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New Zealand approves OceanaGold’s Waihi acquisition

16th October 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – New Zealand's Overseas Investment Office has approved triple-listed OceanaGold's acquisition of the Waihi gold mine from Newmont Mining in a deal valued at about $106-million.

The financial close of the transaction was now expected to take place on October 30. OceanaGold would assume the economic benefits and costs associated with Waihi effective July 1.

The Waihi gold mine was about 150 km south-east of Auckland and would expand OceanaGold's overall output by about 22%, or 100 000 oz/y, while all-in sustaining costs (AISC) were expected to drop.

The mine was expected to produce 65 000 oz to 70 000 oz of gold, at a cash cost of $490/oz to $520/oz and an AISC of $650/oz to $680/oz, in the second half of this year.

Waihi had a combined openpit and underground measured and indicated resource of 1.52-million tonnes, grading 6.33 g/t gold and 24 g/t silver, containing 310 000 oz of gold and 1.18-million ounces of silver. Inferred resources totalled 610 000 t at 7.73 g/t gold and 16.7 g/t silver, containing 152 000 oz of gold and 329 000 oz of silver.

The combined openpit and underground proven and probable reserves were estimated at 1.52-million tonnes, grading 6.33 g/t gold and 24 g/t silver, containing 310 000 oz of gold and 1.17-million ounces of silver.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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