OceanaGold advances underground mining

Australian mining giant OceanaGold Corp. has advanced its underground mining operations at its Didipio coppergold mine project in Nueva Vizcaya as it expects production to commence before 2018.

In a disclosure with the Toronto Stock Exchange (TSX), OceanaGold said that production from the underground mine at Didipio is expected at the end of next year.

“Mining of Stage 5 of the open pit was completed during the quarter, ahead of schedule, while development of the underground continues to advance well,” OceanGold told TSX.

In the first half of the year, Didipio produced 90,887 ounces of gold and 12,244 tons of copper, including 44,076 ounces of gold and 6,272 tons of copper in the second quarter.

“The slight quarter-on-quarter decrease in gold production was expected and as a result of a lower head grade,” the company said.

The company also reported revenue of $330.8 million during the first six months of the year and a net profit of $63.2 million. In the second quarter alone, the company recorded revenue of $169.8 million with a net profit of $39.7 million.

“After a strong first half of the year, the Company is well positioned to achieve its production and cost guidance for the year,” Mick Wilkes, president and chief executive officer of OceanaGold, said.

“We will continue to operate safely while seeking to unlock the organic growth potential of our assets,” he added.

OceanaGold is now facing regulatory review following complaints from Nueva Vizcaya residents about the possible expansion of the company’s operations.

Joey Leviste, OceanaGold Philipppines chairman, said that they have yet to receive a copy of the order from the Mines and Geosciences Bureau over the possible suspension of five-year exploration permit awarded to them earlier this year.

The permit allowed the company to conduct exploration activities in the broader region surrounding Didipio in the next five years.

Didipio mine is a high-grade goldcopper open pit and underground mine located around 270 kilometers north of Manila whose full-year operation began in 2014.

The mine is one of the lowest-cost gold mines in the world, with nominal production of 100,000 ounces of gold and 14,000 tons of copper. It has an estimated reserve of 1.59 million ounces of gold and 210,000 tons of copper.

OceanaGold’s mining claim covers around 15,000 hectares, but the company has only explored and developed around 900 hectares.