OceanaGold (TSX: OGC, Stock Forum) management celebrated today when the company announced preliminary results from the Didipio Optimization Study which has identified significant value from the existing operation and ore body at the Didipio Mine located in the northern Phillipines.
According to the news release, the study is expected to finish in early Q4 2014 along with the completion of an updated NI 43-101 technical report.
Highlights from the preliminary results included the fact that underground development would be brought forward by one year to begin in Q1 2015 as well as access to high-grade ore would be brought forward two years with first underground production now anticipated to happen in Q3 2017 with full ramp-up to a mining rate of 1.6 million tonnes per annum (“Mtpa”) by 2020.
Preliminary results also outlined that the redesigned underground would include two underground mining domains that will increase the mine productivity rate to 1.6 Mtpa, from 1.2 Mtpa, over a longer underground mine life.
Company Managing Director and CEO, Mick Wilkes, commented, “On behalf of the Board of Directors, I am pleased to announce the positive outcomes from the Didipio Optimisation Study. With nearly 18 months of commercial operations, we have identified significant value from the Didipio Mine that will be unlocked through increased metal production; improved operating cash flows; as well as a significant reduction in waste mined combined with earlier access to higher grade underground ore.”
OceanaGold was in the news recently when the Melbourne Australia-based company released financial results for Q2 2014 at the end of July.
Shares edged up 2.67% on the news to $2.69 per share.
Currently there are 301.2m outstanding shares with a market cap of $810.2 million.