Exciting News from OceanaGold Corporation!
Waihi District Pre-feasibility Study Results Revealed
Dec. 11, 2024 / Vancouver, BC
Hey there, fellow investors and mining enthusiasts! If you haven’t already heard, OceanaGold Corporation has just announced the results of their Waihi District Pre-feasibility Study, and let me tell you, it’s some pretty exciting stuff. The study includes both the existing Waihi operation and the proposed Wharekirauponga underground mine in New Zealand, and the numbers are looking very promising.
According to the highlights of the PFS, the initial mineral reserve for the Wharekirauponga Underground mine is estimated to be 4.1 million tonnes at 9.2 grams per tonne for a total of 1.2 million ounces of gold. With an after-tax NPV of $621 million at a gold price of $2,400 per ounce, or $138 million at $1,750 per ounce, and an impressive IRR of 24% at $2,400 per ounce, this project is shaping up to be a lucrative investment opportunity.
Over the anticipated 15-year mine life, the Wharekirauponga Underground mine is projected to produce 1.6 million ounces of gold at an average all-in sustaining cost of $994 per ounce. There is also significant upside potential at Wharekirauponga, with approximately 400 thousand ounces of inferred resources and recent drilling results indicating the extension of mineralization along the EG Vein Zone.
To bring this project to fruition, OceanaGold plans to invest $556 million in growth capital over an 8-year period, which they expect to fund from free cash flow. The first ore from the Wharekirauponga Underground mine is expected to be extracted in 2032, with early design and construction activities scheduled to commence in 2025 pending the necessary permits.
All in all, the future looks bright for OceanaGold with the promising results of the Waihi District Pre-feasibility Study. It’s an exciting time to be following this company and considering investment opportunities in the mining sector.
How this Will Affect Me:
As an investor, the positive results of the Waihi District Pre-feasibility Study could potentially mean increased returns on your investment in OceanaGold Corporation. With a projected IRR of 24% at a gold price of $2,400 per ounce, this project has the potential to deliver significant value to shareholders over the long term.
How this Will Affect the World:
The successful development of the Wharekirauponga Underground mine could have broader implications for the global gold market. With an estimated production of 1.6 million ounces of gold over a 15-year period, this project has the potential to increase the global supply of gold and contribute to meeting the ongoing demand for this precious metal.
Conclusion:
In conclusion, the results of the Waihi District Pre-feasibility Study are a major win for OceanaGold Corporation and its investors. The projected profitability of the Wharekirauponga Underground mine bodes well for the company’s future growth and success in the mining industry. It’s definitely a development worth keeping an eye on for anyone interested in the world of mining and resource investment.
