Wedoany.com Report-Dec.22, OceanaGold has obtained approval from a New Zealand expert government panel for the Waihi North Project, permitting the development and operation of the high-grade Wharekirauponga underground mine (WUG), located approximately 10 kilometers north of the company's current Waihi facility.

Gold production from the WUG is set to commence in 2032.

The Waihi gold district, positioned about 140 kilometers southeast of Auckland on New Zealand's North Island, has yielded an estimated eight million ounces of gold historically.

The permit encompasses the WUG construction, related surface infrastructure, expansions to existing processing and water treatment plants, and a new tailings storage facility. This decision enables further expansion of OceanaGold's activities in New Zealand.

The board has authorized the engagement of a mining contractor for underground tunnelling, along with contracts for earthworks at the Willows portal site and power upgrades. Tunnelling is scheduled to start in the first half of 2026.

The approval also expands exploration capabilities by increasing drill pads and allowing up to six drill rigs, supporting faster resource definition and conversion at Wharekirauponga from 2026.

OceanaGold president and CEO Gerard Bond said: "We are delighted to have received approval for our WNP, which allows access to one of the best undeveloped, high-grade orebodies in our industry.

"This is a major milestone for OceanaGold and for the Waihi operation and is a testament to our 35-year history of safe and responsible mining in New Zealand."

Initial site preparations, design work, and project planning are advancing. A 5-kilometer services trench for power, water, and communications from the existing Waihi operations to the Willows area began construction in the third quarter of 2025. Progress continues on the enlarged water treatment plant, with completion targeted for the second quarter of 2026 for both elements.

Production from the WUG is anticipated to begin in 2032, with first stope ore in 2033.

Bond added: "We are grateful for the approval of this regionally significant project, for which we have done considerable work to ensure its compliance with all requirements of New Zealand’s rigorous environmental laws. The development of WNP will provide meaningful gold production for years to come while bringing substantial investment, job creation, and economic and biodiversity benefits for the surrounding communities and New Zealand.

"We are in a strong net cash position and expect to internally fund WNP over the coming years, as well as progress our other organic growth opportunities while generating strong returns for shareholders."