OceanaGold extends Didipio mine life to 2037

OCEANAGOLD (Philippines), Inc. said the operational life of the Didipio gold and copper mine in Northern Luzon has been extended to 2037 following an updated mine plan based on recent exploration results.

In a disclosure on Monday, the listed miner said updated mineral resource estimates indicate that Didipio’s open-pit stockpiles will be exhausted by 2032, with a smaller portion of residual ore expected to support operations until 2037.

The company had previously projected the mine’s operations to end in 2035, based on its 2023 technical report.

The Didipio mine operates under a Financial or Technical Assistance Agreement with the government, under which the state receives 60% of net revenue while the company receives 40%.

OceanaGold said the Didipio mine has a combined measured and indicated ore volume of 45.2 million metric tons (MT) as of Dec. 31, including 32 MT from underground operations and 13.2 MT from open-pit stockpiles.

Measured and indicated gold resources totaled 1.34 million ounces (Moz), consisting of 1.21 Moz from underground operations and 0.12 Moz from open-pit stockpiles.

Silver resources were estimated at 2.4 Moz, while copper resources were placed at 0.16 MT.

Proved and probable reserves for the combined underground and open-pit stockpiles include 1.13 Moz of gold, 2.2 Moz of silver, and 0.13 MT of copper.

The company said the updated resource estimates provide a basis for medium- to long-term mine planning.

“While ongoing monthly, quarterly and annual reconciliation fluctuations are expected, the Mineral Resource estimates are believed to provide an acceptable basis for medium to long-term mine planning purposes,” it said.

OceanaGold said it plans to increase processing throughput to 4.3 MT per annum, the current permitted limit, by 2027.

To support the extended mine life and higher underground production, the company said it is upgrading its mining infrastructure.

“Upgrades are underway to existing infrastructure to support increased underground mining rates, including primary ventilation upgrades to support mining at depth and increased fleet requirements,” the company said.

OceanaGold said it is also improving its surface paste plant and underground reticulation network, and investing in dewatering and electrical infrastructure upgrades. — Vonn Andrei E. Villamiel