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OceanaGold lists 2020 guidance of 360,000 to 380,000 gold ounces

Kitco News

(Kitco News) - OceanaGold Corp. (TSX, ASX: OGC) said Monday the company anticipates mining 360,000 to 380,000 ounces of gold in 2020 at all-in sustaining costs of $1,075 to $1,125 an ounce.

The company said production will rise at the Haile mine in South Carolina but fall at Waihi, where processing will be curtailed during a transition to underground output. The consolidated total for the year is down from the 470,601 ounces produced in 2019, as announced by OceanaGold in late January.

"For 2020, Haile is expected to deliver an additional 25% of gold production from last year to offset the year-on-year decline in production at Waihi, which is transitioning from Correnso to the Martha Under-ground," said Mick Wilkes, president and chief executive officer. "The Haile mine plan continues to evolve to further enhance open-pit operations and increase mine productivity. As a result of these changes that we are currently implementing, the mine is expected to gain operational flexibility, which also allows us to revisit the Horseshoe underground mine plan."

OceanaGold said the expected improvement at Haile is due to higher throughput rates and better recoveries, while head grades are expected to be similar. Some two-thirds of Haile production in 2020 is expected in the second half of the year.

The company expects Haile output of 180,000 to 190,000 gold ounces, with Macraes in New Zealand churning out 160,000 to 170,000 and Waihi 18,000 to 20,000.

Meanwhile, Wilkes said, Waihi will transition from Correnso, the main ore source purchased five years ago, to the Martha Underground, a discovery from three years ago. He described the company as "excited" about its work at Waihi, saying the operation should be set up for at least a decade of production.

OceanaGold said the company is continuing the process for the renewal of the Financial or Technical Assistance Agreement for the Didipio mine in the Philippines. In the meantime, Didipio remains in a "state of operational readiness," the company added.

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