PERTH (miningweekly.com) – ASX- and TSX-listed gold miner OceanaGold has approved a new mine schedule for its Macreas goldfield, in New Zealand, which would see the project produce less gold over its remaining mine life.

The company said on Tuesday that the revised mine plan was instituted as a result of the prolonged and sustained drop in the gold price, prompting OceanaGold to re-optimise the mine plan to reduce costs.

The new mine plan included a reduction in the total material movement scheduled in the openpit, resulting in lower equipment usage and a reduction in operating and support staff requirements over the next two years.

Based on the mine plan, the Frasers 6 openpit cutback has been redesigned and a smaller cutback was planned to start in the second half of the year.

At the current gold price, the Macreas openpit operation has a mine life until the end of 2017, while the Frasers underground mine will continue to operate until mid-2015.

“The Macreas goldfield has been operating continuously for over 23 years producing over 3.8-million ounces of gold. During this life, Macreas has been a major employer and contributor to the Otango region and local economy,” said OceanaGold MD and CEO Mick Wilkes.

He noted that the continuing low gold price had necessitated making changes to the business to ensure a sustainable operation at Macreas.

“Unfortunately, these changes will also have an impact on some of our workforce and contractors, who I wish to thank and acknowledge for their contribution to OceanaGold. As part of our normal course of business, we will continue to ensure that our business operates as efficiently as possible, without compromising health, safety and the environment, and we will continue to seek and evaluate suitable opportunities,” Wilkes said.

OceanaGold has forecasted a gold production of between 275 000 oz and 305 000 oz for the full 2014, compared with the 2013 forecast of between 285 000 oz and 325 000 oz.

Copper production from the Didipio operation was also expected to be between 21 000 t and 24 000 t of copper in concentrate.

The dual-listed miner was also planning to spend between $80-million and $100-million in capital expenditure during 2014, of which more than half would be spent in New Zealand. A further $5-million to $10-million has been set aside for exploration.

Meanwhile, in response to the continued lower gold price, OceanaGold has also entered into a zero cost collar hedging programme for 208 000 oz, partially covering production over the next two years at the Macreas openpit and Frasers underground mine.

The programme entails a series of bought put options creating a floor of NZ$1 500/oz for 208 000 oz, starting in January this year and ending in December 2015.

The Reefton production was similarly hedged with a zero cost collar.