#New Zealand #OceanaGold #Waihi District #Wharekirauponga #Waihi

OceanaGold's Groundbreaking Pre-Feasibility Study for Waihi District

OceanaGold Corporation has made headlines with the release of its Pre-Feasibility Study (PFS) concerning the Waihi District, particularly focusing on the Wharekirauponga underground mine in New Zealand. With a solid initial estimate of 1.2 million ounces of gold, the report indicates favorable project economics that could vastly influence the local economy and the company’s operations moving forward.

Highlights of the Pre-Feasibility Study

The PFS revealed several key insights:

• - Initial Mineral Reserve: The Wharekirauponga mine is estimated to contain around 4.1 million tonnes of resources at an impressive average grade of 9.2 grams per tonne (g/t) of gold, equating to about 1.2 million ounces.
• - Economic Viability: Using a forecasted gold price of $2,400 per ounce, the project projects a post-tax Net Present Value (NPV) of $621 million, indicating a robust internal rate of return (IRR) of 24%. Even with a price set at $1,750, the IRR remains a respectable 9.2%.
• - Production Outlook: The study forecasts an impressive production forecast totaling 1.6 million ounces of gold over a 15-year mine life, with average sustaining costs estimated at $994 per ounce.
• - Future Exploration: There’s an optimistic outlook for additional resources at Wharekirauponga, with about 400,000 ounces classified as Inferred Resources. This reserve, alongside new drilling results extending known mineralization, suggests substantial exploration upside.

Strategic Developments

Gerard Bond, President and CEO of OceanaGold, remarked that this PFS marks a significant milestone for the company, contributing to the long-term sustainability of their Waihi operation, extending its operational life to at least 2038. The expected timeline for the first ore extraction from Wharekirauponga is set for 2032, which complements the operational longevity of existing facilities.

OceanaGold is committed to responsible and safe mining practices, adhering to stringent environmental and social governance standards. This initiative not only aims to generate robust returns for shareholders but also to foster economic development in the local communities.

Infrastructure and Economic Impacts

The company has budgeted approximately $556 million for expected growth capital investments set over an 8-year period, supporting various facets of the development including infrastructure expansions, mine site access, and operational enhancements.

Moreover, OceanaGold's endeavors in the Waihi region are poised to create significant employment opportunities and spur local economic growth. The PFS indicates provisions for environmental impact assessments and fast-track permitting processes that could allow for expedited construction timelines, a crucial aspect of their operational strategy.

Next Steps and Future Plans

As part of its continued development efforts, OceanaGold plans, within the coming year, to initiate detailed engineering and design work, including plans for essential infrastructure upgrades. The company aims to forge ahead with drilling programs targeting both resource expansion and conversion to bring further substantial amounts of gold within their operational framework.

The unveiling of this Pre-Feasibility Study sets an optimistic tone for OceanaGold and its stakeholders. With a solid foundation established for the Wharekirauponga mine and a clear trajectory ahead, the company is poised to emerge as a key player in New Zealand's mining landscape, leveraging its strategic resources and geographic advantages in the precious metals market.

Conclusion

In summary, OceanaGold’s latest PFS signifies a promising future for their Waihi District Mining projects. With a dynamic mix of economic opportunity, community benefits, and environmental stewardship, the announcement encapsulates the company's commitment to responsible mining and sustainable development in New Zealand. As monitoring and further exploration commence in 2025, stakeholders eagerly await the next phases of this significant venture.