OceanaGold Corporation
OceanaGold Corporation
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International miner OceanaGold expects to produce 5,000-10,000oz gold and 1,000t copper to the end of FY2021 as the restart of operations at its Didipio mine in the Philippines progresses ahead of schedule after the Duterte government finally renewed its operating agreement in July.
Forecast FY2021 sales are 23,000-28,000oz Au and 3,500-4,500t Cu, including remaining gold doré and gold-copper concentrate inventory on site and already being processed.
Mining operations have resumed at OceanaGold’s Macraes and Waihi gold projects after a two-week shutdown due to New Zealand’s COVID-19 restrictions.
President-CEO Michael Holmes says mine production, processing and exploration at Macraes in Otago and Waihi in Coromandel have restarted with enhanced public health protocols including staggered shifts.
OceanaGold expects the shutdowns and ongoing restrictions to cut 4,000-5,000oz in FY2021 gold production from each mine.
OceanaGold is shutting down mining and most other activities at its Macraes and Waihi gold mines in New Zealand to comply with the government’s country-wide Covid-19 lockdown.
Mining, processing and exploration activities have all been temporarily suspended at Waihi, in the South Island, with Macraes, in the North Island, maintaining feed from stockpile through the autoclave to ensure there are no potential health, safety or environmental hazards.
International miner OceanaGold aims to issue updated guidance for its FY2021 gold production shortly to include the planned resumption of mining at its Didipio operation following the renewal of its formal financial/technical assistance agreement by the Philippines government.
Excluding Didipio, OceanaGold has revised full year guidance for its remaining mines - Haile in USA, Waihi and Macraes in NZ - to 350,000-370,000oz at AISC of $US1,200-1,250/oz.
Record production from its Haile gold mine in South Carolina, USA has helped international miner OceanaGold lift its June qtr (Q2) output to 93,848oz, up from 83,191oz in the previous period. AISC improved to $US1,226/oz (Q1: $1,299/oz).
Gold sales recovered to 95,900oz (82,800oz) at $1,893/oz ($1,786/oz).
International miner OceanaGold is planning to restart milling at its Didipio gold and copper mine as soon as possible after finally gaining Philippines government approval for the extension of its operating agreement.
The mine on Luzon Island has been idle for two years since its premature closing, due to the non-approval of its financial/technical assistance agreement that followed a lengthy blockade by a regional authority.
OceanaGold president-CEO Michael Holmes says the international miner remains on track for its FY2021 guidance after posting March qtr (Q1) gold production of 83,191oz, down from 99,200oz in the previous period. AISC rose to $US1,299/oz from 1,075/oz.
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.