Oceana Gold remains bullish its gold/copper development mine in the northern Philippines will be in full production by 2013, boosting annual gold-equivalent production well beyond 300,000oz.
Oceana produced a record 300,391 ounces from its Macraes open pit and underground Frasers mine, in West Otago, and Reefton, on the West Coast, for the calendar year 2009.
It said yesterday it remained on track to deliver a forecast 270,000-290,000oz this year, having to work through lower-grade ore.
The Didipio development mine has had about $US80 million ($NZ103.5 million) spent on it to date, but was mothballed in late 2008 because of costs doubling to $US320 million, the global financial crisis and the lack of any willing backer.
However, triple-listed Oceana raised $151 million in warrants, to be traded on the Toronto stock exchange in early October and used for the Didipio development.
Its 100% unhedged position could add a further $70 million-$80 million to its bottom line, buoyed by the strength in spot gold prices this year.
In a "corporate presentation" released yesterday, Oceana said the Didipio development had been "de-risked" by changing to an underground mining method.
A project development team was being assembled and building and plant commissioning was expected to be finished in 15 to 21 months, with total capital expenditure already fully financed at $US140 million.
While gold production was expected to run just below 300,000oz a year between 2010 and 2015, copper production at Didipio in 2013 and 2014 has been forecast at 35 million pounds, rising to 36 million pounds in 2015 - which steadily increases gold-equivalent production above 300,000oz-350,000oz.
Estimated gold reserves in New Zealand stand at 1.94 million oz, with the Philippines forecast to contribute a further 1.41 million oz of gold and 170,000 tonnes of copper.
Oceana yesterday appointed Mick Wilkes as its new chief executive.
He has widespread experience in both gold and copper projects during a 26-year career.
The company lost two chief executives in quick succession over 16 months when Steve Orr, who had held the post for five years, resigned in May 2009 and was replaced by Paul Bibby, who resigned in September this year.
Mr Wilkes will join Oceana in mid-January when he has finished as executive general manager of operations at OZ Minerals. Most recently, Mr Wilkes had responsibility for evaluation studies for, and construction of, the Prominent Hill copper/gold project, worth $A1.2 billion ($NZ1.53 billion), in South Australia, overseeing resource developments of 100,000 tonnes a year of copper and 200,000oz of gold.
Previously, he was general manager of the Sepon gold/copper project for Oxiana in Laos, leading the site team that built and commissioned the mining operation.
Dr Michael Roache, who has worked for Oceana in the past, was appointed vice-president of exploration yesterday, with a near-term focus on exploration in New Zealand and the Philippines.
