Bayombong, Nueva Vizcaya—A Melbourne-based mining firm operating here said 2019 is expected to be another strong year of production and development as they continue to invest in the prosperity and growth of the company.
In 2013, OceanaGold started commercial operation of its Didipio Gold and Copper Project in the upland village of Didipio in Kasibu town in Nueva Vizcaya.
Mick Wilkes, OceanaGold president and chief executive officer, said Didipio is again expecting strong production in 2019.
“As previously expected, all-in sustaining cost [AISC] at Didipio will be higher due to lower copper credits and expensing ore stockpiles [and that] production taxes at Didipio will be included in the AISC for the first time as per the new World Gold Council guidelines,” Wilkes said.
He said it is an exciting time for the gold mining industry and that they are very pleased with how they are positioned to continue building shareholder value.
“Our focus on delivering consistent positive returns and healthy margins over the long term has been the recipe for our continued success. We have a strong shareholder register and remain staunchly committed to delivering strong returns to our shareholders and significant socio-economic benefits to our valued stakeholders across our business,” Wilkes said.
The company said production at Didipio is expected to be slightly higher from 2018 with continued ramp-up of underground operations which are expected to deliver slightly better gold grades in the second half of the year.
“This year, the company expects to mine approximately 1.2 to 1.3 million tonnes of underground ore and ramping-up mining rates to 1.6 million tons per year commencing in 2020,” Wilkes said.
He said it will continue to supplement mill feed with low grade open pit stockpiles of which it has approximately 19 million tons stored on surface.
He also explained that Didipio’s AISC guidance range is higher than in previous years mainly related to the continued transition to underground, the inclusion of production-based taxes in the metric including excise, real property and local business taxes and lower copper by-product credits.
Didipio’s AISC includes a non-cash component related to the expensing of open pit ore stockpiles processed and this amounts to approximately $125 per ounce in 2019.
He also added that growth capital at Didipio for 2019 is predominately related to the completion of panel two in the underground, which is expected by the end of the year.
Also this year, the company will continue to invest in exploration opportunities across the business and through joint ventures with early stage exploration companies.
“At Didipio, the exploration focus is predominately on infill and extensional drilling at lower levels of the Didipio Underground,” Wilkes said.