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OceanaGold announces 2019 production and cost guidance

Mining News - Published on Mon, 11 Feb 2019

Image Source: Junior Mining Network
OceanaGold Corporation announced its 2019 full year production and cost guidance. Additionally, the Company has provided details related to its capital investment program for the year.

Key Highlights
1. Continued strong production levels at 500,000 ounces to 550,000 ounces of gold and 14,000 to 15,000 tonnes of copper at AISC of USD 850 to USD 900 per ounce of gold sold;

2. Increased mining and milling tonnes at Haile as part of the planned expansion of the operation to over 200,000 ounces per annum by 2022. Permitting of the expansion of Haile is on track;

3. Advancing permits and continued resource drilling and engineering studies for the Martha Underground Project at Waihi to extend mine life;

4. Continued investment in Macraes through exploration and mining to extend mine life further;

5. Global exploration spend of $40 million to $50 million in 2019 to increase reserves across all operations, advance the potential new discovery at WKP, and invest in new exploration Joint Ventures in the Americas.

Mr Mick Wilkes, President and CEO said, This year is expected to be another strong year of production and development as we continue to invest in the prosperity and growth of the Company. At Haile, we expect higher production in 2019 on the back of increased mill feed. AISC at Haile are expected to be slightly higher in 2019 due to lower mill feed grade and higher costs for labour and consumables. Whilst the mine has experienced difficulties in the past 4 months due to bad weather and a tight US labour market, the operation is recovering and we have plans in place to mitigate further significant weather events and skill shortages. Permitting of the larger open pits and the Horseshoe underground is progressing well and will continue in 2019. Following a successful outcome with the permitting process, we would expect production levels to steadily increase to over 200,000 ounces a year. We also expect unit costs to decrease over the next few years as mined and milled volumes increase. Both Didipio and Macraes are again expecting strong production in 2019, and Waihi will have lower production as currently permitted mine reserves are depleted. As previously expected AISC at Didipio will be higher due to lower copper credits and expensing ore stockpiles. In addition, production taxes at Didipio will be included in the AISC for the first time as per the new World Gold Council guidelines. Macraes AISC will be slightly higher due to lower grade and higher exploration costs as we invest in extending the mine life there further, and Waihi will have higher AISC due to lower mined grade."

Source :

Posted By : Rabi Wangkhem on Mon, 11 Feb 2019
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