Bendigo-Ophir Project Targets 1.25Moz Gold Over Nearly 14 Years with 65% IRR
Santana Minerals reports a robust update to its Bendigo-Ophir Gold Project with a new Pre-Feasibility Study showing enhanced economics and streamlined mine design, alongside advancing regulatory approvals in New Zealand.
- Updated Pre-Feasibility Study delivers A$1.5 billion NPV and 65% IRR
- Revised mine plan targets 1.25 million ounces over nearly 14 years
- Drilling expands resource potential at RAS South with high-grade intercepts
- Fast-track regulatory approvals on track for early 2026 development start
- Key management appointments strengthen operational and environmental leadership
Strategic Milestone for Bendigo-Ophir
Santana Minerals Ltd has marked a significant step forward in the development of its flagship Bendigo-Ophir Gold Project (BOGP) in Central Otago, New Zealand. The release of an Updated Pre-Feasibility Study (PFS) on 1 July 2025 reflects a refined mine design and enhanced capital efficiency, positioning the project for a potential construction start in early 2026.
The updated plan incorporates the March 2025 Mineral Resource Estimate, focusing on a high-grade domain with reduced pre-strip volumes and a downsized processing plant optimized for 1.2 million tonnes per annum throughput. This approach yields a projected 1.25 million ounces of gold production over 13.8 years, with peak annual output reaching 120,000 ounces.
Financial Strength and Operational Advances
Financially, the project boasts a net present value (NPV) of A$1.5 billion at a gold price of A$4,950 per ounce and an internal rate of return (IRR) of 65%, underscoring its robust economics. Capital expenditure requirements have been trimmed to A$277 million, including contingencies, enhancing the project's attractiveness for upcoming debt financing.
Operationally, drilling at the RAS South deposit has delivered encouraging results, intercepting thick mineralized zones beyond current resource boundaries. Notable intercepts include 33 meters at 2.7 grams per tonne and 7 meters at 5.9 grams per tonne, suggesting potential for resource expansion. Metallurgical testwork further supports strong gold recoveries, with low reagent consumption, reinforcing processing efficiency.
Regulatory Progress and Leadership Appointments
On the regulatory front, Santana is advancing its Fast-track Approvals application under New Zealand's expedited regime, aiming for environmental consents within six months of submission. This regulatory momentum is critical for transitioning from development to production phases.
Complementing these advances, Santana has bolstered its leadership team with the appointments of Paul Miles as General Manager and Cheryl Low as Environment Manager of Matakanui Gold Ltd, the project’s operating subsidiary. Their expertise is expected to enhance operational readiness and environmental stewardship as the project moves closer to construction.
Looking Ahead
With a strong cash position of approximately A$47.5 million and a clear pathway toward a Final Investment Decision by the end of 2025, Santana Minerals is well-positioned to capitalize on the Bendigo-Ophir project's potential. The combination of improved project metrics, regulatory progress, and leadership appointments sets a promising stage for what could become New Zealand’s next major gold mine.
Bottom Line?
Santana’s Bendigo-Ophir project is poised for a pivotal development phase, but investors will watch closely as permitting and financing milestones unfold.
Questions in the middle?
- Will further drilling at RAS South convert inferred resources into higher-confidence categories?
- How will the company structure its upcoming debt financing to optimize capital costs?
- What are the potential risks or delays in securing final environmental consents under the fast-track regime?
