Name of the Project
Bendigo-Ophir gold project.

Location
South Island of New Zealand.

Project Owner/s
Australian mining company Santana Minerals.

Project Description
The Bendigo-Ophir project has Joint Ore Reserves Committee-compliant reserves of 15-million tonnes at 2.58 g/t gold for 1.24-million ounces of gold. 

The updated prefeasibility study (PFS) proposes gold production of 1.25-million ounces over an initial 13.8-year mine life, with targeted gold output of about 120 000 oz/y in peak mining periods. 

The PFS proposes a combination of openpit and underground mining. Initial production will primarily come from openpits for more than 13 years, with underground mining starting in Year 7 and continuing for seven years, with further underground potential. The production strategy focuses on selective openpit staging and cutbacks to target near-surface ore, reducing prestrip requirements and allowing for a progressive build-up of gold production. 

The processing plant has been designed to a 1.2-million-tonne-a-year configuration, featuring three-stage crushing and a ball mill. This design is optimised for the selectively mined, higher-grade ore and can be expanded to 1.8-million tonnes in the future. The plant incorporates state-of-the-art detoxification and closed-circuit water treatment to effectively manage contamination risks. 

Potential Job Creation
The project is expected to generate significant regional employment opportunities, with a strong focus on local hiring and workforce training, contributing substantial economic output to the region.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 6.5% discount rate of A$780-million at a base-case gold price of A$3 500/oz, and an internal rate of return of 39%, with a payback of 2.6 years.

Capital Expenditure
Total construction and establishment preproduction costs are estimated at A$277-million, including 10% contingency.

Planned Start/End Date
Not stated.

Latest Developments
Santana has concluded its long-running land access arrangements under the Crown Minerals Act with the Central Otago District Council (CODC), securing access over council roading assets necessary to allow for the project to proceed, subject to receipt of Fast-track Approvals Act (FTA) consent.

The agreement delivers multigenerational benefits to the Central Otago district, with the company committing to an indexed payment of N$1.25-million a year to CODC to fund infrastructure, environmental and community benefits packages as it sees fit, six months after the star of commercial gold production, and transparently disclosed in the council’s yearly accounts.

Any future road stopping as defined under the Public Works Act will be subject to the full legislative process to be undertaken by the council, and will also include the provision of an alternate route as applied for in the company’s FTA application.

Key Contracts, Suppliers and Consultants
Minecomp (mine planning and design); SRK Consulting (pit shell optimisation and technical input); Frumla (underground mine designs); MACA Interquip Mintrex (process plant design and cost estimate); Peter O'Bryan and Associates (geotechnical studies); Engineering Geology (tailings storage facility); and Model Answer (financial modelling).

Contact Details for Project Information
Santana Minerals executive director corporate affairs and investor relations Sam Smith, email ssmith@santanaminerals.com.