/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES./
(All figures in US Dollars)
MELBOURNE, Australia, Jan. 19, 2012 /CNW/ - OceanaGold Corporation (ASX:
OGC) (TSX: OGC) (NZX: OGC) ("the Company") is pleased to release its
fourth quarter report for the quarter ended 31 December 2011, in
accordance with Australian Securities Exchange ("ASX") Listing Rule
5.1. Please note that the numbers contained in this document are
unaudited and subject to finalisation. As a Toronto Stock Exchange
("TSX") listed company, the Company will release its complete FY2011
audited financial and operational results on 16 February 2012
(Australian Eastern Daylight Time). A conference call to discuss the
results will take place on 17 February 2012.
Fourth quarter gold production was up 11% on the previous quarter to
65,750 ounces bringing the total for FY2011 to 252,499 ounces. This was
slightly below expectations for the quarter and subsequently the year.
Macraes Goldfield fourth quarter production of 44,451 ounces was up 5%
compared to the third quarter. Reefton Goldfield fourth quarter
production of 21,299 ounces showed significant improvements when
compared to the third quarter with better grade and recoveries, however
quarterly production did not meet expectations due to lower ore tonnes
mined and processed through the mill. Revenue for the fourth quarter
was $106.6 million with the average gold price received during the same
period being $1,705 per ounce on 62,515 ounces sold. Operational
expenditures for the fourth quarter were $55.6 million (excludes
depreciation & amortisation, general & administrative expenses and year
end inventory adjustment). Unaudited cash costs were $890 per ounce for
the fourth quarter. For the full year 2011, including a year end
adjustment for inventory, the unaudited cash costs were $875 per ounce,
which is within the guidance range of US$850-$890 per ounce.
During the quarter, the Company achieved a number of key milestones with
construction of the Didipio Project in Luzon Philippines. These
included the commencement of concrete pouring, near completion of the
construction accommodation camp, mobilisation by the mining contractor
to site and the arrival of the first shipment of structural steel.
Concrete pouring commenced on schedule in November 2011 with good
progress made to date with the mill foundations, concentrate storage
shed, gold room, concentrate thickener, reagents shed and operations
village. Despite heavy rain during the quarter, bulk earthworks for the
plant site was completed and excavation progressed reasonably well for
the power station. The mining contract was awarded and the contractor
commenced mobilising to site in late December. Mining is scheduled to
commence in first quarter 2012.
The construction camp is nearing completion and there are approximately
550 construction contractors and staff on site. All major construction
contracts are either awarded or in the process of being tendered.
Didipio Construction expenditure during the quarter was $30.9m and total
construction spend since the project recommenced was $65.6m.
During the quarter the Company hosted a site visit where analysts and
investors had the opportunity to meet the project team and see the
construction progress to date. In addition, the visitors gained an
insight into the strong relationship the Company has developed with the
local communities. The Mayor of Kasibu, the Didipio Barangay Captain
and President of the Didipio Community Development Corporation (Dicorp)
participated in the site visit.
Refer to full document on website: http://www.oceanagold.com/investors-and-media/news-releases/ogc-2011-fourth-quarter-production-report/ for all figures mentioned.
Figure 1: Crusher for construction material for the Tailings Storage
Facility on site at Didipio
Figure 2: Ball mill foundation with bulk earthworks for power station in
Exploration expenditure for the quarter was $3.4 million.
Exploration activity at Reefton increased during the quarter with five
active drill rigs throughout the tenements. A deep drilling program
commenced at the historic Blackwater underground mine during the
quarter. This program is expected to continue throughout 2012. Diamond
drilling continued at Big River with further exploration activities
taking place at the Crushington group of historical workings.
At Macraes Goldfield, diamond drill programs focused on a possible
extension of Frasers Underground Panel 2 mineralisation.
In the Philippines, further soil sampling activities near Didipio and
geological mapping at other tenements were conducted.
FY2012 & FY2013 Production Guidance
As reported in December 2011, FY2012 production guidance has been set at
230,000 - 250,000 ounces of gold at cash costs of US$900 - $980 per
ounce (assumes NZD/USD exchange rate of $0.80).
With the start of production at Didipio, preliminary FY2013 production
guidance is estimated to be 300,000-350,000 ounces of gold at cash
costs of less than US$500 per ounce (net of copper credits).
FY2011 Results Release and Conference Call
The Company will release its FY2011 financial results on 16 February
2012 and host a conference call / webcast to discuss the results at
8.30am on Friday 17 February (Melbourne, Australia time) / 4.30pm on
Thursday 16 February (Toronto, Canada time).
To register please go to the "Bulletin Board" section in the Company's
website (oceanagold.com) or copy and paste the link below into your
Teleconference Participants (required for those who wish to ask questions)
Local (toll free) dial in numbers are:
New Zealand: 0-800-450-745
Canada & North America: 1 888-231-8191
All other countries (toll): + 1 647-427-7450
Playback of Webcast
If you are unable to attend the call, a recording will be available for
viewing on the Company's website from 11.30am on Friday 17 February
(Melbourne, Australia time) / 7.30pm on Thursday 17 February (Toronto,
OceanaGold Corporation is a significant Asia Pacific gold producer with
projects located on the South Island of New Zealand and in the
Philippines. The Company's assets encompass New Zealand's largest gold
mining operation at the Macraes goldfield in Otago which is made up of
the Macraes Open Pit and the Frasers Underground mines. Additionally on
the west coast of the South Island, the Company operates the Reefton
Open Pit mine. OceanaGold produces approximately 230,000 - 250,000
ounces of gold per annum from the New Zealand operations. The Company
also owns the Didipio Project in northern Luzon, Philippines which is
in construction and expected to commission in Q4 2012. Currently,
Didipio is expected to produce 100,000 ounces of gold and 14,000 tonnes
of copper per year over an estimated 16 year mine life.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol OGC.
Statements in this release may be forward-looking statements or
forward-looking information within the meaning of applicable securities
laws. 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 such as production forecasts are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected in
the forward-looking statements. 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 such forward-looking statements and, subject to applicable
securities laws, the Company undertakes no obligation to update such
statements. Such forward-looking statements 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. Accordingly, readers should not place undue
reliance on forward-looking statements.
SOURCE OceanaGold Corporation
For further information:
Ms Nova Young
Investor Relations Officer
Tel: +61(3) 9656 5300