NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES.
MELBOURNE, Australia, Oct. 25, 2012 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is pleased to announce the second round of results
from a deep drilling program at the Blackwater (Birthday Reef)
high-grade gold project located in the Reefton Goldfield in South
Island, New Zealand.
During the third quarter, OceanaGold successfully intersected the
Birthday Reef on two occasions approximately 680 metres vertically
below previously mined workings of the historic Blackwater mine.
Parent hole, WA22C, intersected 0.61 metres (estimated true width of 0.5
metres) @ 15.65 g/t Au.
The daughter hole, WA22D, intersected 1.13 metres (estimated true width
of 1.0 metres) @ 85.2 g/t Au. WA22D intercepted the reef 11 metres from
the parent hole WA22C.
Both results are within the normal range of historically mined widths
Historically, each vertical metre of the reef corresponded with
approximately 1,000 ounce gold resource.
Historical Mining Background (1906 to 1953)
The Blackwater mine was the largest historical producer in the Reefton
Goldfield with approximately 740,000 ounces from 1.6Mt for a recovered
grade of 14.6 g/t Au. This represents approximately one third of the
historical two million ounces of gold produced from hard rock sources.
Birthday Reef Geometry and Nature of Gold Mineralisation
The Birthday Reef is a simple, relatively planar, steeply-dipping quartz
vein striking NNE for approximately one kilometre. The lode is
remarkably persistent both along strike, and down-plunge, with the
average widths and grades remaining consistent with depth.
WA22C successfully intersected the Birthday Reef at 1,632.3 metres
down-hole and returned an intercept of 0.61 metres down hole (estimated
true width of 0.5 metres) @ 15.65 g/t Au (Table A and Figure 2). The
final hole depth was 1,675.2 metres.
A daughter drill hole WA22D intersected the Birthday Reef at 1,623.9
metres down-hole and returned an intercept of 1.13 metres down hole
(estimated true width 1.0 metres) @ 85.2 g/t Au (Table A and Figure 2).
The final hole depth was 1,641.2 metres. The two intercepts in holes
WA22C and WA22D are located 11 metres apart along the Birthday Reef.
Historic mining records from the Birthday Reef reported an average of 14
gram-meters mined up until it was closed in 1951. The average
gram-meters of the modern drilling completed to date is within the
range of historic records. WA22C and WA22D represent the fifth and
sixth holes (including daughter holes) testing mineralisation below the
extent of historic workings. Both holes successfully intersected the
quartz reef approximately 950 metres down plunge and 680 metres
vertically below the historic Blackwater mine workings. The result
extends the known extent of the reef to ~1,390 metres below surface.
The next drill hole (WA24) is designed to test the northern strike
extent to the Birthday Reef beneath the historical workings. This hole
is now underway and results are expected in the second quarter of 2013.
Table A - Blackwater Mine Drill Intercepts
Note: Drill holes WA11, WA11A and WA21A have been previously reported.
The true width of drill intercepts may vary slightly from those
reported due to local variations in the orientation of the reef.
Mick Wilkes, Managing Director and CEO commented, "We are very pleased
with the continued success of the drilling program at Blackwater. To
date, we have uncovered remarkable continuity in the Birthday Reef
which gives us strong confidence of the continuation of the orebody
below previously mined workings. Our project development team is now
starting to assemble data in preparation for technical study work in
the first half of 2013 while we also await results from the current
hole testing the northern extent of the orebody."
The historical Blackwater mine is situated in the Grey District of the
west coast of the South Island of New Zealand approximately 37
kilometres south (by road) from Reefton and 60 kilometres northeast of
Greymouth (Figure 3). The mine is located 15 kilometres from
OceanaGold's Globe - Progress Mine at 42°17'30"S latitude and
171°49'30"E near the abandoned mining township of Waiuta.
Blackwater Study Update
OceanaGold's project development team will commence a technical study on
the viability of a narrow vein, underground operation at Blackwater in
the first half of 2013. Previous metallurgical studies have highlighted
optical sorting as a probable pre-treatment mechanism opening up the
possibility of mechanised mining of this deposit. Additionally,
previous metallurgical test work has indicated recoveries in the 95%
range with 70% of the gold reporting to a gravity concentrate.
With the results from the current drill program increasing the known
extent of mineralisation, the project team will evaluate various mining
scenarios with a view of targeting a production rate of circa 50,000
-60,000 ounces of gold per annum. This study is expected in the second
half of 2013.
Dr Michael Roache, (PhD) - Head of Exploration and Mr Jonathan Moore -
Group Mine Geology Manager, all of OceanaGold, are responsible for the
technical disclosure in this document, and are Qualified Persons under
the Canadian Securities Administrators' National Instrument 43-101 -
Standards of Disclosure of Mineral Projects ("NI 43-101"). Dr Roache
is a member of both the AusIMM and Australasian Institute of
Geoscientists, while Mr. Moore is a Chartered Professional with the
AusIMM. The 2012 drill samples, were collected at geologically defined
intervals from sawn NQ diamond core, and assayed by screen fire assay
(method code Au-SCR22AA) at the Townsville ALS Laboratory, Australia.
Two quartz flushes were inserted between each sample and also underwent
screen fire analysis. Coarse blanks were also inserted after each
mineralized quartz vein.
For further scientific and technical information (including disclosure
regarding mineral resources and mineral reserves) relating to the
Reefton Project, please refer to the NI 43-101 compliant technical
report entitled "Independent Technical Report for the Reefton Project
located in the province of Westland, New Zealand" dated 9 May, 2007,
prepared by McIntyre, White, Frew, Gossage, and Penter and available at
www.sedar.com under the Company's name.
See full article for images.
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 where
commissioning activities are currently underway. 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 and
development timelines 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:
Investor Relations - Melbourne
Nova Young or Darren Klinck
Tel: +61(3) 9656 5300
Investor Relations - Toronto
+1 416 915 3123
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