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(All figures in US Dollars unless otherwise stated)
MELBOURNE, Sept. 12, 2014 /CNW/ - OceanaGold Corporation (TSX/ASX/NZX: OGC) (the "Company") announced today the preliminary results of the Didipio
Optimisation Study (the "Study"), a project that has identified
significant value from the existing operation and ore body. The Study
is expected to be finalised early in the fourth quarter with completion
of an updated National Instrument ("NI") 43-101 Technical Report.
Underground development to be brought forward by one year to commence in
the first quarter 2015.
Access to high grade ore to be brought forward by two years with first
underground production now expected to be in the third quarter of 2017
with full ramp-up to a mining rate of 1.6 million tonnes per annum
("Mtpa") by 2020.
Redesigned underground to include two underground mining domains that
will increase the mine productivity rate to 1.6 Mtpa (from 1.2 Mtpa)
over a longer underground mine life.
Improved geotechnical understanding, optimized open pit design and
revised open pit/underground interface will reduce open pit waste
mining by nearly 70 million tonnes (Figure 3) whilst only reducing ore
supplied from the open pit by approximately one year.
Improved project economics including increased cash flows and a longer
mine life - to be finalized in the updated NI 43-101 Technical Report.
Mick Wilkes, Managing Director and CEO said, "On behalf of the Board of
Directors, I am pleased to announce the positive outcomes from the
Didipio Optimisation Study. With nearly 18 months of commercial
operations, we have identified significant value from the Didipio Mine
that will be unlocked through increased metal production; improved
operating cash flows; as well as a significant reduction in waste mined
combined with earlier access to higher grade underground ore."
Based on the results of the Study, the underground portion of the
Didipio operation will be brought forward by one year with development
expected to commence in the first quarter of 2015 subject to receiving
final regulatory approvals. Access to high grade ore will be brought
forward by two years with first ore delivered for processing in the
third quarter of 2017. The underground crown pillar will now be
established at RL2460 (Figure 1), approximately 80 metres higher than
in the original plan thus allowing for two active production areas in
the underground resulting in an increase of the mining productivity
rate to 1.6 Mtpa and a reduction in the cut-off grade. Additionally,
the detailed Study along with a comprehensive infill drill program
during the last 12 months has resulted in the expansion of the
underground by 170 meters deeper than originally planned to RL2010
Figure 1 - Didipio Optimised Underground Design (East - West Section)
"Commencing the underground operation earlier than originally planned
enables faster access to the high grade ore that resides in the
underground reserves of the ore body (Figure 2). It also allows us to
carry out further exploration at depth where we believe high grade
mineralisation continues below the extent of the current drilling," Mr.
Figure 2 - Didipio Cross Section of Ore Body
As a result of the Company's increased understanding and confidence in
the geotechnical attributes of the mine, the open pit has been
redesigned with a reduced Stage 6 pit shell resulting in the
elimination of nearly 70 million tonnes of waste over the life of mine
Figure 3 - Didipio Open Pit Design Comparison
The Board of Directors has endorsed the Study including the earlier
commencement of the underground mine development, resource definition
drilling and redesigned open pit. The Company will seek the required
approvals to commence the development of surface facilities, including
the portal and ventilation infrastructure in the first quarter of 2015.
Under the optimised underground design, the pre-production capital cost
is now estimated to be approximately $110 million over a three-year
period (2015-2017) and sustaining capital expenditure over the life of
the underground mine is expected to average $7 to $8 million per annum.
Mr. Wilkes added, "Over the coming months, the Company will invest in
additional resource definition drilling for resource conversion and to
further prove out the ore body. The Company will release an updated NI
43-101 Technical Report that will include the final results and an
update to the Reserves and Resources statement for Didipio."
OceanaGold Corporation is a significant multinational gold and copper
producer with over 24 years of operating sustainably in New Zealand and
more recently the Philippines. Its flagship operation is the Didipio
Mine located in the northern Philippines which commenced commercial
production on April 1, 2013 and has a current mine life to 2029. In New
Zealand on the South Island, OceanaGold operates the country's largest
gold operation at the Macraes Goldfield and the Reefton Gold Mine on
the west coast. OceanaGold has an unwavering commitment to the
environment and to the host communities in which it operates it.
In 2014, the Company expects to produce 275,000 to 305,000 ounces of
gold from the combined New Zealand and Philippine operations and 21,000
to 24,000 tonnes of copper from the Philippine operations.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol OGC.
Cautionary Statement for Public Release
Certain information contained in this public release, including any
information relating to the Company's future financial or operating
performance and development and production timelines, production and
cost estimates 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 future growth, 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 or information
such as development and production timelines, costs estimates and
production forecasts are subject to a variety of risks and
uncertainties which could cause actual events, performance,
achievements 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. Some of these risks and uncertainties include:
general economic and market factors (including changes in global,
national or regional financial credit, currency or securities markets);
fluctuations in the price of gold; inability to obtain required
consents, permits or approvals; changes or developments in global,
national or regional political conditions (including any act of
terrorism or war); changes in laws (including tax laws) and changes in
GAAP or regulatory accounting requirements; and other risk factors as
outlines in the Company's annual and interim filings. Readers are
cautioned that the foregoing list of factors is not exhaustive.
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. All forward looking statements and
information contained in this public release is qualified by this
Cautionary Statement. The information contained in this release is not
investment or financial product advice.
The Company's disclosure of Mineral Reserve and Mineral Resource
information is governed by NI 43-101 under the guidelines set out in
the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM
Council, as may be amended from time to time by the CIM ("CIM
Standards"). The disclosure of Mineral Reserve and Mineral Resource
information for properties held by the Company is based on the
reporting requirements of the 2012 JORC Code. CIM definitions of the
terms "Mineral Reserve", "Proven Mineral Reserve", "Probable Mineral
Reserve", "Mineral Resource", "Measured Mineral Resource", "Indicated
Mineral Resource" and "Inferred Mineral Resource", are substantially
similar to the JORC Code corresponding definitions of the terms "ore
reserve", "proved ore reserve", "probable ore reserve", "Mineral
Resource", "Measured Mineral Resource", "Indicated Mineral Resource"
and "Inferred Mineral Resource", respectively. Estimates of Mineral
Resources and Mineral Reserves prepared in accordance with the 2012
JORC Code would not be materially different if prepared in accordance
with the CIM definitions applicable under NI 43-101.
There can be no assurance that those portions of such Mineral Resources
that are not Mineral Reserves will ultimately be converted into Mineral
Reserves. Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. All Mineral Reserves are within the
The estimates [and the application of the Modifying Factors (mining,
processing, metallurgical, infrastructure, economic, marketing, legal,
environmental social and government) in the preparation of the Study]
were prepared in accordance with National Instrument 43-101 of the
Canadian Securities Administrators.
The Study was prepared under the supervision of Simon Griffiths and
Jonathan Moore. Both Simon Griffiths and Jonathan Moore are Chartered
Professionals with the AusIMM. Each is a "qualified person" for the
purposes of the NI 43-101. Simon Griffiths and Jonathan Moore were, and
remain, full-time employees of the Company's subsidiary, Oceana Gold
(New Zealand) Limited at the time of writing.
All such persons are "qualified persons" for the purposes of NI 43-101
and have sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and to the activity which they
are undertaking to qualify as a Competent Person.
The qualified persons have reviewed the information and data contained
in this press release and have approved it for dissemination.
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SOURCE: OceanaGold Corporation
For further information:
Investor Relations - Toronto
Tel: +1 416 915 3123
Media Relations - Melbourne
Tel: +61(3) 9656 5300
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