Listed Oceana Gold Corp expects to begin construction activities at its mothballed northern Philippines gold and copper development mine by mid-2011, with 80% of the process plant equipment purchased or ordered by then.
Work at the Didipio tenement on the northern Philippines island of Luzon started more than two and a-half years ago but it was mothballed shortly after, following a costs blow-out, compounded by the global financial crisis with no external financing available.
However, Oceana has recently raised $C193.5 million ($NZ260 million) through two separate raisings on the Toronto stock exchange, which is its principal listing, and work resumed at Didipio early this year.
The target is to be producing gold and copper by early 2013.
Oceana chief executive Mick Wilkes said yesterday preparations at the Didipio site were "progressing well and we are on track to commence construction activities mid-year".
Oceana has estimated in the past that Didipio is expected to yield four years of open-pit mining and nine years underground, averaging 120,000 ounces of gold and 15,000 tonnes of copper during each year of its first decade of operation.
Mr Wilkes said much of the key equipment for the site had already been purchased and an order for the key "jaw crusher" would be placed this quarter.
About 80% of the process plant equipment, by value, was either in possession or under contract.
Oceana's announcement yesterday came just after global spot gold prices hit a record earlier in the week, briefly reaching $US1476 ($NZ1887), because of the weakening US dollar, before falling by almost $US10 yesterday.
Oceana shares, which hit a record $5.41 last September, had fallen to around $3.20 and were slowly regaining strength, but were trading down 4.75% at $3.80 yesterday.
Gold has become more attractive to governments and individuals globally as they seek to hedge against rising inflation on the back of financial market volatility.
