Newmont Mining to Invest $450 Million in Ghana

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The West African Nation of Ghana is the second largest gold producer in Africa, second only to South Africa. As of 2000, the country had eleven major gold mines in operation with the four largest being the Obuasi, Tarkwa, Damand, and Bibiani, which account for 70 percent of the country's gold production.

Ghana's long history of gold mining dates as far back 1493. It is based on this production track record and political stability that Denver-based Newmont Mining Corporation (NYSE & ASX: NEM; TSE: NMC), the world's largest gold producer is planning to invest $750 million in two gold projects; Ahafo and Akyem. Newmont became the owner of these projects after beating out South Africa's Anglogold in the acquisition of Adelaide-based Normandy Mining last year.

(See related article: Newmont Mining continues Acquisition and Growth Mode) http://www.industrialinfo.com/showNews.jsp?newsitemID=1530

The Ahafo (Yamfo-Sefwi) project is located on the Yamfo-Sefwi greenstone belt, 25 kilometers east of Sunyani. It contains equity reserves totaling 3,330,000 ounces, and mineralized material not in reserve comprising an additional 62,000,000 short tons at 0.056 ounce per ton (1.74 grams per tone) in 11 main deposits.

The Akyem (akim) deposit is located in southern Ghana, 130 km north-west of Accra and south of Nkawkaw on the Accra-Kumasi road a preliminary resource estimate study including database validation, statistical analysis and geological modeling completed so far total inferred and below inferred mineral resources were estimated non-reserve mineralized material at 56,600,000 tons at an average grade of 0.061 ounce per ton.

When the Akim and Ahafo deposits come online in 2006, they are expected to produce about 7.5 million ounces making them amongst Newmont's top five producing assets, and would create over 1,000 new jobs. The process plant design calls for primary Crushing followed by semi-autogenous grinding, and ball milling followed by a CIL (Carbon in Leach) Circuit.

In addition to Akim and Ahafo, Newmont is a partner in the Ntotoroso Deposit (Area E) located in the Brong Ahafo region of west central Ghana approximately 30 kilometers south of Sunyani, the regional capital. Studies on Ntotoroso indicate inferred resources at 14 million tons at 2.6 g/t gold. Given Ntotoroso's proximity to Ahafo, Newmont and its partner Moydow Mines International are considering developing it as part of Ahafo. The feasibility study calls for toll processing of the Ntotoroso ore at the Yamfo-Sefwi treatment plant.

Newmont became a premier gold producer by combining the strengths of Normandy Mining Limited of Australia and Franco-Nevada Mining Corporation Limited of Canada, both acquired in February 2002. Newmont is engaged in the production and sale of primarily gold and some copper and zinc, as well as the exploration and acquisition of gold properties worldwide. It has significant assets and operations on four continents; United States, Peru, Australia, and Indonesia. The company employs over 13,000 people worldwide.

Ghana formerly known as The Gold Coast covers an area of 238,540 square kilometers and in 2000 had approximately 19.5 million people. In addition to gold, the country also produces aluminum metal, manganese ore, bauxite, diamonds, and mineral fuels. In addition to Newmont, Ghana is home to other gold mining companies such as Red Back Mining, Chirano Gold Mining Ltd, and Ashanti Goldfields to name a few. Mining contributes to about 45 percent of Ghana's foreign exchange earnings.