridgeway Exploratory Data Analysis ................................................ 69
14.3.5 Ridgeway Variography ..................................................................... 71
14.3.6 Ridgeway Bulk Density ..................................................................... 74
14.3.7 Ridgeway Estimation Parameters..................................................... 74
14.3.8 Resource Model Validation ............................................................... 75
14.3.9 Ridgeway Resource Classification ................................................... 75
14.4 Cadia East Mineral Resource Estimate ........................................................ 76
14.4.1 Background ...................................................................................... 76
14.4.2 Cadia East Domains ......................................................................... 76
14.4.3 Cadia East Copper and Sulphur Domains ........................................ 77
14.4.4 Cadia East Gold and Molybdenum Domains .................................... 78
14.4.5 Cadia East Silver Domains ............................................................... 79
14.4.6 Cadia East Composites .................................................................... 79
14.4.7 Cadia East Exploratory Data Analysis .............................................. 79
14.4.8 Cadia East Variography .................................................................... 81
14.4.9 Cadia East Bulk Density ................................................................... 83
14.4.10
Cadia East Estimation Parameters ....................................... 84
14.4.11
Cadia East 2009 Fluorine Mineral Resource Block Model.... 85
14.4.12
Cadia East Resource Classification ...................................... 85
14.5 Big Cadia Mineral Resource Estimate .......................................................... 85
14.5.1 Big Cadia Resource Classification.................................................... 86
14.6 Cadia Extended (Cadia Quarry) Mineral Resource Estimate ....................... 87
14.6.1 Cadia Extended Resource Classification ......................................... 88
iii

15
MINERAL RESERVE ESTIMATES ............................................................................ 89

15.1 Introduction................................................................................................... 89
15.2 Mineral Reserve Assumptions ...................................................................... 89
15.2.1 Commodity Prices and Exchange Rate ............................................ 89
15.2.2 Cost Estimates ................................................................................. 89
15.3 Cadia Hill Mineral Reserve ........................................................................... 89
15.4 Ridgeway Deeps Mineral Reserve ............................................................... 91
15.5 Cadia East Mineral Reserve ......................................................................... 93
16
MINING METHODS .................................................................................................... 97

16.1 Cadia Hill Operations ................................................................................... 97
16.2 Block Caving and Panel Caving Mining Methods ......................................... 98
16.3 Ridgeway Operations ................................................................................... 98
16.4 Cadia East Project ...................................................................................... 101
17
RECOVERY METHODS........................................................................................... 105

17.1 Introduction................................................................................................. 105
17.2 Cadia Concentrator Existing Operations ................................................. 105
17.2.1 Current Plant Upgrade for Cadia East Ore ..................................... 108
17.3 Ridgeway Concentrator .............................................................................. 110
17.3.1 Recent Plant Performance ............................................................. 111
17.4 Blayney Dewatering Facility ....................................................................... 111
18
PROJECT INFRASTRUCTURE ............................................................................... 112

18.1 Tailings Management ................................................................................. 113
18.2 Water Supply .............................................................................................. 113
18.3 Power Supply ............................................................................................. 114
18.4 Other Site Infrastructure ............................................................................. 114
19
MARKET STUDIES AND CONTRACTS .................................................................. 116

19.1 Newcrest Concentrate Characteristics ....................................................... 116
19.2 Transport and Storage ............................................................................... 116
19.3 Newcrest Concentrate Destination Smelters .............................................. 116
19.4 Concentrate Treatment and Copper Refining Charges .............................. 116
19.5 Precious Metal Terms and Refining Charges ............................................. 117
19.6 Weighing, Sampling and Moisture Determination and Assays & Analyses 117
19.7 Dor ............................................................................................................ 117
19.8 Marketing Resources ................................................................................. 118
20
ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY

IMPACT .................................................................................................................... 119
20.1 Overview .................................................................................................... 119
20.2 Individual Environmental Issues ................................................................. 119
20.2.1 Statutory Environmental Approvals and Compliance ..................... 119
20.2.2 Water Supply and Management ..................................................... 120
20.2.3 Flora and Fauna Conservation ....................................................... 120
20.2.4 Acid Mine Drainage ........................................................................ 121
20.2.5 Noise and Dust Management ......................................................... 121
iv

20.2.6 Closure and Rehabilitation ............................................................. 121

20.2.7 Community Issues .......................................................................... 122
21
CAPITAL AND OPERATING COSTS....................................................................... 123
22
ECONOMIC ANALYSIS ........................................................................................... 125
23
ADJACENT PROPERTIES....................................................................................... 126
24
OTHER RELEVANT DATA AND INFORMATION .................................................... 127
25
INTERPRETATION AND CONCLUSIONS .............................................................. 128
26
RECOMMENDATIONS ............................................................................................ 129
27
REFERENCES ......................................................................................................... 130
28
QUALIFIED PERSONS CERTIFICATES ................................................................ 134
TABLES
Table 1.1
Table 1.2
Table 1.3
Table 1.4
Table 2.1
Table 2.2
Table 4.1
Table 4.2
Table 6.1
Table 6.2
Table 6.3
Table 8.1
Table 11.1
Table 11.2
Table 11.3
Table 11.4
Table 11.5
Table 11.6
Table 11.7
Table 11.8
Table 13.1
Table 14.1
Table 14.2
Table 14.3
Table 14.4
Table 14.5
Table 14.6
Table 14.7
CVO Mineral Resource Estimate at 31 December 2011 ................................ 9

CVO Mineral Reserves Estimate at 31 December 2011 .............................. 10
CVO FY 2011 Actual Production and Operating Costs ................................ 12
CVO FY 2012 Estimated Operating Costs ................................................... 12
Persons Who Prepared or Contributed to This Technical Report ................. 14
Terms and Abbreviations .............................................................................. 16
Cadia Valley Property Land Tenure Details .................................................. 19
Details of Licence Holders ............................................................................ 21
Historical Production from Cadia Hill Open Pit ............................................. 27
Historical Production from the Ridgeway Mine ............................................. 28
Historical Production from Cadia East .......................................................... 30
Cadia Valley Mineralized Porphyry Styles .................................................... 38
Cadia Assay Techniques and Detection Limits ............................................ 43
Ridgeway Reference Standards Key Statistics ......................................... 44
Reference Material Accuracy and Precision Summary ................................ 45
Ridgeway Duplicate Performance ................................................................ 45
Ridgeway Boyd Crusher Repeats (2005 2006) ......................................... 46
Cadia East Reference Material ..................................................................... 47
Standard Material Bias ................................................................................. 47
Cadia East Boyd Crusher Repeats ............................................................... 48
Results for Sag Mill Competency Tests ........................................................ 58
Newcrest Mineral Resource Metal Price and Exchange Rates ................. 62
Cadia Hill Mineral Resource Estimate at 31 December 2011 ....................... 62
Cadia Hill Estimation Domains ..................................................................... 63
Composite Statistics by Domain STRDOM for Cadia Hill ............................. 64
STRDOM 1 MIK Indicator Variogram Parameters for Au ............................. 65
Ordinary Kriging Variogram Parameters for Au ............................................ 65
Ridgeway Mineral Resource Estimate at 31 December 2011 ...................... 66

Table 14.8
Table 14.9
Table 14.10
Table 14.11
Table 14.12
Table 14.13
Table 14.14
Table 14.15
Table 14.16
Table 14.17
Table 14.18
Table 14.19
Table 14.20
Table 14.21
Table 14.22
Table 14.23
Table 14.24
Table 14.25
Table 14.26
Table 14.27
Table 15.1
Table 15.2
Table 15.3
Table 16.1
Table 17.1
Table 17.2
Table 17.3
Table 21.1
Table 21.2
Table 21.3
Table 21.4
Gold Domain Description .............................................................................. 68

Copper Domain Description.......................................................................... 69
Domains Used for This Estimate .................................................................. 70
Gold Domain Global Statistics ...................................................................... 71
Copper Domain Global Statistics .................................................................. 71
Ridgeway Modeled Semi-Variogram Parameters ......................................... 73
Density Values for Grade Domains Applied to the Resource Model ............ 74
Block Model Parameters May 2011 Model ................................................ 75
Cadia East Mineral Resource Estimate at 31 December 2011 .................... 76
Coding for the Structure Domains (STRDOM) ............................................. 77
Copper and Sulphur Domains Used in Cadia East Resource Estimate ....... 77
Gold and Molybdenum Domains .................................................................. 78
Coding for Grade Domains ........................................................................... 80
Cadia East Statistics by Grade Domain ........................................................ 81
Cadia East Semi-Variogram Models for Gold and Molybdenum .................. 82
Variogram Models for Copper and Sulphur .................................................. 83
Density Values for Grade Domains .............................................................. 84
Block Model Parameters............................................................................... 84
Big Cadia Mineral Resource Estimate at 31 December 2011 ...................... 85
Cadia Extended Mineral Resource Estimate at 31 December 2011 ............ 87
Cadia Hill Mineral Reserves at 31 December 2011 (Including Stockpiles) ... 90
Ridgeway Deeps Lift 1 Mineral Reserve Estimate at 31 December 2011 .... 91
Cadia East Mineral Reserve Estimate at 31 December 2011 ...................... 94
Cadia East Panel Cave Dimensions ........................................................... 101
Cadia Concentrator Performance ............................................................... 105
Staged Expansion of Cadia Concentrator .................................................. 108
Historical Ridgeway Concentrator Performance ......................................... 111
CVO Historical Production and Operating Costs ........................................ 123
CVO FY 2011 Actual Production and Operating Costs .............................. 123
Historical Capital Expenditure ..................................................................... 124
CVO FY 2012 Estimated Operating Costs ................................................. 124
FIGURES
Figure 1.1
Figure 4.1
Figure 4.2
Figure 5.1
Figure 7.1
Figure 7.2
Figure 7.3
Figure 11.1
Figure 13.1
Figure 14.1
Figure 14.2
Aerial View of Significant Deposits ................................................................. 8

Property Location.......................................................................................... 18
CVO Exploration and Mining Tenements ..................................................... 20
Surface Land Owned by CHPL ..................................................................... 25
Regional Geology of the Ordovician Rocks of New South Wales ................ 31
Cadia Valley Geological Plan ....................................................................... 32
Cadia Valley Geological Cross Section ........................................................ 33
Au, Cu and S Boyd Crusher Repeats Relative Percent Difference .............. 49
Cadia East Long Section Showing Test Work Sampling Locations .............. 55
Purple Fault (Coloured Purple) ..................................................................... 68
Copper Boundary Test for >0.1% Cu Shell................................................... 78
vi

Figure 15.1
Figure 15.2
Figure 15.3
Figure 15.4
Figure 15.5
Figure 16.1
Figure 16.2
Figure 16.3
Figure 16.4
Figure 16.5
Figure 16.6
Figure 17.1
Figure 17.2
Figure 18.1
Cross Section Showing Cadia Hill Mineral Reserve ..................................... 90

Ridgeway Block Cave Outlines Looking North .......................................... 92
Ridgeway Deeps Lift 1 Footprint................................................................... 93
Cadia East Block Cave Footprint Perimeters ............................................... 95
Cadia East Mining Blocks Looking North ...................................................... 96
Plan Views of Cadia Hill Open Pit ................................................................. 97
Relationship Between the Ridgeway Mining Areas ...................................... 99
Plan of Ridgeway Lift 1 Extraction Level .................................................... 100
Plan View Showing Proposed Mine Workings ............................................ 102
Extraction Level Layout for Lift 1 ................................................................ 103
Extraction Level Layout for Lift 2 ................................................................ 104
Cadia Concentrator Simplified Process Flow Diagram ............................... 107
Comminution Circuit Block Flow Diagram .................................................. 109
Site Layout for Cadia Valley Operations ..................................................... 112
vii

SUMMARY
1.1
Geology
Newcrest Mining Limited (Newcrest) is 100% owner of Cadia Valley Operations (CVO)
located in New South Wales (NSW) Australia. CVO comprises a group of mining and
exploration tenements that host porphyry related gold and copper mineralization within an
Ordovician age intrusive complex.
The intrusive has led to the formation of a number of significant gold copper deposits, three
of which, Cadia Hill, Ridgeway and Cadia East host large scale mining operations. Other
deposits including Big Cadia and Cadia Extended host mineral resources but have not yet
been explored or evaluated in sufficient detail to convert mineral resources to mineral
reserves. Other deposits remain as exploration targets. An aerial view of significant
deposits at CVO that host mineral resources and mineral reserves is shown in Figure 1.1.
Figure 1.1
Aerial View of Significant Deposits

1.2
Mine Production
In Financial Year (FY) ending June 2011, CVO milled 21.9 Mt of ore producing 515 koz of
gold and 44 kt of contained copper. Gold production from CVO represents approximately
19% of Newcrests total gold production. Cash cost for the year are reported at A$303/oz.
1.3
Mineral Resources
Mineral resource estimates for CVO at 31 December 2011 are summarized in Table 1.1.
Table 1.1
CVO Mineral Resource Estimate at 31 December 2011

Contained Metal
Resource
Classification
Cadia
Extended
Measured
Indicated
82
0.35
0.20
36
Inferred
Measured
0.33
0.23
0.17
14
Big Cadia
Indicated
Inferred
Measured
46
1.8
0.37
0.21
0.38
0.38
Cadia East
Indicated
Inferred
Measured
2,200
100
0.1
0.44
0.35
1.1
0.29
0.18
0.41
Ridgeway
Indicated
120
0.76
Inferred
27
0.47
180
34
220
180
2,500
360
0.45
0.41
0.31
0.45
0.45
0.34
Cadia Hill
Total CVO
Measured
Indicated
Inferred
Measured
Indicated
Inferred
Tonnes
(Mt)
Grades
Ag
(g/t)
Deposit
Au
(g/t)
Cu
(%)
Mo
(ppm)
Au
(Moz)
Cu
(Mt)
Ag
(Moz)
Mo
(kt)
0.9
0.16
<0.01
<0.01
0.54
0.01
0.17
0.01
0.48
0.24
1.2
75
21
32
1.1
<0.01
6.40
0.18
<0.01
34.8
0.8
<0.01
170
2
0.35
0.85
2.9
0.42
3.3
0.44
0.47
0.4
0.12
0.4
0.13
0.14
0.10
0.13
0.29
0.15
2.6
0.4
2.3
2.6
36.8
3.8
0.22
0.05
0.23
0.22
7.20
0.54
38.1
1.2
170
2
Notes: 1. The cut offs applied are variable and are described in the text of the report
2. The figures above include those resources converted to reserves
3. Rounding may cause some computational discrepancies

1.4
Mineral Reserves
Mineral reserve estimates for CVO at 31 December 2011 are summarized in Table 1.2.
Table 1.2
CVO Mineral Reserves Estimate at 31 December 2011

Grades
Deposit
Cadia East
Ridgeway
Cadia Hill
Total CVO
Reserve
Classification
Tonnes
(Mt)
Contained Metal
Au
(g/t)
Cu
(%)
Mo
(ppm)
Au
(Moz)
Cu
(Mt)
Mo
(kt)
Proven
Probable
Proven
1,100
0.57
0.31
87
20.9
3.48
99
Probable
Proven
45
90
0.83
0.53
0.37
0.14
1.2
1.5
0.17
0.12
Probable
Proven
Probable
4.1
90
1,200
0.34
0.53
0.58
0.13
0.14
0.31
84
0.04
1.5
22.1
<0.01
0.12
3.65
99
Notes: 1. The cut offs applied are variable and are described in the text of the report
2. Metal prices used, gold - US$950/oz, silver - US$15.00/oz, copper - US$2.30/lb, molybdenum - US$13.50/lb
3. Rounding may cause some computational discrepancies
1.5
Cadia Hill Mine
Open pit mining of the Cadia Hill deposit commenced in 1998, with ore treated in a 17 Mtpa
concentrator producing a gold rich copper concentrate and gold dor. Current open pit
mining at Cadia Hill is planned to finish in 2012 after completion of Cutback 3.
A further cutback, Cutback 4 is planned, but is not currently included in Newcrests medium
term production planning.
Remaining mineral reserves in Cutback 3 total 2.7 Mt, grading 0.70 g/t gold and
0.10% copper while stockpiles contain 19 Mt, grading 0.4 g/t gold and 0.13% copper.
Cutback 4 contains a further 73 Mt grading 0.55g/t gold and 0.14% copper and has a strip
ratio of approximately 1.9:1.
1.6
Ridgeway Mine
Underground mining of the Ridgeway deposit commenced in 2002, with ore being supplied
to the new 4 Mtpa Ridgeway concentrator adjacent to the Cadia concentrator. The upper
portion of the Ridgeway deposit has been mined using sub-level caving (SLC). In 2009,
mining extended into the Ridgeway Deeps area below the completed SLC operation.
The Ridgeway Deeps area is being mined using the lower cost block caving method
(Ridgeway Deeps Lift 1). A second block cave lift (Ridgeway Deeps Lift 2) is planned below
Lift 1.
The mineral reserve for Ridgeway mine are contained in Lift 1. Detailed design and
evaluation studies have yet to be completed for Lift 2.
10

Production from Ridgeway Deeps Lift 1 has recently achieved an annualized rate of 6 Mtpa.
The throughput rate of the Ridgeway concentrator has been increased to match the higher
production rate. Newcrest plans to increase the Ridgeway mine production rate to 8 Mtpa in
the future.
1.7
Cadia East Project
Newcrest is currently developing the Cadia East deposit as a large underground mining
operation using the panel caving method (Cadia East Project). The deposit is planned to be
mined in a number of lifts each comprising multiple panels. Production is planned to
progressively ramp up to 26 Mtpa as Ridgeway Deeps is depleted. Drawbell development
at Cadia East has commenced and project development is more than 65% complete.
In conjunction with the development of the Cadia East mine, a program of upgrades and
modifications is in progress at the Cadia concentrator to enable ore from Cadia East to be
processed at a rate of 20 Mtpa. Ore from Cadia East is harder than Cadia Hill ore requiring
increased crushing and milling capacity. Flotation residence times are also longer, requiring
increased flotation capacity.
Ore from Cadia East contains elevated molybdenum grades in some areas. The Cadia
concentrator upgrade includes provision to produce a separate molybdenum concentrate.
On 9 April 2010, Newcrests Board announced approval of Cadia East Project on the basis
that the mine would underpin production from CVO for at least the next 30 years. Newcrest
reported an estimated project capital cost of A$1.91B and that Cadia East cash cost over
the first 10 years of production will be below A$100/oz with a total production cost of less
than A$250/oz. Both these costs are after by-product credits that conservatively allow for a
drop in the copper price to US$2.00/lb from 2016 with an exchange rate of US$0.75 =
A$1.00.
1.8
Infrastructure and Concentrate Handling
CVO includes the normal range of infrastructure expected of a large mining operation. A
number of infrastructure upgrades are planned as part of the Cadia East Project including
upgrades to the power supply, water supply and tailings storage facilities.
Concentrate from both the Ridgeway and Cadia concentrators are thickened and pumped
as slurry to a dewatering facility at a railhead in the town of Blayney. After dewatering, the
concentrate is loaded into containers and transported by rail to Port Kembla in NSW, where
it is stored awaiting shipment to a range of international customers.
1.9
Environmental Management
CVO is located in a long-settled rural area of NSW with many neighbors. Mine employees
live in the local town and commute daily to the mine site. Environmental, social and
community issues have been professionally managed through pro-active planning and the
11

development of sophisticated environmental management systems and protocols based on

thorough baseline studies and modeling. There appears to be no technical environmental
issue likely to constrain the operation in the foreseeable future.
1.10 Capital and Operating Costs
Capital expenditure on Cadia East during financial year ending June 2011 was
approximately A$891M and is estimated at A$550M in 2012. Total expenditure on Cadia
East over the next five years is expected to be A$2,100-A$2,200M with approximately
A$1,400M for underground development.
Actual CVO production and operating costs for FY 2011 are shown in Table 1.3, and
estimated operating costs for FY 2012 are shown in Table 1.4.
Table 1.3
CVO FY 2011 Actual Production and Operating Costs*
Cadia Valley
Unit
FY11 Actual
Gold production
Copper production
Total site cash costs
Stripping and ore inventory
Third party smelting, refining and transporting
Royalty
koz
kt
A$M
A$M
A$M
A$M
515
44
365
92
63
29
A$/oz
152
Depreciation
*Costsincludedintableexcludeapplicablebyproductcredits
Table 1.4
CVO FY 2012 Estimated Operating Costs*
Cadia Valley
Royalty
Unit
A$M
A$M
A$M
A$M
Depreciation
A$/oz
*Costrangesincludedintableexcludeapplicablebyproductcredits
FY12 Estimate
380 405
40 - 50
60 70
32 38
225 235
1.11 Conclusions
CVO is in a transition phase with the approaching depletion of the Cadia Hill open pit and
the development of the Cadia East deposit. The transition poses a number of key
challenges and risks as follows:
Open pit mining of Cutback 3 is expected to be completed in 2012. Production from

Cadia East is not expected to reach mill feed capacity until 2014. During the Cadia
East production build-up, mill feed will be supplemented by a scavenging operation
12

from the pit, supplemented by low grade stockpiled material. Any significant delays to
the production build-up will impact directly on metal production.
Coarse fragmentation causing delays to the initial production ramp-up at Cadia East is
a risk. Preconditioning of the rock mass using hydraulic fracturing and/or long-hole
blasting is planned to mitigate this risk. Hydraulic fracturing has been completed in the
area covering the first 12 months production and cracks have been successfully
induced in the rock mass. The use of a high undercut which produces an initial stock
of blasted material overlying the drawpoints is also expected to mitigate the risk.
During periods of extended drought, the adequacy of water supplies to CVO has been
a concern. This is unlikely to be a concern in the short term but the expansion of the
operation will increase demand, so the overall risk of future water shortage cannot be
entirely eliminated. Water balance modeling has demonstrated a future water supply
reliability of 95%99%.
Despite these risks, CVO is a robust mining operation with significant reserves and a track
record of successfully developing major projects.
1.12 Recommendations
CVO is an established mining operation with mineral reserves sufficient for an extended
mine life.
Newcrest has sophisticated procedures for investigating and evaluating mineral resources,
and in developing projects for their efficient exploitation. Concept and scoping studies have
been carried out on Ridgeway Deeps Lift 2, Cadia East Lift 3, and Big Cadia. Over time, it is
reasonable to expect that these projects will be further evaluated and will increase CVOs
mineral reserve inventory, providing scope for either increases in production, rate or
extensions of mine life, or both.
In view of the nature of CVOs mining operations and the substantial mineral reserve
inventory, no recommendations are included.
13

INTRODUCTION
2.1
General and Terms of Reference
This Technical Report (the Report) on the Cadia Valley Operations (CVO) Property in the
State of New South Wales, Australia has been prepared by AMC Mining Consultants
(Canada) Ltd (AMC) of Vancouver, Canada on behalf of Newcrest Mining Limited
(Newcrest) of Melbourne Australia, in contemplation of a proposed listing of Newcrest on
the Toronto Stock Exchange. It has been 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 lodgment on CSAs System for Electronic
Document Analysis and Retrieval.
2.2
Report Authors
A listing of the authors of the Report, together with the sections for which they are
responsible, is in Table 2.1.
Table 2.1
Qualified Person
Persons Who Prepared or Contributed to This Technical Report

Position
Employer
Independent
of Newcrest
Date of
Site Visit
Professional
Designation
Sections of
Report
Qualified Persons responsible for the preparation and signing of this Technical Report
Michael Thomas
Principal Mining
Consultant
AMC Consultants
Ltd
Yes
27 and 28 July
2011
MAusIMM (CP)
1 27,
excluding
12, 14, 15
Colin Moorhead
Executive General
Manager, Minerals
Newcrest Mining
Ltd
No
10 12
September 2011
FAusIMM
12, 14, 15
Other Experts upon whose contributions the Qualified Persons have relied
Position
Employer
Independent
of Newcrest
Date of Site Visit
Professional
Designation
Sections of
Report
Australian
Tenement
Manager
Newcrest Mining
Ltd
No
October 2011
NA
Albert de Sousa
General Manager
Marketing and
Logistics
Newcrest Mining
Ltd
No
NA
NA
19
Geoff Smart
Mineral Resource
Manager
Newcrest Mining
Ltd
No
Site based
MAusIMM
14
Mr Pasqualino
Manca
Principal Mine
Planning Engineer
Newcrest Mining
Ltd
No
Site based
MAusIMM
15
Mine Planning
Manager
Newcrest Mining
Ltd
No
Site based
MAusIMM
15
Mark Sweeney
Principal Geologist
AMC Consultants
Ltd
Yes
June 2010
MAusIMM
7 -11, 14
Antony Showell
Principal
Tony Showell &

Associates
Yes
August 2011
FAusIMM
13, 17
Environmental
Affairs Consultant
John Consulting
Services
Yes
Oct 2005
MAusIMM
20
Expert
L Bowyer
Steven Butt
Chris John
14

Mr Michael Thomas is an employee of AMC and accepts Qualified Person responsibility for
the Report except for the reporting of mineral resources and reserves. Mr Thomas visited
the Cadia Hill open pit and inspected the processing plant and aspects of the surface
infrastructure on 27 and 28 July 2011. Mr Thomas has made previous visits to the
Ridgeway underground mine. Mr Thomas was accompanied on the site visit by Mr Anthony
Showell, a metallurgical consultant, and Dr Chris John, an environmental consultant.
Mr Colin Moorhead as an employee of Newcrest and accepts Qualified Person
responsibility for the reporting of mineral resources and reserves in this Report.
Mr Geoff Smart is an employee of Newcrest and has carried out frequent inspections of the
exploration drilling program at CVO, drill core, drill logs and other aspects relating to the
estimation of resources at CVO. Mr Smart is the Competent Person as defined by the
JORC Code1 responsible for preparing the CVO mineral resource estimates for public
reporting within Australia.
Mr Pasqualino Manca is an employee of Newcrest and has carried out frequent inspections
of the underground workings at CVO. Mr Manca is the Competent Person as defined by the
JORC Code responsible for preparing ore reserve estimates for Cadia East and Ridgeway
mines for public reporting within Australia.
Mr Steven Butt is an employee of Newcrest and has carried out frequent inspections of the
open pit workings at CVO. Mr Butt is the Competent Person as defined by the JORC Code
responsible for preparing Cadia Hill ore reserve estimates for public reporting within
Australia.
The Report is based on information provided by Newcrest (listed in Section 27), on site
visits undertaken by Qualified Persons, and on discussions with Newcrest personnel.
Newcrest was provided with a draft of this report to review for factual content and conformity
with the brief.
This report is effective as of 31 December 2011.
2.3
Units of Measure and Currency
Throughout this Report, measurements are in metric units and currency in Australian dollars
unless otherwise stated. Table 2.2 includes key terms used and their abbreviations.
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code 2004
Edition, Effective December 2004, Prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining
and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).
15

Table 2.2
Terms and Abbreviations
Unit/Term
Abbreviation
Unit/Term
Abbreviation
Australian height datum
AHD
Mining Purpose Lease
Atomic Absorption Spectrometry
AAS
Molybdenum
Bond Ball Work Index
BWI
Metres above a Reduced Level

set at 5,000m below AHD
mRL
Net Smelter Return
NSR
Non-Acid Forming
NAF
Copper
Cu
3
MPL
Mo
Cubic metres
Cyanide
CN
One millionth of a meter
Drop Weight
DWi
Panel Caves
PC
Environmental Assessment
EA
Percent
Exploration Licences
ELs
Per annum
pa
Financial Year (ending June)
FY
Per ounce (troy)
/oz
Gold
Au
Per pound (avdp)
/lb
Grams /t
g/t
Per tonne
/t
Grams /t of gold
g/t Au
Plasma-optical Emission
Spectrometry
ICP-OES
High Pressure Grinding Rolls
HGPR
Potentially Acid Forming
PAF
Inductively-Coupled Plasma
ICP
Pound (avdp)
Iron
Fe
Pre-feasibility study
Kilogram(s)
kg
Quality Assurance / Quality

Control
QA/QC
Kilometre(s)
km
Relative Paired Difference
RPD
Kilo ounce
koz
Rod Mill Work Index
RWi
Kilotonne
kt
Net Present Value
NPV
Semi-autogenous grinding
SAG
Square kilometres
km2
Square metres
m2
Kilotonne per annum

Kilowatt-hours per tonne
ktpa
kWh/t
Lead
Pb
Litre
Sub-Level Caving
Metre(s)
Sulphur
Million tonnes
Mt
Tailings Storage Facility
lb
PFS
SLC
S
TSF
Miliion tonnes per annum
Mtpa
Tonne(s)
Megawatts
MW
Tonnes per cubic metre
t/m3
Millimetres
mm
Weighing, Sampling and

Moisture Determination
WSMD
Million ounces (troy)
Moz
Wet metric tonnes
Mining Leases
MLs
Zinc
wmt
Zn
16

RELIANCE ON OTHER EXPERTS
The Qualified Persons have relied, in respect of legal, environmental and marketing
aspects, upon the work of certain Experts listed below. To the extent permitted under
NI 43-101, the Qualified Persons disclaim responsibility for these sections of the Report.
The following disclosure is made in respect of each of these Experts:
Ms Lisa Bowyer, Australian Tenement Manager, Newcrest Mining Limited:
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(s).
Portion of Technical Report to which disclaimer applies: Section 4.
Mr Albert de Sousa Newcrest Mining Limited:
Summary report on Newcrests concentrate marketing.
Extent of reliance: status of Newcrests concentrate sales arrangements.
Dr Chris John, Environmental Affairs Consultant, John Consulting Services:
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(s).
17

PROPERTY DESCRIPTION AND LOCATION
4.1
Property Location
The CVO mining leases are located approximately 25 km south-south-west of the town of
Orange in New South Wales (NSW) and approximately 190 km west-north-west of Sydney,
the State capital city. The property is located at approximately 33o2825S latitude,
149o0000E longitude. The location is shown in Figure 4.1.
Figure 4.1
Property Location
Source: Department of Lands NSW 2006
18

CVO currently consists of the Cadia Hill open pit mine (Cadia Hill), the Ridgeway
underground mine (Ridgeway), and the Cadia East underground mine development project
(Cadia East). Ore from each mine is processed on site to produce gold dor and a gold rich
copper concentrate. The concentrate is pumped to a dewatering facility at a railhead near
the town of Blayney, approximately 25 km to the east of the mine site. From the dewatering
facility, concentrate is transported by rail to a ship loading facility at Port Kembla.
4.2
Land Tenure
The property consists of seven granted mining leases (MLs) and 10 granted
exploration licences (ELs), with a total approximate area of 575 km2. The tenement holding
also includes two mining purposes leases (MPLs). The total statutory annual expenditure
commitment for the project is $6.15M.
Details of leases and licences are provided in Table 4.1 and Figure 4.2.
Table 4.1
Cadia Valley Property Land Tenure Details

Lease Type
Lease
Status
Grant
Date
Expiry
Date
E(P)L 1024
EL - Exploration Licence
Granted
21/05/1985
20/05/2014
16.80
EL2033
Granted
7/07/1983
6/07/2013
117.60
EL2378
Granted
26/02/1985
25/02/2012
106.40
EL2984
Granted
11/01/1988
10/01/2012
44.80
EL3767
Granted
18/02/1991
6/07/2012
56.00
EL3856
Granted
21/05/1991
20/05/2014
123.20
EL4616
Granted
8/11/1993
7/11/2011
11.20
EL4620
Granted
19/11/1993
18/11/2012
28.00
EL5609
Granted
23/08/1999
22/08/2012
2.80
EL6589
Granted
3/07/2006
2/07/2012
11.20
ML1189
ML - Mining Lease
Granted
14/05/1987
13/05/2014
2.52
ML1242
ML - Mining Lease
Granted
22/08/1991
21/08/2022
1.60
ML1243
ML - Mining Lease
Granted
22/08/1991
21/08/2022
2.56
ML1405
ML - Mining Lease
Granted
5/10/1996
4/10/2017
31.16
ML1449
ML - Mining Lease
Granted
1/06/1999
4/10/2017
0.99
ML1472
ML - Mining Lease
Granted
23/10/2000
22/10/2021
12.00
ML1481
ML - Mining Lease
Granted
8/03/2001
7/03/2022
5.84
MPL272
MPL - Mining Purposes Lease
Granted
22/08/1991
21/08/2022
0.00*
MPL273
MPL - Mining Purposes Lease
Granted
22/08/1991
21/08/2022
0.39
Lease
Area Km2
* Road waste dump with an area less that 1 ha
19

Figure 4.2
CVO Exploration and Mining Tenements
Source: Newcrest Mining Ltd
Details of the lease and licence holders, including the percentage attributable to each
holder, are shown in Table 4.2.
20

Table 4.2
Lease
Details of Licence Holders
Holder
E(P)L 1024 Newcrest Operations Limited
%
100
Holder
Holder
EL2033
Cadia Holdings Pty Limited
56.98 Barrick Australia Limited 24.65 Climax Australia Pty Ltd 18.37
EL2378
EL2984
EL3767
EL3856
Newcrest Mining Limited
100
EL4616
100
EL4620
Newcrest Operations Limited
80
Jervois Mining NL
20
100
EL5609
Newcrest Operations Limited
EL6589
ML1189
ML1242
ML1243
ML1405
100
ML1449
100
ML1472
100
ML1481
100
MPL272
MPL273
EL5524 and EL6593 and remote from the tenement holdings shown in Figure 4.2
4.3
4.3.1
Relevant Agreements
Junction Reefs Joint Venture
Tenements held jointly by Cadia Holdings Pty Limited, Barrick Australia Limited (originally
Homestake Australia Limited) and Climax Australia Pty Limited, Climax Mining Limited are
covered by a joint venture between the parties (the Junction Reefs Joint Venture). The
agreement was executed on 18 October 2000. Newcrest is managing the joint venture with
all other parties diluting their interest.
The total expenditure incurred by Newcrest to 30 June 2011 is $17,816,993.
4.3.2
Forest Reefs Joint Venture
The agreement is between Jervois Mining NL and Newcrest Operations Limited, and was
established by letter agreement dated 9 December 1996. Newcrest is managing the joint
venture with Jervois Mining NL contributing to its 20% interest.
The total expenditure incurred by Newcrest to 30 June 2011 is $2,274,582.
21

4.4
Environmental Liabilities
The Department of Industry & Investment in NSW holds a total of $57,700,000 as

unconditional performance bonds.
22

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY
5.1
Topography Elevation and Vegetation
CVO is situated in the Central Tablelands of NSW and on the western side of the
Great Dividing Range. Elevations range from approximately 600 m Australian Height Datum
(AHD) to 1,000 m AHD. The region is characterized by undulating hills, cleared open
grassland, scattered native vegetation remnants, and State Forest plantations of Monterey
Pine (Pinus radiata).
Land use in the vicinity is dominated by sheep and cattle grazing in the more gently
undulating areas, and private and state forestry operations on poorer soil and steeper
slopes. Mining related operations dominate the land use within the existing mining leases.
5.2
Access
The mining leases are accessed by sealed road from the town of Orange, approximately
25 km to the north.
Local shires include Orange (population of approximately 35,000), Blayney (population
approximately 6,000) and Cabonne (population approximately 12,000).
The agriculture/forest/fishing sector, manufacturing sector, retail trade sector, and the
health, education and public administration sectors dominate the local regional economy.
The majority of the mines workforce live in the local regional towns and commute daily to
the mine site.
The mine is connected to the NSW state electricity grid via a 132 kV transmission line.
Process makeup water is supplied from a number of sources, including harvesting from
local catchments, recycled effluent water from the waste water treatment plants in Orange
and Blayney, and from a water allocation from the Belubula River. Potable water is sourced
from existing groundwater bores.
5.3
Climate
The closest Bureau of Meteorology weather station to CVO is located approximately

12 km east-north-east at Orange airport.
The mean annual rainfall recorded at the station is approximately 885 mm. The lowest
mean monthly rainfall (approximately 50 mm) occurs in autumn (March and April) and the
highest mean monthly rainfall occurs in August (approximately 92 mm).
23

The area experiences the warmest temperatures from November to March and the coolest
from May to September. The highest average maximum daily temperature recorded in
January is 25.9oC. July experienced the lowest mean minimum temperature of 0.6oC.
Relative humidity records indicate a seasonal difference with the highest humidity during
winter and lower humidity during summer months.
5.4
Surface Rights
The rights to surface properties affected by mining leases are owned by Cadia Holdings
Pty Limited (CHPL) a wholly owned subsidiary of Newcrest. Properties owned by CHPL
provide a significant buffer zone to the west and south-west of the project. Topographic high
points exist to the east and west of the operation limiting the visual impact of the project on
the surrounding area. Land over which CHPL holds surface rights is shown in Figure 5.1.
24

Figure 5.1
Surface Land Owned by CHPL
Source: Cambell Paton and Taylor (2008) Blayney Shire Council (2007) and Cabonne Shire Council (2007)
25

HISTORY
All mineral resource and mineral (ore) reserves in this section of the report are historical
estimates, prepared in accordance with the JORC Code. A Qualified Person has not done
sufficient work to classify the historical estimates as current mineral resources or mineral
reserves, and Newcrest is not treating the historical estimates as current mineral resources
or mineral reserves.
6.1
Initial Discovery
The discovery of copper and gold in the Cadia area dates back to 1851. The field
experienced sporadic production from several deposits within the district, the largest being
the Iron Duke (or Big Cadia) mine which produced in excess of 100,000 t of secondary
copper ore.
Limited surface pitting and shallow (mostly exploration) shafts to less than 20 m in depth
are present at, in, and around Big Cadia and Cadia East, targeting both gold and copper
along discrete structures.
Modern era exploration in the Cadia district commenced in the mid-1960s with
Pacific Copper Limited targeting the Big Cadia and Little Cadia deposits. In 1985,
Homestake completed a small drilling program that tested magnetic anomalism throughout
the Cadia district, including the immediate Ridgeway area.
In 1992, the Cadia Hill gold-copper porphyry deposit was discovered by Newcrest.
Cadia East was subsequently discovered in February 1994 during widely spaced step out
drilling from Cadia Hill. The deeper gold-copper (Cadia East Underground) mineralization
(formerly referred to as Cadia Far East) was discovered in 1996 by drilling beneath
previously outlined gold-copper mineralization. The discovery hole for the Ridgeway deposit
was drilled in late 1996.
6.2
Cadia Hill Open Pit
A feasibility study on mining the Cadia Hill deposit was completed in 1996 with project
funding approved in September that year. The feasibility study open pit design, which
included a number of planned cutbacks, contained 204 Mt of mainly Proved Reserves
grading 0.73 g/t gold and 0.17% copper, at a waste to ore stripping ratio of 1.27:1.
The Cadia Hill project was a greenfield development requiring construction of a
concentrator and all the supporting facilities for a major mining and ore
processing operation. The project included construction of a 17 Mtpa concentrator
producing a gold rich copper concentrate using conventional flotation techniques, and gold
dor produced from a gravity concentrate. The Cadia Hill concentrator included a 12.2 m
diameter semi-autogenous (SAG) mill, the largest of its type in the world at that time.
26

Open pit mining commenced at Cadia Hill in 1998 and has progressed through a series
of cutbacks with Cutback 3 currently being mined. A further cutback (Cutback 4) is planned,
but is not currently included in Newcrests medium term planning.
The production history of Cadia Hill is summarized in Table 6.1.
Table 6.1
Historical Production from Cadia Hill Open Pit
FY
Ending
June
Mine
Mill
Head Grades
Plant Recovery
Production
(kt)
1999
Concentrate
Metal production
Feed
(kt)
Gold
(g/t)
Copper
(%)
Gold
(%)
Copper
(%)
Produced
(kt)
Gold
(koz)
Copper
(kt)
52,000
14,451
0.76
0.19
71.9
78.7
81
254
22
2000
55,000
15,877
0.85
0.19
75.6
83.5
103
326
26
2001
56,100
16,141
0.80
0.20
72.3
82.5
108
300
27
2002
58,740
16,019
0.68
0.18
73.7
81.8
96
259
23
2003
76150
16,856
0.75
0.17
74.2
80.1
101
299
23
2004
76,600
17,145
0.62
0.26
72.0
84.5
156
244
37
2005
77,100
16,454
0.75
0.21
78.1
85.7
120
309
29
2006
50,800
15,501
0.65
0.17
76.8
85.1
94
248
22
2007
47,159
16,624
0.58
0.16
79.7
89.3
107
247
23
2008
46,923
16,792
0.94
0.18
82.1
88.8
123
414
26
2009
34,004
17,163
0.71
0.19
75.6
85.2
133
298
28
2010
31,892
17,466
0.71
0.18
81.0
88.9
151
326
29
2011
16,121
16,970
0.84
0.16
79.1
86.3
121
364
23
Total
678,589
213,459
0.74
0.19
76.4
84.5
1,494
3,888
338
Mine production includes ore and waste. Mill feed in 2000 2001 and 2002 includes 1.96 Mt of ore from the Ridgeway mine.
Source: Newcrest Quarterly Reports, and Malone 2011
6.3
Ridgeway Underground Mine
In November 1996, the Ridgeway deposit was discovered in drillhole NC498. This drillhole
intersected two zones of very high-grade, porphyry stockwork mineralization
(145 m from 598 m depth at 4.30g/t gold and 1.20% copper; and 84 m from 821 m depth at
7.4 g/t gold and 1.27% copper). By October 1997, the deposit was drilled on 50 m sections
from surface to Inferred Resource status. Decline development to access the top of the
Ridgeway deposit and provide a platform for underground exploration drilling commenced in
late 1997.
An initial feasibility study on the Ridgeway deposit focused on using a sub-level stoping
mining method targeting the higher grade core of the deposit. The study indicated poor
investment returns leading to a rethink of the mining method. In December 1999, the final
feasibility study was completed, based on the sub-level caving (SLC) method. The mine
design included installation of an underground crusher and inclined conveyor system
27

transferring ore to a new Ridgeway concentrator. The project had a nominal production rate
of 4 Mtpa.
The Ridgeway SLC project was approved by the Newcrest Board in December 1999 and
underground mining of the Ridgeway deposit commenced in 2002. The new Ridgeway
concentrator was constructed adjacent to the existing Cadia Hill concentrator and shared
concentrate handling facilities and various other support infrastructure.
In 2003 and 2004, further drilling indentified significant mineral resources below the
underground crusher level (5,070 mRL2). In June 2007, the Newcrest Board approved the
Ridgeway Deeps Lift 1 project, which involved establishment of a 5.6 Mtpa block cave
operation with an extraction level on 4,786 mRL. In 2009, mining extended into the
Ridgeway Deeps Lift 1 area below the completed SLC operation. A second block cave lift
(Ridgeway Deeps Lift 2) is planned below Lift 1.
The production history of Ridgeway mine is summarized in Table 6.2. Mine production
quickly exceeded the nominal 4 Mtpa production rate, and several modifications and
upgrades were made to the Ridgeway concentrator to increase throughput to its current
rate of 6 Mtpa. Further modifications are underway to increase the nominal throughput rate
to 8 Mtpa.
Table 6.2
Historical Production from the Ridgeway Mine
FY
Ending
June
Mine
Mill
Head Grades
Plant Recovery
Concentrate
Metal Production
Production
(kt)
Feed
(kt)
Au
(g/t)
Cu
(%)
Au
(%)
Cu
(%)
Produced
(kt)
Au
(koz)
Cu
(kt)
2002
1,929
1,083
2.43
0.84
84.5
89.6
32
68
2003
4,637
4,881
2.76
0.99
87.4
93.5
157
378
45
2004
5,352
5,352
2.93
0.96
86.8
92.6
173
438
47
2005
5,591
5,591
2.55
0.86
83.4
89.4
152
382
43
2006
5,539
5,538
2.40
0.79
86.2
91.1
142
366
40
2007
5,853
5,694
2.00
0.73
85.7
90.6
137
314
38
2008
5,913
5,775
1.93
0.67
84.7
89.6
131
301
34
2009
6,103
5,860
1.52
0.56
80.9
86.9
114
234
29
2010
5,308
5,172
1.31
0.52
79.0
86.3
94
172
23
2011
4,969
4,773
1.18
0.47
82.4
88.0
85
148
20
Total
51,194
49,719
2.07
0.73
84.5
90.2
1,217
2,801
328
Only mine production processed through the Ridgeway concentrator is shown. Prior to commissioning the concentrator,
1.92 Mt of ore from Ridgeway mine was processed through the Cadia Hill concentrator.
Source: Newcrest Quarterly Reports, and Malone 2011.
mRL refers to the metres above a Reduced Level defined at CVO as 5,000 m below The Australian Height Datum (AHD)
(Nominally mean sea level). The ground surface above the Ridgeway deposit is approximately 5800 mRL.
28

6.4
Cadia East Project
Following discovery of the Cadia East deposit in 1994 and the deeper higher grade gold
copper mineralization at the Cadia East Underground deposit in 1996, drilling continued to
define the extent of the mineralization. In 2001, Newcrest announced the first mineral
resource estimates for the Cadia East deposit, separated into the Cadia East Open Pit
resource and Cadia East Underground resource.
In 2005, pre-feasibility studies of the development of the Cadia East Underground deposit
resulted in the announcement of a Probable Reserve of 165 Mt grading 1.1 g/t gold and
0.38% copper. The pre-feasibility studies provided sufficient confidence for Newcrest to
begin construction of an exploration decline to better explore the deeper parts of the
deposit. Decline development commenced in early 2005.
Further exploration of the deposit continued and in 2007 a feasibility study of the Cadia East
Open Pit resulted in release of a Probable Mineral Reserve of 143 Mt grading 0.4 g/t gold
and 0.44% copper.
Work continued on exploring and evaluating both the open pit and underground parts of the
deposit. In early 2008, it was clear that a large underground mine using the panel caving
method provided the best option for recovering the bulk of the deposit, including resources
within the open pitable portion. Newcrest has subsequently released resource and reserve
estimates for the Cadia East deposit on the basis that it will be mined by panel caving.
The Cadia East feasibility study was completed in April 2010 following a period of
pre-feasibility and project enhancement studies. The study was based on a Probable
Mineral Reserve of 0.96 Bt grading 0.61 g/t gold and 0.33% copper. The Cadia East project
was approved by the Newcrest Board in April 2010.
Key aspects of the Cadia East project include:
Establishment of a panel cave mining operation progressively ramping up to 26 Mtpa

as the Ridgeway deposit is depleted.
Modifications to the Cadia Hill concentrator to enable processing of the harder

Cadia East ore at a throughput rate of 20 Mtpa. The modifications will also target
enhanced gold recovery.
Construction of a molybdenum recovery plant to recover a molybdenum concentrate.
Upgrading of concentrate handling facilities, including installation of new pumps and

pipeline for pumping concentrates to the concentrate dewatering and rail loading
facility at Blayney.
Raising of embankments of the northern and southern tailings storage facilities to

provide additional storage capacity.
Upgrades to the mine power supply and other infrastructure.
29

Newcrest reported project construction to be more than 65% complete as at

December 2011. Operational status is expected early in the December quarter 2012.
Following project commissioning, ore production is planned to increase to a rate of 20 Mtpa
over a three year period. Ore produced from mine development at Cadia East to 30 June
2011 is shown in Table 6.3.
Table 6.3
Historical Production from Cadia East
Mine
FY
Ending Production
June
(kt)
2011
162
Mill
Head Grades
Plant Recovery
Concentrate Metal Production
Feed
(kt)
Au
(g/t)
Cu
(%)
Au
(%)
Cu
(%)
Produced
(t)
Au
(oz)
Cu
(t)
162
0.79
0.23
80.6
84.7
3,320
316
30

GEOLOGICAL SETTING AND MINERALIZATION
7.1
Regional Geology
The producing CVO gold-copper deposits are hosted in arc-related calc-alkalic to

shoshonitic Ordovician to early Silurian volcanosedimentary rocks that occur in the Molong
Volcanic Belt, one of four segments of the dismembered Macquarie Arc, in the eastern
Lachlan Orogen, NSW (Figure 7.1 Glen et al. 1998, 2005). Porphyry-style ore deposits
formed immediately prior to and during the Late Ordovician to early Silurian Benambran
Orogeny that accreted the intra-oceanic Macquarie Arc to Gondwana (Glen et al., 2007).
Up to 2.5 km of Ordovician stratigraphy is preserved in the Cadia district, including siltstone
and sandstones of the Weemalla Formation and andesitic to basaltic andesitic Forest Reefs
Volcanics (Wilson et al., 2003; Harris et al., 2009). Porphyry-style mineralization is centered
on multiphase monzondiorite to quartz monzonite intrusions (Figure 7.2; e.g., Ridgeway;
Wilson et al., 2003). Silurian conglomerates, sandstones and siltstones (part of the
Waugoola Group) cover large portions of the Ordovician volcanosedimentary succession.
Tertiary basalts of the Canobolas Volcanic Complex cover the Paleozoic rocks to the north
and east of the district.
Figure 7.1
Regional Geology of the Ordovician Rocks of New South Wales
Source: Newcrest Mining Limited
31

Figure 7.2
Cadia Valley Geological Plan
32

Published geochronologic studies reveal that the ore-related Ordovician to Silurian alkalic
intrusions young eastwards across the Cadia Valley, with Ridgeway being the oldest
deposit in the district (ca. 455 Ma) and Cadia East the youngest (ca. 437 Ma; Wilson et al.,
2007). Narrow pipe-like stocks and dykes that are associated with gold and copper
mineralization cut the volcanosedimentary rocks and the large, compositionally zoned
(dioritic to monzonitic) intrusive suite that is exposed in the centre of the district.
Regional E-W shortening linked to terrane docking and accretion at the end of the
Benambran Orogeny produced thrust fault systems around the Cadia Intrusive Complex
during the early Silurian, including the curviplanar, northerly striking, moderately dipping
basement thrust faults of the Cadiangullong system. The Cadia Hill deposit sits in a
fault-bounded block within the basement thrust fault system, whereas the Ridgeway
deposits lie in the hanging wall and the Cadia East deposit in the footwall. Therefore,
post-mineral deformation has partially dismembered the district, thereby superposing
different levels porphyry Cu-Au systems as well as the host stratigraphy (see Harris et al.,
2009; Figure 7.3).
Figure 7.3
Cadia Valley Geological Cross Section
7.2
7.2.1
CVO Deposit Geology

Cadia Hill Geology
The Cadia Hill deposit is a sheeted quartz vein system located almost entirely within the
quartz monzonite porphyry phase of the Cadia Intrusive Suite (Figure 7.1). A small roof
pendant of volcanics is present on the eastern end of the deposit. Post-Silurian faulting has
bounded and internally dismembered the mineralization; the Cadia Hill system now appears
as an imbricate thrust slice with mineralization truncated by faulting in all directions.
7.2.2
Cadia Hill Alteration
The predominant alteration is propylitic (chlorite-epidote) with narrow domains of

structurally-controlled phyllic (sericitic) alteration. Mineralization is in part related to chlorite
matrix hydrothermal breccias that cut the deposit. Unusually, compared to the other
33

mineralized systems in the area, potassic alteration is confined to K-feldspar rich vein
haloes and to some quartz veins.
7.2.3
Cadia Hill Mineralization
The vein system forms a broad, 300 m wide tabular envelope that dips 60 to the
southwest. Chalcopyrite with lesser bornite, pyrite and gold occur in the quartz veins and as
disseminations throughout the intrusive wallrock.
7.2.4
Ridgeway Geology
The Ridgeway deposit is a higher grade Au-rich alkalic porphyry deposit. Copper-gold
bearing quartz veins are centered on small (50-100 m diameter) multiphase monzonitic
pencil porphyries and hosted in an Ordovician volcano-sedimentary succession. The
known vertical extent of the mineralized system is 1,100 m, with the top of the ore zone
located 500 m below the present-day surface. The deposit remains open at depth.
7.2.5
Ridgeway Alteration
At Ridgeway, hydrothermal alteration is broadly zoned from an inner calc-potassic

(actinolite-biotite-orthoclase) and potassic (orthoclase-biotite-quartz) core, outwards through
propylitic (chlorite-hematite-magnetite-epidote-albite-pyrite calcite) and sodic
(albite-pyrite) assemblages (Wilson et al., 2003). Sulfide minerals are similarly zoned from a
bornite to chalcopyrite (plus gold) core, outwards and upwards through a chalcopyrite-rich
to an outer pyrite-rich domain. The transition to more distal metal-poor propylitic alteration
zones has been long recognized by the disappearance of hematite-dusted secondary albite
(Holliday et al., 2002).
The Ridgeway alteration footprint is restricted to a few hundreds of metres across and
clearly contrasts that of the larger Cadia East deposit.
7.2.6
Ridgeway Mineralization
Mineralization at Ridgeway and Ridgeway Deeps occurs in dense quartz vein stockworks
and sheeted arrays localized in and around a small (50 m to 100 m diameter) composite
diorite to quartz-monzonite intrusive complex. The most strongly developed quartz
stockwork veining and alteration, and the highest copper and gold grades, occur
immediately adjacent to the monzonite. The frequency of the veins and intensity of
alteration decreases away from the intrusive complex margin (Wilson et al., 2003). Ore
minerals include bornite and chalcopyrite with lesser covellite and gold and occur in veins
and as disseminations (Wilson et al., 2003).
34

7.2.7
Cadia East Geology
The Cadia East deposit occupies a mineralized zone 2.5 km in strike length, 600 m in width
and over 1,900 m in vertical extent. It is located below and to the east of the Cadia Hill
orebody.
Cadia East is the largest known concentration of metal in a single deposit in the ancient
Macquarie Arc, central NSW. Mineralization is spatially and temporally associated with a
swarm of narrow Early Silurian, alkalic monzonite and monzodiorite dykes that intrude the
Ordovician Forest Reefs Volcanics, a thick succession of volcanic (lavas and sub-volcanic
intrusions) and associated clastic rocks (debris flow volcaniclastics, sandstones, siltstones
and minor limestones). The distribution of alteration and mineralization in the Cadia East
orebody reflects the palaeohydrology of the hydrothermal system which was strongly
influenced by host rock permeability and a protracted history of structural reactivation.
The Cadia East deposit is largely obscured by the Silurian cover rocks with small exposures
of weakly altered Ordovician rocks exposed. Mapping of the sequence overlying the
Cadia East deposit constrains the character and scale of post-mineral faulting and folding,
and provides indirect constraints on sub-Silurian structural fabrics. A three-dimensional
kinematic model constructed for Cadia East and the surrounding area has been used to
investigate the effects of post-mineral deformation on and dismemberment of the orebody
(Washburn, 2008).
7.2.8
Cadia East Alteration
At Cadia East, sheeted quartz-calcite-bornite-chalcopyrite molybdenite veins, oriented

sub-parallel to E-SE trending monzonite intrusions define a high grade resource at depth
(Wilson, 2003). Pervasive biotite-orthoclase-albite-magnetite actinolite alteration
envelopes surround these veins forming a zone of calc-potassic alteration. Propylitic
(epidote-magnetite-hematite-chlorite) alteration extends laterally away from this
calc-potassic core (Wilson, 2003). Distinctive hematite dusting of hydrothermal feldspars
occurs throughout the propylitic alteration at Cadia East, a characteristic feature of many
alkalic porphyry Au-Cu deposits (Holliday and Cooke, 2007).
Disseminated chalcopyrite molybdenite mineralization and associated biotite-tourmaline
alteration occurs in the higher levels of the deposit and is overprinted by an unusual
texturally destructive quartz-orthoclase-albite-sericite-calcite tourmaline alteration
assemblage. The broadly stratabound nature of these alteration styles implies that
hydrothermal fluid flow was lithologically controlled and strongly influenced by host rock
permeability. Near total replacement of the host rock by albite has locally increased the rock
strength and hardness.
Rock that hosts mineralization at Cadia East is inherently hard compared to that mined at
Cadia Hill and Ridgeway and as such, has slightly different ore processing requirements.
35

7.2.9
Cadia East Mineralization
The Cadia East mineralization consists of a package of steeply dipping, sheeted quartz
veins forming a near vertical slab with dimensions approximately 2.5 km long, greater than
1.6 km deep and at least 200 m to 300 m wide. A high grade gold core is found at depth
towards the eastern end of this vein package. Smaller pods of higher grade material are
located above and lateral to the high-grade core.
Mineralization at Cadia East can be divided into two broad overlapping zones: an upper,
copper rich disseminated zone and a deeper gold-rich zone associated with sheeted veins.
The upper zone forms a relatively small cap to the overall mineralized envelope and has a
core of disseminated chalcopyrite (and rare bornite), capped by chalcopyrite-pyrite
mineralization (Fox et al., 2009).
The upper zone mineralization is stratigraphically controlled within the volcaniclastic unit.
This zone is transitional to the deeper vein style mineralization. The deeper zone is
localized around a core of steeply dipping sheeted quartz-calcite-bornite-chalcopyritemolybdenite, with the highest gold grades associated with the bornite-bearing veins. Copper
and molybdenite form a mineralized blanket above and to the east of the higher grade gold
envelope.
7.2.10
Big Cadia and Little Cadia Geology
The Big Cadia deposit forms an elongate, fault-bounded, west-north-west trending tabular
(approximately 1 km long and 250 m wide) magnetite (epidote) skarn deposit that dips
towards the south-east (Forster et al., 2004). Chalcopyrite and minor gold are closely
associated with bladed hematite, magnetite and epidote (with lesser chlorite-quartz-calcite)
replacements. Complex fault and fold relationships are visible in the historic open cut
workings. The structural fabric of the Big Cadia skarn deposit is dominated by the
east-south-east striking, steeply north dipping PC40 Fault zone.
The Little Cadia skarn deposit outcrops in Copper Gully at Cadia East. The Little Cadia
deposit is hosted by bedded, calcareous volcanic-derived sandstones that correlate to the
same skarn host at Big Cadia (Packham et al., 1999). The style of Cu-Au mineralisation is
similar to that described for Big Cadia. Gold and chalcopyrite are associated with epidote
quartz in the interstices of bladed hematite-magnetite aggregates that have replaced the
calcareous sandstone (Forster et al., 2004).
7.2.11
Cadia Extended (Cadia Quarry) Geology
Cadia Extended (also known as Cadia Quarry) copper-gold mineralization is hosted in

monzonite. Mineralization consists of sheeted quartz veins containing chalcopyrite/pyrite
bornite as vein aggregates and fine disseminations/fracture fill (Wilson, 2003).
Mineralization is in part related to chlorite matrix hydrothermal breccias that cut the deposit.
Also occurring within Cadia Extended are breccia and vein-fill alteration domains that
comprise massive chalcopyrite and coarsely (up to cm-scale) crystalline molybdenite
pyrite with gangue minerals including quartz, calcite and k-feldspar. These lodes appear as
36

higher grade pegmatites associated with porphyry-related mineralization. Propylitic

(chlorite-hematite) alteration is dominant with localized domains of texturally-destructive
phyllic alteration that is associated with breccia and pegmatite style mineralization.
37

DEPOSIT TYPES
The Cadia Valley deposits are examples of porphyry gold-copper style mineralization. The
deposits are hosted in a Late Ordovician to Early Silurian porphyry alteration-mineralization
system which extends over an area of at least 6 km x 2 km within the Ordovician Molong
Volcanic Belt of the Palaeozoic Lachlan Fold Belt.
The Cadia Valley deposits are associated with five principal porphyry styles (Table 8.1).
Table 8.1
Cadia Valley Mineralized Porphyry Styles
Deposit
Porphyry Mineralization Style
Cadia East
Both intrusive centered and wall rock sheeted vein style plus broad disseminated wall rock
Ridgeway
Intrusive centered quartz stockwork
Cadia Hill
Wallrock sheeted vein style
Cadia Extended
Wall rock sheeted and stockwork quartz-sulphide veins and minor pegmatite and breccia
Big Cadia
Magnetite - garnet skarn - disseminated and veining
38

9
9.1
EXPLORATION
Exploration History
Modern era exploration in the Cadia District commenced in the mid-1960s with
Pacific Copper Limited targeting the Big Cadia and Little Cadia deposits prompted by the
proximity of historic mine workings, and in particular, by magnetic anomalies over the skarn
at Big Cadia.
In 1985, a small RC percussion drilling program was undertaken by Homestake in the
immediate Ridgeway area to test magnetic features. In 1992, the Cadia Hill gold-copper
porphyry deposit was discovered by Newcrest. At the same time, an extensive halo of
low-grade mineralization was delineated at Cadia Extended (Cadia Quarry). Drilling
continued to confirm a north-west to south-east alignment of mineralization within
Cadia Valley. Widely spaced step-out drilling led to further discovery. The Cadia East
deposit was subsequently discovered in February 1994 as the result of exploration east of
Cadia Hill.
To assist exploration drilling activities in the early-1990s, a regional reconnaissance
Induced Polarization (IP) geophysical survey was conducted in spring 1994. This survey
used a 200 m dipole-dipole configuration after orientation surveys had shown that the
method could detect both the outcropping, very low sulphide Cadia Hill mineralization, and
the covered (60 m to 200 m deep), high sulphide Cadia East mineralization.
In 1995, two fences of RC percussion holes to 200 m downhole depth were drilled to test
the IP chargeability and mineralization corridor in the vicinity of Ridgeway. Wide-spaced
core holes were also drilled to greater than 500 m depth across the mineralization trend.
Further drilling was sited using structural interpretation from existing holes, supported by the
results of the interpretation of a heli-mag survey flown in autumn 1996.
In November 1996, the Ridgeway deposit was discovered in drillhole NC498. This drillhole
intersected two zones of high-grade, gold-copper porphyry stockwork mineralization
(145 m from 598 m at 4.30 g/t Au and 1.20% Cu; and 84 m from 821 m at 7.40 g/t Au and
1.27% Cu). Ridgeway was discovered beneath 500 m of cover comprising 20-80m of
Miocene basalt cover rocks overlying some 450 m of Ordovician host-rock sequence
9.2
9.2.1
Near Mine Exploration Projects

Big Cadia
The skarn mineralization is different to the other CVO bodies. Mineralization outcrops at
surface and can be mined by open pit.
Big Cadia has limited tonnage, but is envisaged as a useful future backup ore supply should
production at Ridgeway or Cadia East be interrupted.
39

9.2.2
Cadia Extended
Cadia Extended has already been mined by an open pit. The pit has been backfilled with
waste material. Conceptual plans for an underground mining operation to extract around
50 Mt of economic material have been prepared.
40

10
DRILLING
10.1 Drilling
Cadia core drilling consists of diamond core NQ3 (47.6 mm core diameter), HQ3 (63.5 mm
core diameter), and PQ (85 mm core diameter). Most drillholes are collared as PQ or HQ for
accurate and safe drilling through the Silurian cover sequence. The size is then reduced at
the geologists discretion as the hole advances.
Over 600 drillholes have been drilled to define the current Ridgeway deposit. To date,
583 holes have been drilled to model the Cadia East deposit. No reverse circulation
drillholes were used for grade estimation at Cadia East.
All drillhole collars are surveyed by Newcrest survey staff using conventional techniques.
Downhole surveys were undertaken using either the BallMark orientation system
developed by Anderson Drilling Pty Ltd (Orange) or the ACE electronic (accelerometer) tool.
An investigation of all holes not flagged as gyroscopically surveyed, highlighted that
26 collars had not been picked up by site survey and 55 drillholes were flagged as not being
gyroscopically downhole surveyed. Of the 55 holes, only four holes had the single shot
survey method exclusively. These holes were checked visually and deemed acceptable for
input to resource modeling.
10.2 Core Recovery
There are only minor zones of lost core or poor core recovery. Core recovery is generally
excellent with core recoveries around 99%.
10.3 Logging
All diamond drillhole cores are processed in-house using the CVO dedicated core
processing facility. Core photography, geological logging, bulk density and geotechnical
data are collected prior to (typically) half core sawing and sample preparation. Lithology,
alteration, mineralization, structure, bulk density and geotechnical data are collected from
the drill core and entered into the database via a laptop computer.
Lithology data is recorded on variable intervals defined primarily by lithology and alteration.
Historically, lithology has been logged on 1 m intervals for Cadia Hill (since 1993), early
Ridgeway (1994-1998) and Cadia Far East (1995-2000), and later programs of Cadia East
(since 1994). Subsequent to these programs, lithology has been logged on a variable
interval basis with intervals derived from combinations of rock type, alteration, structure, and
mineralization.
41

11
SAMPLE PREPARATION, ANALYSES AND SECURITY
In the qualified persons opinion, sample preparation, analytical procedures and security
have followed good industry practice and there are no issues that would materially impact
on mineral resource/reserve estimates.
11.1 Sample Preparation
After the core logging, a cut-line is drawn on the core and the core is photographed. The
core is cut in half along the cut-line using a diamond saw. The left hand half of the core is
placed in a calico bag marked with the appropriate sample number (combination of hole
name and "to" depth) and sent to the laboratory for sample preparation and assaying. The
remaining half core is stored in the original trays on pallets at the core processing facility.
Gold and copper reference material and blanks are inserted at a ratio of 1:20 and recorded
on the dispatch sheet. Sample preparation for fire assay includes:
All samples are weighed and dried in oven at 105C.
Samples are crushed to 2 mm, and a 3 kg sample obtained from a rotary sampler.
First split of 3 kg sample is pulverised to specified grind parameters.
Second split (1:20) is pulverised and stored with the primary sample.
Sample analysis consists of:
250 g sub-sample splits are obtained from pulverised splits.
50 g sample splits are obtained and sent for fire assay.
0.5 g sub-sample is also obtained for base metal analysis.
Gold content is calculated from Atomic Absorption Spectroscopy (AAS) reading.
Copper, sulphur, iron, molybdenum, lead, zinc grades are determined by Inductively
Coupled Plasma-Optical Emission Spectrometry (ICP-OES).
Results are recorded electronically and automatically uploaded to the resource database for
checking and validation.
11.2 Assay Laboratory
All of the recent drilling program primary analyses were conducted by ALS-Chemex (ALS)
in Orange (the assay contract was changed from Amdel Ltd in 2004). Note that on
12 March 2006, the standard fire assay was changed to a 30 g charge. This was to
overcome a low bias thought to be due to the flux mixture lead content not being sufficient
for the larger charge. After extensive testing of a higher lead flux during 2006-07, on 1 June
2007, the 50 g fire assay was reinstated for Newcrest material.
42

Assay protocols are summarized in Table 11.1.

Table 11.1
Cadia Assay Techniques and Detection Limits
Au
Fire assay with 50 (30) g charge and AAS finish.

Detection limit 0.01 ppm.
Cu
Primary analysis by ICP-OES

Ore grade (>1%) mixed acid digest for Cu >= 1% with flame AAS finish.
Detection limit 0.01%.
Cu
Mo
Pb
Zn
Fe
S
Mixed acid (perchloric, hydrochloric and nitric) digest, ICP-OES finish.

Aqua regia digest, ICP-OES finish.
Cu detection limit 0.1%.
S detection limit 10 ppm.
Mo detection limit 1 ppm.
Pb detection limit 3 ppm.
Zn detection limit 1 ppm.
Fe detection limit 0.01%.
CuCN
Weigh out 5 g of pulverised sample into a clean 250 mL barrel bottle.

Add 195 mL of tap water, 3 g of lime and 5 mL of an 18% w/w sodium cyanide solution.
Bottle roll for 1 hr and then allow to settle for 1 hr.
Decant clear extract into a 16 mL glass disposable test tube. Read on flame AAS.
Detection limit 2 ppm.
11.3 QA/QC Procedures

A comprehensive QA/QC program is in place for sample analysis. Metallurgy and waste
characterization is generally determined once assays have been received, validated, and
interpreted.
The laboratory QA/QC procedures currently involve analysis of:
Received sample weights.
Blind reference material (standards).
Duplicates from the Boyd crusher coarse splits.
Duplicates from the LM5 pulveriser pulp.
Checks on grind and crush size from the sample preparation steps.
Replicate submissions of pulps to an alternative laboratory for analysis.
Random blank samples (Silurian core samples).
The procedures also include:
Visits to the laboratory for confirmation of actual procedures applied.
43

Monthly QA/QC meetings with laboratory personnel.
External audit of QA/QC.
11.4 Ridgeway QA/QC Performance

The QA/QC performance for Ridgeway is based on three summary Ridgeway annual
QA/QC reports ranging from 2002 to 2006 (Kolkert, Ransley, 2006, Kolkert, Ransley (2005)
and McCumstie, Read (2003)).
11.4.1
Ridgeway Standards
Eight reference standards were used for the Ridgeway drilling. Key statistics relating to the
reference standard are summarized in Table 11.2.
Table 11.2
Ridgeway Reference Standards Key Statistics
Standard ID
Au STD
Au Standard Deviation
Cu STD
Cu Standard Deviation
R5
0.273
0.018
3,961
138
R6
3.310
0.132
11,600
400
R7
1.380
0.067
8,741
268
R8
1.320
0.071
8,350
230
R9
4.270
0.085
8,160
146
R10
4.520
0.091
8,626
192
R11
0.523
0.019
5,110
200
R12
0.493
0.017
4,909
209
Based on the performance of the ALS laboratory, the Ridgeway gold and copper standards
have a consistent negative bias. The accuracy and precision results are summarized in
Table 11.3.
The accuracy is a measure of the bias in the actual gold, copper and sulphur reference
material grades compared to the certified values of the standards. The precision summary
statistics are a measure of the percentage of standard assay values which fall outside two
standard deviations of the certified standard assay value.
44

Table 11.3
Reference Material Accuracy and Precision Summary

Accuracy
Variable
Precision
Performance
KPI
Performance
KPI
Reference Standards Performance: 2005 to 2006

Gold
-2.2%
<2%
19.7%
< 5%
Copper
-2.2%
<2%
25.2%
< 5%
Sulphur
1.8%
<2%
0.0%
< 5%

Gold
-0.3%
< 2%
20.6%
< 5%
Copper
-1.7%
< 2%
27.9%
< 5%
Sulphur
+1.7%
< 2%
1.4%
< 5%

Gold
+4.5%
< 2%
14.4%
< 5%
Copper
+1.9%
< 2%
0.0%
< 5%
The laboratory has performed poorly in terms of the precision, where on average 1 in 5
reference samples falls outside of the certified sample two standard deviations value. At this
point, it is unclear whether the poor performance is due to incorrect certifications on these
standards or whether it is related to performance issues at the laboratory.
11.4.2
Ridgeway Duplicates
The LM5 duplicate performance for the various Ridgeway drilling programs is summarized
in Table 11.4. The Bias is a global measure of the percentage difference of the duplicate
assay compared to the original assay. The Relative Paired Difference (RPD) relates to the
percentage of duplicates that fall within 10% of the original assay.
Table 11.4
Ridgeway Duplicate Performance

Variable
Bias (%)
RPD (%<10%)
Duplicate Performance: 2005 to 2006

Gold
+1.7%
68%
Copper
+0.3%
95%

Gold
+5.1%
59%
Copper
+1.3%
95%

Gold Phase 1
-6.4%
57%
Gold Phase 2
+0.5%
67%
Gold Phase 3
-0.2%
51%
45

In summary, the copper duplicates appear to have performed well. The gold duplicate
performance has been more variable. However, the gold duplicate performance appears to
have undergone significant improvements over time with the Bias statistic decreasing and
the RPD calculation trending upwards.
11.4.3
Ridgeway Repeat Assay QA/QC Performance
Repeat assays are regularly sampled from the Boyd crusher and analysed for gold, copper
and sulphur. Results of the Ridgeway 2005 to 2006 drilling repeat assays are summarized
in Table 11.5.
Table 11.5
Ridgeway Boyd Crusher Repeats (2005 2006)

Au >0.1 g/t
Mean
Cu>20 ppm
Primary
Sample
Repeat
Sample
Primary
Sample
2.04
2.02
4,402
Correlation Coefficient
0.94
1.0
S >100 ppm
Repeat
Sample
Primary
Sample
Repeat
Sample
4,431
6,025
6,096
0.99
The repeat assay results for the 2002-2003 and 2004-2005 drilling also show good
repeatability, with results similar to the 2005-2006 drilling.
11.4.4
Ridgeway Check Assays
A total of 35 check pulp samples from the 2002-2003 Phase 3 drilling were submitted to
ALS, in Orange. Results for Au and Cu indicate that they are well correlated with the
original assays and show there is minimal positive bias.
However, precision for Au is poor, where only 42% of the population has a RPD of 10%. In
contrast, 99% of the Cu population had a RPD of 10%.
No check assays were submitted for the 2002-2003 and 2005-2006 drilling programs.
11.5 Cadia East QA/QC Performance
The Cadia East QA/QC reporting dates back to the Stage 1 resource definition drilling in
2000. Since 2000, QA/QC data has been routinely collected and reports produced
on a monthly basis. Summary QA/QC reports for the period 2000 to 2005 and from
2006 to 2009 have been generated by CVO and compiled by the CVO database
administrator (Ransley and Eastwood, 2005 and Ransley and Perkins, 2009).
11.5.1
Cadia East Standards QA/QC Performance
The standards used for Cadia East drilling from 2005 onwards are summarized in
Table 11.6.
46

Table 11.6
Cadia East Reference Material
Standard
ID
Number
Submitted
Au STD
Certified Value
Au Std Dev
Cu STD
Certified Value
Cu Std Dev
CAD67
105
0.347
0.030
1,612
100.0
CAD68
107
0.74
0.026
2,844
96.0
CES01
104
0.187
0.010
2,456
71.0
CES02
122
0.251
0.012
2,075
74.0
CES03
109
1.880
0.050
4,243
113.5
The Cadia East Standards, which comprised the bulk of standards submitted for the infill
drilling program, were specifically manufactured from Cadia East material and prepared by
Ore Research in Melbourne (Ore Research & Exploration 2005, 2005a, 2005b, 2005c). The
certification was independently checked by Agoratek with agreed acceptable limits
(Fredericksen, 2005) including the calculation of the standard deviation.
Historical QA/QC reference material performance from November 2006 to January 2009 is
reported in the 2010 Cadia East feasibility study report and summarized in Table 11.7.
Table 11.7
Standard Material Bias

Variable
2000 to 2005
2006 to 2008
2008 to 2009
-0.1%
-1.4 %
-0.1 %
Copper
-1.3%
Sulphur
-0.83%
+0.3 %
-1.09 %
-1.05 %
Gold
+0.6 %
The gold and copper standard performance is considered to be good with no systematic
biases present. Reference material performance in general varies between -1 and +1
standard deviation.
Sulphur reference material in general exhibits a negative grade bias and continually
underperforms in the assay laboratory.
11.5.2
Cadia East Duplicates QA/QC Performance
As expected, the repeatability of gold samples is the least precise compared with copper.
The results show that around 60% of the gold population has a RPD below 10%, unlike
copper that has in excess of 95% below 10%. These trends have been consistent with the
ALS pulp duplicates over the life of the Cadia East resource definition drilling.
11.5.3
Cadia East Repeat Assay QA/QC Performance
Repeat assays are regularly (one in twenty) sampled from the Boyd crusher and analyzed
for gold, copper and sulphur. Results of the repeat assays are summarized in Table 11.8.
47

Table 11.8
Cadia East Boyd Crusher Repeats

Au >0.1 g/t
Primary
Sample
Repeat
Sample
Cu >20 ppm
Primary
Sample
S >100 ppm
Repeat
Sample
Primary
Sample
Repeat
Sample
1,904
11,470
11,308
Period: 2000 to 2005

Mean
0.47
0.46
Minimum
0.08
0.03
16
16
30
0.02
Maximum
6.10
5.86
20,100
19,500
220,000
210,000
Population Number
554
554
1,279
1,279
1,254
1,254
Population Standard Deviation
0.62
0.61
2,249
2,244
16,748
16,587
1,913
0.90
0.99
0.99

Mean
0.44
0.41
Minimum
0.08
0.03
15
20
100
100
Maximum
3.86
2.38
13,000
13,050
79,800
73,600
Population Number
130
130
294
294
304
304
Population Standard Deviation
0.50
0.40
2,150
2,113
12,935
12,734
0.85
1,781
1,759
0.99
8,790
8,678
1.00
No issues are observed in the repeat assay analysis. Predictably, the gold analysis gave
the lowest correlation coefficient due to the nuggetty nature of the mineralization. The RPD
for the Boyd Crusher Repeats (see Figure 11.1) reports 37% of the gold population has an
RPD of 10% or less, 80% of the copper population has an RPD of 10% or less and 80% of
the sulphur population has an RPD of 10% or less.
48

Figure 11.1
Au, Cu and S Boyd Crusher Repeats Relative Percent Difference

49

11.5.4
Cadia East Check Assay QA/QC Performance
Two complete drillholes; CE056 and CE067 pulps originally analyzed by ALS in Orange
were re-submitted to Amdel in Perth as part of the check assay QA/QC program. Results
confirmed good repeatability between the laboratories with no systematic bias apparent.
11.6 Data Entry and Data Security
Diamond drillholes are processed in-house using the CVO dedicated core processing
facility. Core is marked up and photographed with geology, bulk density and geotechnical
information recorded on dedicated core logging laptops. All resource logging data is
automatically uploaded to the resource database via logging notebook computers.
Newcrest employ a dedicated resource database team, including an on-site database
administrator to check, verify and validate new data and to ensure the integrity of the total
resource database. Day to day management of the resource data is undertaken by the
database administrator using the customized acQuire database system protected via a
software front-end interface.
Login and access permissions are limited to control access to the database and to maintain
the integrity of the resource data. Data access is generally limited to project geologists and
the database administrators. All original resource data is stored on the Newcrest exploration
group Access database located in Melbourne.
Exclusive control and monitoring of all data related to drilling is the sole responsibility of the
database administrator.
50

12
DATA VERIFICATION
All assays are checked and verified in accordance with the Newcrest Resource
Development Quality Assurance Quality Control (QA/QC) and database management
procedures. QA/QC procedures have been in place for all of the historical Newcrest drilling
programs at CVO.
51

13
MINERAL PROCESSING AND METALLURGICAL TESTING
13.1 Introduction
Ore mined from the Cadia Valley deposits is treated in two operating process plants
producing gold rich copper sulphide flotation concentrate for export, and gravity gold dor.
The Cadia Concentrator was commissioned in 1998 and has treated low grade ore from the
Cadia Hill open pit. The current cutback of the Cadia Hill open pit will be completed in 2012
and future ore from remaining open pit mining is expected to show similar performance to
ore treated to date. The Ridgeway Concentrator was designed to treat ore from the
Ridgeway underground mine and was commissioned in 2002.
The following Sections report on the test work programs that have been undertaken to
investigate the treatment of ore from the Ridgeway Deeps deposit through the Ridgeway
Concentrator, and from the Cadia East deposit through the Cadia Concentrator.
13.2 Ridgeway Ore Metallurgy
13.2.1
Introduction
The Ridgeway Concentrator was designed to treat 5.6 Mtpa ore from the Ridgeway SLC
underground mine. A large amount of test work was undertaken as part of the feasibility
studies leading up to the design and construction of the Ridgeway Concentrator, which was
commissioned in 2002. The installed processing flowsheet was similar to that of the
Cadia Concentrator involving grinding, flash float and gravity concentration, bulk flotation,
regrind and cleaner flotation to produce gold dor, and a marketable gold rich copper
sulphide concentrate. Following a period of ramp-up, the metallurgical performance of the
processing facility met expectations from the original feasibility test work.
Commencing in 2004, further phases of metallurgical test work were undertaken to
investigate the predicted metallurgical performance of deeper ore below the 5065 mRL
crusher. This project, known as Ridgeway Deeps Project, involved a change from SLC
mining to block cave mining. The results from these phases of test work were reported by
Newcrest in the Ridgeway Deeps feasibility study in 2007. The test work programs focused
on determining the response of Ridgeway Deeps ore to treatment in the existing
Ridgeway Concentrator. A further aim of the work was to evaluate the changes required to
the concentrator to realize the optimal flowsheet while maintaining ore throughput.
13.2.2
Ridgeway Deeps Metallurgical Test Work Samples
Lithological analyses of the Ridgeway Deeps deposit indicated a decrease in the proportion
of volcanic rock and an increase in the proportion of sediment in the deeper ore. The
Ridgeway Deeps block cave resource was estimated to be made up of approximately
33% sediment, 30% volcanic, 21% monzonite, 11% porphyry and 6% monzodiorite.
52

Drill core intervals from a wide range of spatial locations across the deposit were selected
and sorted by lithology to prepare five variability lithology composites. The lithology
composites were subjected to grind sensitivity flotation testing and locked cycle flotation
tests. A master composite sample was also prepared using the resource lithology
proportions as shown above. The master composite sample was used in comminution
testing, grind sensitivity flotation tests, gravity/flotation testing and locked cycle confirmatory
tests. Other selected variability intercepts were used for comminution parameter testing and
flotation recovery variability testing.
13.2.3
Test Work Results and Interpretation
The key outcomes from the metallurgical test work are discussed below.
BWi testing showed that the average BWi for Ridgeway Deeps ore is 18.9 kWh/t,
compared with 17.2 kWh/t achieved in previous Ridgeway ore testing. Sediment
material was shown to be the hardest ore type with an average BWi of 20.1 kWh/t.
Drop Weight (DWi) testing and SAG mill competency testing showed that the impact
to breakage resistance was higher for Ridgeway Deeps ore than previous ore mined.
The average breakage hardness as defined by a standard comminution parameter
(A*b) for Ridgeway Deeps was 40.1, compared to an equivalent average of 45.5 for
previous ore mined at Ridgeway (the lower the A*b result, the higher the hardness).
The higher hardness and the change from, SLC mining to block cave mining, resulted
in a requirement to install more energy in the Ridgeway Concentrator comminution
circuit. Comminution modeling showed that installation of a secondary crusher would
be required to maintain target throughput.
Flotation grind sensitivity test work between 53 m and 150 m showed that the
flotation performance of Ridgeway Deeps ore is grind dependent. Gold recovery is
very grind dependent while copper recovery was less dependent. A finer grind in the
regrind of rougher flotation concentrate was considered necessary to realize optimum
recovery.
Grind sensitivity with individual rock types showed differences in sensitivity to grind,
with monzonite as the least sensitive whilst porphyry was the most sensitive.
Gravity gold recovery was shown to be variable between rock types with mean gravity
recovery values ranging between 17% and 26%. An overall gravity gold recovery
model proposed for Ridgeway Deeps ore was:
Gravity recovery (%) = 2.6006 * Gold head grade (g/t) + 11.97
Mean rougher flotation copper recovery for different rock types ranged between
88% and 97%. Locked cycle tests at simulated plant conditions resulted in final
concentrate grades ranging from 18% to 26% copper and copper recoveries ranging
between 89% and 96%. An assessment of results provided a proposed overall copper
recovery algorithm for Ridgeway Deeps ore.
53

Copper recovery (%) = 83.5447 + 8.2837 * Copper head grade (%Cu) + 1.5007 *
Cu:S ratio in feed
An overall gold recovery model considered suitable for Ridgeway Deeps ore is:
Gold recovery (%) = 4.0445 x Gold head grade (g/t) + 77.406
Concentrate analyses showed that the concentrate generally had low levels of penalty
elements, but the levels of fluorine and Al2O3+MgO in some samples were of concern.
Based on an analysis of all results the required changes to the Ridgeway plant for
processing of the deeper ore were determined to be:
Installation of a secondary crusher to allow the mill to maintain 5.6 Mtpa.
Installation of additional grinding capacity to achieve a finer primary grind of

P80 = 90 m.
An upgrade of the concentrate regrind circuit to target a concentrate P80 of 38 m.
13.3 Cadia East Metallurgical Test Work

13.3.1
Background
Metallurgical characterization of the Cadia East deposit commenced in 1995 and has
continued in a staged manner through to the 2010 feasibility study. Initial test work
programs focused on determining the response of Cadia East ores types to the existing
Cadia Concentrator flowsheet. Subsequent metallurgical investigation efforts have been
directed towards improving the understanding of the specific processing needs of the
Cadia East ores, especially in regard to maximising gold recovery and reducing fluorine
content in concentrate.
A further aim of the recent programs of work has been to evaluate the changes required to
the current concentrating facilities to realize the optimal Cadia East process flowsheet.
A total of 12 stages of bench scale laboratory test work have been completed since 1995.
Confirmatory testing of bulk ore samples in a laboratory pilot plant, and also in a plant trial
with Cadia East underground ore, was completed in 2008.
13.3.2
Ore Sampling
The mine plan presented in the Cadia East feasibility study recommends two initial
panel caves (PC), PC1-Stg1 and PC2-Stg1, to be followed by two larger panel caves,
PC1-Stg2 and PC2-Stg2. The location of the samples sourced for the staged metallurgical
test work programs relative to the proposed panel caves, the June 2009 mineral resource
outline (blue) and the 1.0 g/t gold grade shell (in red) is shown in Figure 13.1.
54

Samples used in the early test work (Stages 1 to 8) were drill core samples mostly sourced
relatively high up in PC1-Stg2 cave, consistent with the initial open pit mining concept. Later
test work samples were sourced as follows:
Stage 9 Three drill core composites representing areas of PC1-Stg1, PC1-Stg2 and
an area east of the mine.
Stage 10 Eight composite samples based on lithology and grade, categorized as

volcanic, breccia, monzonite, conglomerate or porphyry.
Stage 11 Two ore class composites made up with similar grades and expected
mineralogy, but not lying within any one particular mining block.
Stage 12 A composite sample sourced from a drillhole intersecting the

lower-central, and upper-central portion of the PC2-Stg1 mining block.
Figure 13.1
Cadia East Long Section Showing Test Work Sampling Locations
55

Laboratory pilot test work on bulk samples was undertaken in 2008. Samples were sourced
from three ore types considered representative of the previously proposed open pit, as well
as an underground bulk sample. The sample identification and selection criteria were:
Sample 1 Pyrite shell, strong silica albite and potassic (biotite) alteration,
disseminated chalcopyrite, weak to no veining.
Sample 33 Transitional zone overlapping disseminated chalcopyrite and quartz

veining with dominantly silica albite potassic alteration and transitional propylitic
alteration.
Sample 4 Propylitic alteration, main gold - quartz vein zone, weak disseminated
chalcopyrite, minor bornite in veins.
Sample 5 Underground ore sample available from 5250 Level west bulk sample
drive. The location of the bulk sample drive is in Figure 13.1.
A plant trial consisting of 25,700 t of development ore from Cadia East was undertaken in
the Cadia Concentrator in 2008. The sample was sourced from the west and north bulk ore
sample drives on the 5050 Level.
13.3.3
Ore Mineralogy
Successive mineralogical investigations of Cadia East samples and flotation products were
undertaken during staged test work programs. Techniques used were optical, X-Ray
diffraction and mineral laboratory analysis. The ore body has been characterized as having
two major geo-metallurgical domains:
A finer grained, disseminated chalcopyrite domain, predominantly near surface.
Sheeted veining, containing bornite, predominantly at depth.
Both chalcopyrite and bornite have been observed to be relatively coarse grained. Pyrite
content is variable but tends to be higher at the periphery of the ore body. Other minor
sulphides detected in mineralogical investigations were digenite/chalcocite, covellite and
molybdenite. Gold occurs as either fine grained free gold or attached to the copper
minerals.
Gangue minerals present include fluorine containing minerals sericite and fluorite, as well
as minor apatite and biotite. The mineralogy of the fluorine containing minerals is important
with regards to meeting concentrate fluorine specifications.
The panel cave mining technique proposed for Cadia East mine will initially target the
sheeted vein geo-metallurgical domain, with higher gold grade and moderate copper grade.
Mineralization includes a mixture of chalcopyrite and bornite, with coarse and fine free gold.
3
No Sample 2 was prepared.
56

As mining progresses, mill feed will shift from the sheeted vein geo-metallurgical domain to
the fine grained, disseminated chalcopyrite domain. As a result, gold grade will decrease
whilst copper grades will rise for the first nine years.
13.3.4
Metallurgical Test Work
Some of the key test work stages are summarized as follows:

Stage 1 (1995) A series of rougher flotation tests were performed at grind sizes of
P80 = 180 and 140 m. Rougher/scavenger concentrates were reground with two stages of
cleaning. A series of locked cycle flotation tests was performed on six composites.
Stage 3 (1999) Drill core samples were tested at grind sizes of P80 = 150 m and
P80 = 175 m using processing conditions that were similar to the existing Cadia Hill
operation. The program evaluated comminution characteristics and flotation testing,
including reagent trials.
Stage 4 (2001) Two composite samples were subjected to gravity and flotation tests at
grind sizes of P80 = 53 m, 75 m, 106 m, 150 m and 212 m under flotation conditions
similar to the existing Cadia Hill flow sheet.
Stage 6 (2003-2004) Tests were undertaken on two composite samples classified as
bornite and chalcopyrite. Comminution parameters were evaluated, and also the effect of
grind size (ranging from 53 m to 220 m) on recovery was determined for the two ore
types.
Stage 9 (2007) Three lithology based composite samples, and a number of variability
samples were tested to improve the understanding of the comminution energy
requirements; as well as to determine flotation design parameters and identification of the
impact of regrind on cleaner flotation performance.
Pilot Plant Trial (2008) A pilot plant trial was performed on four samples during February
and March 2008. Three ore types from the proposed open pit were tested as well as an
underground sample from the bulk sample drive. The grind size in the pilot plant trial ranged
from P80 = 150 m to 190 m for most of the trial, while the regrind size was coarser than
expected, ranging between P80 = 50 m and 70 m. A high grade concentrate sample
collected from treatment of the underground sample was used for molybdenum separation
test work. The pilot plants performance exceeded the expectations of recovery models
generated from the laboratory bench scale testing.
Concentrator Plant Trial (2008) A plant trial treating samples of underground
development ore through the Cadia Concentrator was undertaken in May 2008. The
purpose of the trial was to observe the performance of the samples in plant processing to
validate design criteria assumptions, and to produce samples for additional metallurgical
test work. The trial was conducted utilizing two discrete samples: a low-grade sample and a
high-grade sample. The normal processing circuit was used, except that throughput was
57

lower, resulting in a finer grind size and increased mass recoveries. Diesel was also added
to the ball mill to act as a molybdenum collector.
Stage 10 (2008) Eight lithological composite samples and some variability samples were
subjected to comminution testing, flotation primary grind and regrind sensitivity testing as
well as gravity/flotation testing. Flotation testing included locked cycle testing and variability
testing at standard conditions of P80 = 150 m for primary grind and P80 = 38 m for regrind.
Stage 11 (2008-2009) This stage of testing formed part of the Cadia East pre-feasibility
study forward works program. Two class composites were prepared from previous
drillholes used in Stage 10 testing and four composite samples sourced from a recent
drillhole. The program also included testing of a remnant sample from the bulk sample drive
for crushing and copper/molybdenum separation tests. Test work undertaken included
comminution testing, primary grind sensitivity batch rougher flotation tests from P80 = 75 m
to P80 = 180 m, alternative reagent batch rougher kinetic flotation tests, fluorine depression
batch flotation tests and locked cycle flotation tests.
Stage 12 (2009) The Stage 12 program was developed to generate additional information
on PC2-Stg1. The test work included alternate reagents, grind sensitivity batch flotation
tests with kinetics, regrind sensitivity tests, and confirmatory batch flotation test work at the
selected conditions of primary grind of P80 = 150 m with regrind to P80 = 38 m. Also
included in the program was flash flotation testing, large scale batch rougher flotation
testing combined with cleaner testing for generation of product samples, and locked cycle
tests to generate samples for fluorine leach tests.
13.3.5
Comminution Test Work Results and Interpretation
The Cadia East ore types tested were found to be harder than the Cadia Hill and Ridgeway
ores. An assessment of all comminution test work results by Fluor indicated the following:
The results for all SAG Mill Competency (SMC) tests were determined to be are
shown in Table 13.1. The 75th percentile value for the Drop Wt Index results was
calculated to be 10.0 and was used by Fluor in the design. This represents
approximately 20% increased energy demand when compared with Cadia Hill ore
with a typical value of 8.1.
Table 13.1
Results for Sag Mill Competency Tests

Results
Grouping
Drop Wt
Index
A*b
t10
Min Value
7.3
68.5
0.23
22.4
22.1
Max Value
12.1
100.0
0.53
37.3
30.9
Median
9.4
89.3
0.33
28.8
24.6
58

The average Rod Mill Work Index (RWi) of all tests was 29.1 kWh/t and is therefore
over 40% harder than the typical values of 20 kWh/t for Cadia Hill ores, and 21 kWh/t
for Ridgeway ores. The average Bond Ball Work Index (BWi) for all tests was
20.6 kWh/t, which is higher than the typical values of 17.5 kWh/t for Cadia Hill ores
and 18.7 kWh/t for Ridgeway ores. The 75th percentile values for the RWi and BWi,
namely 31.1 kWh/t and 21.5 kWh/t respectively, were selected by Fluor for plant
design.
The average abrasion index from all tests was 0.193, which is lower than typical
values for Cadia Hill and Ridgeway, indicating that the Cadia East underground ore is
less abrasive. A value of 0.21 was used by Fluor for plant design.
The Cadia East ore responded well to High Pressure Grinding Rolls (HPGR) testing
and design parameters were determined for inclusion of a HGPR circuit.
Only moderate small hardness variations were shown between different ore
lithologies, with the highest hardness results originating from volcanic samples.
13.3.6
Gravity Gold Recovery Test Work Results and Interpretation
Cadia East ore types contain a significant gravity recoverable gold component, and
maximum overall gold recovery is achieved when gravity gold recovery is maximized. The
amount of gravity gold recovered was shown to be dependent on:
Head grade: recovery increases with increasing gold head grade.
Grind size: recovery increases as the primary grind size became finer.
Based on a primary grind size of P80 = 150 m the following relationship was proposed:
For gold (Au) head grade < 0.5 g/t: Gravity gold recovery (%) = 22.9 x Au + 0.54;
and
For gold head grade > 0.5 g/t: Gravity gold recovery (%) = 5.0365 x Au + 10.94.
13.3.7
Flotation Test Work Results and Interpretation
A large amount of flotation testing was undertaken during the course of the staged
metallurgical programs. The aims of the work were to evaluate alternative reagent schemes
as well as to optimize the size and configuration of the proposed flotation circuits. An
analysis of the test results identified several factors that had an effect on final test
outcomes. Principal factors were ore type, and specifically proportions of different copper
minerals present in the sample (e.g. chalcopyrite or bornite), as well as head grade. The
work culminated in Cadia East ores being categorized into different classes of ore, with the
ore class dictating its expected metallurgical performance.
59

Some major outcomes derived from the flotation testing were:
Evaluation of alternative reagent schemes resulted in the standard Cadia Hill flotation
reagent suite, consisting of Cytec 8761 collector and MIBC frother, being used as the
basis of flotation design.
The Cadia East ore types are comprised of a finer mineral grain structure than the
Cadia Hill and Ridgeway ores, resulting in slower flotation kinetics.
The design primary grind size of P80 = 150 m, was selected based on net present
value (NPV) calculations from grinding sensitivity test work results.
Regrinding test work indicated a requirement for rougher and scavenger concentrates
to be reground to a particle size of P80 = 38 m for optimum copper recovery.
Concentrate regrinding at a size of P80 = 38 m results in concentrate with fluorine

content near to, or above, the rejection limit in most samples. A nominal regrind size
of 25 m was shown to reduce fluorine to more acceptable levels, but at the expense
of copper and gold recovery. It must be noted however that the plant trial undertaken
on a bulk underground sample indicated lower than expected levels of fluorine in
concentrate than expected from batch tests.
Molybdenum flotation tests on Cadia East ore showed that it is possible to produce a
saleable molybdenite concentrate by-product.
Flotation recovery models for gold and copper were developed based on batch tests,
but it was noted that variability within the models was high. The major driver for higher
gold recovery was found to be gold grade of feed, and likewise copper head grade
was found to be the major driver for higher copper recovery.
Flotation piloting of four ore types resulted in copper recoveries varying between 85%
and 94%, at concentrate grades of 19.9% to 25.5% Cu. A plant trial with underground
ore resulted in recoveries of 80.1% for gold and 83.6% for copper.
Apart from fluorine, other elements of potential concern in final concentrate quality as
determined in batch tests were chlorine, mercury and molybdenum. However,
mercury levels from both piloting and a plant trial were satisfactory, and molybdenum
can be recovered from concentrate as a by-product, leaving fluorine and chlorine as
the principal elements to be managed.
13.3.8
Summary of Cadia East Test Work Implications
The key implications from all the metallurgical test work results for processing of Cadia East
ore in the Cadia Concentrator are that:
Additional comminution energy is required to maintain high throughput.
Additional flotation capacity is required to suit the higher copper grade and slower
kinetics of Cadia East ore.
60

A finer concentrate regrind size is required to control fluorine to acceptable levels.
The process plant changes required for treatment of Cadia East ore are outlined in
Section 17 of this report.
61

14
MINERAL RESOURCE ESTIMATES
14.1 CVO Mineral Resource Estimates

Newcrest has reported mineral resource estimates for Cadia Hill, Ridgeway, Cadia East,
Big Cadia, and Cadia Extended (Cadia Quarry). The estimates are reported as at
31 December 2011. The mineral resources have been prepared under the direction of
Qualified Persons using accepted industry practice and have been classified and reported
in accordance with the JORC Code. There are no material differences between the
definitions of Measured, Indicated and Inferred Mineral Resources under the CIM Definition
Standards and the equivalent definitions in the JORC Code
The mineral resources are reported inclusive of mineral reserves and are based on the
metal prices and exchange rate shown in Table 14.1.
Table 14.1
Newcrest Mineral Resource Metal Price and Exchange Rates

Metal Price Assumptions
Value
Gold Price
US$/oz
1,100
Copper Price
US$/lb
2.70
Silver Price
US$ /oz
20.00
Molybdenum Price
US$ /lb
16.00
Exchange Rate
US$:A$
0.80
14.2 Cadia Hill Mineral Resource Estimate

The mineral resource estimate for Cadia Hill is summarized in Table 14.2. The estimate
includes stockpiles estimated at 58 Mt containing 0.62 Moz gold and 73 kt of copper, and
assumes that the deposit will continue to be mined using open pit methods.
Table 14.2
Cadia Hill Mineral Resource Estimate at 31 December 2011

Resource
Classification
14.2.1
Tonnes
Mt
Au
g/t
Cu
%
Au
Moz
Cu
Mt
Measured
180
0.45
0.13
2.6
0.22
Indicated
34
0.41
0.14
0.4
0.05
Inferred
220
0.31
0.10
2.3
0.23
Background
The Cadia Hill grade model has been estimated using diamond drillhole information from
the original Cadia Hill drill program and holes completed between commencement of mine
production and September 2008.
62

The December 2011 Cadia Hill mineral resource is estimated on a value basis, which
includes consideration of the forecast revenue generated by both gold and copper, and the
anticipated long-term operating cost structure. The resource is constrained within a pit shell
defined using elevated revenue parameters to ensure that the shell contains all the material
that might reasonably be extracted by the maximum eventual mining scenario.
14.2.2
Cadia Hill Domains
The Structural Domains (STRDOM) used to model the 2009 resource are summarized in
Table 14.3.
Table 14.3
Cadia Hill Estimation Domains
STRDOM 1
Central main ore bearing domain east of South Fault, west of Gibb, south of Black Betty
also known as the Main Ore Zone (MOZ)
STRDOM 2
North East of STRDOM 1, again south of Black Betty and west of Gibb also known as
Back Leg
STRDOM 3
North of Black Betty, west of Gibb, and east of Fishtail/Baroness
STRDOM 4
North of Black Betty, west of Fishtail/Baronness, east of Cadiangullong
STRDOM 5
South of Black Betty, west of South, east of Fishtail/Baroness
STRDOM 6
South of Black Betty, west of Fishtail/Baroness, east of Cadiangullong
STRDOM 7
West of Cadiangullong, south of Purple
STRDOM 8
West of Cadiangullong, north of Purple
STRDOM 9
East of Gibb
The grade model uses multiple indicator kriging (MIK) for gold and copper in the four main
metal bearing domains (STRDOM 1, 2, 4 and 6), and ordinary kriged estimates for cyanide
soluble copper and sulphur in the same four domains. Ordinary kriging estimates are used
for gold, copper, cyanide soluble copper, and sulphur in the remaining domains.
14.2.3
Cadia Hill Statistics
A total of 465 drillholes with 8,523 bench composite assays for gold, copper, cyanide
soluble copper, and sulphur were available as input to the resource modeling process.
Basic statistics were compiled using Datamine statistics functions and are summarized in
Table 14.4.
63

Table 14.4
Composite Statistics by Domain STRDOM for Cadia Hill
STRDOM
Element
NRECORDS
NSAMPLES
Minimum
Maximum
Mean
Variance
STANDDEV
CV
AU
8523
4938
0.01
7.93
0.46
0.23
0.48
0.96
AU
8523
1745
0.01
2.50
0.20
0.05
0.21
0.93
AU
8523
297
0.01
0.74
0.16
0.01
0.12
1.36
AU
8523
246
0.02
0.95
0.18
0.02
0.13
1.39
AU
8523
726
0.01
1.67
0.28
0.06
0.25
1.12
AU
8523
555
0.01
1.04
0.13
0.02
0.16
0.83
CU PCT
8523
4942
0.00
0.96
0.11
0.01
0.09
1.25
CU PCT
8523
1747
0.00
0.65
0.09
0.00
0.06
1.55
CU PCT
8523
305
0.00
0.66
0.12
0.01
0.10
1.17
CU PCT
8523
246
0.01
0.57
0.08
0.01
0.09
0.91
CU PCT
8523
727
0.00
0.82
0.13
0.01
0.10
1.25
CU PCT
8523
556
0.00
0.49
0.06
0.00
0.07
0.86
CUCN
8523
3226
0.50
4977
182
93913
306
0.59
CUCN
8523
758
0.50
1217
185
34473
186
1.00
CUCN
8523
179
1.56
2798
417
236342
486
0.86
CUCN
8523
124
0.50
1558
132
44136
210
0.63
CUCN
8523
426
6.31
3368
222
128889
359
0.62
CUCN
8523
249
0.50
820
108
17605
133
0.81
S PCT
8523
749
0.01
3.80
0.48
0.24
0.49
0.99
S PCT
8523
239
0.01
6.24
0.67
1.13
1.06
0.63
S PCT
8523
51
0.01
3.61
0.62
0.70
0.84
0.74
S PCT
8523
63
0.01
3.29
0.20
0.19
0.43
0.46
S PCT
8523
111
0.02
3.07
0.60
0.30
0.55
1.10
S PCT
8523
111
0.01
2.43
0.44
0.23
0.48
0.92
14.2.4
Cadia Hill Variography
Variography was completed using the Snowden Supervisor software. The MIK and ordinary
kriging variography was completed using diamond drillhole bench composites.
The MIK variography was developed using between 9 and 11 indicator thresholds for each
domain. Indicator kriging uses grade thresholds for cut-off definition such that each bin
contains approximately equivalent portions of the total metal content. Examples of the MIK
and ordinary kriging semi-variogram models for gold are summarized in Table 14.5 and
Table 14.6.
64

Table 14.5
MIK
Cut-off
STRDOM 1 MIK Indicator Variogram Parameters for Au

Nugget
Variance
C0
Sills
(Spherical)
C1
C2
Ranges_1
(m)
Maj
Sem
Ranges_2
(m)
Min
Maj
Datamine Rotation
(Vangle)
Sem
Min
Domain:STRDOM1
0.32
0.25
0.75
0.65
520
525
200
450
465
155
30
140
-90
0.43
0.25
0.10
0.55
55
155
25
440
330
195
30
110
-100
0.59
0.20
0.25
0.55
135
195
85
380
250
110
30
110
-110
0.83
0.20
0.25
0.55
130
140
42
260
150
80
30
120
-110
1.14
0.20
0.25
70
150
80
30
120
-110
1.69
0.30
0.70
140
100
135
30
120
-110
0.24
0.25
0.75
750
626
220
20
140
-50
0.17
0.25
0.75
980
460
250
150
110
0.09
0.25
0.75
550
320
420
Datamine Axis: Vaxis1 = 3, Vaxis2 = 1, Vaxis3 = 3
Table 14.6
Ordinary Kriging Variogram Parameters for Au
Domain:
Nugget
STRDOM
C0
Sills
(Spherical)
C1
C2
Ranges_1
(m)
Maj
Sem
Ranges_2
(m)
Min
Datamine Rotation
(Vangle)
Maj
Sem
Min
520
345
85
-150
65
-70
Gold
1
0.2
0.19
0.15
0.61
220
180
30
0.85
260
285
130
30
110
-80
0.3
0.69
220
105
190
70
-170
0.2
0.8
100
95
70
70
-90
0.2
0.44
0.36
95
205
90
190
330
160
90
120
-100
0.15
0.48
0.37
115
115
100
400
280
200
-100
60
Datamine Axis: Vaxis1 = 3, Vaxis2 = 1, Vaxis3 = 3
14.2.5
Cadia Hill Estimation Parameters
The MIK model was constructed with a parent cell size of 25 m x 25 m x 15 m

(approximately half the drillhole spacing of 50 m x 50 m), with sub-celling down to
12.5 m x 12.5 m x 7.5 m.
65

The MIK model was prepared using Vulcan software, outputting gold and copper values
only, the indicators at each threshold were ordinary kriged to get probabilities of exceeding
each indicator threshold. Gold and copper grades were directly estimated into selective
mining unit blocks. Linear interpolation was used for all thresholds for the gold estimation,
and for the copper estimations in STRDOM6. For copper estimations in STRDOMs 1, 2,
and 5, the upper and lower tails were modeled by fitting a theoretical power function,
which extends the influence of the last threshold bin.
The ordinary kriging model was interpolated using the DatamineTM ESTIMA process into a
parent cell size of 25 m x 25 m x 15 m sub-celled to 12.5 m x 12.5 m x 7.5 m. A search
distance equivalent to 60-70% of the range of each variogram and a combination of kriging
weights derived from a kriged sample file (extracted during the DatamineTM ESTIMA
process); along with the slope of regression and kriging efficiency to determine a maximum
number of samples was used in the interpolation.
The final 2009 resource model is a combination of the following:
MIK cell average model for Au in STRDOM 1, STRDOM 2, STRDOM 5 and

STRDOM 6.
MIK e-type model for Cu in STRDOM 1, STRDOM 2, STRDOM 5 and STRDOM 6.
Ordinary kriging model for Au and Cu in the remaining domains.
An ordinary kriging model for CuCN and S in all domains.

14.2.6
Cadia Hill Resource Classification
The Cadia Hill mineral resource classification is based on the original classification derived
from the May 2000 mineral resource model where the Measured, Indicated and Inferred
classifications were made within a drilling limit wireframe. The classifications were based
primarily on grade continuity and drillhole density.
14.3 Ridgeway Mineral Resource Estimate
The mineral resource estimate for Ridgeway is summarized in Table 14.7.
Table 14.7
Resource
Classification
Ridgeway Mineral Resource Estimate at 31 December 2011

Tonnes
Mt
Au
g/t
Cu
%
Ag
g/t
Au
Moz
Cu
Mt
Ag
Moz
Measured
0.1
1.1
0.41
1.2
<0.01
<0.01
<0.01
Indicated
120
0.76
0.35
0.85
2.9
0.42
3.3
Inferred
27
0.47
0.44
0.47
0.4
0.12
0.4
66

The mineral resource is reported within economic outlines based on a value model
consistent with the proposed block/panel caving underground mining method. The value
model is based on net smelter return (NSR) calculated on a payable metal basis taking
metal prices, metallurgical recoveries and realization costs into account.
The Ridgeway mineral resource is reported within a reporting shell defined by an NSR
value cut-off of $12.50 per tonne, based on the marginal value cut-off. Because of the lack
of selectivity of the block caving mining method, the entire content of the reporting shell as
depleted by mining to 31 December 2011, are reported in the mineral resource estimate.
14.3.1
Background
The 2011 Ridgeway mineral resource estimate is based on the following mineral resource
models:
RWPM0905.dm parent resource model.
RWRV61Oc.dm VALUE field added.
RWRV5040.dm depleted.
The resource estimation process for Ridgeway is described in the following sections.
14.3.2
Ridgeway Grade Estimation Domains
The domains used are based on lithology and structure inside a mineralized envelope.
Individual domains were created for gold, copper, silver and sulphur, based on lithology,
structure and grade. These features were used to build a set of broad domains.
The grade estimation domains take into account the geology and structures within a
0.2 g/t gold and/or 0.2% copper grade domain. The Purple Fault is the most dominant
structural feature at Ridgeway controlling the mineralizing trends, the gross orientation of
the intrusives and shears below 5,100 RL, and the resulting modeled grade domains. The
Purple Fault strikes northwest and dips moderately (50) towards the south-west. Current
interpretations suggest that the fault steepens and merges with the Delphin Fault at
approximately 4880 RL. Descriptions of the gold and copper domains are shown in
Table 14.8 and Table 14.9.
Figure 14.1 shows the relationship of the Purple Fault (colored purple) to the North Fault
(grey) and the monzonite (red). Of note is the logged vein bornite (light blue) occurring
immediately adjacent to the Monzonite and above the Purple Fault.
67

Figure 14.1
Purple Fault (Coloured Purple)
Table 14.8
Gold Domain Description
Domain
Au Code
Lithology
Structure
Mineralized Shell
Monzonite
Below Purple Fault
Inside 0.2 g/t Au shell
Monzonite
West of Rimmers Fault & above Purple Fault
Monzonite & Monzodiorite
East of Rimmers Fault & above Purple Fault
All lithologies
North of North Fault
Monzodiorite
Barren Monzonite
Below Purple Fault
Weemalla Sediments
Below Purple Fault
Weemalla Sediments
Weemalla Sediments
10
Forest Reef Volcanics
Below Purple Fault
11
12
All lithologies
Outside 0.2 g/t Au shell
68

Table 14.9
Copper Domain Description
Domain
Cu Code
Lithology
Structure
Mineralized Shell
Monzonite
Below Purple Fault
Inside 0.2% Cu shell
Monzonite
All lithologies
Monzodiorite
Barren Monzonite
Below Purple Fault
Weemalla Sediments
Below Purple Fault
Weemalla Sediments
Weemalla Sediments
10
Below Purple Fault
11
12
All lithologies
Outside 0.2% Cu shell
14.3.3
Ridgeway Composites
Gold and copper grades were predominantly derived from 2 m diamond drillhole samples
(composited over 4 m intervals).
14.3.4
Ridgeway Exploratory Data Analysis
The domains used for the resource modeling are a combination of the structural and
lithological domains within a 0.2% mineralized copper envelope, these domains are
summarized in Table 14.10.
69

Table 14.10
Domains Used for This Estimate
Grade Domain
Lithology
Structural Description
Grade Description
Dom1, StDom2
Monzonite
Below Purple Fault
Dom1, StDom4
Monzonite
West of Rimmers Fault and

above Purple Fault
Dom1-2, StDom3
East of Rimmers Fault and

above Purple Fault
Dom1-5, StDom1
All lithologies
Dom2, StDom4
Monzodiorite

above Purple Fault
Dom3, StDom2
Barren Monzonite
Below Purple Fault
Dom4, StDom2
Weemalla Sediments
Below Purple Fault
Dom4, StDom3
Weemalla Sediments

above Purple Fault
Dom4, StDom4
Weemalla Sediments

above Purple Fault
Dom5, StDom2
Dom5, StDom3

above Purple Fault
Dom5, StDom4

above Purple Fault
Dom0
All lithologies
Below Purple Fault
Outside 0.2% Cu shell
The Ridgeway composited drillhole files were imported into Isatis software for detailed
geostatistical analysis. Univariate gold and copper statistics by domain are summarized in
Table 14.11 and Table 14.12.
70

Table 14.11
Gold Domain Global Statistics
Au
Short Description
Count
Minimum
Maximum
Mean
Std Dev
Variance
CoV
Au Dom1, StDom2
535
0.01
18.10
1.65
1.75
3.06
1.06
Au Dom1, StDom4
1,204
0.01
28.90
2.30
2.46
6.07
1.07
Au Dom1-2, StDom3
369
0.03
8.90
1.04
1.21
1.46
1.16
Au Dom1-5, StDom1
1,504
0.01
9.03
0.72
0.88
0.78
1.22
Au Dom2, StDom4
1,502
0.02
15.11
1.50
1.51
2.29
1.01
Au Dom3, StDom2
382
0.01
6.63
0.26
0.61
0.38
2.35
Au Dom4, StDom2
2,626
0.01
28.31
1.06
1.38
1.91
1.30
Au Dom4, StDom3
428
0.02
5.21
0.82
0.87
0.75
1.06
Au Dom4, StDom4
1,757
0.02
22.61
1.13
1.38
1.90
1.22
10
Au Dom5, StDom2
1,363
0.01
40.65
1.24
1.73
3.00
1.40
11
Au Dom5, StDom3
1,250
0.04
13.77
1.37
1.62
2.64
1.18
12
Au Dom5, StDom4
4,304
0.01
43.70
2.60
2.80
7.85
1.08
Au Dom0
35,266
0.00
37.89
0.06
0.27
0.07
4.50
Table 14.12
Copper Domain Global Statistics
Cu
Short Description
Cu Dom1, StDom2
Cu Dom1, StDom4
Cu Dom1-2, StDom3
Count
Minimum
Maximum
Mean
Std Dev
Variance
CoV
542
0.01
2.43
0.43
0.31
0.10
0.72
1,204
0.02
4.52
0.56
0.43
0.18
0.77
376
0.07
2.35
0.48
0.22
0.05
0.46
Cu Dom1-5, StDom1
2,222
0.02
2.99
0.46
0.29
0.09
0.63
Cu Dom2, StDom4
1,518
0.04
2.47
0.68
0.34
0.12
0.50
Cu Dom3, StDom2
393
0.01
1.65
0.13
0.18
0.03
1.38
Cu Dom4, StDom2
2,428
0.02
2.82
0.43
0.31
0.09
0.72
Cu Dom4, StDom3
357
0.06
1.63
0.42
0.27
0.07
0.64
Cu Dom4, StDom4
1,752
0.04
2.60
0.47
0.33
0.11
0.70
10
Cu Dom5, StDom2
1,642
0.02
7.47
0.49
0.35
0.12
0.71
11
Cu Dom5, StDom3
1,705
0.01
2.01
0.49
0.31
0.10
0.63
12
Cu Dom5, StDom4
5,361
0.05
4.80
0.71
0.50
0.25
0.70
Cu Dom0
33,068
0.00
7.07
0.06
0.10
0.01
1.67
14.3.5
Ridgeway Variography
Variograms have been modeled for gold, copper, silver and sulphur within each estimation
domain. All models are spherical, typically with two structures, and were developed over
raw experimental variograms. The main orientation of the Ridgeway orebody is
west-north-west to east-south-east dipping sub-vertically. This is the plane of maximum
continuity.
71

Drilling at Ridgeway is predominantly from south to north at various dips. Downhole

variograms orientated in this direction (with tolerances +/- slicing width applied) have been
generated to provide information on the nugget and short range structure, and in the wider
domains to provide insight into longer range structures.
Table 14.13 summarizes the modeled semi-variogram parameters used for grade
estimation of gold and copper.
72

Table 14.13
Domain
Nugget
Variance
Ridgeway Modeled Semi-Variogram Parameters
Sill (Spherical)
Ranges_1 (m)
Ranges_2 (m)
C0
C1
C2
C3
Maj
Sem
Min
Maj
Sem
0.5800
0.8000
1.9600
45
30
30
110
50
Min
Ranges_3 (m)
Datamine Convention
Datamine Rotation
Maj
Sem
Min
Vaxis1
Vaxis2
Vaxis3
Vangle1
Vangle2
Vangle3
50
-158
-56
-90
Gold
1
2
1.4000
2.8000
0.8000
0.6200
28
28
28
77
50
50
135
110
110
100
-90
0.1100
0.4000
0.5300
93
93
44
130
130
75
85
-82
0.1500
0.1500
0.4600
0.1500
18
15
15
106
45
45
145
84
84
16
-76
-69
0.4500
0.3000
1.2000
0.7200
20
20
20
106
106
70
118
118
95
110
-90
0.0066
0.0079
0.0060
21
21
21
65
65
65
0.5700
0.3000
0.3300
0.7000
17
17
17
160
160
62
250
250
130
92
-83
0.0800
0.3500
0.3000
85
85
75
135
135
95
80
-90
0.2000
0.2000
0.7100
0.7600
42
42
42
70
42
42
210
85
85
-62
-88
-180
10
0.6500
0.8000
1.5000
65
65
65
125
125
75
-152
-88
11
0.4000
0.2700
0.5100
0.9400
17
17
17
66
66
25
150
150
75
55
-75
12
1.3295
1.3000
2.2000
4.7000
13
13
13
100
100
100
150
150
150
130
-90
0.0400
0.0200
0.0150
15
15
15
55
55
55
0.0271
0.04300
0.04100
38
12
12
130
50
50
-158
-56
-90
Copper
2
0.0291
0.04380
0.06000
0.04260
12
12
12
60
40
40
110
110
70
100
-90
0.0090
0.01575
0.02500
38
22
22
150
74
74
85
-82
0.0150
0.01950
0.01300
0.03850
25
25
10
50
50
50
110
75
75
85
-85
0.0250
0.02000
0.08005
18
18
35
135
135
70
20
-80
-90
0.0070
0.00700
0.02450
22
22
22
44
44
44
0.0250
0.01750
0.02500
0.02700
14
14
14
46
46
32
180
180
75
-170
80
-90
0.0130
0.06200
77
77
40
80
-90
0.0129
0.01620
0.02600
0.05100
22
22
14
110
90
46
140
110
65
28
-92
10
0.0250
0.01000
0.04000
0.05800
25
25
25
75
75
75
160
160
75
-62
-88
11
0.0110
0.01000
0.02100
0.03600
28
28
28
70
70
50
135
135
80
-45
-80
12
0.0440
0.10400
0.10500
125
125
65
145
145
85
130
-90
0.0020
0.00300
0.00200
0.00180
60
60
90
118
118
180
250
250
180
105
-90
73

14.3.6
Ridgeway Bulk Density
Since preparation of the 2006 Ridgeway mineral resource estimate, 7,173 physical bulk
density measurements from the Ridgeway feasibility study have been uploaded to the
Ridgeway dataset. In total, the dataset consists of 7,813 physical bulk density
measurements. Most of these were collected as part of the original surface drill out and are
located outside the Ridgeway mineralization.
Physical determinations are calculated using the weight in air, then weight in water method.
Intervals for bulk density determination are selected according to lithology, alteration and
mineralization type (to obtain representative core intervals as defined by the geologist). The
bulk density values assigned to different domains are shown in Table 14.14.
Table 14.14
Density Values for Grade Domains Applied to the Resource Model

Assigned Density
(t/m3)
Density Domains
Description of Domain
Au Dom1, StDom2
Monzonite below Purple Fault
2.78
Au Dom1, StDom4
Monzonite west of Rimmers Fault
2.81
Au Dom1-2, StDom3
Monzonite and Monzodiorite east of Rimmers Fault
2.81
Au Dom1-5, StDom1
All lithologies north of North Fault
2.84
Au Dom2, StDom4
Monzodiorite west of Rimmers Fault
2.85
Au Dom3, StDom2
Barren Monzonite below Purple Fault
2.76
Au Dom4
Weemalla Sediments
2.80
Au Dom5
2.85
Au Dom0
Background
2.80
14.3.7
Ridgeway Estimation Parameters
Estimation parameters for the Ridgeway resource model were optimized using kriging
neighborhood analysis. This process involves ordinary kriging individual blocks to test the
slope of regression between the true and estimated grade (this is a measure of conditional
bias), estimate value, variance and percentage of negative kriging weights.
Each block is also simple kriged to record the weight-of-the-mean which is used as an
indicator of estimation quality. Blocks on the margins of domains, in the centre of domains,
of higher than average grade, average grade and lower than average grade were tested.
The results of analysis indicate that the estimation parameters are not sensitive to changes
in search neighborhood. The most sensitive estimation parameter was found to be the
number of samples used to estimate each block. A minimum of 8 samples and a maximum
of 48 samples was finally selected.
74

The interpolation method used for the 2011 Ridgeway mineral resource estimate is ordinary
kriging. The resource model block parameters are summarized in Table 14.15.
Table 14.15
Block Model Parameters May 2011 Model

Block Model
Easting
Northing
Elevation
Origin
10,600 mE
22,500 mN
4,400 mRL
Extent
1,000 m
450 m
1,600 m
40
18
64
25 m
25 m
15 m
Number of Parent Cells

Block Size
The following estimation parameters were used for the Ridgeway mineral resource
estimate.
Block size was 25 m(E) x 25 m(N) x 25 m(RL).
Minimum and maximum number of samples used to estimate block grades are
8 samples and 48 samples respectively.
Ordinary kriging was used to estimate gold, copper, sulphur, silver and copper
cyanide.
Octant search (x 6) was used in the estimation process.
The input DatamineTM parameter files to the estimation were as follows:

-
RWPM0905.dm resource model.
01CreateModelc24.mac contains all resource model construction parameters.
14.3.8
Resource Model Validation
The Ridgeway resource models have been extensively validated by:
Filtering the models and checking for any un-estimated blocks.
Comparing the global statistics of each domain and variable with the corresponding
block estimates.
Comparing the composite and block grades in slices throughout the deposit.
Locally comparing drillholes and estimated blocks in cross-section and plan.
Comparing the models to the previous estimate by area and level.
14.3.9
Ridgeway Resource Classification
The Ridgeway mineral resource was reviewed with relation to number of samples, drillhole
spacing, geological interpretation and confidence in the geological model (especially fault
projection), and geostatistical parameters. As a result, the mineral resource has been
75

classified into Measured, Indicated and Inferred categories according to the following
criteria:
Measured Above 5,000 mRL.
Indicated Between 5,000 mRL and 4,750 mRL and west of 11,400 mE.
Inferred Between 4,750 mRL & 4,500 mRL, and west of 11,400 mE.
14.4 Cadia East Mineral Resource Estimate

The Cadia East mineral resource estimate is shown in Table 14.16.
Table 14.16
Resource
Classification
Cadia East Mineral Resource Estimate at 31 December 2011

Tonnes
Mt
Au
g/t
Cu
%
Ag
g/t
Mo
ppm
Au
Moz
Cu
Mt
Ag
Moz
Mo
kt
Measured
Indicated
2,200
0.44
0.29
0.48
75
32.0
6.40
34.8
170
100
0.35
0.18
0.24
21
1.1
0.18
0.8
Inferred
The Cadia East mineral resource is reported within an economic outline determined by the
NSR values of each block in the resource model. The NSR value used to determine the
outline is consistent with the cost structure of the proposed panel caving underground
mining method. The reporting shell (economic outline) has been expanded (in places) to
fully encompass the panel/block cave footprints. Because of the lack of selectivity of the
panel caving mining method, the entire in-situ contents of the shell is reported.
14.4.1
Background
The last major re-interpretation of the Cadia East grade estimation domains was
undertaken for the 2009 Cadia East feasibility study. Apart from the revised metal price
assumptions, the grade model (cers0906.dm) and the reporting shells used for the
December 2011 mineral resource estimate, remain unchanged from 2009. The resource
estimation process is described in the following sections.
14.4.2
Cadia East Domains
The domains used for this estimate are based on lithology and structure inside a
mineralized envelope. The resulting estimation domains shown in Table 14.17 are a
combination of the geological and structural domains within a 0.1% Cu grade shell.
76

Table 14.17
Coding for the Structure Domains (STRDOM)

Field Name
Domain
Code
STRDOM
(Structural Domain)
14.4.3
Description
AIR - Above Cadia East Topography
West of Gibb (Cadia Hill)
West of Cat above 5250 Thrust/Porphyry
East of Cat above 5250 Thrust/Porphyry
North of Dyke below 5250 Thrust/Porphyry
North of Zinc3 below 5250 Thrust/Porphyry
South of Zinc3 below 5250 Thrust/Porphyry
Cadia East Copper and Sulphur Domains
Four domains, described in Table 14.18 have been used to constrain the copper and
sulphur grade estimates.
Table 14.18
Copper and Sulphur Domains Used in Cadia East Resource Estimate

Domain
Comment
Upper
Inside 0.1% Cu and above 5250 Thrust Zone
Lower
Inside 0.1% Cu and below 5250 Thrust Zone
Background
Outside of 0.1% Cu Copper Shell
Silurian & Topography
Above base of Silurian sediments
A 0.1% copper shell was constructed to separate background copper grades from
mineralization. This copper shell has been used as a hard boundary which is supported
by the step change in the copper grade, as illustrated in Figure 14.2. The shell is also used
as a hard boundary for interpolating sulphur, gold and molybdenum grades.
77

Figure 14.2
Copper Boundary Test for >0.1% Cu Shell
This broad copper grade domain is split into Upper and Lower domains for estimation
which separates the disseminated chalcopyrite mineralization from the vein hosted
chalcopyrite and bornite mineralization. The separation into Upper and Lower domains is
supported by grade statistics. The proposed panel cave area is wholly contained inside
these two domains.
The Background domain is positioned outside the proposed panel cave area. The Silurian
& Topography domain contains below detection values for both elements.
14.4.4
Cadia East Gold and Molybdenum Domains
Four domains have been used to constrain the gold and molybdenum estimates; Outside
of the 0.1% Cu constraining envelope, Inside of the 0.1% Cu constraining envelope,
Background, and Silurian & Topography. The domains are described in more detail in
Table 14.19.
Table 14.19
Gold and Molybdenum Domains

Domain
Comment
Outside STRDOM6
Inside 0.1% Cu and outside STRDOM06
Inside STRDOM6
Inside 0.1% Cu and inside STRDOM06
Background
Outside of 0.1% Cu copper shell
Silurian & Topography
Above base of Silurian sediments
78

The broad 0.1% Cu constraining grade domain is split into an Outside STRDOM6 and an
Inside STRDOM6 for estimation. Inside STRDOM6 delineates the high grade
gold mineralization from the lower to medium grade mineralization which is defined by the
Outside STRDOM6 volume. The current panel cave area is wholly contained within the
outline of these two domains.
Molybdenum grades have an inverse relationship to gold grades for the two domains.
Inside STRDOM6 corresponds to low-grade molybdenum and high-grade gold.
Outside STRODM6 corresponds to higher grade molybdenum and, low-medium grade
gold.
Gold and molybdenum have been estimated in the Background domain and have been set
to below detection values in the Silurian & Topography domain.
14.4.5
Cadia East Silver Domains
The distribution of silver in the deposit is not well understood. The older drillholes were not
routinely analyzed for silver, and there is a paucity of reliable silver assays in the
Cadia East database. Consequently, silver has been estimated to three domains; Inner
(within the 0.1% copper shell), Background, and Silurian & Topography.
14.4.6
Cadia East Composites
Drillhole data was composited prior to flagging. Separate files were created for gold,
copper, molybdenum and silver (6 m composites) and for sulphur (10 m composites). The
drillholes were composited downhole, so that the composite split was as close to the assay
interval as possible, but including all data.
14.4.7
Cadia East Exploratory Data Analysis
The resource drillhole assay data is composited in Datamine and coded within each
grade domains for statistical analysis, variography and grade estimation (see Table 14.20
and Table 14.21).
79

Table 14.20
Coding for Grade Domains
Grade Field Name

CUDOM
(Copper Grade Domains)
AUDOM
(Gold Grade Domains)
MODOM
(Moly Grade Domains)
SDOM
(Sulphur Grade Domains)
AGDOM
(Silver Grade Domains)
Code number
Description
Cu_11
>0.1% Cu
Cu_12
>0.5% Cu
Cu_98
Silurian Sediments or above Topography
Cu_99
Background (<-0.1%Cu)
Au_21
>0.1% Cu
Au_22
>0.5g/t Au
Au_23
>2.5g/t Au
Au_98
Au_99
Mo_31
>~0.1% Cu
Mo_32
>40 ppm Mo
Mo_98
Mo_99
S_41
>~0.1% Cu (Predominantly Clastic Volcanics)
S_42
>~0.1% Cu (Predominantly Massive Volcanics)
S_98
S_98
Ag_11
>~0.1% Cu
Ag_98
Ag_99
80

Table 14.21
Cadia East Statistics by Grade Domain

Domain
Count
Minimum
Maximum
Mean
CoV
Cadia East Copper Statistics (6 m Composites)

Cu Background
17,132
4.93
0.03
3.0
Cu_11
24,592
2.06
0.17
0.9
Cu_12
10,592
3.10
0.42
0.6
Cadia East Gold Statistics (6 m Composites)

Au Background
17,132
6.88
0.04
3.0
Au_21
18,503
7.31
0.10
1.7
Au_22
15,492
16.33
0.54
1.2
Au_23
1,189
9.58
1.97
0.6
Cadia East Molybdenum Statistics (6 m Composites)

Mo Background
19,616
3,204
21
2.0
Mo_31
15,568
3,318
120
1.3
Mo_32
17,132
585
3.5
Cadia East Sulphur Statistics (6 m Composites)
14.4.8
S Background
10,077
22.2
0.8
1.9
S_42
5,722
7.9
1.2
1.2
S_43
15,587
9.1
0.5
1.5
Cadia East Variography
Omni-directional and directional downhole variograms were generated with 6 m

composites. The orientations of the principal axes were determined using:
A horizontal fan, searching for the direction of maximum continuity.
A fan of variograms perpendicular to this orientation to determine dip; then
A fan of variograms in the plane of maximum continuity to determine the major and
semi-major axes. In this study, several other directions (some in the principal plane
and others down-drillholes) were also modeled to gain additional information about
short range structures.
Variograms have been modeled for gold, copper, molybdenum and sulphur within each
estimation domain. Variograms for gold and molybdenum were modeled using raw,
pair-wise and Gaussian transformed data. Variograms for copper and sulphur were
modeled using raw data only. Where the grades are highly skewed (e.g. gold), the data was
transformed to a normal distribution through a hermite polynomial Gaussian transformation.
81

The variogram models used for the mineral resource estimates are shown in Table 14.22
and Table 14.23.
The majority of the variogram models strike roughly east-west, dipping moderately too
steeply to the north (west-north-west to east-north-east). This general orientation
corresponds to the orientation of the Cadia East mineralized system.
Table 14.22
Cadia East Semi-Variogram Models for Gold and Molybdenum

AUDOM21-23 - inside STRDOM6
Nugget
Structure 1
Structure 2
AUDOM21-23 - outside STRDOM6

Nugget
Structure 1
Structure 2
Structure 3
Gold
Sill
0.12
0.38
0.3
0.03
0.035
0.035
0.055
Prop. of Total
15%
48%
38%
19%
23%
23%
35%
Range D1 (m)
165
400
80
210
450
Range D2 (m)
110
200
80
210
210
Range D3 (m)
60
80
80
210
210
Geol. rotation
240
80
160
260
80
-180
Molybdenum
Sill
0.190
0.238
0.350
0.210
0.330
0.260
Prop. of Total
24%
31%
45%
26%
41%
33%
Range D1 (m)
130
620
80
750
Range D2 (m)
130
450
80
450
Range D3 (m)
130
350
80
300
Geol. rotation
50
280
60
-180
82

Table 14.23
Variogram Models for Copper and Sulphur

Copper > 0.1 % CU "Upper"
Domain
Nugget
Structure 1
Structure 2
Copper > 0.1 % CU "Lower"

Domain
Nugget
Structure 1
Structure 2
0.038
0.011
0.013
0.015
Copper
Sill
0.010
0.034
Prop. of Total
12%
28%
Range D1 (m)
110
300
120
780
Range D2 (m)
75
160
120
500
Range D3 (m)
75
160
120
250
Geol. rotation
292.5
60
-180
247.5
70
-180
Datamine. Rot
22.5
60
-22.5
70
Sulphur
Sill
0.200
0.830
0.550
0.150
0.180
0.290
Prop. of Total
13%
24%
Range D1 (m)
90
280
120
1300
Range D2 (m)
90
280
120
800
Range D3 (m)
90
200
120
500
Geol. Rotation
292.5
60
-180
247.5
70
-180
Datamine. Rot
22.5
60
-22.5
70
14.4.9
Cadia East Bulk Density
The physical determination of bulk density has been undertaken on solid pieces of core,
generally at least 20 cm in length. Intervals for bulk density determination were generally
50 m downhole, or more frequently depended on lithology, alteration or mineralization type.
Determinations were performed on site (as part of the logging process), by geologists or
geological assistants. Physical determinations are calculated by first weighing the selected
sample in air, then weighing the sample immersed in water.
A total of 7,264 measurements were available for Cadia East bulk density determination.
The density values used to report the mineral resource tonnage are shown in Table 14.24.
83

Table 14.24
Density Values for Grade Domains

Density
3
(t/m )
Domain Name
Silurian cover sequence
2.59
Ordovician Volcanics
2.77
Intrusives (excluding porphyry)
2.68
Inside CU01 and Outside AU05
2.79
Inside AU05 and Outside AU25
2.75
Inside AU25
2.72
14.4.10 Cadia East Estimation Parameters

The 2009 mineral resource model (cers0906.dm) was constructed in DatamineTM. The
model was constructed from 25 m x 25 m x 15 m cells, with no sub-celling. The block model
parameters are summarized in Table 14.25.
Table 14.25
Block Model Parameters

Block Model
Easting
Northing
Elevation
Origin
14,020 mE
21,050 mN
4,005 mRL
Extent
3,000 m
2,000 m
1,995 m
Number of Parent Cells
120
80
133
Block Size
25 m
25 m
15 m
Neighborhood testing was undertaken to optimize the grade estimation parameters. This
process involved ordinary kriging volumes inside the conceptual cave areas (equivalent to
about 1 years production) whilst modifying some of the inputs (i.e. cell size, number of
samples and search dimensions). The resultant statistics were then compared to help
define the best search neighborhood configuration.
The following estimation parameters were used for the Cadia East mineral resource
estimate:
Block size was 25 m(E) x 25 m(N) x 15 m(RL).
A minimum of 4 and maximum of 28 samples are used to estimate block grades.
Ordinary kriging was used to estimate gold, copper, molybdenum, silver and sulphur.
Octant searching was not used in the estimation process.
84

14.4.11 Cadia East 2009 Fluorine Mineral Resource Block Model

Fluorine is the only known deleterious element identified in the Cadia East resource. In the
past, fluorine was not estimated at Cadia East due to a paucity of data and a lack of spatial
representivity in the proposed panel cave areas. However, a campaign of fluorine assaying
on existing pulp samples took place between October and November 2009 and the
additional fluorine data allowed estimation of a fluorine model using ordinary kriging.
The Cadia East fluorine model was completed in December 2009. This model has been
used by CVO for internal purposes to improve understanding of the fluorine distribution and
in mine planning for preliminary scheduling of fluorine head grades. Based on the results of
this work, the average fluorine head grade is predicted to be in the range 1,600 ppm to
1,700 ppm.
14.4.12 Cadia East Resource Classification
The Cadia East mineral resource is reported within an economic outline and is classified
into Indicated Mineral Resources and Inferred Mineral Resources based on geological
continuity, data coverage and with consideration of the proposed mining method.
The majority of the Cadia East 2011 mineral resource has been reported as Indicated
Mineral Resources. The Inferred portion of the mineral resource is limited to below the 4245
mRL and the far western edge (with stepped vertical boundaries that reflects a decrease in
the data coverage and mirrors the conceptual block cave outline).
14.5 Big Cadia Mineral Resource Estimate
A mineral resource for Big Cadia is summarized in Table 14.26. The estimate assumes that
the deposit will be mined using open pit methods. However, Newcrest currently has no
detailed plans to mine this deposit in the near future.
Table 14.26
Big Cadia Mineral Resource Estimate at 31 December 2011

Resource
Classification
Tonnes
Mt
Au
g/t
Cu
%
Au
Moz
Cu
Mt
Measured
Indicated
46
0.37
0.38
0.5
0.17
Inferred
1.8
0.21
0.38
0.01
0.01
The Big Cadia deposit is an iron, copper and gold skarn, potentially suitable for open pit
mining. The Big Cadia mineral resource is estimated on a value basis, which includes
consideration of the forecast revenue generated by both gold and copper, and the
anticipated long-term operating cost structure. The resource is constrained within a pit shell
defined using elevated revenue parameters to ensure that the shell contains all the material
that might reasonably be extracted by the maximum eventual mining scenario.
85

The Big Cadia mineral resource model was reconstructed in December 2009 using the
original grade values, but with updated value parameters.
For grade estimation purposes the drillhole database was composited into 5 m intervals.
Domaining includes 3 main gold and 3 main copper mineralization domains. The Big Cadia
mineralization domains are summarized below:
Au mineralization domains - AUZONE 10, 20, 25.
Cu mineralization domains - CUZONE 10, 20, 25.
Combined domains WZONE 0,10,20,25.
Au Lodes LDZONE 1.
Only Au Domains 10 and 20, and Cu domains 10 and 20 had sufficient sample density to
produce decent experimental variograms and variogram models.
The ordinary kriging estimation technique has been used to construct the Big Cadia
resource model. All domain boundaries have been considered as hard. Parent block size
was maintained at 25 m x 25 m x 5 m.
Tonnage estimates utilized bulk density values assigned to blocks based on a combination
of rock type and oxidation state, bulk density values in the oxide range from 2.2 t/m3 to
3.54 t/m3. In the fresh ore bulk, density values range from 2.4 t/m3 to 3.74 t/m3.
14.5.1
Big Cadia Resource Classification
The current mineral resource classification was based on the May 2008 mineral resource
model and considers assayed drillhole sample density, geological confidence, and
estimation confidence. The model has been classified by wireframe flagging of the Inferred
Category, based on assessment of the following (in decreasing priority):
Consistency of drill coverage including assaying (some areas are drilled but as there
was no visual mineralization, the core was not assayed).
The geological and domain input wireframes were consistent without radical changes
in orientation.
Blockmodel cells where estimated by ordinary kriging with the first search criteria for
both gold and copper.
The slopes of regression for the cells in the area are typically over 0.90.
Using these assessments, a wireframe rescd3tr (compiled from sectional strings) was used
to directly flag the block model with RESCODE=3. All material outside the wireframe is not
classified (RESCODE=0).
86

14.6 Cadia Extended (Cadia Quarry) Mineral Resource Estimate

The Cadia Extended (Cadia Quarry) mineral resource estimate is reported in Table 14.27.
The estimate assumes that the deposit will be mined using open pit methods. However,
Newcrest currently has no detailed plans to mine this deposit in the near future.
Table 14.27
Resource
Classification
Measured
Indicated
Inferred
Cadia Extended Mineral Resource Estimate at 31 December 2011

Tonnes
Mt
Au
g/t
Cu
%
Mo
ppm
Au
Moz
Cu
Mt
Mo
kt
82
0.35
0.20
36
0.9
0.16
0.33
0.23
0.17
14
<0.01
<0.01
Cadia Extended was originally mined as a small satellite pit to Cadia Hill, the pit has now
been back filled with waste and a waste stockpile built on the backfilled pit. The remaining
mineral resource has been re-estimated on the basis of an underground operation using
bulk mining methods.
The mineral resource is based on a grade and geology model developed in 2006. The
resource is estimated on a value basis, which includes consideration of the forecast
revenue generated by both gold and copper, and the anticipated long-term operating cost
structure. The mineral resource is constrained within a conceptual block cave outline. As
selective mining is not possible with this method, all block within the outline are included in
the estimate.
Samples from diamond, RC, and blast-hole drilling were used as input to the grade
estimation process. Diamond drill coverage is approximately 50 m x 75 m spacing.
RC drilling was used to bring the data density (drillhole spacing) down to approximately
25 m x 30 m over a large part of the resource.
All diamond drill half core were sampled on 1 m or 2 m intervals following the standard
Cadia Resource Definition protocols. RC holes were sampled on 2 m intervals. All samples
were assayed for: Au, Cu, CuCN S, Mo, Zn, Pb, Ag and Fe.
Grade domaining has taken into consideration lithology, base of oxidation, alteration, quartz
vein percentage and structural (fault) divisions, and grade zones. The grade estimation
process included 13 gold domains and 11 copper domains.
The grade estimation process used 3D wire-frames with ordinary kriging using
semi-variogram models developed from 8 m composites. The grade model was constructed
in Datamine software with parent cell size of 12.5 m x 12.5 m x 15 m with sub-celling
limited to half parent size. Multiple search ordinary kriging runs were used to fully inform all
relevant blocks.
87

14.6.1
Cadia Extended Resource Classification
Resource categories were upgraded from predominantly Inferred to predominantly

Indicated based on new drilling data, demonstrated continuity of grade and the expected
use of bulk mining methods.
88

15
MINERAL RESERVE ESTIMATES
15.1 Introduction
Mineral reserves at CVO comprise the Cadia Hill mineral reserve, the Ridgeway Deeps
mineral reserve, the Cadia East mineral reserve and low-grade surface stockpiles. The
mineral reserves have been prepared under the direction of Qualified Persons using
accepted industry practice and have been classified and reported in accordance with the
JORC Code. There are no material differences between the definitions of Proven and
Probable Mineral Reserves under the CIM Definition Standards and the equivalent
definitions in the JORC Code The mineral reserves are reported at 31 December 2011.
15.2 Mineral Reserve Assumptions
15.2.1
Commodity Prices and Exchange Rate
The following commodity prices and exchange rate has been used to prepare the
December 2011 mineral reserve estimates:
Gold
US$950/oz
Silver
US$15.00/oz
Copper
US$2.30/lb
Molybdenum
US$13.50/lb
Exchange rate
A$1.00 = US$0.80
15.2.2
Cost Estimates
Cost estimates used in the preparation of the mineral reserves are based on the most
recent studies approved by Newcrest relating to the exploitation of each of the deposits.
The mineral reserves include material when delivered to the pit rim or mine portals that has
a recovered value greater than the cost of all downstream processes, including fixed costs.
Mine designs supporting the reserves have been based on the most recently approved,
pre-feasibility, feasibility and life-of-mine studies.
15.3 Cadia Hill Mineral Reserve
The Cadia Hill mineral reserves are based on a comprehensive study, which included
preparation of a detailed production schedule and cost model built using recognized
industry software.
The mineral reserve is based on the mineral resource model used to prepare the December
2011 mineral resource estimate described in Section 14.
89

The detailed plan considers mining the remainder of Cutback 3. The most recent study on
Cutback 4 was completed in 2009, with further robustness analysis done in 2010.
The Cadia Hill mineral reserve at 31 December 2011 is shown in Table 15.1. A cross
section through the Cadia Hill open pit showing the outline of Cutback 3 (CB348) and
Cutback 4 (CB430) plus depletion during the second half of 2011 is shown in Figure 15.1.
Table 15.1
Cadia Hill Mineral Reserves at 31 December 2011 (Including Stockpiles)

Reserve Classification
Mt
Au
(g/t)
Cu
(%)
Au
(Moz)
Cu
(Mt)
Cutback 3
Proven
Probable
2.7
0.70
0.10
0.1
<0.01
Cutback 4
Proven
Probable
69
0.56
0.14
1.2
0.10
4.1
0.34
0.13
0.04
<0.01
0.13
0.2
0.02
Stockpiles
Proven
19
0.40
Probable
Total
90
0.52
0.14
1.6
0.13
Rounding may cause some computational discrepancies in totals
Figure 15.1
Cross Section Showing Cadia Hill Mineral Reserve
90

Cutback 3 is scheduled to be completed in 2012. Following this, a scavenging operation is

planned, which will recover part of Cutback 4. The full Cutback 4, which involves a large
west-wall cutback, including removal of 133 Mt of waste, is planned to be mined sometime
in the future.
The scavenging operation will involve steepening the pit wall and reducing road width in the
lower part of the pit. Material mined from the scavenging operation will be transferred to the
Cadia East underground conveying system via an adit in the pit wall.
The Cadia Hill mineral reserve is reported using a value cut-off as opposed to a grade
cut-off. A value is calculated for each block in the mineral resource model. Values used to
estimate the December 2011 mineral reserve have been based on metallurgical factors
derived from historical concentrator performance reviewed during early 2011, actual mining
costs incurred in FY 2010, and realization costs derived from long-term averages.
There has been a direct conversion of Measured Mineral Resources to Proven Mineral
Reserves and Indicated Mineral Resources to Probable Mineral Reserves, within the spatial
constraints of the pit design and the economic factors used to separate ore and waste.
15.4 Ridgeway Deeps Mineral Reserve
The Ridgeway deposit has maximum dimensions of approximately 400 m east-west,
250 m north-south and extends to a depth in excess of 1,000 m. The Ridgeway Deeps
portion of the deposit is overlain by caved waste material drawn down by the previous SLC
operation.
A feasibility study on mining the Ridgeway Deeps mineral resource was completed in
August 2007. The feasibility study proposed a single lift block caving operation (Lift 1) while
acknowledging that the resource extends below Lift 1, providing scope for a further block
caving operation below (Lift 2). A scoping level study has been prepared for Lift 2, but the
study process has yet to proceed to the pre-feasibility study stage.
Construction of Lift 1 was completed in October 2010 and the Ridgeway mine is currently
ramping up to a planned production rate of 8 Mtpa, with mining planned for completion in
2017. All ore from the Ridgeway mine is planned to be fed through the Ridgeway
Concentrator.
The Ridgeway Deeps Lift 1 mineral reserve at 31 December 2011 is shown in Table 15.2.
Table 15.2
Ridgeway Deeps Lift 1 Mineral Reserve Estimate at 31 December 2011
Reserve Classification
Mt
Au
(g/t)
Cu
(%)
Au
(Moz)
Cu
(Mt)
Proven
Probable
45
0.83
0.37
1.2
0.17
Total
45
0.83
0.37
1.2
0.17
91

The mineral reserve has been derived from the mineral resource block model used to report
the December 2011 mineral resource. Each block in the model is assigned a value based
on an NSR estimate for that block. NSR values are calculated on a payable metal basis
taking metal prices, metallurgical recoveries, and realization costs into account.
The mineral reserve has been prepared using standard industry block cave modeling
software and processes. All material in the Ridgeway mineral reserve is classified as
Probable and is comprised solely of Indicated Mineral Resources.
The block cave outline has been prepared by analyzing the cost of constructing and
establishing drawpoints, and mining and processing ore. These cost estimates have then
been compared to the estimated NSR generated by mining the material from the
draw-column overlying the drawpoint. Only draw-columns generating a positive NSR value
(economic draw-columns) are included in the reserve, except where it is necessary to
include an uneconomic draw-column to ensure a practical mining shape. Draw-column
heights have been limited by a shut-off NSR value of $19.15/t.
Figure 15.2 shows the block cave outline. Figure 15.3 shows Lift 1 block cave footprint.
Figure 15.2
Ridgeway Block Cave Outlines Looking North
92

Figure 15.3
Ridgeway Deeps Lift 1 Footprint
15.5 Cadia East Mineral Reserve

Cadia East is a single, very large low to moderate grade, porphyry related gold and copper
deposit that is currently being developed as a large scale panel caving operation. It lies
immediately east of the Cadia Hill open pit. Known mineralization extends approximately
2.5 km east-west, 0.7 km north-south and 1.8 km vertically. The deposit is overlain by
between 80 m and 200 m of post mineralization sandstones and shales. The mineralization
can be divided into two broad overlapping zones; an upper, copper-rich, disseminated zone
and a deeper, gold-rich sheeted vein zone.
A feasibility study completed in April 2010 envisaged extraction using a panel caving
method. Four panel caving areas (Lifts) are planned with some Lifts comprising multiple
panel caves. The feasibility study considered Lift 1 and Lift 2 in detail. Lift 0, located in a
higher grade copper zone, has been the subject of a pre-feasibility study. Lift 3 is at a
concept study stage. The December 2011 Mineral Reserve estimate is contained within Lift
1, Lift 2, and Lift 0 and is shown in Table 15.3.
93

Table 15.3
Cadia East Mineral Reserve Estimate at 31 December 2011
Reserve
Classification
Grades
Mt
Au
(g/t)
Cu
(%)
Contained Metal
Mo
(ppm)
Au
(Moz)
Cu
(Mt)
Mo
(kt)
0.50
140
0.6
0.27
0.27
70
11.2
1.72
45
Lift 0
Proven
Probable
54
0.35
Lift 1
Proven
Probable
640
0.54
Lift 2
Proven
Probable
Total
430
0.66
0.35
110
9.1
1.49
46
1,100
0.57
0.31
87
20.9
3.48
99
Rounding may cause some computational discrepancies in totals
The Cadia East project is currently in execution phase and development of the Lift 1
extraction level has commenced. The 2010 feasibility study envisaged that the Cadia East
deposit would be mined for the next 30 years at a production rate that ramps up to 26 Mtpa
as Ridgeway Deeps is depleted.
The mineral reserve estimate is based on the block model used to report the December
2011 mineral resource for Cadia East and is a subset of the mineral resource estimate.
The mineral reserve has been estimated using standard industry block cave modeling
software and procedures. The mineral reserve is classified as Probable and is derived
solely from Indicated Mineral Resources.
The block cave outlines for Cadia East Lift 1, Lift 2, and Lift 0 have been prepared by
comparing estimated drawpoint establishment and mining costs against the NSR values in
the resource model, using the same processes used to prepare the Ridgeway Deeps
outlines. Cost estimates are based on the April 2010 feasibility study. NSR values are
based on the December 2011 metal price assumptions. Draw-column heights have been
limited by a shut-off NSR value of $14.54/t.
Figure 15.4 shows the outlines of the panel cave footprints used for the December 2011
Mineral Reserve estimate. The figure also shows the proposed footprint for Lift 3, which is
currently excluded from the mineral reserve. Figure 15.5 shows a view of the mining
outlines for each panel.
94

Figure 15.4
Cadia East Block Cave Footprint Perimeters
95

Figure 15.5
Cadia East Mining Blocks Looking North
96

16
MINING METHODS
16.1 Cadia Hill Operations

Cadia Hill open pit mine has operated continuously since 1998. The current pit, Cutback 3,
is due for completion in 2012 with minor scavenging planned to be complete in 2012.
Cutback 4 is planned to be mined in the future.
The final open pit would have dimensions of approximately 1,450 m by 1,350 m, with a
surface disturbance area of approximately 150 ha. The final pit floor will be at approximately
235 m AHD, which is approximately 480 m below the bed of Cadiangullong Creek, which
has been diverted around the west side of the pit. Plan views of the completed Cutback 3
and Cutback 4 as currently planned are shown in Figure 16.1.
Figure 16.1
Plan Views of Cadia Hill Open Pit
The mining operation uses conventional equipment including 230 t capacity haul trucks and
large wheel loaders. Bench heights are 15 m.
Geological and geotechnical conditions are complex and a number of batter failures, and in
some cases multiple batter failures, have occurred, including a major wedge failure in 2002.
On 24 November 2011, a failure occurred round midway up the pit wall that impeded ramp
access to and from the bottom of the pit. The situation was dealt with and production has
since re-commenced from the bottom of the pit. The pit has an extensive array of sensing
equipment providing real time monitoring of pit wall stability. Mining practices include
standoff periods after blasting against a highwall and installation of wall reinforcement in
places.
97

16.2 Block Caving and Panel Caving Mining Methods

Block and panel caving involves construction of a pattern of drawpoints developed beneath
drawbells across the orebody, either at the base of the orebody, or at a selected elevation,
to form an extraction level. The pattern of drawpoints and drawbells defines the base of the
column of ore to be extracted (the footprint). A thin slice of the orebody approximately 15 m
above the drawbells (the undercut) is blasted and extracted, undercutting the column of ore
sitting above, causing it to cave. Caved ore is then extracted through the drawpoints.
In block caving operations, most of the drawpoints are fully constructed before caving can
progress sufficiently to enable the full production rate to be achieved.
Panel caving operations have large footprints and it is not necessary to develop all of the
drawpoints for caving to occur. After full caving is established, the remaining drawpoints are
progressively constructed and the cave extended over the new drawpoints.
Ridgeway Deeps is essentially a block caving operation, whereas panel caving methods are
planned for Cadia East.
16.3 Ridgeway Operations
Ridgeway Deeps is the downward extension of the Ridgeway orebody. The top of the
Ridgeway orebody prior to mining was approximately 500 m below surface. The upper
portion of the deposit down to 5040 Level (approximately 800 m below surface) has been
mined using the SLC method, resulting in a column of caved material that extends to the
surface to form a subsidence zone. An underground crusher was installed at the base of the
SLC area and crushed ore was conveyed out of the mine via an inclined conveyor system.
SLC mining is now complete, apart from some remnant areas, and mining has progressed
to the Lift 1 block cave area.
The extraction level for Lift 1 is located on 4786 Level, resulting in a block height below the
SLC area of approximately 260 m. The footprint for Lift 1 has approximate dimensions of
160 m x 375 m. Initial planning indicates that Lift 2 will be positioned 280 m below Lift 1.
Ridgeway Lift 1 has been designed as a highly mechanized, partially automated block cave
operation. Drawpoints are arranged in an offset herringbone layout to facilitate efficient use
of 14 t capacity electric scoops. The scoops transfer ore directly from drawpoints to two
primary jaw crushers. These feed two inclined conveyors connected to the conveyor system
from the SLC mining area.
Figure 16.2 shows the relationship between the Ridgeway mining areas. Figure 16.3 shows
a plan of the Lift 1 extraction level.
98

Figure 16.2
Relationship Between the Ridgeway Mining Areas
99

Figure 16.3
Plan of Ridgeway Lift 1 Extraction Level
Geotechnical domains within the Ridgeway Deeps ore block include volcanics, sediments,
monzonite and the Southern Fault zone, each defined by diamond drilling and underground
mapping. Each domain has exhibited different caving and draw characteristics. An
advanced undercutting approach has been used to reduce stress damage to the extraction
level.
Cave progression has been initiated in the north-east and progressed to the south-west to
promote stress caving in the more competent volcanics. Caving has progressed
satisfactorily and is complete across the entire footprint. The cave has extended upwards
and has intersected the caved material in the SLC area.
Lift 1 is planned to produce at a rate of 8 Mtpa. The production build up has been slowed by
coarse fragmentation in some areas. A program of preconditioning the rock in the caving
area using hydraulic fracturing has been used to assist cave progression and
fragmentation. The program targeted the hardest material, but did not target the area close
to the undercut. Fragmentation is expected to reduce in size as the cave matures.
100

16.4 Cadia East Project

Cadia East project, which is currently in the construction phase, is a single underground
mine involving multiple overlapping panel caves. Lift 1 and Lift 2, which along with Lift 0,
form the basis for the current mineral reserve estimates, form the core of the project. Each
Lift
comprises
two
panels
with
key
dimensions
shown
in
Table 16.1. The dimensions of the footprints are significantly larger than the minimum
dimensions required to promote caving.
Table 16.1
Cadia East Panel Cave Dimensions

Lift and
Panel Name
Approximate
Footprint Dimensions
Nominal Block
Height
Extraction
Level
Lift 1
PC1-S1
175 m x 300 m
400 m
4,650
PC 1-S2
420 m x 770 m
826 m
4,650
PC2-S1
225 m x 480 m
600 m
4,455
PC2-S2
230 m x 315 m
700 m
4,395
Lift 2
A plan of the Cadia East mine showing the location of the proposed mine workings relative
to the surface infrastructure is shown in Figure 16.4. Supporting infrastructure for the mine
includes multiple ventilation shafts, underground workshops, and access systems for
personnel and equipment.
A sequence of five inclined conveyors will be used to convey ore to surface. The conveyors
will be installed in drifts with a gradient of 1:5.3 and will be suspended from the roof of the
drift such that service and other vehicles pass below the conveyors. A separate decline will
provide access for personnel and equipment.
101

Figure 16.4
Plan View Showing Proposed Mine Workings
Mining of any panel cave operation incurs considerable mining related risks and Cadia East
is no exception. PC1-S1 and PC2-S1 panels are 1,220 m and 1,410 m below surface and
the caving properties of the rock mass are similar to other block cave operations, where
coarse fragmentation has presented challenges during the early production phase.
A number of techniques are proposed to address these challenges including an intensive
pre-conditioning program to assist cave propagation. The program involves either hydraulic
fracturing and/or blasting arrays of long blastholes in the rock mass overlying the undercuts.
A high undercut (20 m) is planned rather than the low height undercut used at Ridgeway
Deeps Lift 1.
102

A conventional (post) undercut strategy has been proposed for developing the PC1-S1 and
PC2-S1 extraction levels. The proposed drawpoint arrangement is similar to that used at
El Teniente mine in Chile, and is intended to improve development efficiency and ore
recovery. Plans of the proposed layouts are show in Figures 16.5 and 16.6.
Figure 16.5
Extraction Level Layout for Lift 1
103

Figure 16.6
Extraction Level Layout for Lift 2
Mine development is well advanced with the access decline, conveyor drift and key
ventilation shafts completed. Production has recently commenced in panel PC1-S1 with the
first production drawbell being fired in June 2011. The production rate is planned to
increase progressively.
Production from drawpoints will ultimately be by a fleet of up to 19 electric loaders
with remote and semiautomatic control capability. Ore will be tipped into multiple
jaw gyratory crushers each with a throughput rate of 10.5 Mtpa at a maximum feed size of
2 m x 1.5 m x 1 m. Crushed ore will be conveyed directly from the mine to a run-of-mine
stockpile ahead of the Cadia Concentrator. Waste will be trucked out of the mine to surface
waste dumps.
104

17
RECOVERY METHODS
17.1 Introduction
The Cadia Concentrator was commissioned in 1998 and currently treats approximately
17 Mtpa of ore at an average grade of approximately 0.2% copper and 0.7 g/t gold. The
Ridgeway Concentrator was commissioned in 2002 and currently treats approximately
5.6 Mtpa of ore at an average grade of approximately 0.5% copper and 1.2 g/t gold.
Metallurgical test work and engineering studies have been carried out to assess the design
changes required to process ore from the Cadia East project through the Cadia
Concentrator. The studies (the Cadia East Project feasibility study) resulted in approval of a
staged implementation of changes to the Cadia Concentrator to process Cadia East ore.
The Ridgeway Concentrator was upgraded in 2008-2009 to maintain plant throughput with
harder Ridgeway Deeps ore.
17.2 Cadia Concentrator Existing Operations
Ore currently being treated in the Cadia Concentrator is mostly sourced from the Cadia Hill
open pit. Cadia Hill mineralization consists of chalcopyrite and native gold with lesser
bornite within or disseminated near quartz veins. The flowsheet for the installed plant
included semi-autogenous grinding of primary crushed ore, flash flotation and gravity gold
recovery, and then conventional flotation involving roughing, scavenging, cleaner and
re-cleaner, cleaner scavenging, and concentrate regrind.
Metallurgical performance of Cadia Hill open pit ore is demonstrated by recent plant
performance from the Cadia Concentrator presented in Table 17.1.
Table 17.1
Cadia Concentrator Performance

Plant Performance
Parameter
Mt
Mill Feed
Overall Recovery
Copper Concentrate Grade
FY 2009
FY 2010
FY 2011
17.2
17.5
17.0
Cu%
0.19
0.18
0.16
Au g/t
0.71
0.71
0.84
Cu%
85.2
88.9
86.3
Au g/t
75.6
81.0
79.1
Cu%
21.1
19.1
19.4
A simplified block flow diagram for the processing circuit is shown in Figure 17.1. The key
unit operations in the processing plant are:
Primary crushing in a 60 inch x 113 inch gyratory crusher.
Crushed ore storage to a live capacity of 40,000 t and subsequent reclaim facilities.
105

Primary open circuit milling in a single 40 foot SAG mill fitted with a 20 MW motor.
Oversize pebbles from the SAG mill are crushed in two recycle cone crushers.
Secondary milling in three ball mills, with the two original mills fitted with 10 MW
motors, and a more recently installed third mill with a 16 MW motor. The mills are in
closed circuit with cyclone classification for a target grind size of P80 of 150-190 m.
Flash flotation and gravity processing of flash flotation concentrate to produce a

gravity gold concentrate for smelting.
Rougher and scavenger flotation of the slurry from the milling circuit with rougher and
scavenger concentrates reporting to cleaner flotation circuits.
Thickening of rougher/scavenger tailings before pumping to a tailings storage facility.
Cleaner and scavenger/cleaner

concentrate in a vertical tower mill.
Re-cleaning of both cleaner and reground scavenger/cleaner concentrates, and

subsequent thickening of final gold-rich copper concentrate.
Suitable reagent handling and storage facilities for the reagents used in the
processing, consisting of collectors, frother, lime, and flocculant.
flotation
with
regrind
of
scavenger/cleaner
106

Figure 17.1
Cadia Concentrator Simplified Process Flow Diagram
Raw water is pumped from nearby dams to a raw water tank and then pumped to the raw
water distribution main. Raw water, concentrate thickener overflow, concentrate filtration
water, and treated effluent water from towns of Orange and Blayney make up process water
requirements for the plant.
Final copper concentrate slurry with a grade of 1922% copper is pumped to the town of
Blayney where it is filtered, and then railed to Port Kembla for subsequent shipment to
smelters.
107

Approximately 15% of gold in the ore feed to the concentrator is recovered as a gravity
concentrate and smelted on site to produce gold bars (dor) for export from the site. The
remaining gold reports to copper concentrate.
17.2.1
Current Plant Upgrade for Cadia East Ore
A staged expansion of the Cadia Concentrator is underway to treat Cadia East ore at a
nominal rate of 20 Mtpa. Ore feed to the concentrator will comprise decreasing quantities of
fresh ore from the Cadia Hill pit and from stockpiles, as production from Cadia East ramps
up. The staged expansion approach reduces the intensity of construction activities, and
provides some immediate recovery benefits by early installation of fine grinding equipment.
The key stages of expansion and major equipment items being installed, as well as
estimated completion dates are summarized in Table 17.2.
Table 17.2
Stage
Staged Expansion of Cadia Concentrator

Status/
Completion
Description
Major New Equipment Items
Increase ball milling capacity and

associated gravity recovery capacity, and
increase tailings thickening capacity
- Ball mill 26x42 with 16 MW drive

- 52 m3 flash flotation cell
- Tailings thickener 40 m diameter
Complete
Addition of secondary crushing by

conversion of existing recycle pebble
crushers to secondary crushers and the
addition of screening facilities
- Two double deck banana screens
Dec 2011
- Five 300 m3 rougher flotation cells

- One VTM 1250 regrind mill.
Feb 2012
Expansion of flotation and regrind

capacity and modifications to existing
circuits
Increase in concentrate handling
capacity
3b
Additional pumping capacity and filter plate

area
Expansion of regrind and cleaner

capacity
- One VTM 1250 regrind mill

- Three 30 m3 cleaner (2) and cleaner
scavenger (1) flotation cells, and one 8 m3
re-cleaner cell
Installation of high pressure grinding rolls

(HGPR) on secondary crushed ore
- One HGPR 2.4 m diameter x 1.6 m,

5.8 MW
Filter
complete.
Pumping
Dec 2011
2014
Mar 2012
Stage 1 expansion has been completed. The additional ball mill capacity and associated
expanded flash flotation capacity is currently providing a finer primary grind size.
In Stage 2, the two existing pebble crushers will be converted to secondary crushers by
changing the crushers bowl assembly and liner designs. The change is required to
maintain plant throughput as the more competent Cadia East ore is incorporated into the
plant feed. A new screening circuit and associated conveyors will be installed, and the
existing quicklime silo and the SAG ball loading facility relocated.
108

Stage 3 is aimed at removing constraints in the existing flotation circuit resulting from the
higher Cadia East copper head grade and slower flotation kinetics. The flotation circuit will
be expanded by progressive installation of a new circuit consisting of rougher flotation,
concentrate regrind, cleaner and cleaner/scavenger flotation, re-cleaner flotation, and
concentrate storage. Additional concentrate regrind capacity will also be integrated into the
existing flotation circuit.
It is proposed that increased concentrate pumping capacity and increased filtration capacity
will also be installed during Stage 3.
In Stage 4, the installation of a high pressure grinding rolls (HPGR) unit is necessitated by
the increased proportion of Cadia East underground ore in the plant feed blend. The
additional comminution step will allow target throughputs to be maintained despite an
increase in ore hardness. The final comminution circuit is presented in a simple block flow
diagram in Figure 17.2.
Figure 17.2
Comminution Circuit Block Flow Diagram
109

The modifications will allow the plant to achieve the design throughput of 20 Mtpa of
Cadia East ore at recoveries in accordance with recovery models determined in test work.
17.3 Ridgeway Concentrator
Ore from the Ridgeway mine is processed in the Ridgeway Concentrator. The initial
processing flowsheet for treating the ore from the Ridgeway SLC operations was very
similar to that of the Cadia Concentrator. In mid-2008, the facilities were expanded to suit
the harder Ridgeway Deeps ore. The expansion included installation of a secondary
crushing circuit, and additional concentrate regrind capacity with the installation of a
0.93 MW vertical mill. A 2.24 MW vertical mill was installed in March 2011.
The Ridgeway Concentrator includes the following processes:
Primary crushing in a gyratory crusher.
Crushed ore storage and subsequent apron feeder reclaim facilities.
Secondary crushing in a MP800 cone crusher and associated screens.
Primary open circuit milling in a single SAG mill fitted with a 6.5 MW motor.
Secondary milling in a 6.5 MW ball mill, in parallel with a Vertimill VTM 1250, both in
closed circuit with classifying cyclones. A further stage of tertiary milling has recently
been introduced using a Vertimill VTM 3000 to achieve a product size of P80 = 90 m
as feed to flotation.
Gravity concentration of ground slurry in a centrifugal concentrator to produce a

gravity gold concentrate for further upgrade and smelting.
Flash flotation in the milling circuit to recover an additional concentrate suitable for
further gravity gold recovery, with the remaining copper concentrate reporting to the
flotation cleaning circuit.
Rougher and scavenger flotation in tank flotation cells. Rougher and

scavenger concentrates report to cleaning flotation via a regrind circuit using a
Vertimill VTM 1250.
Thickening of rougher/scavenger tailings before pumping to the tailings storage

facility.
Cleaner and scavenger cleaner.
Re-cleaning flotation and subsequent thickening of final gold/copper concentrate.
The final copper concentrate slurry with a grade of around 2025% copper is pumped
to the town of Blayney where it is filtered and exported using the same filtration
facilities as used by the Cadia Concentrator.
Approximately 15% of the gold in feed ore is recovered as gravity concentrate and then
smelted on site to produce gold dor for sale.
110

Additional flotation capacity is being installed in the FY2012, and comminution studies are
being undertaken, with an eventual target plant capacity of 8 Mtpa.
17.3.1
Recent Plant Performance
Ore feed from Ridgeway Deeps block cave commenced in the second half of 2009, and has
ramped up over the last 12 months to the point where it is now the predominant ore source.
During the ramp up, some low grade ore from the Cadia Hill deposit has also been fed to
the plant to supplement underground ore. The plant metallurgical performance of the
Ridgeway Concentrator over the last three years is presented in Table 17.3.
Table 17.3
Historical Ridgeway Concentrator Performance
Parameter
Units
Mt
Mill Feed
Performance
FY 2009
FY 2010
FY 2011
5.9
5.2
4.8
Cu%
0.56
0.52
0.47
Au g/t
1.52
1.31
1.18
Cu%
86.9
86.3
88.0
Au%
80.9
79.0
82.4
Cu%
25.3
24.5
23.2
Overall Recovery
Copper Concentrate Grade
17.4 Blayney Dewatering Facility

The Blayney Dewatering Facility is located approximately 25 km to the east of the
Cadia Valley at the town of Blayney (Figure 1.1). The gold/copper concentrate slurry is
pumped via a buried concentrate pipeline to the Blayney Dewatering Facility, where it is
dewatered using a vertical plate pressure filter press and stockpiled within the facility.
A front-end loader is used to load the dewatered concentrate from the stockpiles into
containers for rail transport. A forklift transfers the filled containers from the load-out area to
hardstand areas, and then onto rail wagons for transport by rail to Port Kembla.
Approximately three trains per week are currently used for concentrate transport.
Water recovered from the Blayney dewatering facility is returned to the CVO processing
complex for re-use.
111

18
PROJECT INFRASTRUCTURE
CVO includes the normal range of infrastructure expected of a large mining operation.
Figure 18.1 shows the CVO site layout.
Figure 18.1
Site Layout for Cadia Valley Operations
Source: Cadia Holding Pty Ltd 2000 and 2008, and Ausenco 2008
112

18.1 Tailings Management

Tailings from the existing ore processing facilities are deposited in the North and South
Tailings Storage Facility (TSF). The tailings are delivered via a pipeline and are peripherally
discharged using sub-aerial tailings deposition techniques.
The approved embankment crest level for the existing North TSF and the South TSF are
approximately 92 m and 70 m above natural ground surface respectively and have
approximate approved surface areas of 535 ha and 300 ha.
18.2 Water Supply
The CVO water supply scheme comprises recycling of water used on-site and make-up
water required to compensate for losses in the system. Mine water, excess water in the
tailings storage facilities and return water from the Blayney dewatering facility are recycled.
Make-up water sources comprise extraction from the Belubula River, Cadiangullong Dam,
Rodds Creek Dam, Flyers Creek Weir, Cadia Creek Weir, Orange Sewage Treatment Plant
treated effluent, Blayney Sewage Treatment Plant treated effluent, on-site groundwater
extraction bores, and site run-off.
The current CVO water supply system comprises supply of water for the ore processing
(at approximately 24 Mtpa), dust suppression, supply to existing underground operations
and other minor potable and non-potable uses. A large proportion of process water
make-up supply is provided by recycling water within the ore processing facilities (thickener
overflow). Average values for the CVO water supply include the following:
Recycling from TSFs, Cadia Hill open pit, and other on-site dams: 21.5 ML/day.
Orange treated effluent: 8.7 ML/day.
Licensed extraction from the Belubula River: 7.0 ML/day.
Licensed surface water from Cadiangullong Dam and Flyers Creek Weir: 4.4 ML/day.
Ridgeway and Cadia East mine dewatering: 1.9 ML/day.
Blayney treated effluent and dewatering facilities return water: 1.4 ML/day.
Groundwater bores: 1.0 ML/day.
A number of changes are planned to CVOs water pumping and storage facilities to meet
the planned expansion of Cadia East and Ridgeway mines including:
Raising the existing spillway level of the main on-site water storage dam
(Rodds Creek dam) and constructing a pipeline to allow the transfer of water from
Cadiangullong Dam to Rodds Creek dam.
Upgrading the existing extraction system from the Belubula River to extract a greater
portion of the licensed annual allocation.
113

Use of on-site bores for potable and processing water supply.
Water balance modeling has demonstrated a future water supply reliability of approximately
9599%.
18.3 Power Supply
Power to the mine site is supplied from Orange via a dedicated high voltage transmission
line with a nominal rated capacity of 160 MVA but with some down grading limiting supply to
150 MVA. Onsite distribution is via the 132/33 kV switchyard, comprising two 80/100 MVA
transformers. Each transformer is capable of supplying the full demand if the other fails.
The switchyard is adjacent to the Ridgeway Concentrator and distributes power to
substations through a mix of underground and pole mounted transmission lines. Back-up
(emergency) power is supplied by emergency diesel generators for critical loads.
The mine power consumption at present averages 87 MVA. The existing connection
agreement with Country Energy allows the mine to use up to 95 MVA as the maximum
aggregate peak load. As production increases and harder ore is processed power demand
is expected to increase to 160 MVA by 2014.
A duplicate transmission line and switchyard will be installed when the existing line can no
longer reliably supply the power. The existing 132/33 kV switchyard will be expanded to
provide power to the new surface and underground facilities and the existing plant. The key
works to meet the forecast power demand include:
Construction of a duplicate high-voltage power line between Orange and Cadia with a
portion of the alignment in an urban area, requiring negotiations and consultation with
the local community and council.
Installation of duplicate buried high-voltage cable (approx 3 km) in Orange.
Installation of a new 80/100 MVA transformer connected to the two existing

transformers via a new switchboard and protection circuit breakers.
The mine upgrade will affect the regional power supply network. A number of processes,
approvals and coordination of key regional network upgrades will be required including a
new supply agreement with Country Energy, the NSW State owned energy company,
contingent on implementing an onsite load shedding scheme approved by TransGrid, the
owner, operator and manager of the high-voltage electricity transmission system in NSW.
18.4 Other Site Infrastructure
The CVO includes a range of supporting infrastructure typical of a large mine located
reasonably close to a large established town. The range of facilities includes fuel storage
facility, workshops, stores building and lay-down areas, effluent disposal systems and
administration offices.
114

The access road currently connecting the mine site to the local road network passes over
the future Cadia East subsidence zone. The road will be relocated prior to subsidence
occurring.
115

19
MARKET STUDIES AND CONTRACTS
19.1 Newcrest Concentrate Characteristics

The long-term copper grade of CVO concentrate is 2030% Cu. The gold-in-concentrate
grade is estimated to be 4080 g/t. Deleterious elements are expected to be fluorine and
molybdenum; however, these occur at manageable levels.
19.2 Transport and Storage
Concentrate from CVO is transported by rail from the dewatering plant to Port Kembla,
New South Wales Australia. The concentrate is unloaded at Port Kembla and stored in an
enclosed concentrate storage facility with an approximate capacity of 25,000 wmt. The
storage facility is under long-term lease to Newcrest. Concentrate shipments are made in
parcels of 10,00016,000 wmt in most instances.
Newcrest is seeking one to three year contracts with reputable ship owners and/or
operators to mitigate exposure to volatility in shipping charges.
The precious metal grades of CVO concentrates are deemed high by industry standards,
making these concentrates attractive to smelters that have effective precious metals
recovery facilities. For those without such facilities, the tank-house slimes containing
precious metals must be on-sold to a third party for refining, and thus a commercial penalty
may be incurred.
19.3 Newcrest Concentrate Destination Smelters
CVO concentrate faces competition from a number of large mines in Australasia and
Oceania, including Grasberg, Batu Hijau, Boddington and Ok Tedi. CVOs geographical
location provides a competitive advantage in terms of freight costs and delivery time to the
Far East markets compared to suppliers from Europe, Africa and South America.
Newcrest has established long-term relationships with major regional smelters in Japan,
Korea and China. Newcrest also has contracts with merchants in Switzerland and USA.
CVO concentrate sales contracts are currently in place with two Japanese smelters,
Pan Pacific Copper and Mitsubishi Materials Corporation. A contract is also in place with
one merchant.
19.4 Concentrate Treatment and Copper Refining Charges
For standard grade for copper concentrates (2530% Cu), direct mine-smelter treatment
charges over the past ten years have varied from US$42 to US$110 per tonne of
concentrate, and refining charges from US4.2 to US11.0 per lb payable Cu. These terms
are for long-term frame contracts between major producers and Far East smelters.
116

19.5 Precious Metal Terms and Refining Charges

The quantity of gold payable by the smelter can vary widely. However, for Japanese
smelters a fairly standard scale of gold metal deductions has emerged over the years. This
scale varies from no gold payable if the gold content is below 1 g/t in the concentrate, up to
9797.5% of the gold payable if the gold content exceeds 20 g/t in the concentrate.
For very high gold contents of over 80 g/t, payable gold can be as high as 98.5%, as has
been the case for some Newcrest concentrate sales. Contents in excess of 4050 g/t can
reasonably expect to attract a payable rate of 98.098.25% of analytical gold content.
The level of refining charge is extremely important for high gold concentrates and this may
be as high as US$7.00 per payable oz gold. Over the last 10 years, the refining charge for
gold in Newcrests long-term contracts has ranged from $3.00/oz to $4.10/oz.
Silver, in Far East markets, is typically paid for at 90% of the analytical silver value, subject
to a refining charge. In some cases, mostly in Europe, the silver content is subject to an
overall minimum deduction (making the terms less attractive to the producer). Where a
refining charge is charged, the value has been in the range of US$0.20$0.80 per oz.
19.6 Weighing, Sampling and Moisture Determination and Assays & Analyses
Weighing, sampling and moisture determination (WSMD) for provisional invoice purposes
takes place at Port Kembla for shipments to all destinations. Generally, WSMD on
shipments to Chinese and Indian smelters for final invoice purposes also takes place at
Port Kembla. For smelters in Japan and Korea, WSMD for final invoice purposes is
undertaken at the ports of discharge.
This differentiation between ports of discharge and receiving smelters is common in the
market due to a lack of veracity in the accuracy of measurements and procedures at some
ports of discharge. Where WSMD for final invoice purposes is undertaken at the port of
loading, it is typical for a weight franchise of 0.15%0.25% to be deducted from the
shipment weight (in favour of the buyer).
19.7 Dor
Gold dor bars contain approximately 7090% gold with the balance as other precious
metals such as silver, with a small amount of waste. The dor produced at Cadia Valley is
security transported by land and air freight from the mine site to a refinery for further
processing.
The dor bars are smelted and refined to gold bars of 99.99% purity and silver bars. The
refined silver is usually credited to the refiner to offset the refining cost or sold on the open
market.
117

Within the Asian region, there are a number of acceptable refineries which have the
capacity to refine dor. The Western Australian Mint in Perth, WA, W.C Heraeus Precious
Metals in Hong Kong, Metalor in Switzerland, Logam Mulia in Indonesia and Tanaka
Kikinzoku in Japan. Currently, the Western Australian Mint in Perth is Newcrests preferred
refiner due to the shorter transit time between the mine site and refinery, effecting lower
freight costs and faster outturn of metal to realize revenue.
19.8 Marketing Resources
Newcrests Marketing Department is based in Melbourne, Australia. Record and document
control systems are in place, and revenue and costs are recorded in the overall accounting
system SAP. Marketing intelligence is currently sourced from CRU and Brook Hunt
publications. Other publications are also considered from time to time.
118

20
ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY

IMPACT
20.1 Overview
Located in a long-settled rural area with many neighbours, CVO faces significant
environmental challenges: conservation of flora and fauna; acid mine drainage risks;
sustainable water supply and management; noise and dust management; and rehabilitation
and closure.
However, these challenges have been professionally managed through pro-active planning
and the development of sophisticated environmental management systems and protocols,
based on thorough baseline studies and modeling. The result is a technically robust
environmental performance, which is effectively communicated to the local community and
to the regulators. There appears to be no technical environmental issue likely to constrain
the operation n the foreseeable future.
20.2 Individual Environmental Issues
20.2.1
Statutory Environmental Approvals and Compliance
The umbrella environmental approval for CVO is the Environmental Assessment (EA)
process operated through the NSW Planning and Environment Act. The January 2010 EA
approval of the Cadia East operation incorporated all pre-existing approvals into a single
instrument this greatly facilitates co-ordination of compliance assessment and reporting.
Commonwealth
(Federal)
approval
under
the
Environmental
Protection
(Biological Conservation) Act (EPBC Act) was required for Cadia East Project Approval
because of potential impacts on a Federally-Listed Endangered Ecological Community. The
Commonwealth agreed, as is usual, that Federal requirements could be addressed through
the NSW EA process, so that no separate approvals process was required.
Subsidiary approvals (authorities to construct, licences to operate and to abstract
groundwater and surface water, etc.) have been obtained as required, beneath the umbrella
of the EA and EPBC approvals.
These approvals have led to the development of sophisticated and well-integrated
environmental management plans, designed to satisfy the operational performance
indicators and thresholds that form part of the approvals.
Compliance is at a high standard, mediated through various monitoring and reporting
programs that are stipulated as conditions of environmental approval. Minor exceedances
and breaches predictably occur, but none is considered likely to significantly constrain CVO
operations.
119

Compliance is primarily reported via an Annual Environmental Management Report to the

NSW government, as required by the umbrella EA process. Other reports are produced to
meet conditions of subsidiary licences, as required by relevant legislation.
20.2.2
Water Supply and Management
While heavy rains in eastern Australia over the 2010-11 summer have overcome water
supply constraints at CVO in the short and medium terms, water will remain a critical issue
if, as anticipated, long-term drying-climate trends return. Additionally, CVO is located in the
Murray-Darling Basin, and is thus exposed to the socio-political vicissitudes that
characterize debate over allocation of water resources.
For several years, CVO has pursued a well-considered strategy aimed at securing water
supplies. Allocations have been purchased from other landowners, internal re-use and
conservation have been optimized, capacity to pump unregulated flows from streams during
periods of high flow have been increased without impact on other users, dam walls have
been raised to increase capture and storage capacities, and treated sewage from local
municipalities is used. In future, dry-stacking of dewatered tailings could be employed to
increase water supply, and a joint pipeline with local government could provide additional
water from the Macquarie River.
Water supply will demand continued vigilance over the life of CVO, on both technical and
socio-political fronts, but the demonstrable success attained in recent years gives
confidence that sufficient water will be obtained.
Impacts on neighbors water supplies from groundwater abstraction are carefully monitored
and, where necessary, compensatory supplies provided via an agreed protocol. The
monitoring regime is based on groundwater modeling which is regularly refined on the basis
of field experience.
20.2.3
Flora and Fauna Conservation
Potential impacts on flora and fauna have been rigorously assessed by field surveys which
have been conducted to the highest Australian Standards.
To offset impacts on an Endangered Ecological Community (Grassy White Box Woodland),
whose disturbance triggered the EPBC assessment, CVO has purchased a large area of
land at Black Range, some 11 km south-west of the operation. A core of vegetation in
good/excellent condition is protected from disturbance, and a smaller area of disturbed land
is progressively being replanted with appropriate native species to considerably improve
conservation value. This vegetation provides important habitat for threatened fauna
species, particularly two parrots.
The offset area of 900 ha provides a 4:1 ratio in terms of compensation for total native
vegetation clearing, and a 10:1 ratio in relation to the EPBC issue.
120

This biodiversity offset has satisfied regulators, particularly in terms of the EPBC Act and
has been incorporated into the Development Consent for Cadia East.
20.2.4
Acid Mine Drainage
Mine waste and tailings has been subject to rigorous geochemical test work, using best
practice methods to assess risks of acid generation from oxidation of sulphides. While some
waste has high acid-forming capacity (Potentially Acid-Forming, or PAF), kinetic test work
(regular leaching of columns of material) has shown that sulphide oxidation is slow, so that
PAF waste is unlikely to produce acid drainage while stored at surface prior to being
encapsulated with Non Acid-Forming (NAF) and/or acid-consuming waste. Prior to
encapsulation, PAF material is stored in a designated compartment within the waste
stockpile, to manage risks of acidic and metal-enriched (particularly copper-enriched)
drainage escaping to the broader environment.
Up to 50% of the open-pit mine waste is PAF, as is almost all underground waste.
A store-and-release inert cover will be constructed to encapsulate PAF material. After test
work which characterises the moisture-holding properties of the inert material, the cover will
be designed to provide sufficient depth of cover to enable rainfall to be evaporated from the
soil and transpired from vegetation so that moisture and oxygen do not penetrate to the
sulphidic waste inside the structure. Such designs are becoming increasingly common in
Australia, and have been proven to be effective.
Tailings have been shown to be NAF, which significantly reduces potential costs of closure
and rehabilitation of TSFs (see Section 20.2.6).
20.2.5
Noise and Dust Management
Potential noise (especially blast noise) and dust impacts have been modeled using
well accepted methods, and appropriate mitigation programs developed. Real-time dust and
noise monitors are located in sensitive areas, thus allowing prompt and effective response
to complaints, and clear demonstration of compliance with national and NSW guidelines
and regulations.
Given the scale of the CVO, and the nearness of some neighbors, noise and dust
complaints are inevitable. However, CVO has a sophisticated complaints management
procedure which includes a 24-hour Environmental Hotline (see Section 20.2.7).
20.2.6
Closure and Rehabilitation
Considerable rehabilitation of waste stockpiles has already been completed, with success
evidenced by the absence of significant erosion and by well-established vegetation.
CVO has developed detailed plans for the closure and rehabilitation of all facilities, and
developed an estimated cost of some AU$75M. That estimate is based on unit rates which
121

are typical for the Australian industry, and can thus be considered to be a reliable
assessment of liability.
Notably, because the process tailings are NAF, closure of the TSFs can be accomplished
without the need for encapsulation with NAF material to prevent oxidation of sulphides
this represents a saving of at least A$25M. In fact, field trials have shown that, after minor
amelioration with sewage sludge and topsoil, vegetation can be quickly established on
tailings.
Closure planning includes provision for retention of infrastructure of potential use to other
parties, and extensive monitoring, especially of water quality and landform stability.
20.2.7
Community Issues
As a very large employer in the area and region, that is active in community affairs, CVO is
generally well accepted by the community.
CVO holds regular forums with local government authorities and residents, and contributes
to a Community Partnerships Program (CPP) in which volunteer employees are involved in
assessing applications for funding of community projects based on established criteria.
Thus, the CCP insulates CVO from direct application for funding, while maintaining a strong
profile within the community. CVO personnel who are active in local sporting bodies receive
an A$200 donation for those bodies.
CVO is also a member of a Community Consultative Committee, which includes
representatives of the three local government authorities and the community. This provides
a regular forum for discussion of community issues related to CVO activities, and for
accurate dissemination of material about those activities.
Sensitive to public concern about the possible loss of housing on farms bought by CVO, the
company operates a Rent a Farmhouse scheme which involves token rents but ensures
use of local housing resources.
CVO is also involved in initiatives such as Landcare and Clean Up Australia.
To minimise traffic impacts during the current construction program (up to 3,500 people on
site), CVO has implemented a car-pool reward program which involves car-poolers
receiving fuel vouchers and preferential parking on site.
CVOs community programs are thus responsible and accommodating, without significant
risk of the company being perceived as an easy target for financial support which might not
be sustainable in the broader context.
122

21
CAPITAL AND OPERATING COSTS
Production and operating costs for CVO for FY 2009 to FY 2011 are set out in Table 21.1.
Table 21.1
CVO Historical Production and Operating Costs
Item
Gold Production
Units
2009
2010
2011*
(oz)
532,187
497,686
515,421
Mine
(A$/oz)
365
335
295
Mill
(A$/oz)
236
296
326
Administration and Others
(A$/oz)
99
87
91
Third Party Smelting Refining and Transportation
(A$/oz)
139
138
124
Royalties
(A$/oz)
47
55
54
By Product Credits
(A$/oz)
(682)
(803)
(767)
Stripping and Ore Inventory Adjustments
(A$/oz)
73
12
180
Cash Cost
(A$/oz)
277
120
303
Depreciation and Amortisation
(A$/oz)
97
131
152
Total Cost
(A$/oz)
374
251
455
* Cadia Valley FY 2011 full year production includes commissioning production of 3,320 ounces of gold and 316
tonnes of copper from Cadia East during the year. These ounces have been capitalised and excluded from the
unit cost calculations and profit and loss reporting.
Actual CVO production and operating costs FY 2011 are shown in Table 21.2.
Table 21.2
CVO FY 2011 Actual Production and Operating Costs*
Cadia Valley
Gold production
Copper production
Royalty
Depreciation
*Costsincludedintableexcludeapplicablebyproductcredits
Unit
koz
kt
A$M
A$M
A$M
A$M
FY11 Actual
515
44
365
92
63
29
A$/oz
152
Capital expenditure for FY 2009 to FY 2011 is set out in Table 21.3.
123

Table 21.3
Historical Capital Expenditure

FY 2009 Actual
A$M
FY 2010 Actual
A$M
FY 2011 Actual
A$M
Site expenditure
27.2
28.0
38.3
Major projects
365.1
375.6
956.5
Total capital expenditure
392.3
403.6
994.8
Capital expenditure on Cadia East during FY 2011 was approximately A$891M and is
estimated at A$550M in 2012. Total expenditure on Cadia East over the next five years is
expected to be A$2,100A$2,200M with approximately A$1,400M for underground
development.
Estimated operating costs for FY 2012 are shown in Table 21.4.
Table 21.4
CVO FY 2012 Estimated Operating Costs*
Cadia Valley
Royalty
Unit
A$M
A$M
A$M
A$M
Depreciation
A$/oz
*Costrangesincludedintableexcludeapplicablebyproductcredits
FY12 Estimate
380 405
40 - 50
60 70
32 38
225 235
124

22
ECONOMIC ANALYSIS
CVO is an established mining operation with both underground block caving, and open pit
mining operations. Incremental increases in production are planned with no major changes
in mining or processing methods.
125

23
ADJACENT PROPERTIES
Properties adjacent to CVO tenements have no material impact on CVOs mineral

resources or mineral reserves.
126

24
OTHER RELEVANT DATA AND INFORMATION
No additional information is included
127

25
INTERPRETATION AND CONCLUSIONS
CVO is in a transition phase with the approaching depletion of the Cadia Hill open pit and
the development of the Cadia East deposit. The transition poses a number of key
challenges and risks as follows:
Open pit mining of Cutback 3 is expected to be completed in 2012. Production from

Cadia East is not expected to reach mill feed capacity until 2014. During the Cadia
East production build-up, mill feed will be supplemented by a scavenging operation
from the pit, supplemented by low grade stockpiled material. Any significant delays to
the production build-up will impact directly on metal production.
Coarse fragmentation causing delays to the production ramp-up at Cadia East is a

risk. Preconditioning of the rock mass using hydraulic fracturing and/or long-hole
blasting is planned to mitigate this risk. Hydraulic fracturing has been completed in the
area covering the first 12 months of production and cracks have been successfully
induced in the rock mass. The use of a high undercut which produces an initial stock
of blasted material overlying the drawpoints is also expected to mitigate the risk.
During periods of extended drought the adequacy of water supplies to CVO has been
a concern. This is unlikely to be a concern in the short term but the expansion of the
operation will increase demand, so the overall risk of future water shortage cannot be
entirely eliminated. Water balance modeling has demonstrated a future water supply
reliability of 95%-99%
Despite these risks, CVO is a robust mining operation with significant reserves and a track
record of successfully developing major projects.
128

26
RECOMMENDATIONS
CVO is an established mining operation with mineral reserves sufficient for an extended
mine life.
Newcrest has sophisticated procedures for investigating and evaluating mineral resources,
and in developing projects for their efficient exploitation. Concept and scoping studies have
been carried out on Ridgeway Deeps Lift 2, Cadia East Lift 3 and Big Cadia. Over time, it is
reasonable to expect that these projects will be further evaluated and will increase CVOs
mineral reserve inventory, providing scope for either increases in production rate or
extensions of mine life or both.
In view of the nature of CVOs mining operations and the substantial mineral reserve
inventory, no recommendations are included.
129

27
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the Ordovician-Early Silurian Macquarie Arc, eastern Lachlan Orogen, New South Wales;
Geological evolution and metallogenesis of the Ordovician Macquarie Arc, Lachlan Orogen,
New South Wales. Australian Journal of Earth Sciences 54, 465-479. 2007.
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Society of Economic Geologists 99, 761-788. 2004.
Fox, N., Harris, A., Cooke, D., Collett, D. Controls on the formation of the Cadia East Alkalic
porphyry Au-Cu deposit NSW: Potential reactivation of early basin structures, Macquarie
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Harris, A.C., Percival, I.G., Allen, C.M., Cooke, D.R., Tosdal, R.M., McMillan, C., Dunham,
P.D., Collett, D. Inverted submarine basins hosting the Cadia Valley porphyry ore deposits,
New South Wales: fundamental controls on system architecture. Macquarie Arc
Conference, Orange. 2009.
Holliday J.R., Wilson A.J., Blevin P.L., Tedder I.J., Dunham P.D., Pfitzner M. Porphyry goldcopper mineralisation in the Cadia District, eastern Lachlan fold belt, New South Wales, and
its relationship to shoshonitic magmatism. Mineralium Deposita 37, 100-116. 2002.
Holliday J.R. and Cooke D.R. Advances in geological models and exploration methods for
copper gold porphyry deposits, in MILKEREIT B. ed. Proceedings of Exploration 07: Fifth
Decennial International Conference on Mineral Exploration: Toronto, Canada, p. 791-809.
2007.
Packham G., Percival I., Bischoff G. Age constraints on strata enclosing the Cadia and
junction reefs ore deposits of central New South Wales, and tectonic implications. Quarterly
Notes - Geological Survey of New South Wales 110, 1-12. 1999.
Washburn, M. Architecture of the Silurian sedimentary cover sequence in the Cadia
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Wilson A.J. The geology, genesis and exploration context of the Cadia gold-copper
porphyry deposits, New South Wales, Australia. Doctoral thesis, University of Tasmania,
Hobart, Tasmania, Australia. 2003.
Wilson A.J., Cooke D.R., Harper B.L. The Ridgeway gold-copper deposit; a highgrade
alkalic porphyry deposit in the Lachlan fold belt, New South Wales, Australia. Economic
Geology 98, 1637-1666. 2003.
Wilson A.J., Cooke D.R., Stein H.J., Fanning C.M., Holliday J.R., Tedder I.J. U-Pb and ReOs geochronologic evidence for two alkalic porphyry ore-forming events in the Cadia
District, New South Wales, Australia. Economic Geology 102, 3-26. 2007.
Malone, E. The Cadia Valley Mines A Mining Success Story, AusIMM, Spectrum Series
19, 2011.
Fluor. Cadia East Project Feasibility Study Report. April 2010.
Newcrest Mining Limited. Cadia Valley Operations Monthly Site Report. June 2010.
Newcrest Mining Limited. Cadia Valley Operations Monthly Site Report. June 2011.
Newcrest Mining Limited. Cadia Hill Open Pit Ore Reserve Report Number: CH OR 11-06.
July 2011.
Newcrest Mining Limited. Big Cadia Mineral Resource Report. 30 June 2011.
Newcrest Mining Limited. Big Cadia Open Pit Ore Reserve Report Number: BC OR 11-06.
11 July 2011.
Newcrest Mining Limited. Cadia East Underground Mineral Resources Report Document
Number: June 11 Ev1. 30 June 2011.
Newcrest Mining Limited. Cadia East Ore Reserve Report Number: CE OR 11-07. 11
July 2011.
Newcrest Mining Limited. Cadia Extended Mineral Resources Report Document Number:
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6 July 2011.
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131

Newcrest Mining Limited. Big Cadia Mineral Resource Report, - Document Number: CVO
BC MR L1 & L2. 31 December 2011.
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BC MR L1 & L2. 31 December 2011.
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Resources Report Document Number: CVO CX MR L1 & L2. 31 December 2011.
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CE MR L1 & L2. 31 December 2011.
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Number: CVO CH MR L1 & L2. 31 December 2011.
6 January 2012.
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RW MR L1 & L2. 31 December 2011.
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OR 11-12. 8 February 2012.
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132

Newcrest Mining Limited. Ridgeway Deeps Feasibility Study Volume 2: Implementation.

15 March 2007.
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Geology. 8 August 2007.
Geotechnical. 28 August 2007.
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133

28
QUALIFIED PERSONS CERTIFICATES
Michael Thomas
AMC Consultants Pty Ltd
Level 19, 114 William Street
Melbourne, Victoria 3000
Australia
1. I, Michael Thomas MAusIMM (CP), do hereby certify that I am a Principal Mining Consultant
employed by AMC Consultants Pty Ltd.
2. I am a graduate of Glamorgan Polytechnic (UK) and hold a Higher National Diploma in Mining.
3. I am a Member of the Australasian Institute of Mining and Metallurgy, and a Registered
Professional Engineer of Queensland.
4. I have worked as a Mining Engineer for a total of 38 years since my graduation from Glamorgan
Polytechnic. My relevant experience includes 21 years involved in the design, supervision and
management of underground base metal mines, and 15 years providing mining engineering
consulting services to underground and surface mining operations, including gold mining
operations.
5. I have read the definition of Qualified Person set out in National Instrument 43 101 (NI 43-101)
and certify that by reason of my education, affiliation with a professional association (as defined
in NI 43-101) and past relevant work experience, I fulfill the requirements to be a Qualified
Person for the purposes of NI 43-101.
6. I am responsible for the preparation of Sections 1 to 27 except for Sections 12, 14 and 15 of the
Technical Report titled Technical Report on the Cadia Valley Operations Property in New South
Wales Australia, dated 31 December 2011 (the Report). I visited the Cadia Valley Operations
property on 27 and 28 July 2011.
7. I have had prior involvement with the property that is the subject of the Report This involvement
has been limited to carrying out various independent consulting assignments of a technical
nature for Newcrest Mining Limited and Cadia Valley Operations. I have carried out these
assignments as an employee of AMC Consultants Pty Ltd.
8. I am independent of the issuer applying all of the tests in Section 1.5 of National Instrument 43101.
9. I have read National Instrument 43-101 and Form 43-101F1, and the Report has been prepared
in compliance with that instrument and form.
10. As of the effective date of the Report, to the best of my information, knowledge and belief, the
part(s) of the Report for which I am responsible contains all scientific and technical information
that is required to be disclosed to make the Report not misleading.
31 December 2011
Original signed by
Michael Thomas
134

Colin Moorhead
Level 8, 600 St Kilda Road
Melbourne, Victoria 3004
Australia
1. I, Colin Moorhead, do hereby certify that I am the Executive General Manger, Minerals employed
by Newcrest Ming Limited.
2. I am a graduate of the University of Melbourne and hold a Bachelor of Science (Hons.) in
Geology with a geophysics major.
3. I am a Fellow of the Australasian Institute of Mining and Metallurgy.
4. I have worked as a geologist for a total of 24 years since my graduation from university. My
relevant experience includes 16 years fulfilling the roles of exploration geologist, mine geologist,
geology manager and technical services manager at Newcrests Australian open pit and
underground mining operations, two years as geology manager at Newcrests Indonesian mining
operation, two years as General Manager Technical Services responsible for technical
excellence and resources and reserves governance and four years in the role of Executive
General Manager, Minerals responsible for exploration, mine geology and resources and
reserves governance throughout Newcrest.
5. I have read the definition of Qualified Person set out in National Instrument 43 101 (NI 43-101)
and certify that by reason of my education, affiliation with a professional association (as defined
in NI 43-101) and past relevant work experience, I fulfil the requirements to be a Qualified
Person for the purposes of NI 43-101.
6. I am responsible for the preparation of Sections 12, 14 and 15 of the Technical Report titled
Technical Report on the Cadia Valley Operations Property in New South Wales Australia, dated
31 December 2011 (the Report). I visited the Cadia Valley Operations property between 10
September and 12 September 2011.
7. I have had prior involvement with the property that is the subject of the Report. This involvement
is via my role as Executive General Manager, Minerals with Newcrest between 2008 and present
as well as fulfilling the role of Geology Manager at Cadia Valley Operations between 1997 and
2001 and Technical Services Manager at Cadia Valley Operations between 2002 and 2003.
8. I am not independent of the issuer applying all of the tests in Section 1.5 of National Instrument
43-101.
9. I have read National Instrument 43-101 and Form 43-101F1, and the Report has been prepared
in compliance with that instrument and form.
10. As of the effective date of the Report, to the best of my information, knowledge and belief, the
part(s) of the Report for which I am responsible contains all scientific and technical information
that is required to be disclosed to make the Report not misleading.
31 December 2011
Original signed by
Colin Moorhead
135

BC - Cadia East

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Company Announcements Office

Toronto Stock Exchange Listing Cadia Valley

T +613 9522 5333

In relation to Newcrest Mining Limiteds secondary listing on the Toronto

Technical Report on the Cadia Valley Operations Property in New

The attached Report is referred to in the Newcrest Annual Information Form

AMC Mining Consultants (Canada) Ltd

Suite 1330, 200 Granville Street

+1 604 669 0044

TECHNICAL REPORT ON THE CADIA VALLEY

Prepared for Newcrest Mining Limited

NEWCREST MINING LIMITED

RELIANCE ON OTHER EXPERTS ............................................................................ 17

PROPERTY DESCRIPTION AND LOCATION .......................................................... 18

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

GEOLOGICAL SETTING AND MINERALIZATION .................................................... 31

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

7.2.3 Cadia Hill Mineralization ................................................................... 34

DEPOSIT TYPES ....................................................................................................... 38

SAMPLE PREPARATION, ANALYSES AND SECURITY.......................................... 42

DATA VERIFICATION ................................................................................................ 51

MINERAL PROCESSING AND METALLURGICAL TESTING................................... 52

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

13.3.1 Background ...................................................................................... 54

MINERAL RESOURCE ESTIMATES ......................................................................... 62

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

MINERAL RESERVE ESTIMATES ............................................................................ 89

MINING METHODS .................................................................................................... 97

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

PROJECT INFRASTRUCTURE ............................................................................... 112

MARKET STUDIES AND CONTRACTS .................................................................. 116

ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

20.2.6 Closure and Rehabilitation ............................................................. 121

CAPITAL AND OPERATING COSTS....................................................................... 123

ECONOMIC ANALYSIS ........................................................................................... 125

ADJACENT PROPERTIES....................................................................................... 126

OTHER RELEVANT DATA AND INFORMATION .................................................... 127

INTERPRETATION AND CONCLUSIONS .............................................................. 128

RECOMMENDATIONS ............................................................................................ 129

REFERENCES ......................................................................................................... 130

QUALIFIED PERSONS CERTIFICATES ................................................................ 134

CVO Mineral Resource Estimate at 31 December 2011 ................................ 9

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

Gold Domain Description .............................................................................. 68

Aerial View of Significant Deposits ................................................................. 8

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

Cross Section Showing Cadia Hill Mineral Reserve ..................................... 90

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

Aerial View of Significant Deposits

Cadia Valley Property December 31 2011.docx

NEWCREST MINING LIMITED

CVO Mineral Resource Estimate at 31 December 2011

Cadia Valley Property December 31 2011.docx