OceanaGold has received permits to expand the Macraes gold operation in New Zealand, extending its mine life until at least 2028.
The permits allow OceanaGold to extend the open pit at the Deepdell North stage 3 site, develop the Golden Point underground mine and expand the Frasers West pit.
Collectively, these projects are expected to produce 1.1 million ounces of gold over the next eight years and generate significant free cash flow for the company in 2021 and beyond.
President and chief executive officer Michael Holmes said the expansion is a critical opportunity for the company and a testament to its 30-year history of responsible mining.
“We continue to seek out additional opportunities through organic growth and exploration in New Zealand,” Holmes said.
“The consents facilitate the development of Golden Point underground, Deepdell North stage 3 and the expansion of the Frasers West pit beginning this quarter.
“Services and earthworks around the Golden Point underground portal are underway and the first cut of portal is expected before year-end.
“The company expects first production from Golden Point underground in the fourth quarter of next year, which will supplement and eventually replace existing underground production at Frasers when mining there is completed.”
OceanaGold has also startedthe extension of the Fraser open pit and pre-stripping the Deepdell open pit and at Macraes.
Once completed, the company believes the Macraes operation will produce on average 150,000 to 170,000 ounces of the precious metal annually at all-in sustaining costs of around $1000 per ounce.