PERTH (miningweekly.com) – Dual listed gold miner OceanaGold has been granted consent to extend the mine life of its Macreas operation, on New Zealand’s South Island, to 2028.
The miner on Wednesday reported that it had received permits for the Golden Point underground mine, the Deepdell North Stage 3 openpit extension and the Frasers West expansion, allowing the company to proceed with the development of new and extended openpit and underground mining operations that would extend the mine life.
“Collectively, these projects are forecast to produce 1.1-million ounces of gold over an eight-year mine life. Openpit and underground operations are expected to produce on average 150 000 oz to 170 000 oz a year at all-in sustaining costs of around A$1 000/oz,” said OceanaGold president and CEO Michael Holmes.
“With our New Zealand dollar gold hedges in place beyond 2020, we expect the operation to generate significant free cash flow in 2021 and beyond.”
Holmes said that the receipt of consent for the three operations was testament to OceanaGold’s 30-year history of responsible mining and environmental stewardship.
“Development of the Golden Point underground and expansion of the existing openpit at Macreas are among several organic growth projects in OceanaGold’s pipeline. We believe progressing our organic growth is key to delivering shareholder value over the long term, and the receipt of consent at Macreas is another step along a critical path to achieve this goal."
In addition to developing its organic growth projects, Holmes on Wednesday said that OceanaGold was also continuing to seek out additional opportunities through exploration in New Zealand, and was working with government officials and other stakeholders to contribute to the national and local economy.
The approvals facilitate the development of the three projects beginning this quarter, with services and earthworks around the Golden Point underground portal already under way. First cut of the portal is expected before the end of the year.
Holmes said that first production from the Golden Point underground mine is expected in the fourth quarter of next year, which would supplement and eventually replace existing underground production at Frasers, when mining is completed there.
Pre-stripping of the Deepdell openpit and expansion of the Fraser openpit is also underway.