OceanaGold Adjusts Reefton Gold Mine Schedule in Accordance with Gold Price Drop

OceanaGold Corporation (ASX:OGC,TSX OGC,NZX:OGC) announced that they are changing the  mine schedule for their Reefton gold mine in New Zealand.

As quoted in the press release:

The Company intends to maintain its current access arrangement with the Department of Conservation through to 2019 as planned and will commence rehabilitation of areas not expected to be disturbed in the future. The plant and permanent equipment will be left in place during this period of care and maintenance and the Company will be evaluating other opportunities within the goldfield such as the underground potential of the Globe Progress ore body. Additionally, a technical study is underway on the Blackwater project located approximately 15 kilometres south of the Reefton mine. The progression of this project is unchanged and should the project demonstrate positive economics and receive board approval, development activities could commence as early as 2014/2015.

OceanGold’s Managing Director and CEO, Mick Wilkes, said:

Mining operations must generate sufficient risk-weighted returns in order to remain sustainable and unfortunately the decline in the gold price over the past two months has eroded much of the profitability at Reefton which has lead to this revised plan. While we are hopeful for an improved gold environment, we have taken the necessary steps to ensure a sustainable and profitable operation at Reefton over the next two years and we will continue to evaluate other opportunities across the goldfield including underground opportunities at the Globe Progress pit and historic Blackwater mine.

To view the whole press release, click here.