OceanaGold permit for Mindanao mine site renewed

MANILA, Philippines - Australian miner OceanaGold Corp. has received the renewal of  its exploration permits for its Paco tenement in northeastern  Mindanao.   

In statement, the company said it is now preparing to conduct a  geophysical survey of the area to identify buried gold-copper porphyry  systems and determine the economic value of the deposits.   

OceanaGold operates the Didipio copper-gold mine in Nueva Vizcaya  under a financial and technical assistance agreement (FTAA) with the  government but is also pre-developing other mineralized prospects, among which are tenements in the Surigao Peninsula.   

The company said as of the end of the third quarter, production in its Didipio copper-gold mine is expected to exceed this year’s  guidance.   

In the first nine months of the year, the Didipio operation has produced 71, 473 ounces of gold and 18, 263 tons of copper. It is expected to exceed its 2014 production guidance of 85,000 to 95,000 ounces of gold and 21,000 to 24,000 tons of copper.   

OceanaGold managing director Mick Wilkes said the sustained high  production in the Didipio project resulted from higher ore grades obtained from a larger underground operation pursued after an  optimization study that recommended the use of both open pit and underground mining methods.   

“The Didipio operations is well on track to exceed its full year production guidance,” said Wilkes.

OceanaGold operates the Didipio mine through its local arm OceanaGold Philippines.   

The Didipio mine was commissioned in December 2012 and began commercial operations in the second quarter of 2012. It is the first  mine to operate in the country under FTAA with the government.   

An FTAA allows mining firms owned by a majority of foreigners to operate in the country but requires 50-50 sharing of revenues between the company and the government.