Macraes doing well for Oceana Gold
OCEANA Gold remains bullish its New Zealand operations in East Otago and Waihi, in Waikato, will have mine life extensions confirmed this year.
Oceana at times has more than 900 jobs spread across its operations, including more than 600 at Macraes in East Otago.
The company is still investigating whether to begin a second, separate underground mine at Macraes, following its first Frasers underground mine which has long boosted gold grades from the less productive grades coming from the open pit operations.
For the seventh consecutive calendar year, Oceana has achieved its annual gold and copper production and cost ofproduction guidance, delivering 533,300 ounces of gold, for an allin sustaining cost of $US767 ($NZ1133) per ounce, plus 15,000 tonnes of copper.
Gold production was 33,300oz
higher than the minimum forecast.
Of its four mines, the 29yearold Macraes mine was again responsible for the lion’s share of the 533,300oz, delivering 203,000oz. At present, it has a formal mine life until 2021.
Oceana’s chief executive, Mick Wilkes, said the company had ‘‘another solid year of operational and financial performance’’, and this year expected to again generate good cash flow and consistent, strong returns.
During the last quarter of the year, the company had continued to investigate the opportunity to mine a standalone underground operation at Golden Point at Macraes, plus other initiatives to increase the mine life, at the current gold price.
‘‘We’re well on the way to deliver minelife extensions at our New Zealand operations while expanding production at Haile [South Carolina],’’ Mr
Wilkes said.
Yesterday’s ASX update was unaudited. Oceana’s full financial and operational results are scheduled for release next month.
Just before the end of last year, Mr Wilkes said Oceana had received a preliminary approval for starting mining activities at Martha underground, and stage four of the historic Martha open pit, which has been closed following a 2015 slip.
Consent to go underground, including beneath residential areas of the Waihi township, meant a 10year minelife extension. The mine has up to 350 staff and contractors.
Mr Wilkes said at Haile, in South Carolina, there had been multiple major storm events and sustained rainfall which hampered mining activities and access to higher grade areas, resulting in processing of lowergrade ore.
At Oceana’s Didipio mine, on the northern Philippine island of Luzon, underground operations were being increased and the development of area ‘‘panel 2’’ continued to ‘‘advance well’’, with expectations the underground mining rates this year would be double the 2018 rate.
❛ We’re well on the way to deliver minelife extensions at our New Zealand operations while expanding production at Haile Oceana Gold’s chief executive Mick Wilkes