05:15 PM EST, 12/11/2024 (MT Newswires) -- OceanaGold ( OCANF ) on Wednesday said a pre-feasibilty study (PFS) for its existing Waihi operation and the proposed Wharekirauponga underground mine in New Zealand showed it can support a mining project producing 1.6-million ounces of gold over a 15-year mine life.

The company said the project would have a internal rate of return of 24% at a US$2,400 per ounce gold price and first ore could come from the underground project in 2032.

"This PFS is a major milestone for OceanaGold ( OCANF ) and the Waihi operation. We plan to safely and responsibly develop the Wharekirauponga Underground mine which extends the life of the Waihi operation to at least 2038, while generating strong returns for our shareholders and wider economic benefits for local communities and New Zealand," chief executive Gerard Bond said in a release.

The company said initial capital costs for the Waihi operation are pegged at US$556 million spread over eight years.

OceanaGold ( OCANF ) shares closed unchanged at $4.46 on the Toronto Stock Exchange.