PERTH (miningweekly.com) – A preliminary economic report on dual-listed gold miner OceanaGold’s Blackwater gold project, in New Zealand, has indicated an economically robust project.
In a report released on Wednesday, the ASX- and TSX-listed miner stated that Blackwater could be mined at a rate of 120 000 t/y, to produce 570 000 oz/y over a ten-year mine life.
The study has indicated that the base case scenario would require a capital investment of some $76-million, with a sustaining life-of-mine capital expenditure of $78-million. Operating costs have been estimated at around $217/t of ore.
The project was currently estimated to host an inferred resource of 900 000 t, at 21 g/t gold for 600 000 oz of gold.
OceanaGold told shareholders that notwithstanding the confidence limitations associated with an inferred resource, there was sufficient evidence to suggest continuity of the Birthday reef, but noted that this could only be confirmed by mining an exploration decline and undertaking the planned resource drilling.
“The results from this study demonstrate that the project is technically and economically viable and it is recommended that the project advances to construction of the exploration decline,” the company said in the 282-page study.
“Upon establishment of the initial underground exploration resource definition drill drive, a diamond drilling campaign will be required to support a mineral resource update, and conversion of mineral resources to mineral reserves through to full feasibility study.”
While OceanaGold has recently received the required consents to construct the exploration decline and to undertake exploration drilling and underground mining, resource consents would be required to allow for ore processing and tailings co-disposal facilities, the miner added.