OCEANAGOLD PROVIDES OPERATIONS UPDATE INCLUDING DIDIPIO RESTART
by Philippine Resources - September 20, 2021
Photo credit: OceanaGold
Scott Sullivan, Chief Operating Officer and Acting Chief Executive Officer of OceanaGold said, “The recommencement of Didipio operations is progressing ahead of plan. The recruitment of the workforce is ahead of schedule as we expect approximately 65% of the total workforce to be in place by the end of the third quarter and approximately 90% by the end of the year. Training of the workforce is progressing well ahead of the restart of processing and mining activities expected in the fourth quarter. The health and safety of our employees and local communities is paramount and we continue to manage the ongoing risks and personnel impacts associated with the COVID-19 pandemic.”
He went on to say, “During August, we successfully exported and sold the remaining gold Doré, while also commencing the transport of gold-copper concentrate inventory stored on site. As at September 10, approximately 6,000 dry metric tonnes of the total concentrate in inventory has been delivered to port ahead of shipping. The Company expects approximately 80% of the concentrate to be transported to the port by the end of the third quarter and entirely transported by mid-October.”
The gold-copper concentrate inventory totalled approximately 15,000 dry metric tonnes, which contains approximately 18,500 ounces of gold and 3,500 tonnes of copper. Additionally, the Company had nearly 1,100 ounces of gold in Doré, which has been sold in the third quarter. To-date the Company has invoiced approximately $25 million in net concentrate sales. The Company expects to have completed the transport and sale of all concentrate inventory by mid-October and to have collected 90% of the invoiced value progressively over a similar time frame. The final 10% is payable on delivery of concentrate to the customers smelter based on final assay.
Transportation of supplies and equipment to the Didipio Mine site have progressed well. Process plant recommissioning is over one-third complete with restart activities including but not limited to installation of a new ball mill motor, ongoing recommissioning of the crusher, recharge of grinding media and testing and commissioning of plant instrumentation and pumping equipment. The Company expects the restart of milling on stockpiled ore by the middle of November. The Didipio operation currently has approximately 23 million tonnes of stockpiled ore grading at 0.33 g/t gold and 0.3% copper. Upon restart of underground mining operations, mill feed will be progressively supplemented by higher grade underground ore.
Underground mining restart activities include the rehiring and training of underground operators is progressing to plan. The Company has completed initial rehabilitation of ore drives, geotechnical inspections, installation and testing of ventilation infrastructure and technical plans. Ore development is expected by the end of October while stoping is scheduled for the end of November. The Company is expecting to ramp-up to the full underground production rate of 1.6 million tonnes per annum within ten months
The capital expenditure associated with the restart of operations is expected to range between $5 to $7 million for the remainder of the year. This expenditure will be funded through the net proceeds associated with the sale of the gold-copper concentrate in 2021.
For the remainder of 2021, the Company expects to produce between 5,000 and 10,000 ounces of gold along with approximately 1,000 tonnes of copper. The Company expects Didipio gold sales for 2021 to range between 23,000 and 28,000 ounces of gold and between 3,500 and 4,500 tonnes of copper. Didipio All-In Sustaining Costs are expected to range between $300 and $400 per ounce sold with cash costs of $200 to $300 per ounce sold. At full operations, the Didipio mine is expected to produce approximately 10,000 ounces of gold and 1,000 tonnes of copper per month.
The Company is working in partnership with the local municipal health office to support vaccination efforts, including sourcing additional vaccines for the Didipio workforce and surrounding communities. Social development projects have also re-commenced for Didipio’s beneficiary communities, which includes COVID-19 relief efforts as well as significant investment in programs that improve health, education, infrastructure, and capacity building within the local and adjacent communities. The successful and uninterrupted restart of Didipio reflects strong endorsement from both the community and National Government. Didipio is a meaningful socio-economic contributor to Barangay of Didipio, adjacent communities and provinces of Nueva Vizcaya and Quirino, and the region. The Company looks forward to continuing its legacy of responsible mining in the Philippines and contributing to the post COVID-19 economy.
Macraes 2021 guidance is revised to 135,000 to 145,000 gold ounces at an AISC of $1,300 to $1,350 and a cash cost of $900 to $950 per ounce sold. The change is due to the production impact of the fifteen-day New Zealand wide level 4 COVID-19 lockdown and subsequent ramp-up, combined with the management of ongoing geotechnical risk limiting the operations ability to fully access higher grade zones as planned later in 2021.
Waihi operations were also suspended for fifteen-days in accordance with New Zealand’s level 4 COVID-19 restrictions. As previously advised, operations resumed following the easing of restrictions with the impact of the suspension on 2021 production of approximately 5,000 ounces. With the site mine constrained, the reduction is driven by lower 2021 ore production with the deferred ore zones being higher grade. Waihi is now tracking toward the lower end of its production guidance range of 35,000 to 45,000 gold ounces at an AISC of $1,300 to $1,350 and a cash cost of $900 to $950 per ounce sold. The Company, however remains focussed on identifying potential opportunities to partially offset the impact over the balance of 2021.
At Haile, the Company continues to advance technical reviews and focus on mine and mill productivity and operating cost improvements. Recent operational performance continues to comfortably track to full year guidance of 160,000 to 170,000 ounces of gold at an AISC of $1,100 to $1,150 per ounce sold and a cash cost of $850 to $900 per ounce sold. Development of the Haile Underground is expected to commence following completion of the Supplementary Environment Impact Statement process.
On a consolidated basis, after the inclusion of Didipio, the Company continues to expect full year production to be 350,000 to 370,000 gold ounces at an AISC of $1,200 to $1,250 and cash costs of $825 to $875 per ounce sold. With the inclusion of Doré and concentrate inventory sales from Didipio, consolidated gold ounces sold for 2021 are expected to be approximately 20,000 ounces higher than production.
Article courtesy of OceanaGold
Marcelle P. Villegas - September 30, 2019
OceanaGold: Philippine Court of Appeals Sets Hearing Date for Injunction
(Photo courtesy of Mr Jason Magdaong, OceanaGold Phils. Inc. - “Didipio Mine: The Renewal of the Philippines’ First FTAA”) According to OceanaGold Corporation (Melbourne), the Philippines Court of Appeals in Manila had set last 18 September 2019 as the hearing date for the company's application for a Writ of Preliminary Injunction. This is part of the company's appeal against the Nueva Vizcaya Provincial Court ruling of denying OceanaGold Phils. Inc.’s (OGPI) request to end the unlawful restraint of operations. The Provincial Local Government Units of Nueva Vizcaya (PLGU) has been impeding access to the mine site since 1 July 2019. This is in response to an unlawful directive from the Governor to 'restrain any operations of the company. OGPI points out that the regulatory authority over the Didipio Mine rests with the National Government. They also clarified that the Local Government Code of 1991 (Republic Act No. 7160) does not grant the power of authority to the Provincial Governor or any local government officer to restrain any aspect of the Didipio operation.  OGPI continues to work with the National Government to finalise the renewal of their Financial or Technical Assistance Agreement (FTAA) and remains open to the opportunity to engage with the Provincial government and work together in the best interest of the local stakeholders. The Company remains strongly committed to operating in accordance with the law and will always comply with its responsibility under its contract with the Philippine Government.  Mr Mick Wilkes, President and CEO of OceanaGold said, "The Company has successfully developed and operated the Didipio Mine in the Philippines with a focus on delivering socio-economic benefits to local communities utilising international best practices and gaining a strong social license to operate. OceanaGold has established sound and collaborative relationships with regulatory authorities and stakeholders based on mutual respect." "While this process is taking some time, we will always operate in line with our values and commitment to responsible mining, and this means working transparently with the Philippine regulatory authorities to maximise the speed of the renewal. We are encouraged by the engagement with the government to date as we continue to work towards a mutually-acceptable path forward on the FTAA renewal." "I would like to recognise our world-class Philippine workforce of 1,500 workers who have remained focused on safety and preserving optionality at site during this uncertain time. We are proud to have positively contributed to the Barangay of Didipio, Province of Nueva Vizcaya and Quirino and neighbouring communities since 2012."  The Didipio Mine of OceanaGold Phils. is an underground gold and copper mine located across the provinces of Quirino and Nueva Vizcaya. The mine operation has received numerous awards such as two Presidential Awards for being the most environmentally and socially responsible mining operations in the Philippines. Overseas, the company was awarded the 1st ASEAN Mineral Award for best practices in sustainable development. OceanaGold's Didipio mine site (Philippines) is considered one of the safest gold mining operations in the world because for the past two years, the company has deployed state-of-the-art automated and digital underground mining technology. For the past years, OGPI’s Didipio project has been providing significant socio-economic assistance to the province of Nueva Vizcaya and Quirino. Other than providing jobs to 1,500 workers (97% are Filipinos, 59% are from local communities) the company also provides several thousands of additional livelihood opportunities and indirect jobs through partnerships with cooperatives and social development organisations. As an international company, OceanaGold Corporation is a mid-tier, high-margin, multinational gold producer with assets located in the Philippines, New Zealand and the United States. The Company's assets encompass the Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. In New Zealand, OceanaGold Corporation operates the high-grade Waihi Gold Mine, the Frasers mine, and the largest gold mine in the country at the Macraes Goldfield.  In the United States, the Company operates the Haile Gold Mine in South Carolina. The Haile Gold Mine is a top-tier, long-life, high-margin asset. OceanaGold Corporation also has a significant pipeline of organic growth and exploration opportunities in the Americas and Asia-Pacific regions. From their media release, the Company states, “OceanaGold has operated sustainably since 1990 with a proven track-record for environmental management and community and social engagement. The Company has a strong social license to operate and works with its valued stakeholders to identify and invest in social programs that are designed to build capacity and not dependency.”  “In 2019, the Company expects to produce between 500,000 to 550,000 ounces of gold and 14,000 to 15,000 tonnes of copper at All-In Sustaining Costs ranging between $850 and $900 per ounce sold.”  #DidipioMine #OceanaGoldPH #ResponsibleMining #Philippines Reference:  OceanaGold Corporation Media Release - 13 Sept. 2019, retrieved from - https://www.oceanagold.com/investor-centre/news-releases/ Photos: Courtesy of OceanaGold (Phils.) Inc. - Retrieved from - https://www.oceanagold.com/downloads/images/
Abe Almirol - June 21, 2021
OceanaGold opens health facility for Covid-19 patients
OceanaGold Philippines, Inc. (OGPI) has opened an isolation facility for patients infected with Covid-19 at its host community in Didipio here. The facility is also open for patients from its neighboring villages. Inaugurated last June 15, the Didipio Family Health Center (DFHC) can accommodate up to 15 people with separate room allocations for confirmed cases, suspected cases, and close contacts individuals. The facility is complete with medicine for patients with respiratory problems. It is also equipped with oxygen and rapid antigen test kits. OGPI will also allocate one of its company nurses to take special regular duty at DFHC. Following the inauguration of the facility, the four barangay health workers of Barangay Didipio have already transferred to the newly refurbished DFHC facility. The initiative came following the surge of Covid-19 cases in Didipio and neighboring barangays soaring up to 147 cases since March. In his remarks during the facility inauguration, Mayor Romeo Tayaban emphasized the importance of an established isolation structure while noting the continuous rising of cases in the region. “Let’s make this DFHC useful for the next generation,” he said. The mining company allocated around P1.6 million for the procurement of equipment, medical supplies, and the much-needed repairs of the health facility. DFHC will be operated by the barangay LGU with the supervision of the municipal health office here. Village acting chair Henry Guay, in coordination with MHO and OGPI, is now working on the accreditation of the facility by DOH so that PhilHealth members could avail of their benefits when confined to the facility. Dr. Elizabeth Joaquin, municipal health officer of Kasibu, looks forward to the development of DFHC as a hospital in the future so it can cater more patients even from other areas of Kasibu. Engr. Edgar Rivera, officer-in-charge of OGPI, emphasized the importance of mutual cooperation amon the LGUs, community, and private sector in overcoming the challenges brought about by the Covid-19 pandemic. “As long as OGPI is here, we continue to work with our stakeholders to provide necessary support in the achievement of their goals,” he said. The Covid-19 infections continue to create havoc as more areas outside the National Capital Region become areas of concern. Cagayan Valley was placed under the more restrictive MECQ until the end of the month.
Philippine Resources - July 14, 2021
OceanaGold Announces Didipio FTAA Renewal
OceanaGold Corporation today advises that the Philippine Government has renewed the Didipio Mine Financial or Technical Assistance Agreement (“FTAA”) for an additional 25-year period, beginning June 19, 2019. The renewed FTAA reflects similar financial terms and conditions while providing additional benefits to the regional communities and provinces that host the operation. Michael Holmes, President and CEO of OceanaGold said, “we are pleased to confirm the renewal of the Didipio Mine’s FTAA and thank the Philippine Government for their endorsement and renewal. We have worked through the renewal process in partnership with the Government and regulatory agencies. We look forward to commencing restart activities and continuing to work in partnership with our regulators, communities, employees, and all stakeholders to contribute to the Philippines’ post-COVID-19 economic recovery.” The Company has maintained the mine and associated facilities in a state of operational stand-by. The Company’s first operational priority is the rehiring and training of its Philippine workforce, which will include a focus on safeguarding workers from the current risks associated with COVID-19. The Company expects to provide additional details on the restart and resumption of normal operations at Didipio, including the timeline and an update to Company’s 2021 guidance, in due course. The Company plans a staged restart of operations with milling to recommence as soon as possible utilising stockpiled ore of which the operation has approximately 19 million tonnes available. The Company aims to achieve full underground production capacity within twelve months. Once fully ramped-up, the Company expects Didipio to produce approximately 10,000 gold ounces and 1,000 tonnes of copper per month at first quartile All-in Sustaining Costs. Didipio is a major direct and indirect employer in the provinces of Quirino and Nueva Vizcaya and a significant contributor of socio-economic benefits for the local and national economies. The Didipio Gold and Copper Mine operates to the highest environmental and social standards and has been recognised as one of the most responsible in the country. Renewal Terms The FTAA was renewed on substantially the same terms and conditions and includes the following modifications: The equivalent of an additional 1.5% of gross revenue to be allocated to community development Reclassification of Net Smelter Return to be an allowable deduction and shared 60% / 40% rather than wholly included in government share Listing of at least 10% of the common shares in OceanaGold Philippines Inc. (“OGPI”), the Company’s Philippine operating subsidiary and holder of the FTAA, on the Philippine Stock Exchange within the next three years OGPI shall offer for purchase by the Philippine Central Bank not less than 25% of its annual gold doré production at fair market price and mutually agreed upon terms Transfer of OGPI’s principal office to a host province within the next two years The additional 1.5% allocated to community development will take the form of increased contributions to communities in the region and provincial development projects. While the existing fund for Social Development and Management Program will continue to be provided for the host and neighbouring communities, 1.0% of the additional 1.5% will be allocated to community development for additional communities and 0.5% to the host Provinces of Nueva Vizcaya and Quirino.
Philippine Resources - October 19, 2021
TVI Pacific's 30.66% owned TVIRD Balabag Gold and Silver Project Completes Second Doré Shipment
TVI Pacific Inc. is pleased to announce the completion of a second shipment of gold doré from the Balabag gold and silver project. Balabag is owned 100% by TVI Resource Development Phils., Inc. a Philippines corporation in which TVI holds a 30.66% interest, and is located in Zamboanga del Sur, Philippines. Continuing Gold Production at Balabag Gold-Silver Project : Further to the announcement of September 30th, 2021, in which the Company announced the first shipment of gold doré from Balabag and reported various operating statistics, TVIRD has further confirmed that Balabag mill plant availability month-to-date has been 85% and that it is currently processing at a month-to-date average rate of 1,064 tpd. The second shipment in the amount of 894 kg of gold doré has been delivered to the designated refinery and contains 641 ounces of Au and 27,552 ounces of Ag for 992 gold equivalent ounces. Gross proceeds from the second shipment are US $1.8 million. The second shipment of gold doré follows the completion of the first shipment on September 30, 2021. Activities at site continue to be concentrated on optimizing the operation and the ramping-up of throughput to 2,000 tpd. The average head grade month-to-date has been 1.8 g/t Au and 95.1 g/t Ag while the average recoveries month-to-date have been 93% for Au and 86% for Ag. The run of mine ("ROM") mineralized stockpile, in-pit stockpile and crushed mineralized stockpile currently contains an approximate 100,000 tonnes of mineralized material, much of which is low to marginal grade and continues to be mined to expose the higher-grade mineralized resource during waste stripping and bench forming. The stockpiles have an average grade of 1.3 g/t Au and 47.7 g/t Ag. It is expected that the average grade of feed will increase as higher-grade mineralized resource is mined. Ongoing exploration drilling is continuing at Balabag with TVIRD having completed to date twenty-six (26) drillholes for a total meterage of 3,720 meters in its Phase 5B drilling program. A total of twenty-eight (28) holes are expected to be drilled with an estimated meterage of 4,200 meters. The Phase 5B drilling program together with assays and reporting is currently expected to be completed in Q4 2021. "We are pleased with the progress at Balabag having now completed the second shipment of gold doré within days of the first shipment being delivered to the designated refinery. Our focus continues to be to further ramp-up throughput as we continue to optimize the process but in general the equipment is working well", said Mr. Cliff James, Chairman and CEO of TVI and Chairman of TVIRD, "We look forward also to our soon being able to share with all stakeholders the results of Phase 5B drilling as TVIRD continues to pursue its growth strategy with ongoing drilling at Balabag."
Philippine Resources - October 19, 2021
Calbayog City coastal road project 83% done
A portion of the Calbayog City Coastal Road project in Calbayog City. The project, which is up for completion in 2025, is now 83 percent complete, the Regional Development Council’s regional project monitoring committee reported on Monday (Oct. 18, 2021). (Photo courtesy of Mel Senen Sarmiento) About 83 percent of the Calbayog City Coastal Road Project is now completed after four years of implementation, the Regional Development Council’s regional project monitoring committee (RPMC) reported on Monday. Construction of the PHP1.16-billion project meant to curb traffic jams in Calbayog’s commercial district has been implemented since 2018. It involves the construction of a road, embankment, and bridge. The government is eyeing to complete the project in 2025. “The construction of the Calbayog City Coastal Road aims to create alternative routes in the city to decongest traffic in Calbayog City proper. However, certain segments of the already funded network have yet to break ground,” the RPMC reported. It will start with the construction of a bridge across the Calbayog River since the work will affect the docking of motor boats carrying passengers and products to island communities. The Department of Public Works and Highways (DPWH) and Philippine Ports Authority will find a spot as a temporary dock for the motor boats. “Calbayog City is a fast-growing commercial hub. With its flourishing economy comes the need for bigger and better thoroughfares to accommodate the increasing traffic volume and weight,” the DPWH Samar first district engineering office said in a separate statement. From 2018 to 2021, the project’s work is centered on the construction of embankment and road with a total allotment of PHP1.14 billion. Of the total, PHP333.71 million was released in 2018, PHP281.07 in 2019, PHP268.52 million in 2020, and PHP265.76 million in 2021. The multi-year project that will build a 4.67-kilometer road and bridge will connect the villages of Rawis, San Policarpo, Aguit-itan, allowing vehicles to by-pass the busy road of Calbayog City’s commercial district. By Sarwell Meniano Article courtesy of the Philippine News Agency
Philippine Resources - October 18, 2021
Siguil Hydro Power Plant in Sarangani On-Schedule to deliver Renewable Energy in 2022
The Alsons Power group’s 14.5 mega-watt (MW) ₱ 4.5 billion run- of- river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani Province is on- track to begin operations in 2022 to provide a source of renewable power to key areas of Mindanao. The photo shows ongoing work on the plant’s powerhouse that will contain the hydropower turbine and generator set which will produce electricity using water from the Siguil River. It will also house the power facility’s control Room and offices for administration, operations and maintenance. Alsons Power- Mindanao’s firs private sector power generator plans to develop at least seven more run of river hydro power facilities in different parts of Mindanao and Negros Occidental. The group currently operates four power facilities in Mindanao with a total generating capacity of 468 MW serving over 8 million people in 14 cities and 11 provinces.