Oceana Gold has completed a long-awaited study into its mothballed gold and copper development mine at Didipio, in the northern Philippines, which has been mothballed for almost two years after a massive cost blowout.
Oceana said the optimisation study of the mine, on which it is estimated to have spent $US120 million ($NZ166.2 million) in development so far, meant it now had unspecified options to resume development, which would now include some underground mining, as opposed to entire open pit mining.
Analysts have been scathing of Oceana in recent years, since costs blew out and doubled to $US320 million in late 2008 and prompted mothballing near the height of the global financial crisis.
Acting chief executive Jim Askew said with steady operations in New Zealand, a strengthened balance sheet, and increasing mine life in its New Zealand mines, Oceana "has a variety of options to unlock the embedded value at Didipio".
"The updated technical and economic study for the Didipio gold-copper project demonstrates, in our view, a robust project with a long mine life, decreased capital costs and strong economics," Mr Askew said in a statement yesterday.
The report found the remaining capital expenditure required is $US140 million, about 15 months to 21 months to production from restart of construction and that estimated reserves are 1.41 million oz of gold and 374 million lb of copper.
At the site, the main access road is in place, bulk earthworks are about 60% complete, processing plant, including the jaw crusher, and ball mill and flotation circuit are in storage; and site offices and accommodation partially completed.
