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 secured building slots with heavy equipment supplier Komatsu New Zealand for a full mining fleet at the project.

The fleet agreement, valued at about NZ$115-million, will supply core mobile equipment, including PC3400 and PC2000 excavators, alongside a fleet of 140-t-class HD1500 haul trucks. Additional support equipment, such as dozers, loaders and graders, will also be provided as part of the package.

The project developers have said the secured manufacturing slots will ensure timely delivery of equipment for the start of construction, pending the outcome of the fast-track approval process scheduled for October 29.

Beyond equipment supply, Komatsu will provide a five-year on-site support partnership, including dedicated technical personnel, integrated maintenance and parts services, as well as advanced fleet management systems. The agreement also includes operator training and simulator programmes to improve productivity and ensuring efficient ramp-up.

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); Model Answer (financial modelling); and Komatsu New Zealand (mining fleet).

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