The mine would have a pre-production cost of $US53 million and a total cost of $100 million – including $42 million on mining equipment – and see Haile’s life of mine all-in sustaining costs (AISC) come in at $554/oz.
The numbers for the underground project were the result of a preliminary economic assessment, with OceanaGold now undertaking an optimisation study of both the open pit and underground scenarios.
The study is expected to be completed by mid-2017.
Haile will be OceanaGold’s third operation, adding to mines in New Zealand and Philippines.
In 2016, the company expects to produce 385,000 to 425,000oz of gold from the combined New Zealand and Didipio operations and 19,000 to 21,000 tonnes of copper from the Didipio operation at AISC of $700-750/oz.
Shares in OceanaGold were trading this week at $A4.47, capitalising the company at $2.73 billion.
The stock started the year at about $2.70.
