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MELBOURNE, Feb. 24, 2020 /CNW/ - OceanaGold Corporation
(TSX: OGC) (ASX: OGC) (the "Company") is pleased to announce
updated high-grade mineral resources at its WKP (Wharekirauponga)
prospect, located ten kilometres north of the Waihi Gold Mine in
New Zealand.
Highlights
- Indicated Resources increase 80% to 1.0 million tonnes
grading 13.4 g/t gold for 421,000 ounces and 25.5 g/t
silver for 803,000 ounces on the East Graben vein.
- Inferred Resources increase 79% to 1.9 million tonnes
grading 12 g/t gold for 717,000 ounces and 20 g/t silver for
1,230,000 ounces from the East Graben zone and T-Stream vein.
Mick Wilkes, President and CEO of
OceanaGold said, "The high-grade WKP resource continues to grow,
which further demonstrates the solid organic growth potential of
our business particularly in New
Zealand, a top-tier jurisdiction. WKP is a game-changing
opportunity for our business, for our shareholders and for
New Zealand. OceanaGold has a long
history of operating to the highest environmental and social
standards for the past 30 years and we have demonstrated our
ability as a responsible mining company to not only advance
opportunities through to production but also rehabilitate and close
operations in collaboration with our stakeholders."
"For the past year, we have been focused on resource definition
drilling on the East Graben vein and associated footwall veins
where significant high-grade intercepts were reported in
November 2019. The East Graben vein
zone, including the proximal high-grade footwall veins, has
demonstrated a strike length of at least 1,000 metres that is open
in both directions along strike with a defined 200-metre vertical
extent and additional up and down dip potential."
"The WKP opportunity is another key component of our Waihi
District Study which is scheduled for completion in the second
quarter of 2020. We will continue to drill at WKP this year with
over 5,500 metres of drilling planned to include step-out drilling
from two new sites. The Waihi District Study will include the
resource of Martha Underground, WKP and other targets at a single
future point in time however, exploration drilling will continue
throughout this year and into future years to further grow the
resource base."
Table 1: Updated WKP Project Mineral Resource Table
(as at Dec 31, 2019)
Resource
Category
|
RESOURCES
|
Mt
|
Au
g/t
|
Au
Koz
|
Ag
g/t
|
Ag
Koz
|
Indicated
|
0.98
|
13.4
|
421
|
25.5
|
803
|
Inferred
|
1.9
|
12
|
717
|
20
|
1,230
|
Notes:
|
-
|
Resources are
constrained to within a conceptual underground design based upon
the cut-off grade of 2.5 g/t gold which is defined at a gold price
of NZD2,083/oz (US$1,500/oz @ USD:NZD 0.72)
|
-
|
No dilution is
included in the reported figures and no adjustments have been
allowed for mining recoveries
|
-
|
The tabulated
resources are estimates of metal contained as troy ounces of gold
and do not include allowances for processing.
|
-
|
All figures are
rounded to reflect the relative accuracy and confidence of the
estimates and totals may not add correctly.
|
-
|
There is no certainty
that Mineral Resources that are not Mineral Reserves will be
converted to Mineral Reserves.
|
The reported resources at WKP are based on an additional 11,300
metres in 24 holes drilled since the previous estimate from
March 2019. It is also based on a
conceptual underground mine design and on preliminary work
currently underway for the Waihi District Study. The Indicated
Resource relates entirely to mineralisation within the well drilled
portions of the East Graben vein while the Inferred Resource is
dominated by mineralisation contained within the East Graben vein
and two significant high-grade footwall veins. These three
structures contain more than 80% of the Inferred Resource while the
remaining resource is from the East Graben hanging-wall veins and
at the T Stream vein where there has been limited drilling
to-date.
Two new drill sites were recently consented (permitted) and
drilling has commenced to test the southwestern strike potential of
the East Graben vein zone. The 5,500 metres of drilling planned for
2020 will continue to test both lateral and vertical extensions of
the resources and drill test the strike extent potential of the
T-Stream and Western Vein zones (Figure 1).
The Company continues to advance the Waihi District Study, a
preliminary economic assessment that encompasses multiple ore
targets. The Martha Underground and WKP Projects represent the most
significant of these opportunities. Exploration drilling continues
at both targets to support the study which is expected to provide
an outlook of Waihi's growth over the next several years. The study
will include production rates, mining methods, operating costs and
capital investments and is expected to be completed in the second
quarter of 2020.
All drill data in relation to the WKP Resource 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 the WKP 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.
For 2020, the Company expects to produce between 360,000 and
380,000 ounces of gold from Haile, Waihi and Macraes combined at a
consolidated All-In Sustaining Costs ranging from $1,075 to $1,125
per ounce sold.
Competent/Qualified Person's Statement
The resources and 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 WKP Mineral Resource and Exploration
Results in this document has been verified by, is based on and
fairly represents information compiled by or prepared under the
supervision of Mr Peter Church, a
Chartered Professional of the Australasian Institute of Mining and
Metallurgy and an employee of OceanaGold. Mr Church 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 is Qualified Persons for the purposes
of the NI 43 101. Mr Church 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 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 as a result 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 as a result 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