Newmont Mining has announced plans to build the initial phase of Long Canyon gold mine in Nevada, US.

As part of the development, the first phase comprising an open pit mine and heap leach operation is expected to produce gold between 100,000oz and 150,000oz a year over an eight-year mine life.

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During this period, the estimated all-in sustaining costs will range between $500 and $600 per ounce.

The project is expected to generate around $100m in earnings before interest, taxes, depreciation and amortisation (EBITDA) annually, beginning in 2017.

“We have the engineering, ore body knowledge and community agreements in place to deliver this project safely, on-time and on-budget.”

Newmont Mining president and CEO Gary Goldberg said: “I’m confident that we have the engineering, ore body knowledge and community agreements in place to deliver this project safely, on-time and on-budget.”

The phased approach will help the company lower development capital to between $250m and $300m and generate an internal rate of return of about 17% at existing gold prices.

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The payback period can also be reduced to just over four years following the first commercial production at the mine.

To be funded through free cashflow and available cash balances, the project is set to leverage the company’s existing equipment, infrastructure and personnel.

Project highlights include high-grade oxide ore processed by heap leaching, gold reserves of 1.2 million ounces at an average grade of 2.29g per tonne.

The company secured federal and state permits that are required to proceed with development of the project.

Once operational, the first phase of Long Canyon mine is expected to directly employ about 260 people.

Over the last two years, the company generated $1.4bn through the sale of non-core assets.