Newmont to extend Peñasquito mine life beyond 2040

The Greenwood Village, Colorado-based miner’s said this week it will invest $10 million next year to build a pipeline of new exploration targets at Peñasquito, where just 20% of the 650km2 property has been drilled, COO Rob Atkinson said in an investor update call this week.

The company said drilling is also expected to help convert resources within existing pit shells to reserves.

Peñasquito is forecast to produce 660,000 ounces of gold in 2021, up from 510,000 ounces expected for 2020, which reflect the impacts of covid 19-suspensions.

Last year, production at the mine was impacted by two blockades by truckers and nearby residents. The long-standing differences between the parties were put to bed with a 30-year water supply deal with the San Juan de Cedros community, in Zacatecas, one of the mine’s 25 nearby communities.

Peñasquito mine is also slated to churn out 30 million ounces of silver, 475 million pounds of zinc and 190 million pounds of lead next year.

About 70% of foreign-owned mining companies operating in Mexico, the world’s No.1 silver producer, are based in Canada.