OceanaGold Corporation
OceanaGold Corporation
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The pending completion of low-cost organic growth projects at its Haile project in the USA and in New Zealand have international miner OceanaGold targeting growth in its annual gold production to over 500,000oz within five years.
On the way, after producing 301,700oz at $US1,278/oz in FY2020, OceanaGold forecasts significant improvement in the current year to 340,000-380,000oz at $1,050-1,200/oz.
OceanaGold has forecast production of 35,000-45,000oz to the end of 2021 after producing first gold from the Martha Underground development at its Waihi operations in New Zealand’s North Island.
President-CEO Michael Holmes says the ore is being batch-processed this month ahead of a mill shutdown to install a new SAG mill on schedule for completion late in the June qtr, after which ramping underground production is expected to sustain continuous milling.
New Zealand’s only privately owned underground gold mine will come under ownership by NTL, with the signing of a binding term sheet to acquire the Broken Hills Historical Gold Mine on the Coromandel Peninsula.
Broken Hills, 20km N of OceanaGold’s under-development Wharekirauponga deposit, has been operated on a small scale for 21 years with consistent profitable production by leading NZ geologist Stuart Rabone and family members.
International miner OceanaGold warns the timeline for a revival of its Didipio gold and copper mine in the Philippines remains uncertain despite a breakthrough in talks with government agencies on the renewal of its formal approval.
Significantly higher Q4 production from its Haile (USA) and Macraes (NZ) mines helped international miner OceanaGold deliver gold production of 301,700oz for the year to end-Dec (FY2020).
The result, down from its FY2019 result of 470,600oz, follows the loss of production from its shuttered Didipio project in the Philippines. AISC for the year rose to $US1,276/oz (FY2019: $1,061/oz).
Stronger production from its Macraes gold mine in New Zealand’s Otago province has enabled international miner OceanaGold to overcome COVID-induced reductions compounded by record rains at its Haile project in the USA and lift its Sept qtr (Q3) production to 63,136oz, up from its Q2 dip to 58,700oz.
Q3 AISC rose to $US1,695/oz (Q2: $1,265/oz), attributed to higher planned sustaining capital investments primarily at Macraes and pre-stripping at Haile.
Nearly 900 Filipino workers have suffered the outcome of a local government blockade of the Didipio gold-copper mine on Luzon Island, with international miner OceanaGold announcing permanent layoffs of 496 direct employees and about 400 employees of contractors.
OceanaGold has struggled to continue operations at the world-class mine while mounting so-far unsuccessful legal challenges to the 15-month blockade.
Gold miner Sandfire Resources has sold its stake in the Sams Creek Gold Project in the NW of New Zealand’s South Island to fellow Western Australian Auris Minerals for $A23.2M cash and shares, giving it a 19.9% cornerstone shareholding in Auris.
International miner OceanaGold has extended the forecast life of its Haile gold mine to 2033, based on mineral reserves only, in an NI 43-101 compliant technical report on the South Carolina, USA project.
The study outlines average production of 180,000-200,000ozpa, increasing to about 250,000ozpa in 2023-27 incorporating combined openpit and underground mill feed. LOM AISC is forecast at about $800/oz.
Australian-based international explorer Santana Minerals is seeking to revive one of New Zealand’s richest past gold mines with agreement to acquire the Bendigo-Ophir project in the Otago Goldfields through the all-shares acquisition of its current private owner, Matakanui Gold.