The mine is producing at 4.4 million tonnes per annum, with the shaft initially designed to bump that up to 6Mtpa, but project optimisation works have identified the opportunity to increase the hoisting shaft capacity by 8% to 6.5Mtpa for just an additional $2 million outlay, which can be absorbed within the approved budget.

 

The change in design includes an upgrade to the shaft winder motor, enlarged skips, and upgrades to the material handling system which in turn provide optionality to increase annual mine production rates. 

 

It is still crunching the numbers to assess whether underground mining rates can be increased to fully utilise the increased 6.5Mtpa hoisting shaft capacity.

 

The average annual production was expected to be 54,000t and 108,000 ounces of gold based on 6Mtpa.

 

The miner said shaft works were progressing well, and are scheduled for completion in 2024.

 

The shaft is expected to extend the mine life to 2036, lower operating costs and operational risks, and reduce emissions intensity by 27% compared to the current trucking operation.

 

Operational costs are expected to fall by $14-20/t.

 

OZ shares were steady this morning at $27, giving the company a market capitalisation of $9 billion.

 

The stock has traded between $20 and $29.75 over the past year.