PERTH (miningweekly.com) – Gold miner OceanaGold is expecting to produce between 500 000 oz and 550 000 oz of gold and between 14 000 t and 15 000 t of copper in the 2019 full year.
This is in line with the 533 300 oz of gold and 15 000 t of copper produced during 2018, at an all-in sustaining cost (AISC) of A$767/oz.
ASX- and TSX-listed OceanaGold on Tuesday told shareholders that AISC for 2019 were expected to reach between A$850/oz and A$900/oz, with the company also spending between A$40-million and A$50-million on global exploration during the full year.
“This year is expected to be another strong year of production and development as we continue to invest in the prosperity and growth of the company,” said president and CEO Mick Wilkes.
“At Haile, we expect higher production in 2019, on the back of increased mill feed. All-in sustaining costs at Haile are expected to be slightly higher in 2019 due to lower mill feed grade and higher costs for labour and consumables.”
Wilkes said that while the mine has experienced difficulties in the past four months owing to bad weather and the tight US labour market, the operation was recovering, with OceanaGold having plans in place to mitigate further significant weather events and skills shortages.
“Permitting for the larger openpits and the Horseshoe underground is progressing well and will continue in 2019. Following a successful outcome with the permitting process, we should expect production levels to steadily increase to over 200 000 oz/y. We also expect unit costs to decrease over the next few years as mined and milled volumes increase.”
Meanwhile, both the Didipio and Macreas operations, in the Philippines and New Zealand respectively, are expected to perform well in 2019, while the Waihi operation, also in New Zealand, will have lower production as the currently permitted mine reserves are depleted.
OceanaGold on Tuesday announced that the appeals period related to the Martha underground project, at Waihi, had passed without any objections and that the project had received all consent to start operations.
“Receipt of the permits at the Martha underground represents a tremendous outcome that will benefit the company, its shareholders, the town of Waihi and New Zealand,” Wilkes said.
The company has started management plans and detailed mine designs to allow mining operations to begin, which will include stope and infrastructure development.
During the ramp-up phase, OceanaGold will continue to drill the Martha underground targets, using four diamond drill rigs from the two underground drill drives located beneath the openpit operation, to add to the resource.
Based on studies to date, OceanaGold has an exploration target of between five-million and eight-million tonnes, grading between 4 g/t and 6 g/t gold. The Martha underground deposit is currently estimated to host a measured and indicated resource of some 140 000 oz and an inferred resource of a further 339 000 oz.