Oceana yesterday emphasised the superpit concept is long-term, still being evaluated and a feasibility study is yet to begin. Many details of the size, scope and operational capacity of a superpit are yet to be quantified.
Oceana is waiting for the outcome of a separate raft of recent resource consent applications from regional councils of Otago and Waitaki to continue its ongoing mining operations; its 21st year of production.
In a presentation at the Denver Gold Forum last month, chief executive Mick Wilkes outlined the "Macraes Superpit Concept" where a larger open pit and new process plant could add 100,000 ounces of gold a year to production, plus separate tungsten byproduct.
This calendar year, Oceana has forecast South Island gold production in a range of 255,000oz to 270,000oz, but in tandem with a yet-to-be-commissioned gold/copper mine in the Philippines, it is targeting annual gold production to increase to 600,000oz by 2016.
Mr Wilkes said in the United States, the superpit concept would mean an expanded open pit, a new process plant and higher mining rate and ore throughput to gain the 100,000oz of gold per year.
There could be a possible increase of the estimated gold reserve in Macraes' open pits, from the present 1.53 million ounces to 2.6 million ounces; a 69.9% increase.
The recent consent applications in Dunedin included a description of the "Macraes phase III project", part of a long-term plan to extend the mine's life from 2018 "to 2020 and beyond", by expanding present operations and reopening previously mined areas, Oceana said in its opening submissions to the resource consent applications.
"Today's high gold price means that previously mined open pits can now be mined deeper. Ongoing exploration may also further define new areas of economic interest," Oceana said.
The company's head of business development, Darren Klinck, contacted in Australia yesterday, said the superpit presentation was a "concept" being evaluated in studies continuing into next year.
"Evaluating this potential opportunity is consistent with our strategy of ensuring we are looking at all opportunities within the organisation to unlock value within our current asset base."
He said as a producer for 20 years in the Macraes goldfield, Oceana could allocate time and resources to ensure the company was thinking "outside the box", which is what it was doing with this project. It was too early to answer detailed questions on the superpit concept.
• It was announced yesterday Oceana's company secretary Matthew Salthouse has resigned after three and a-half years, effective from today, "to pursue another opportunity", triple-listed Oceana announced to markets.
Oceana Gold is seeking
• Resource consents from Otago Regional Council and Waitaki District Council to allow it to keep mining after consents end next August. Decision expected within weeks.
• To extend some operations, including expansion of the Fraser's underground mine, Frasers open pit and reopen areas previously mined, including Round Hill.
• To establish new tailings storage facility, expand some pits, reclaim, relocate tailings, new waste rock stacks and extend existing stacks.
• If a superpit were to proceed, separate round of new resource consent applications likely.
