NEWCREST Mining Limited has revealed changes will likely be made to the massive Cadia East project to underpin a “30 to 40 year life” for operations in the Cadia valley.

The Cadia East project will be located on the eastern flank of the Cadia Hill mine, where a proposed large open pit and underground gold-copper mine is to be developed.

However, in Newcrest’s quarterly results released yesterday, chief executive officer Ian Smith said there was a “new approach” being considered for mining the Cadia East area.

The new approach is based on feasibility studies that found a greater emphasis on underground mining as opposed to traditional open pit methods “would improve outcomes with lower waste movements and higher production levels”.

“The Cadia East Underground study has identified the opportunity to panel cave ore previously planned to be mined as the Cadia East open pit,” the report stated.

There was no mention of severe water shortages faced by the mine or any hint of a potential date where production may be cut back until significant rain falls in the area.

A spokesperson for Newcrest Pty Ltd also confirmed the project had been brought forward “in the production pipeline” but is still in line with the current approval process which dictates when work can officially begin on the Cadia East extension.

The report also showed 162,881 ounces of gold was mined during the June 2008 quarter, down on the 173,743 ounces produced during the same quarter last year.

Shares in Newcrest fell following the announcements but recovered to $29.40 at the close of trading yesterday.