OceanaGold provides exploration and annual resource and reserve statement updates

 

/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES./

(All financial figures in US Dollars unless otherwise stated)

MELBOURNE, March 30, 2017 /CNW/ - OceanaGold Corporation (TSX/ASX: OGC) (the "Company") is pleased to provide an update on its global exploration program following strong drill results at each operation and its updated annual Resource and Reserve ("R&R") statement for the year ended December 31, 2016. Note the Haile reserves remain unchanged pending the completion of the optimisation study expected in the middle of 2017. Further, the year-on-year comparison commentary included in this release excludes the El Dorado resources and Reefton reserves.

Key Highlights

  • Total Measured and Indicated Resources of 9.93 Moz of gold, 5.6 Moz of silver and 0.21 Mt of copper and Inferred Resources of 3.1 Moz of gold, 0.8 Moz of silver and 0.03 Mt of copper.
  • Total Proven and Probable Reserves of 5.04 Moz of gold, 5.0 Moz silver and 0.18 Mt copper.
  • Completed 12,466 metres of drilling at the Palomino target at Haile with significant intercepts that include: 66.3m @ 3.0 g/t Au, 33.5m @ 4.6 g/t Au, 4.2m @ 14.2 g/t Au, and 9.1m @ 11.7 g/t Au.
  • Defined a maiden underground resource of 20 koz Indicated Resource and 137 koz Inferred Resource on veins associated with the Martha Project at Waihi which contributed to a 22% increase year-on-year in total resources at Waihi to 527 koz (371 koz Measured and Indicated and 156 koz Inferred) after mine depletion.
  • Continued exploration success at Waihi from underground and surface drilling yielding significant intercepts that include:
    • Edward: 12.6m @ 16.5 g/t Au and 120.5 g/t Ag and 6.4m @ 7.0 g/t Au and 23.8 g/t Ag,
    • Daybreak: 6.7m @ 7.8 g/t Au and 10.2 g/t Ag
    • Gladstone: 90.0m @ 1.1 g/t Au and 4.9 g/t Ag, 43.6m @ 2.2 g/t Au and 8.7 g/t Ag, 7.9m @ 5.0 g/t Au and 25.9 g/t Ag and 5m @ 8.4 g/t Au and 19.0 g/t Ag
    • Favona: 1.6m @ 426 g/t Au and 856 g/t Ag, 17.6m @ 2.4 g/t Au and 7.9 g/t Ag and 20.1m @ 3.0 g/t Au and 4.8 g/t Ag
    • Rex: 2.4m @ 32.4 g/t Au and 1.6m @ 11.0 g/t Au.
  • Continued exploration success at Macraes including 14.0m @ 3.7 g/t Au, 12.0m @ 2.3 g/t Au, 4.0m @ 7.8 g/t Au, 9.0m @ 2.7 g/t Au and 4.0m @ 5.5 g/t Au from Golden Point.
  • Significant drill intercepts from the Didipio deposit that include 131.0m @ 2.5 g/t Au and 0.4% Cu and 115.0m @ 2.4 g/t Au and 0.5% Cu from infill drilling and 44.0m @ 1.2 g/t Au and 0.6% Cu and 10.0m @ 1.5 g/t Au and 0.4% Cu from deeper extensional drilling.

Mick Wilkes, President and CEO said, "OceanaGold has a portfolio of high quality assets which includes a significant mineral endowment across our operational footprint. Last year, we initiated the most extensive exploration program in our Company's history, which produced significant results across our business."

"In New Zealand, where we are the country's largest gold miner, we remain committed to expanding our exploration efforts to increase resources and achieve mine life extensions at both Waihi and Macraes. Furthermore, the exploration success we achieved in 2016 at the Horseshoe deposit, when combined with the Haile optimisation study offers significant upside in the near-term to further increase our reserves," he added.

"In 2017, one of our primary areas of focus is to leverage the many opportunities for organic growth of the business that we believe will create significant value." 

On a consolidated basis, the Company's total Proven and Probable ("P&P") Reserves stand at 5.04 Moz of gold, 5.0 Moz of silver and 0.18 Mt of copper, reflecting slight decreases in gold and copper from the previous year due to mine depletion but partly offset by reserve replacement in New Zealand. Silver reserves increased by 12% due to revised estimates of the silver content in the ore stockpiles.

Table 1 – Updated Reserve Table (as at 31 December 2016)






PROJECT


PROVEN

PROBABLE

PROVEN & PROBABALE

AREA

Cut-off

Mt

Au

g/t

Ag

g/t

Mt

Au

g/t

Ag

g/t

Cu

%

Mt

Au

g/t

Ag

g/t

Cu

%

Au

Moz

Ag

Moz

Cu

Mt

MACRAES Open Pit

0.4g/t Au

12.2

1.08

-

18.1

1.12

-

-

30.3

1.10

-

-

1.07

-

-

MACRAES Underground

2.1g/t Au

0.54

2.70

-

1.31

2.30

-

-

1.85

2.42

-

-

0.14

-

-

WAIHI Open Pit

0.5g/t Au

0.16

3.05

30.5

0.66

2.91

29.1

-

0.81

2.94

29.4

-

0.08

0.77

-

WAIHI Underground

3.5g/t Au

0.37

9.14

18.1

0.76

6.56

13.1

-

1.13

7.40

14.7

-

0.27

0.54

-

NEW ZEALAND

-

13.2

1.39

-

20.8

1.45

-

-

34.1

1.43

-

-

1.56

1.30

-

DIDIPIO Open Pit

0.52g/t AuEq

28.6

0.47

2.5

2.4

0.94

2.3

0.45

31.1

0.51

2.5

0.35

0.51

2.46

0.11

DIDIPIO Underground

1.3g/t AuEq

2.3

2.48

2.6

13.7

1.76

2.5

0.43

15.9

1.86

2.5

0.44

0.95

1.27

0.07

PHILIPPINES

-

30.9

0.62

-

16.1

1.64

-

-

47.0

0.97

-

-

1.46

3.73

0.18

HAILE Open Pit

0.48g/t Au

19.6

2.19

-

10.9

1.82

-

-

30.5

2.06

-

-

2.02

-

-

USA

-

19.6

2.19

-

10.9

1.82

-

-

30.5

2.06

-

-

2.02

-

-

TOTAL

-

63.7

1.26

-

47.8

1.60

-

-

112

1.41

-

-

5.04

5.0

0.18


Notes:


1.

Reserves are reported within current mine designs using economic assumptions unless otherwise noted: US$1,300/oz gold, US$3.00/lb copper and US$19/oz silver.


2.

Didipio reserves based on US$1,250/oz gold and US$3.20/lb copper.


3.

Haile reserves based on US$950/oz gold price.


4.

Estimates of contained metal do not make allowances for processing losses.

 

Consolidated Measured and Indicated ("M&I") Resources (inclusive of reserves) total 9.93 Moz of gold, 5.6 Moz of silver and 0.21 Mt of copper at the end of 2016, a decrease from the previous year due to mine depletion and removal of the El Dorado resource, but partly offset by additional resources defined through the Company's extensive 2016 exploration programs. Total consolidated Inferred Resources stand at 3.1 Moz of gold, 0.8 Moz of silver and 0.03 Mt of copper.

Table 2 – Updated Resource Statement (as at 31 December 2016)






PROJECT


MEASURED

INDICATED

MEASURED & INDICATED

AREA

Cut-Off

Mt

Au

g/t

Ag

g/t

Cu

%

Mt

Au

g/t

Ag

g/t

Cu

%

Mt

Au

g/t

Ag

g/t

Cu

%

Au

Moz

Ag

Moz

Cu

Mt

MACRAES Open Pit

0.4g/t Au

17.5

1.11

-

-

65.1

0.95

-

-

82.5

0.99

-

-

2.62

-

-

MACRAES Underground

-

3.88

3.11

-

-

7.34

2.06

-

-

11.2

2.42

-

-

0.87

-

-

REEFTON

0.5g/t Au

1.26

1.83

-

-

6.55

1.49

-

-

7.8

1.54

-

-

0.39

-

-

BLACKWATER

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

WAIHI Open Pit

0.5g/t Au

0.16

3.05

30.5

-

0.66

2.91

29.1

-

0.8

2.94

29.37

-

0.08

0.77

-

WAIHI Underground

3.5g/t Au

0.37

9.13

15.5

-

0.88

6.57

11.5

-

1.2

7.33

12.67

-

0.29

0.51

-

NEW ZEALAND

-

23.1

1.62

-

-

80.5

1.18

-

-

103.6

1.28

-

-

4.25

1.27

-

DIDIPIO Open Pit

0.5g/t AuEq

28.9

0.48

2.48

0.34

7.10

0.65

2.15

0.30

36.0

0.51

2.41

0.33

0.59

2.79

0.12

DIDIPIO Underground

1.12g/t AuEq

2.57

2.50

2.58

0.48

17.2

1.74

2.38

0.46

19.8

1.84

2.41

0.46

1.17

1.53

0.09

PHILIPPINES

-

31.4

0.64

-

-

24.3

1.42

-

-

55.8

0.98

-

-

1.76

4.32

0.21

HAILE Open Pit

0.41g/t Au

36.8

1.78

-

-

33.6

1.68

-

-

70.3

1.73

-

-

3.92

-

-

USA

-

36.8

1.78

-

-

33.6

1.68

-

-

70.3

1.73

-

-

3.92

-

-

TOTAL

-

91.3

1.35

-

-

138

1.34

-

-

229.7

1.34

-

-

9.93

5.6

0.21

 




PROJECT


INFERRED RESOURCE

AREA

Cut-Off

Mt

Au g/t

Ag g/t

Cu %

Au Moz

Ag Moz

Cu Mt

MACRAES Open Pit

0.4g/t Au

39

0.9

-

-

1.1

-

-

MACRAES Underground

-

3.5

1.4

-

-

0.2

-

-

REEFTON

0.5g/t Au

1.4

1.1

-

-

0.0

-

-

BLACKWATER

-

0.9

23

-

-

0.7

-

-

WAIHI Open Pit

0.5g/t Au

-

-

-

-

-

-

-

WAIHI Underground

3.5g/t Au

0.7

6.9

13.5

-

0.2

0.3

-

NEW ZEALAND

-

46

1.9

-

-

2.7

0.3

-

DIDIPIO Open Pit

0.5g/t AuEq

2.4

0.5

2.0

0.2

0.0

0.2

0.01

DIDIPIO Underground

1.12g/t AuEq

6.5

1.3

1.6

0.4

0.3

0.3

0.02

PHILIPPINES

-

9

1.1

-

-

0.3

0.5

0.03

HAILE Open Pit

0.41g/t Au

19

1.1

-

-

0.7

-

-

USA


19

1.1

-

-

0.7

0.0

-

TOTAL


73

1.3

-

-

3.1

0.8

0.03


Notes:


1.

Mineral Resources include Mineral Reserves.


2.

Macraes and Reefton open pit resources constrained by a NZ$2,200/oz gold price pit shell. Macraes underground resources are geologically constrained.


3.

The commencement of Reefton closure and rehabilitation was announced on 19 December 2016.


4.

The Waihi open pit resources are reported to a 0.5 g/t Au cut-off within a pit design to the 890mRL. The underground resources are based on a NZ$1,857/oz gold price.


5.

For Didipio, open pit resources are reported above the 2,460mRL and underground resources between the 2,460mRL and 2,070mRL.



- Open pit resources use AuEq cut-off based on US$1,300/oz gold and US$3.00/lb copper. Underground resources use AuEq cut-off based on US$1,450/oz gold and US$3.80/lb copper


6.

Haile open pit resources are reported to a 0.41 g/t Au cut-off within a US$1,200/oz gold price pit shell

 

Table 3 – Updated Resource Statement for Minority Interest in Assets (as at December 31, 2016) 





ASSET

MEASURED

INDICATED

INFERRED

Mt

Au g/t

Au Moz

Mt

Au g/t

Au Moz

Mt

Au g/t

Au Moz

SAMS CREEK

-

-

-

2.0

1.77

0.11

2.0

1.3

0.1

TOTAL

-

-

-

2.0

1.77

0.11

2.0

1.3

0.1

Notes:

1.     OceanaGold has a 20% interest in the Sams Creek Project. The tabulated resource is factored by the percentage ownership.

 

United States

At Haile, open pit reserves and resources remain unchanged from 31 December 2015. Upon completion of the Haile optimisation study in mid-2017, the Company will provide an update to the Haile open pit and underground resources and reserves. Results from the 2016 exploration campaign at Haile will be incorporated into the optimisation study, including more than 35,000 metres of drilling from 66-holes at the Horseshoe underground deposit.

Between September 2016 and March 2017, the Company drilled 23 diamond holes for 12,466 metres at the Palomino target (Figure 1). Assays for the first 15 holes (Table 4) demonstrate extensions to the mineralisation along strike from this underground target which is 300 metres below surface and approximately 300 metres long (Figure 2).

At the adjacent Snake target, below the Snake pit and between the Horseshoe and Palomino underground deposits (Figure 2), the Company tested extensions to known mineralisation with seven diamond holes for 4,355 metres. Assays for these drill holes are pending.

To further support the optimisation study, the Company will drill prospective deeper mineralisation at Snake, Mustang and Mill Zone Deeps targets in the first half of 2017.  At the Mustang target, a 44-hole, 16,000 metre resource delineation diamond drill program commenced in the first quarter to test extensions to mineralisation north of the Chase Hill and Ledbetter resources. At Mill Zone Deeps, the plan is to drill four infill holes for 1,500 metres in the second quarter.

Geophysical data processing and evaluation were completed for the Haile region in late December 2016 including magnetic, EM, gravity and IP data and are being integrated with geology and drilling to identify further near mine exploration targets.

Table 4 – Significant Drill Intersections from Palomino Drilling, Nov 2016March 2017















East

North

Collar RL



From

To

Length

True

Gold 

Drill Hole ID

Project

NAD83 Z17

NAD83 Z18


Az

Dip

(m)

(m)

(m)

width^

Grade



(m)

(m)

(m)






(m)

(g/t)

DDH0577

Palomino

542693

3826518

138.0

148.0

-50.0

422.0

434.8

12.8

9.6

6.70

DDH0580

Palomino

542693

3826439

138.0

148.0

-50.0

377.6

383.2

5.6

4.2

14.20

DDH0583

Palomino

542627

3826444

138.0

148.0

-50.0

399.6

466.7

67.1

50.3

2.40

DDH0584

Palomino

542592

3826452

137.0

148.0

-50.0

393.3

481.7

88.4

66.3

3.00

DDH0590

Palomino

542893

3826045

155.0

328.0

-50.0

479.1

491.2

12.1

9.1

11.70

DDH0593

Palomino

542693

3826439

138.0

152.0

-56.0

370.6

392.7

22.2

16.6

2.60

DDH0593

Palomino

542693

3826439

138.0

152.0

-56.0

422.5

441.7

19.2

14.4

3.70

Including

436.5

441.7

5.1

3.8

10.20

DDH0595

Palomino

542596

3826455

137.0

148.0

-46.0

393.6

438.3

44.7

33.5

4.60

Including

431.3

434.4

3.1

2.3

11.30

^ true thicknesses average 75% of reported interval length based on core intersection angles.

 

New Zealand

Waihi

At Waihi, P&P Reserves at the end of 2016 stood at 0.27 Moz of gold and 0.54 Moz of silver in the underground and 0.08 Moz of gold and 0.77 Moz of silver in the open pit. There was no year-on-year change to the open pit reserves and a 12% decrease in underground reserves due to mine depletion.

The Company is pleased to announce a maiden underground resource of 20 koz Indicated Resource and 137 koz Inferred Resource on veins associated with the Martha Project which contributed to a 22% increase year-on-year in total resources of 527 koz (371 koz Measured and Indicated and 156 koz Inferred) after mine depletion.

In 2016, the Company drilled over 35,000 metres at Waihi with surface and underground exploration drilling and defined a significant exploration target beneath the current open pit at Martha. The Martha project is a significant, medium term exploration target generated through preliminary modeling based on limited drilling and historical crosscut data beneath Martha. The Martha project will be a key focus for the exploration team in 2017 and 2018 to increase and upgrade the resource base.  

In the first two months of 2017, the Company drilled 6,622 metres, utilising three underground and up to five surface drill rigs. Drilling continues to return good widths and grades across multiple targets, adding incremental ounces on vein extensions to those currently being mined at Correnso, Empire, Christina and Daybreak. To complement the surface drilling around the perimeter of the open pit in 2016, the Company commenced two underground exploration drives in 2017 from which drilling will test the deeper extensions of known veins.

This year, the Company also commenced drilling in the Favona and Gladstone areas. Early results have been encouraging with good widths and grade that have the potential to extend the life of the operation. Additionally, the Company commenced drilling on the Rex vein, a splay off the Royal vein, which has returned significant intercepts that are currently being followed up with further drilling (Table 6).

Table 5 presents significant results to hand since the 12 December 2016 exploration update.

Table 5 – Significant Intersections from Waihi Resource Drilling

Drill Hole ID

Vein

East#

(m)

North#

(m)

Collar RL

(m)

Az#

Dip

From

(m)

To

(m)

True

width

(m)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

830ER0998

Christina

396342.3

643167.0

833.4

291.7

-9.2

150.3

154.1

3.7

8.33

9.4

830ER0998

Christina

396342.3

643167.0

833.4

291.7

-9.2

163.2

166.8

3.4

7.39

5.5

860ER1030

Christina

396347.2

643155.0

865.6

337.3

7.3

120.1

121.4

1.1

11.57

10.9

800ER1007

Daybreak

396255.2

643139.1

807.1

302.1

23.8

7.9

12.0

2.9

5.46

6.1

844SP2DR1008

Daybreak

396423.4

643035.2

829.8

327.7

24.9

131.5

137.3

2.1

14.07

17.6

844SP0DN1020

Daybreak

396360.4

642970.6

834.9

304.6

25.9

181.8

188.1

5.9

5.36

141.0

844SP0DN1020

Daybreak

396360.4

642970.6

834.9

304.6

25.9

200.8

203.1

1.8

8.31

33.1

844SP0DG1029

Daybreak

396362.5

642971.7

834.6

355.3

25

161.5

169.1

6.7

7.81

10.2

UW493

Edward HW

395380.9

642696.5

1130.2

328.8

-31.5

120.8

136.0

6.4

6.99

23.8

UW493

Edward HW

395380.9

642696.5

1130.2

328.8

-31.5

182.6

197.8

12.6

16.50

120.5

UW493

Edward HW

395380.9

642696.5

1130.2

328.8

-31.5

267.0

274.9

2.7

21.24

29.3

UW493

Welcome

395380.9

642696.5

1130.2

328.8

-31.5

322.9

328.2

4.3

5.12

19.7

846EN1018

Empire

396367.2

643525.5

842.8

283.3

0.9

31.7

37.2

3.5

4.02

37.1

846EN1018

Martha FW

396367.2

643525.5

842.8

283.3

0.9

199.9

206.7

4.1

6.21

8.6

UW495

Edward HW

395276.5

642734.9

1128.2

19.2

-52.3

94.0

107.0

4.5

4.33

7.2

UW495

Edward

395276.5

642734.9

1128.2

19.2

-52.3

251.8

267.5

9.2

10.04

88.6

UW497

Edward HW

395380.2

642697.1

1129.8

317.6

-37.2

168.8

180.6

6.1

5.04

7.7

UW497

Edward HW

395380.2

642697.1

1129.8

317.6

-37.2

230.6

239.8

4.6

4.27

27.6

UW499

Gladstone

396991.5

642331.0

1138.2

322.2

-44.5

59.7

63.5

3.8*

3.10

5.8

UW499

Gladstone

396991.5

642331.0

1138.2

322.2

-44.5

87.4

91.1

3.7*

4.27

2.7

UW499

Gladstone

396991.5

642331.0

1138.2

322.2

-44.5

116.5

119.6

2.3

3.93

3.1

UW501

Gladstone

397127.1

642327.2

1127.1

334.8

-44.9

109.8

125.8

6.3

3.19

14.4

UW502

Gladstone

396945.1

642363.8

1142.6

18.0

-45.2

11.7

17.7

4.6

2.26

2.4

UW504

Gladstone

396922.5

642283.2

1134.2

322.9

-44.7

78.0

90.1

12.1

1.27

2.6

UW505

Gladstone

396938.8

642386.2

1147.5

117.0

-53.7

44.5

56.3

11.8*

3.51

3.9

UW505

Gladstone

396938.8

642386.2

1147.5

117.0

-53.7

102.3

120.7

18.4*

1.62

10.2

UW506

Gladstone

396941.2

642288.9

1134.8

328.5

-44.9

85.0

103.0

18.0*

1.23

3.1

UW506

Gladstone

396941.2

642288.9

1134.8

328.5

-44.9

116.0

119.8

2.7

4.53

10.1

UW507

Gladstone

397151.8

642458.4

1137.0

169.3

-47.8

22.4

66.0

43.7*

2.16

8.7

Including

55.1

63.0

7.9*

5.02

25.9

UW509

Gladstone

397201.9

642426.8

1128

293.7

-44.1

149.5

161.9

6.2

2.01

6.8

UW509

Gladstone

397201.9

642426.8

1128

293.7

-44.1

166.0

177.7

9.8

1.60

8.5

UW510

Gladstone

397192.7

642477.5

1129.5

143

-52.7

55.7

83.2

27.5*

2.00

4.2

Including

61.9

64.7

2.0

6.93

4.6

UW510

Gladstone

397192.7

642477.5

1129.5

143

-52.7

124.4

128.8

4.4*

3.22

17.3

UW510

Gladstone

397192.7

642477.5

1129.5

143

-52.7

134.3

148.0

13.7*

2.34

9.8

1120SP2GR1010

Gladstone

397045.2

642528.4

1079.9

159.7

1.0

0.0

38.2

38.2*

0.97

9.9

1120SP2GR1010

Gladstone

397045.2

642528.4

1079.9

159.7

1.0

69.0

145.3

76.3*

1.45

4.4

Including

97.1

103.0

5.0

8.36

19.0

1120SP2GR1009

Gladstone

397045.1

642528.4

1080.1

158.1

7.2

95.2

110.3

9.3

2.09

5.8

1120SP2GR1009

Gladstone

397045.1

642528.4

1080.1

158.1

7.2

119.9

134.4

10.3

2.26

4.2

1120SP2GR1012

Gladstone

397045.9

642528.6

1079.8

133.5

-2.4

115.1

156.7

41.6*

1.79

2.9

Including

135.8

139.8

4.0*

4.70

11.8

1120SP2GR1017

Gladstone

397046.4

642528.8

1079.7

121.6

-4.3

106.6

163.5

56.9*

2.24

4.9

Including

137.0

145.2

6.7

5.95

12.4

And

155.4

157.1

1.4

19.63

30.0

1120SP2GR1019

Gladstone

397044.9

642528.4

1079.5

169.3

-12.7

7.6

21.0

13.4*

2.37

50.1

1120SP2GR1019

Gladstone

397044.9

642528.4

1079.5

169.3

-12.7

99.0

216.5

90.0

1.13

4.9

GT1034

Favona

397382.6

642914.5

1117.1

106.2

-69.0

85.0

93.5

8.5*

1.83

4.9

GT1035

Favona

397379.2

642936.2

1118.5

89.2

-66.0

44.8

95.8

51.0*

0.84

1.9

GT1035

Favona

397379.2

642936.2

1118.5

89.2

-66.0

95.8

97.3

1.6*

426.00

856.0

GT1035A

Favona

397379.2

642936.2

1118.5

89.2

-66.0

43.2

96.7

53.5*

1.31

3.6

UW511A

Favona

397400.6

642934.0

1115.5

276.5

-48.9

110.6

118.0

5.5

3.39

25.0

UW512

Favona

397404.1

643044.0

1115.9

291.7

-44.5

84.0

93.0

9.0*

1.01

1.3

UW512

Favona

397404.1

643044.0

1115.9

291.7

-44.5

110.0

114.2

3.4

2.11

1.6

UW514

Favona

397445.6

642841.7

1105.6

286.5

-45.6

72.0

93.5

21.5*

0.87

1.2

UW514

Favona

397445.6

642841.7

1105.6

286.5

-45.6

97.7

106.6

8.9*

0.84

1.8

UW516

Favona

397389.9

642999.3

1115.2

267.7

-48.4

123.9

126.3

2.1

8.93

54.6

UW521

Favona

397572.4

643007.5

1097.9

271.9

-45.5

78.9

87.7

8.8

2.28

2.9

UW521

Favona

397572.4

643007.5

1097.9

271.9

-45.5

106.6

108.7

2.1

3.18

6.8

UW521

Favona

397572.4

643007.5

1097.9

271.9

-45.5

158.8

167.3

8.5

1.74

6.0

UW521

Favona

397572.4

643007.5

1097.9

271.9

-45.5

172.1

178.2

6.1*

1.76

5.4

UW524

Favona

397454.6

642976.7

1098.0

285.0

-45.0

28.0

34.0

6.0*

1.37

2.1

UW524

Favona

397454.6

642976.7

1098.0

285.0

-45.0

47.0

64.6

17.6*

2.39

7.9

UW524

Favona

397454.6

642976.7

1098.0

285.0

-45.0

69.0

79.0

5.3

1.03

5.0

UW525

Favona

397535.3

643058.0

1097.2

261.7

-51.0

41.8

50.7

8.9*

1.08

0.8

UW525

Favona

397535.3

643058.0

1097.2

261.7

-51.0

53.7

73.8

20.1*

3.02

4.8

UW525

Favona

397535.3

643058.0

1097.2

261.7

-51.0

133.0

134.6

1.6*

2.58

17.6

UW526

Favona

397463.0

643050.6

1100.0

287.1

-45.0

106.7

145.0

24.1

1.11

4.1

UW530

Favona

397459.7

643123.4

1114.3

286.2

-45.0

19.6

67.3

33.1

0.78

2.2

# old Mt Eden Coordinate system

* downhole length as not possible to determine true width

 

Table 6 – Significant Intersections from Waihi Exploration Drilling













Drill Hole ID

Vein

East#

(m)

North#

(m)

Collar RL

(m)

Az#

Dip

From

(m)

To

(m)

True

width

(m)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

UW498A

Rex

395710.8

642820.4

1117.9

182.8

-47.9

256.1

257.8

1.65*

10.99

34.8

UW520

Royal

395711.5

642819.6

1118.0

173.2

-32.8

52.9

54.7

1.80*

5.22

288.0

UW520

Rex HW

395711.5

642819.6

1118.0

173.2

-32.8

112.8

113.8

1.00*

2.06

20.9

UW520

Rex

395711.5

642819.6

1118

173.2

-32.8

218.1

221.0

2.40

32.35

81.8

UW522

Unnamed

395382.0

642689.1

1129.8

124.6

-43.0

48.5

49.7

1.15*

6.80

133.0

UW522

Unnamed

395382.0

642689.1

1129.8

124.6

-43.0

101.5

105.9

4.45*

10.49

85.2

# old Mt Eden Coordinate system

* downhole length as not possible to determine true width

 

Macraes

At Macraes, P&P Reserves at the end of 2016 stood at 1.22 Moz of gold including 0.14 Moz of gold at the Frasers Underground as drill programs at Coronation and Coronation North successfully offset mine depletion. Macraes has a total M&I Resource of 3.49 Moz of gold and an Inferred Resource of 1.3 Moz gold.

In December 2016, OceanaGold announced the closure of the Reefton Mine and as such removed the Reefton reserves from its mineral inventory. The resources however, have been retained in the Company's inventory.

Over 31,000 metres of diamond and reverse circulation drilling was completed in 2016. In the first two months of 2017, the Company drilled 4,080 metres utilising one underground diamond and up to three surface diamond / reverse circulation drills rigs. Since the last exploration update in December 2016, the Company has drilled several targets along the 35-kilometre Hyde-Macraes Shear Zone including Coronation North, Trimbells, Golden Point and Frasers Underground (Figure 4). Drilling is currently targeting extensions to known mineralisation at Coronation North, Coronation and Golden Point.

Following the revision of an updated Coronation North resource model in December 2016, approximately 34 koz were added to its resource before the end of the year with mineralisation remaining open to the southeast and current drilling focused on testing this extension. The Company is also drill testing for extensions to the east of the historic Golden Point deposit with encouraging results received to-date (Figure 5 and Table 7).

Table 7 – Significant Intersections from Golden Point












Drill Hole ID

Project

East#

(m)

North#

(m)

Collar RL

(m)

Az#

Dip

From

(m)

To

(m)

True

width

(m)

Gold

Grade

(g/t)

RCH6319

Golden Point

70365.2

15656.1

478.8

285.0

-73.0

189.0

199.0

10.0

1.12

RCH6319

Golden Point

70365.2

15656.1

478.8

285.0

-73.0

209.0

217.0

8.0

2.51

RCD6320

Golden Point

70400.7

15518.3

468.7

317.0

-68.0

237.0

250.6

13.5

1.29

RCH6321

Golden Point

70216.6

15609.6

428.1

48.0

-82.0

137.0

148.0

11.0

2.03

RCH6322

Golden Point

70217.6

15609.4

428.1

70.0

-72.0

162.0

168.0

6.0

1.27

RCH6323

Golden Point

70251.5

15688.0

420.8

53.0

-86.0

134.0

136.0

2.0

3.96

RCH6323

Golden Point

70251.5

15688.0

420.8

53.0

-86.0

150.0

162.0

12.0

2.29

RCH6323

Golden Point

70251.5

15688.0

420.8

53.0

-86.0

171.0

180.0

9.0

2.71

RCH6324

Golden Point

70225.3

15774.5

411.6

79.0

-69.0

94.0

99.0

5.0

3.33

RCH6324

Golden Point

70225.3

15774.5

411.6

79.0

-69.0

139.0

144.0

5.0

2.52

RCH6340

Golden Point

70222.3

15776.2

411.6

279.0

-78.0

103.0

107.0

4.0

7.84

RCH6341

Golden Point

70250.6

15727.3

416.8

283.0

-73.0

106.0

120.0

14.0

3.76

RCH6342

Golden Point

70257.9

15725.3

416.8

53.0

-77.0

129.0

133.0

4.0

5.48*

RCH6342

Golden Point

70257.9

15725.3

416.8

53.0

-77.0

153.0

163.0

10.0

1.29

RCH6343

Golden Point

70247.9

15687.0

420.8

276.0

-76.0

138.0

151.0

13.0

1.32

RCH6344

Golden Point

70235.1

15656.8

423.6

273.0

-70.0

125.0

128.0

3.0

2.18

RCH6344

Golden Point

70235.1

15656.8

423.6

273.0

-70.0

133.0

141.0

8.0

2.15

RCH6344

Golden Point

70235.1

15656.8

423.6

273.0

-70.0

146.0

148.0

2.0

1.76

RCH6345

Golden Point

70236.2

15656.8

423.5

63.0

-84.0

130.0

133.0

3.0

2.41

RCH6345

Golden Point

70236.2

15656.8

423.5

63.0

-84.0

145.0

159.0

14.0

1.28

RCH6346

Golden Point

70237.8

15653.6

423.5

104.0

-66.0

125.0

133.0

8.0

1.80

RCH6346

Golden Point

70237.8

15653.6

423.5

104.0

-66.0

144.0

152.0

8.0

1.44

RCH6347

Golden Point

70211.1

15606.8

427.9

283.0

-75.0

125.0

129.0

4.0

4.73

RCH6348

Golden Point

70200.3

15573.2

430.7

307.0

-84.0

132.0

138.0

6.0

2.26

# Macraes Gold Project Grid

* Assays cut to 15g/t

 

Philippines

At Didipio, P&P Reserves stood at 1.46 Moz of gold, 3.73 Moz of silver and 0.18 Mt of copper; a 6% and 2% year-on-year decrease in gold and copper respectively, due to mine depletion. Silver reserves increased by 0.51 Moz net of mine depletion due to revised estimates of the silver content in the ore stockpiles.

In the last quarter of 2016, the Company completed more than 9,000 metres of diamond drilling. In the first two months of 2017, the Company completed 2,625 metres of drilling focused on infill and extensional underground drilling of the Didipio ore body and initial drilling of early stage targets, utilising two underground and one surface diamond drill rig.

Didipio underground infill drilling continued with the completion of 12 holes for 2,495 metres between December 2016 and February 2017.  All holes intersected mineralisation (Table 8). The initial drilling of depth extensions to the Didipio resource has been completed with assay results confirming the continuation of mineralisation (Table 9).

Exploration continues within the broader FTAA area with drilling of the Mogambos prospect and detailed surface exploration at the D'Fox, Napartan (part of TNN), Binogawan (part of MMB), and Capisaan-Belet prospects. At the Mogambos prospect, initial drilling of 1,056 metres tested a large Au-Cu soil anomaly associated with diorite and monzonite intrusives. Narrow zones of mineralisation were intersected including 4 metres @ 1.87 g/t Au, 656 ppm Cu from 32 metres and 1.5 metres @ 1.1 g/t Au, 1.02% Cu from 136.7 metres.

Table 8 – Significant Intersections from Didipio Infill Drilling













Drill Hole ID

Project

East#

(m)

North#

(m)

Collar RL

(m)

Az#

Dip

From

(m)

To

(m)

True

width

(m)

Gold

Grade

(g/t)

Copper

Grade*

(%)

RDUG05

Didipio

1230

5358

2430

0

-3.0

11.0

126.0

115.0

2.40

0.5

RDUG06

Didipio

1230

5358

2430

0

-13.0

1.0

135.0

131.0

2.50

0.4

DDDH252

Didipio

1250

5356

2429

0

-26.0

38.0

49.0

10.0

0.90

0.3

DDDH252

Didipio

1250

5356

2429

0

-26.0

71.0

153.0

74.0

3.70

0.5

DDDH253

Didipio

1250

5356

2429

0

-13.0

15.0

58.0

42.0

1.10

0.2

DDDH253

Didipio

1250

5356

2429

0

-13.0

73.0

141.0

66.0

2.60

0.4

DDDH253

Didipio

1250

5356

2429

0

-13.0

152.0

167.0

15.0

0.70

0.2

DDDH255

Didipio

1250

5356

2429

0

-3.0

8.0

137.0

129.0

1.90

0.3

DDDH249

Didipio

1350

5329

2427

0

-40.0

65.0

146.1

62.0

1.20

0.5

DDDH249

Didipio

1350

5329

2427

0

-40.0

161.0

254.0

71.0

1.60

0.4

DDDH250

Didipio

1350

5329

2427

0

-31.0

77.0

163.0

74.0

2.90

0.6

DDDH251

Didipio

1350

5329

2427

0

-22.0

61.0

189.0

119.0

1.50

0.6

DDDH246

Didipio

1370

5335

2427

0

-35.0

86.0

98.0

10.0

1.70

0.8

DDDH246

Didipio

1370

5335

2427

0

-35.0

112.0

123.0

9.0

2.00

1.0

DDDH247

Didipio

1370

5335

2427

0

-28.0

86.0

120.0

30.0

0.70

0.5

DDDH247

Didipio

1368

5335

2427

0

-28.0

137.0

216.0

70.0

2.60

0.8

# Coordinates and Azimuth in Mine Grid and reported as whole numbers. 

*Results are length weighted and reported above 1g/t EqAu cut-off based on US$1250/oz gold and US$2.50/lb copper and composited to a minimum 10 metres true width including a maximum contiguous true width of sub-grade mineralization and rounded to one decimal place.  EqAu g/t = Au g/t + (Cu% x 1.3714).

^ Approximate True Width reported as whole numbers.

Results are reported for completed holes that traverse the full width of mineralisation.

 

Table 9 – Significant Intersections from Didipio Depth Extensional Drilling













Drill Hole ID

Project

East#

(m)

North#

(m)

Collar RL

(m)

Az#

Dip

From

(m)

To

(m)

True

width

(m)

Gold

Grade

(g/t)

Copper

Grade*

(%)

DDDH240

Didipio

334557

1805482

2477.8

22

-60

575.0

626.0

26

0.50

0.2

DDDH241A

Didipio

334556

1805480

2477.8

34

-69

795.0

825.0

9

0.40

0.1

DDDH242

Didipio

334558

1805482

2477.8

60

-60

446.0

534.0

44

1.20

0.6

DDDH242

Didipio

334558

1805482

2477.8

60

-60

572.0

599.0

13

0.50

0.2

DDDH242

Didipio

334558

1805482

2477.8

60

-60

614.0

634.0

10

1.50

0.4

DDDH242

Didipio

334558

1805482

2477.8

60

-60

676.0

706.0

15

0.40

0.1

DDDH242

Didipio

334558

1805482

2477.8

60

-60

726.0

738.0

6

0.50

0.2

# Coordinates and Azimuth in UTM_WGS84_Z51N reported as whole numbers.

*  Results are reported above 0.5g/t EqAu cut-off based on US$1,250/oz gold and US2.50/lb copper and composited to a minimum down-hole width of five metres true width including a maximum of five contiguous true width metres of sub-grade mineralization and rounded to one decimal place.

^ Approximate True Width reported as whole numbers.

 

Other

Following the International Centre for Settlement of Investment Disputes ("ICSID") ruling against the Company in 2016, the Company has elected to remove the El Dorado resource from its mineral inventory.

OceanaGold's interest in the Sam's Creek project remains unchanged at 20%.

As part of the requirements under the listing rules of the Australian Stock Exchange, the Company has filed a separate document containing the material summaries and JORC table 1 information related to the resource and reserve drill results for each operation. All drill data and the material summary and JORC table 1 documents can also be found on the Company's website at http://www.oceanagold.com/investor-centre/filings/

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 its flagship operation, 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 is currently commissioning the Haile Gold Mine, a top-tier asset located in South Carolina along the Carolina Terrane. The Company expects the Haile Gold Mine to commence commercial production in early in the second quarter of 2017. OceanaGold also has a significant pipeline of organic growth and exploration opportunities in the Australasia and Americas regions.

OceanaGold has operated sustainably over the past 27 years 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.

In 2017, the Company expects to produce 550,000 to 610,000 ounces of gold and 15,000 to 17,000 tonnes of copper with sector leading All-In Sustaining Costs that range from $600 to $650 per ounce sold.

Technical Disclosure

The updates of Mineral Resources for Macraes, Reefton and Blackwater have been verified by, are based on and fairly represent information compiled by or prepared by S. Doyle. The updates of the Mineral Resources for Waihi have been verified by, are based on and fairly represent information compiled by or prepared under the supervision of P. Church. The updates of Mineral Resources for Didipio have been verified by, are based on and fairly represent information compiled by or prepared under the supervision of J. G. Moore. The updates of Mineral Reserves for Macraes have been verified by, are based on and fairly represent information compiled by or prepared by, or under the supervision of, K. Madambi The Mineral Reserves for Waihi have been verified by, are based on and fairly represent information compiled by or prepared under the supervision of T. Maton for open pit and D. Townsend for underground. The Mineral Reserves for Didipio were prepared under the supervision of C. Fawcett. The Mineral Reserves and Resources for the Haile Gold Mine are the responsibility of Mr B. van Brunt. B. van Brunt is a full-time employee of Haile Gold Mine, Inc. C. Fawcett is a full-time employee of OceanaGold (Philippines) Inc., S. Doyle, K. Madambi, P. Church, T. Maton and D. Townsend, J. G. Moore are full-time employees of Oceana Gold (New Zealand) Limited.  Messrs Church, Doyle, Fawcett, Madambi, Maton, Townsend and Moore are Members and Chartered Professionals with the Australasian Institute of Mining and Metallurgy. Mr van Brunt is a Fellow of the Australasian Institute of Mining and Metallurgy. Each is a "qualified person" for the purposes of NI 43-101.

Messrs Church, Doyle, Fawcett, Madambi, Maton, Moore, van Brunt and Townsend consent to inclusion in this public release of the matters based on their information in the form and context in which it appears. The estimates of Mineral Resources and Reserves contained in this public release are based on, and fairly represent, information and supporting documentation prepared by the named qualified and competent persons in the form and context in which it appears. 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" as defined in the JORC Code.

For further scientific and technical information (including disclosure regarding Mineral Resources and Mineral Reserves) relating to the Blackwater Project, the Didipio Gold-Copper Mine, the Macraes Mine, the Haile Gold Mine, and the Waihi Gold Mine please refer to the NI 43-101 compliant technical reports available at sedar.com under the Company's name.

SOURCE OceanaGold Corporation

For further information: Investor Relations: Sam Pazuki, Tel: +1 416 915 3123; Media Relations: Jill Thomas, Tel: +61 3 9656 5300; info@oceanagold.com; www.oceanagold.com; Twitter: @OceanaGold

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