Newmont issues warning on Boddington gold grades

Newmont Mining has sent shock waves through its investor base after warning that the gold grades at its huge Boddingtosecond hand 7ft symons cone crushers for salen mine south of Perth may be lower than expected, less than six months since the opening of the $US2.9 billion ($3.2 billion) project.

The US gold miner, one of the biggest producers of bullion in the world, used its second-quarter report yesterday to flag that production at Boddington this calendar year would be up to 7 per cent lower than planned at between 750,000 ounces and 825,000oz. If realised, Australia's biggest gold mine would produce almost $US60 million ($66 million) less gold this year than budgeted, based on last night's bullion price of $US1165.90 an ounce. Of more concern to investors was Newmont's admission that gold grades at Boddington were "lower than modelled" which had resulted in 12 per cent less contained gold being mined in the three months to June 30...