Commercial production starts at Haile

OceanaGold’s Haile gold mine in South Carolina, US, commenced commercial production at the beginning of October
Commercial production starts at Haile Commercial production starts at Haile Commercial production starts at Haile Commercial production starts at Haile Commercial production starts at Haile

Staff reporter

PRESS RELEASE: All aspects of the operation have now been transitioned to the operations team and the commissioning team has demobilised. Mining operations continue to progress as planned with mining of sulphide ore at both the Mill Zone and Snake pits, while mine reconciliation has been in-line with expectations. The company’s near-term focus is to further improve mine productivity and operator training to align with OceanaGold's global operations standards.

Mick Wilkes, OceanaGold president and CEO, commented: “The achievement of commercial production is a major milestone for the Haile gold mine. It was through the hard work and dedication of our workforce and unwavering support from our shareholders, local stakeholders and partners that we are at this pivotal point only less than two years after taking ownership of this world-class asset located in South Carolina, US.

“The operation is back on track following the disappointment of the second quarter. Process plant throughput has improved and is close to design rates, while grade and recoveries are in-line with our expectations. Over the course of the next several months, we will continue to ramp-up operations and focus on fine-tuning of the process plant for incremental improvements.”

According to OceanaGold, the Haile operation is cash flow positive and operating costs have been generally in-line with expectations, although mining unit costs are slightly higher due to lower productivity during the ramp-up phase. The company expects to disclose the final reconciled revenue and costs associated with Haile’s pre-commercial operating period when it releases its September quarter 2017 financial and operating results in October.