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MELBOURNE, Oct. 22, 2018 /CNW/ - OceanaGold Corporation
(TSX: OGC / ASX: OGC) (the "Company") is pleased to provide
an update on its extensive exploration program at Macraes in
New Zealand where since
November 2017, the Company has
drilled 287 holes for 33,249 metres mainly at Golden Point,
Coronation North, Coronation, Deepdell North and Frasers
Underground ("FRUG") targets – see Figure 1.
This release follows the update provided to the market on
8 November 2017 ("November 2017 update") and results herein reflect
activity completed after this date.
Selection of Significant Drill Results*
- 49.0 metres @ 5.05 g/t Au at Coronation North
- 25.0 metres @ 4.83 g/t Au at Coronation North
- 38.0 metres @ 2.99 g/t Au at Coronation North
- 15.0 metres @ 4.28 g/t Au at Golden Point
- 9.0 metres @ 3.85 g/t Au at Golden Point
- 9.0 metres @ 4.63 g/t Au at Golden Point
- 9.0 metres @ 2.26 g/t Au at Coronation
- 6.0 metres @ 4.54 g/t Au at Deepdell North
* downhole length as not possible to determine true width
Mick Wilkes, President and CEO of
OceanaGold said, "The Macraes Gold Mine has successfully operated
since 1990 and today is one of the most efficient operations in the
world. It has generated meaningful cash flows and consistently
delivered mine life extensions. It is an operation that had an
initial 7-year mine life in 1990, a 2-year mine life in 2007, a
4-year mine life in 2013 and today after 28 years of operations,
has a current mine life to 2021. It is an operation that has
delivered significant benefits to the local economies in Otago and
clearly demonstrating world-class environmental practices."
He added, "Over the course of the past year, we have invested
$5 million drilling several targets
on the 32-kilometre strike length of the Hyde-Macraes Shear Zone.
The latest drill results have exceeded our expectations and we seek
to leverage these results into tangible resource growth."
"More recently, we have been working on a new mine plan focused
on the economic extraction of ore currently not in Reserves but
located within existing deposits. This work, coupled with the
exploration success indicate the potential for a profitable mine
life extension beyond 2021 at today's gold price. Additionally, we
continue to investigate the technical and economic viability of the
Round Hill Project, which represents a potential redevelopment of
Macraes that could add an incremental 10 years of mine life to the
operation."
"Drilling at Golden Point, which is an exploration target within
the Round Hill Project, has yielded significant drill intercepts
close to surface and at depth. Based on these results, we are
following up with further drilling and investigating a potential
underground mine."
At Golden Point, 19 holes for 4,634 metres have been drilled
since November 2017, targeting the
down-plunge continuation of the Golden Point mineralisation.
Significant mineralisation was intercepted in 14 holes (Table 1,
Figure 2 and Figure 3) extending the mineralised zone east. Drill
results continue to highlight a potential pit lay-back plus now a
potential underground with recent gold intercepts returning 9.0
metres @ 4.63 g/t Au, 9.0 metres @ 3.85 g/t Au, 11.8 metres @ 2.35
g/t Au and 6.6 metres @ 3.97 g/t Au.
Mineralisation closer to surface and proximal to the pit wall
delivered significant intercepts that included 15.0 metres @ 4.28
g/t Au and 5.0 metres @ 5.22 g/t Au. Mineralisation remains open
down plunge of both Golden Point and Round Hill deposits. These results along with
previous drill results support a potential pit re-optimisation and
will be incorporated into an updated resource estimate. The updated
resource and pit optimisation will guide the advancement of the
Round Hill Project.
Drilling at Coronation North, Coronation and Deepdell consisted
of targeted infill programs in support of an updated 2019 Life of
Mine Plan ("LOMP"). At Coronation
North (Table 1 and Figure 4), a discovery made in late 2015, 86
holes for 8,226 metres were drilled predominantly within the
current pit design. The drill results were in-line with
expectations and resulted in a conversion of an additional 14,000
ounces to Measured and Indicated Resource categories.
At Deepdell North (Table 1 and Figure 5), 90 holes for 9,289
metres were drilled as part of an infill drill program to confirm
continuity of the lower zone of mineralisation and better
delineation of the main ore shoot. The resource estimate update is
under review.
At Coronation (Table 1 and Figure 6), 72 holes for 8,779 metres
were drilled targeting a proposed Stage 5 cut-back of the existing
pit to increase the understanding of the ore shoots as well as
providing flexibility around the LOMP. Drill results demonstrate
additional resources and the inclusion of a Coronation Stage 5
would extend the mine life at Macraes by approximately five
months.
At the Frasers Underground (Table 1 and Figure 7), 20 holes for
2,320 metres were drilled as part of a resource definition program
to support the LOMP.
Looking ahead, drilling will focus on completion of the
Coronation North drill-program in the fourth quarter and further
step out drilling at Golden Point and Round Hill, specifically targeting down-dip
extensions to mineralisation intersected earlier this year.
Mick Wilkes added, "This year at
Macraes, production has been significantly higher than in previous
years due to the discovery of higher grade ore from Coronation
North. The operation has contributed materially to the Company's
strong 2018 free cash flow generation while next year the operation
is expected to continue contributing materially to the Company,
both in terms of production and free cash flow generation. The
Macraes operation is highly levered to the gold price and the
resource is vast. With some of the best technical expertise in the
gold mining industry, I remain confident that the Macraes operation
will be an important part of the OceanaGold business for many years
to come."
Table 1 – Significant Intersections from Macraes
Hole
ID
|
East#
(m)
|
North#
(m)
|
Collar
RL
(m)
|
Azi#
|
Dip
|
From
(m)
|
To
(m)
|
Down
Hole**
(m)
|
Gold
Grade
(g/t)
|
Deposit
|
DDH6850
|
70464.92
|
15833.21
|
427.84
|
271
|
-70
|
171.9
|
180.9
|
9.0
|
4.63
|
Golden
Point
|
DDH6851
|
70468.69
|
15785.3
|
436.99
|
71
|
-90
|
226.2
|
232.8
|
6.6
|
3.97
|
Golden
Point
|
DDH6913
|
70470.79
|
15783.47
|
437.02
|
270
|
-65
|
176.0
|
185.0
|
9.0
|
3.85
|
Golden
Point
|
DDH6917
|
70396.29
|
15767.93
|
452.2
|
281
|
-71
|
189.0
|
204.0
|
15.0
|
4.28
|
Golden
Point
|
DDH6934
|
70488.63
|
15679.74
|
448.6
|
265
|
-75
|
234.0
|
245.8
|
11.8
|
2.35
|
Golden
Point
|
RCH6859
|
70175.72
|
15749
|
404.27
|
71
|
-90
|
95.0
|
100.0
|
5.0
|
5.22
|
Golden
Point
|
RCH6919
|
69699.84
|
21174.65
|
600.1
|
71
|
-90
|
27.0
|
39.0
|
12.0
|
5.24
|
Coronation
North
|
RCH6920
|
69674.42
|
21199.41
|
600.11
|
71
|
-90
|
44.0
|
70.0
|
26.0
|
3.14
|
Coronation
North
|
RCH6921
|
69700.12
|
21225.92
|
599.84
|
71
|
-90
|
83.0
|
108.0
|
25.0
|
4.83
|
Coronation
North
|
RCH6929
|
69333.3
|
21348.01
|
645.86
|
85.8
|
-70
|
102.0
|
110.0
|
8.0
|
6.09
|
Coronation
North
|
RCH6935
|
69517.9
|
21290.76
|
587.76
|
71
|
-90
|
12.0
|
61.0
|
49.0
|
5.05
|
Coronation
North
|
RCH6939
|
69332.04
|
21343.98
|
645.8
|
90
|
-70
|
60.0
|
98.0
|
38.0
|
2.99
|
Coronation
North
|
RCH6942
|
69568.52
|
21275.9
|
589.69
|
71
|
-90
|
24.0
|
53.0
|
29.0
|
2.48
|
Coronation
North
|
RCH6959
|
69301.65
|
21336.39
|
642.26
|
45
|
-75
|
72.0
|
82.0
|
10.0
|
4.63
|
Coronation
North
|
RCH7072
|
69848.31
|
21100.28
|
537.83
|
71
|
-90
|
0.0
|
17.0
|
17.0
|
3.06
|
Coronation
North
|
RCH7081
|
69774.88
|
21180.95
|
535.53
|
71
|
-90
|
18.0
|
23.0
|
5.0
|
3.88
|
Coronation
North
|
RCH6875
|
70025.4
|
17122.97
|
506.71
|
71
|
-90
|
105.0
|
111.0
|
6.0
|
2.94
|
Deepdell
North
|
RCH6887
|
70025.58
|
17275.15
|
506.37
|
71
|
-90
|
72.0
|
78.0
|
6.0
|
3.68
|
Deepdell
North
|
RCH6997
|
70174.85
|
17451.09
|
490
|
71
|
-90
|
95.0
|
101.0
|
6.0
|
4.54
|
Deepdell
North
|
RCD7021
|
70225.4
|
20023.78
|
683.77
|
71
|
-90
|
108.7
|
119.8
|
11.1
|
1.70
|
Coronation
|
RCH7034
|
70172.43
|
20023.43
|
687.68
|
71
|
-90
|
104.0
|
113.0
|
9.0
|
2.26
|
Coronation
|
UDH8657
|
70928
|
12212
|
5.58
|
338
|
2
|
35.0
|
43.0
|
8.0
|
5.29
|
Frasers UG
|
UDH8660
|
71947.53
|
12482.06
|
-262.78
|
59
|
-45
|
6.0
|
12.0
|
6.0
|
3.74
|
Frasers UG
|
UDH8675
|
71971
|
12548
|
-277
|
215
|
-46
|
9.9
|
18.5
|
8.6
|
2.54
|
Frasers UG
|
UDH8676
|
72001
|
12561
|
-281.5
|
211
|
-51
|
0.0
|
3.0
|
3.0
|
9.02
|
Frasers UG
|
UDH9003
|
70111.7
|
12151.94
|
281.47
|
309
|
-47
|
13.0
|
22.1
|
9.1
|
4.11
|
Frasers UG
|
UDH9004
|
70116.1
|
12153.05
|
282.05
|
25
|
-23
|
42.0
|
58.0
|
16.0
|
2.27
|
Frasers UG
|
|
# Macraes Gold
Project Grid
|
* Assays bottom
cut 0.4g/t, top cut 15g/t, allowing 2m of internal
dilution
|
** downhole length
as not possible to determine true width
|
All drill data and additional information in relation to Macraes
can be found on the Company's website at
http://www.oceanagold.com/investor-centre/filings/. In line with
ASX listing requirements, OceanaGold has appended the information
required by JORC Table 1 for Macraes exploration results to its ASX
announcement. JORC Table 1 is not required under National
Instrument 43-101. Readers are referred to the ASX website at
www.asx.com.au or the OceanaGold website at www.oceanagold.com to
view JORC Table 1.
About OceanaGold
OceanaGold Corporation is a mid-tier, high-margin, multinational
gold producer with assets located in the
Philippines, New Zealand
and the United States. The
Company's assets encompass the Didipio Gold-Copper Mine located on
the island of Luzon in the
Philippines. On the North Island of New Zealand, the Company operates the
high-grade Waihi Gold Mine while on the South Island of
New Zealand, the Company operates
the largest gold mine in the country at the Macraes Goldfield which
is made up of a series of open pit mines and the Frasers
underground mine. In the United
States, the Company operates the Haile Gold Mine, a
top-tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a
significant pipeline of organic growth and exploration
opportunities in the Americas and Asia-Pacific regions.
OceanaGold has operated sustainably since 1990 with a proven
track-record for environmental management and community and social
engagement. The Company has a strong social license to operate and
works collaboratively with its valued stakeholders to identify and
invest in social programs that are designed to build capacity and
not dependency.
The Company expects to produce 500,000 to 540,000 ounces of gold
and 15,000 to 16,000 tonnes of copper with All-In Sustaining Costs
that range from $725 to $775 per ounce sold.
Competent/Qualified Person's Statement
The exploration results were prepared in accordance with the
standards set out in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves' ("JORC Code") and in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators ("NI 43-101"). The JORC Code is
the accepted reporting standard for the Australian Stock Exchange
Limited ("ASX").
Information relating to Macraes exploration results in this
document has been verified by Philip
Jones, a Member of the Australian Institute of Geoscientists
and an employee of OceanaGold. P. Jones has sufficient
experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the JORC Code and
all are Qualified Persons for the purposes of the NI 43 101. Mr
Jones consents to the inclusion in this public report of the
matters based on their information in the form and context in which
it appears.
Cautionary Statement for Public Release
Certain information contained in this public release may be
deemed "forward-looking" within the meaning of applicable
securities laws. Forward-looking statements and information relate
to future performance and reflect the Company's expectations
regarding the generation of free cash flow, execution of business
strategy, future growth, future production, estimated costs,
results of operations, business prospects and opportunities of
OceanaGold Corporation and its related subsidiaries. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and may be
forward-looking statements. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual
events or results to differ materially from those expressed in the
forward-looking statements and information. They include, among
others, the accuracy of mineral reserve and resource estimates and
related assumptions, inherent operating risks, sovereign risks,
risk of suspension and those risk factors identified in the
Company's most recent Annual Information Form prepared and filed
with securities regulators which is available on SEDAR at
www.sedar.com under the Company's name. There are no assurances the
Company can fulfil forward-looking statements and information. Such
forward-looking statements and information are only predictions
based on current information available to management as of the date
that such predictions are made; actual events or results may differ
materially because of risks facing the Company, some of which are
beyond the Company's control. Although the Company believes
that any forward-looking statements and information contained in
this press release is based on reasonable assumptions, readers
cannot be assured that actual outcomes or results will be
consistent with such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and information.
The Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements and information,
whether because of new information, events or otherwise, except as
required by applicable securities laws. The information contained
in this release is not investment or financial product advice.
SOURCE OceanaGold Corporation