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

 

Preliminary Results of the Didipio Optimisation Study

OceanaGold Announces Preliminary Results of the Didipio Optimisation Study
MEDIA RELEASE
12 September 2014
(All figures in US Dollars unless otherwise stated)
(MELBOURNE) OceanaGold Corporation (TSX/ASX/NZX: OGC) (the “Company”) announced today the preliminary results of the Didipio Optimisation Study (the “Study”), a project that has identified significant value from the existing operation and ore body. The Study is expected to be finalised early in the fourth quarter with completion of an updated National Instrument (“NI”)43-101 Technical Report.
Key Outcomes
• Underground development to be brought forward by one year to commence in the first quarter 2015.

• Access to high grade ore to be brought forward by two years with first underground production now expected to be in the third quarter of 2017 with full ramp-up to a mining rate of 1.6 million tonnes per annum (“Mtpa”) by 2020.

• Redesigned underground to include two underground mining domains that will increase the mine productivity rate to 1.6 Mtpa (from 1.2 Mtpa) over a longer underground mine life.

• Improved geotechnical understanding, optimized open pit design and revised open pit/underground interface will reduce open pit waste mining by nearly 70 million tonnes (Figure 3) whilst only reducing ore supplied from the open pit by approximately one year.

• Improved project economics including increased cash flows and a longer mine life – to be finalized in the updated NI 43-101 Technical Report.
Mick Wilkes, Managing Director and CEO said, “On behalf of the Board of Directors, I am pleased to announce the positive outcomes from the Didipio Optimisation Study. With nearly 18 months of commercial operations, we have identified significant value from the Didipio Mine that will be unlocked through increased metal production; improved operating cash flows; as well as a significant reduction in waste mined combined with earlier access to higher grade underground ore.”
Based on the results of the Study, the underground portion of the Didipio operation will be brought forward by one year with development expected to commence in the first quarter of 2015 subject to receiving final regulatory approvals. Access to high grade ore will be brought forward by two years with first ore delivered for processing in the third quarter of 2017. The underground crown pillar will now be established at RL2460 (Figure 1), approximately 80 metres higher than in the original plan thus allowing for two active production areas in the underground resulting in an increase of the mining productivity rate to 1.6 Mtpa and a reduction in the cut-off grade. Additionally, the detailed Study along with a comprehensive infill drill program during the last 12 months has resulted in the expansion of the underground by 170 meters deeper than originally planned to RL2010 (Figure 1).

"Commencing the underground operation earlier than originally planned enables faster access to the high grade ore that resides in the underground reserves of the ore body. It also allows us to carry out further exploration at depth where we believe high grade mineralisation continues below the extent of the current drilling,” Mr. Wilkes said.
As a result of the Company’s increased understanding and confidence in the geotechnical attributes of the mine, the open pit has been redesigned with a reduced Stage 6 pit shell resulting in the elimination of nearly 70 million tonnes of waste over the life of mine.
The Board of Directors has endorsed the Study including the earlier commencement of the underground mine development, resource definition drilling and redesigned open pit. The Company will seek the required approvals to commence the development of surface facilities, including the portal and ventilation infrastructure in the first quarter of 2015. Under the optimised underground design, the pre-production capital cost is now estimated to be approximately $110 million over a three-year period (2015-2017) and sustaining capital expenditure over the life of the underground mine is expected to average $7 to $8 million per annum.
Mr. Wilkes added, “Over the coming months, the Company will invest in additional resource definition drilling for resource conversion and to further prove out the ore body. The Company will release an updated NI 43-101 Technical Report that will include the final results and an update to the Reserves and Resources statement for Didipio.”
- ENDS -

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: