The Australian-Canadian mining firm OceanaGold Corp. will be pouring $50 million (around Php 2.8 billion) in capital investments to sustain its mining operations in the Didipio mine in Nueva Vizcaya.
In its full-year report, Oceana Gold disclosed that it has set a capital investment of $35-50 million (or Php 1.9 – 2.8 billion) for 2023.
The firm will be allocating around Php 220 to 330 million for pre-strip and capitalized mining, Php 1.1 to 1.4 billion for general operations, and Php 550-822 million for growth.
The sustaining capital “includes tailing storage facility lift and associated infrastructure plus improvements to on-site accommodation,” OceanaGold said.
The Didipio mine is seen to produce around 120,000 to 130,000 ounces of gold and 12,000 to 14,000 tonnes of copper.
OceanaGold will also be spending around Php 165-275 million for the exploration of the Didipio mine. The company added that it will focus on resource conversion drilling and continued definition of the two new mineralized structures recently discovered outside of the current resource.
“The AISC increase year-on-year is primarily as a result of higher sustaining capital and grid-supplied energy costs, as well increases in consumables, labor, and other costs as a result of inflation,” OceanaGold said in its report.
In 2022, the Didipio mine produced 113,198 ounces of gold and 14,361 tonnes of copper.
“Full-year gold production was approximately 30 percent higher than 2021 due to stronger gold production from the New Zealand Operations and the successful ramp-up of operations at Didipio, where target underground mining rates were achieved ahead of schedule in the second quarter of 2022,” OceanaGold said.
The Didipio mine is an underground and open pit mining project with a 10-year lifespan. It produces gold and silver as dore bars and copper in concentrate. It has proven and probable reserves of 1.23 million ounces and measured and indicated resources of 1.41 million ounces.