Otago miner seeks extension to 2020

Oceana Gold production could average about 270,000 ounces of gold a year. Photo / Grant Bradley

Otago miner Oceana Gold has applied for resource consents to extend its operations to 2020.

The main areas for the extension, sought from the Otago Regional Council and Waitaki District Council, include its Frasers underground operations and its surrounding pit, and other pits at Macraes in east Otago.

This month Oceana's New Zealand mine life was estimated to be until 2018-19, underpinned by increased exploration at both Macraes and Reefton on the West Coast, the latter's estimated gold resource having risen by 14 per cent after exploration.

Chief operating officer, Mark Cadzow, said mine life was initially set at seven years but it had been operating continuously now for 21 years.

"The mine is still a significant contributor to the local economy, due to continued investment and utilising new technologies developed over the years."

The combination of record gold prices, disengagement from holding forward gold selling contracts and spending of over $15 million on exploration in the past three years had contributed to the mine-life extension.

The publicly notified resource consent applications will allow Oceana to mine and process its current life of mine plan to 2020. The applications cover land use for drilling, water permits for diversion and to dam, and the discharge of containments to water, land and air.

Cadzow estimated Oceana contributed $200 million to the local economy and employed up to 600 people.

Oceana intends to continue processing around six million tonnes of raw ore a year in conjunction with the partly refined output from its West Coast Reefton open pit.

Estimated gold production would average between 260,000 and 280,000 ounces of gold a year, Cadzow said yesterday.

Separately, Oceana estimated recently that once its development gold and copper mine at Didipio, in the northern Philippines, is fully operational it will produce collectively 600,000 ounces of gold a year by 2016.

- Otago Daily Times