Oceanagold begins processing material at Didipio mine, Philippines

Oceanagold Corp. [OGC-TSX; ASX, NEW ZEALAND; OGDCF-OTC]has commenced processing at the Didipio gold-copper mine in the Philippines.

Scott Sullivan, chief operating officer and acting CEO, said, “This is a major milestone for Oceanagold, the Didipio mine and host communities. Following the confirmation of the Didipio mine financial or technical assistance agreement renewal, Didipio is producing gold and copper again, which will be an important source of free cash flow generation for the company and a significant contributor of socio-economic benefits for the region and country.

“The start of milling is two weeks ahead of schedule, following the completion of plant upgrades and maintenance activities, and the start of mining activities was one month ahead of schedule. It marks a new beginning for the operation and the predominately Filipino work force who are leading and operating a first-quartile gold and copper producer.

“As the underground mining operations continue to ramp up over the course of the next eight to nine months, the primary ore feed will be sourced from low-grade stockpiles, of which the company has approximately 23 million tonnes of ore on surface. With underground ore progressively being delivered to the ROM (run-of-mine) pad, the operation will increase the proportion of higher-grade ore feed to supplement the mill.

“The Didipio process plant is expected to ramp up to its throughput rate of 3.5 million tonnes per annum over the course of the next few weeks. For the remainder of the year, the company expects to produce between 7,000 and 12,000 ounces of gold and 1,000 tonnes of copper at an all-in sustaining cost between US$100 and US$150 per ounce sold on a by-product basis. The company will continue to manage the risks associated with COVID-19 as it continues to ramp up operations to full production rates of 10,000 ounces of gold and 1,000 tonnes of copper a month.”