Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Frasers Bankable Feasibility Study Completed

[For full statement with figures, see... OceanaGold.pdf]

MEDIA STATEMENT

24 November 2005

OceanaGold Completes Frasers Bankable Feasibility Study

OceanaGold today announced that it has completed the bankable feasibility study (BFS) for its Frasers underground mine. The study has been independently reviewed by technical auditors RSG Global and the project’s economic return is robust and sufficient to support debt financing.

During 2005, the Company redesigned the Frasers Underground project to improve the expected profit margin and reduce the initial capital required for development. In addition, ongoing exploration drilling extended the resource at depth and improved the ore grade. The resulting redesign work incorporated a more selective mining method to maximise mined grade and development capital was reduced significantly.

The BFS is based on production of 4.5 million tonnes at a grade of 2.83g/t (diluted) for 360,000 ounces. Cash costs are expected to be NZ$401 per ounce. This incorporates the current proven and probable reserve and 62% of the deeper Panel 2 Extension area, where higher grade intersections have confirmed the continuity of mineralization extending down-dip from Panel 2 (See Figure 1). An Inferred Resource of 1.28 million tonnes (Mt) at 4.44 grams per tonne (g/t) gold has been estimated for this Panel 2 Extension area which is still open at depth.

The Frasers Underground operation will be mined in conjunction with the Macraes open pit at a production rate of 0.8 million tonnes per annum (Mtpa) achieved from mid 2008. This mine will increase annual production at the Macraes operation to around 225,000 ounces from mid 2008.

Supplementary production from Globe Progress will further increase the company’s total gold production to around 300,000 ounces per annum.

Based on the study’s productivities and costs, the project generates an un-geared Internal Rate of Return (IRR) of 29% with capital payback occurring in 29 months. Highlights of the study are as follows:

- Annual Production Rate 800,000 tonnes per annum

- Plant Recovery 88%

- Total Ounces Produced 360,000

- Cash Costs NZ$401 per ounce

- Pay Back Period (from time of maximum drawdown) 29 months

- Project Duration 95 months

- Total Pre Production Capital Cost NZ$55 million

- Total Capital Cost NZ$70 million The underground mine will initially be accessed from the open pit starting in April 2006, through a decline that will be mined on the ore body. This strategy was adopted to minimise the capital expenditure and facilitate initial trial mining in order to optimise ground control and dilution control techniques prior to full-scale production. The development and trial mining will be conducted with the existing underground mining fleet that was purchased from the administrators of mining contractor, HWE.

The mine development and trial stoping will be conducted by mining contractors over a two year period followed by long term production.

CEO, Steve Orr said “This study confirms that the Frasers Underground is a robust project. As further higher grade Panel 2 extension ore is incorporated, we expect to increase the project’s mining life and further improve the project’s economic return. Additionally, the deposit still has significant potential to add more reserves at depth."

OceanaGold is currently negotiating a debt facility to fully fund the Frasers Underground development and its Globe Progress surface mine in the Reefton Goldfield. The Company expects to complete the Globe Progress bankable feasibility study in December 2005.

A more detailed document summarising the Frasers BFS is available on our website at www.oceanagold.com.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>


Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>


OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>


Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>