OceanaGold 2009 Fourth Quarter Production Report & Updated Resource & Reserve
Statement
/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE
Fourth quarter gold sales were 72,140 ounces bringing the total for FY2009 to 300,044 ounces. This is a record result for the Company and a 14% increase over FY2008. Operational expenditure for the fourth quarter were US$35 million (excludes depreciation & amortisation and general & administrative expenses).
Site activities at the Didipio project in northern Luzon
Exploration expenditure for the quarter totalled US$1.9 million with the majority attributable to a continuing brownfields exploration program in
Production Guidance
Production guidance for 2010 has been set at 270,000 - 290,000 oz of gold at cash costs of US$455-US$495/oz.
Updated Resource & Reserve Statement
The Company has updated the corporate resource & reserve statement which is outlined in the tables below.
Additional resources and reserves that have been added at the
Table A - OceanaGold Reserve Statement as at December 31, 2009
RESERVE
CUT OFF RESERVE PROVED PROBABLE
GRADE AREA Mt Au g/t Cu % Mt Au g/t Cu %
-------------------------------------------------------------------------
0.5g/t Coronation 0.81 1.35
0.5g/t Frasers Open
Pit 10.32 1.58 14.98 1.00
0.5g/t Southern Pit 6.46 1.25
1.9g/t Frasers
Underground
P1, P2 & P2D 0.40 3.23 1.18 2.78
0.5g/t Stockpiles 5.69 0.64
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0.5g/t MACRAES TOTAL 16.42 1.30 - 23.42 1.17 -
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0.7g/t Globe Progress 1.05 3.03 3.79 1.92 -
0.7g/t Empress 0.10 2.44 -
0.7g/t Souvenir 0.10 3.78 -
0.7g/t Stockpiles 0.37 1.15
-------------------------------------------------------------------------
0.7g/t REEFTON TOTAL 1.42 2.53 - 3.98 1.98 -
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0.56g/t* Didipio Copper
Gold Open Pit 9.93 0.94 0.66 5.01 0.53 0.54
1.0g/t* Didipio Copper
Gold
Underground 11.89 2.56 0.54 7.99 1.12 0.47
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DIDIPIO TOTAL 21.82 1.82 0.59 13.00 0.89 0.50
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TOTAL RESERVE 39.66 1.63 - 40.41 1.16 -
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RESERVE
CUT OFF RESERVE TOTAL RESERVE
GRADE AREA Mt Au g/t Au Moz Cu % Cu Mt
-----------------------------------------------------------------
0.5g/t Coronation 0.81 1.35 0.03 - -
0.5g/t Frasers Open
Pit 25.30 1.24 1.01 - -
0.5g/t Southern Pit 6.46 1.25 0.26 - -
1.9g/t Frasers
Underground
P1, P2 & P2D 1.58 2.89 0.15 - -
0.5g/t Stockpiles 5.69 0.64 0.12 - -
-----------------------------------------------------------------
0.5g/t MACRAES TOTAL 39.84 1.22 1.57 - -
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0.7g/t Globe Progress 4.84 2.16 0.34 - -
0.7g/t Empress 0.10 2.44 0.01 - -
0.7g/t Souvenir 0.10 3.78 0.01 - -
0.7g/t Stockpiles 0.37 1.15 0.01 - -
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0.7g/t REEFTON TOTAL 5.41 2.12 0.37 - -
-----------------------------------------------------------------
0.56g/t* Didipio Copper
Gold Open Pit 14.94 0.80 0.39 0.62 0.09
1.0g/t* Didipio Copper
Gold
Underground 19.88 1.98 1.27 0.51 0.10
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DIDIPIO TOTAL 34.82 1.48 1.65 0.56 0.19
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-----------------------------------------------------------------
TOTAL RESERVE 80.07 1.39 3.59 - 0.19
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* Macraes and Reefton cut-off is based on US$800/oz gold.
Note a 0.7g/t gold cut-off was used in the oxide zone.
* Didipio cut-off is gold equivalent based on US$500/oz gold and
US$1.9/lb copper. Note a 0.7g/t gold cut-off was used in the oxide
zone.
* Figures are in-situ delivered to ROM (no mill factor applied)
Table B - OceanaGold Resource Statement as at December 31, 2009
RESOURCE MEASURED INDICATED
CUT OFF RESOURCE Au Au
GRADE AREA Mt g/t Cu % Mt g/t Cu %
-------------------------------------------------------------------------
0.5g/t Coronation - - - 1.23 1.18 -
0.5g/t Deepdell 0.23 1.67 - - - -
Geologically
Constrained Golden Point - - - - - -
0.4g/t Round Hill/
Southern Pit 4.06 0.98 - 20.18 0.93 -
0.5g/t Innes Mills/
Southern Pit 0.56 0.98 - 3.64 0.89 -
0.5g/t Frasers Pit 12.14 1.53 - 28.36 0.91 -
Geologically Frasers
Constrained Underground
P1 & P2 1.38 3.10 - 4.88 2.21 -
Geologically Frasers
Constrained Underground
Panel 2 Deeps - - - 0.35 3.56 -
0.5g/t Golden Bar 0.09 1.56 - 1.18 1.40 -
0.5g/t Taylors - - - 0.28 1.50 -
0.5g/t Stockpiles 5.69 0.64 - - - -
----------------------------------------------------------
MACRAES TOTAL 24.15 1.30 - 60.09 1.06 -
----------------------------------------------------------
0.7g/t Globe Progress 1.74 3.03 - 8.08 1.85 -
0.7g/t Empress - - - 0.80 1.89 -
0.8g/t Souvenir - - - 0.18 3.04 -
0.8g/t Supreme - - - - - -
Geologically
Constrained Blackwater - - - - - -
0.7g/t Stockpiles 0.37 1.15 - - - -
----------------------------------------------------------
REEFTON TOTAL 2.11 2.69 - 9.06 1.88 -
----------------------------------------------------------
0.7g/t Main Zone - - - - - -
----------------------------------------------------------
SAMS CREEK TOTAL - - - - - -
----------------------------------------------------------
*0.4 g/t/ Didipio Copper
1.0g/t Gold Project 15.73 1.71 0.57 47.54 0.77 0.40
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DIDIPIO TOTAL 15.73 1.71 0.57 47.54 0.77 0.40
----------------------------------------------------------
----------------------------------------------------------
TOTAL RESOURCE 42.00 1.53 - 116.69 1.01 -
----------------------------------------------------------
RESOURCE MEASURED & INDICATED
CUT OFF RESOURCE Au Au
GRADE AREA Mt g/t Moz Cu % Cu Mt
------------------------------------------------------------------
0.5g/t Coronation 1.23 1.18 0.05 - -
0.5g/t Deepdell 0.23 1.67 0.01 - -
Geologically
Constrained Golden Point - - - - -
0.4g/t Round Hill/
Southern Pit 24.24 0.94 0.73 - -
0.5g/t Innes Mills/
Southern Pit 4.20 0.90 0.12 - -
0.5g/t Frasers Pit 40.50 1.10 1.43 - -
Geologically Frasers
Constrained Underground
P1 & P2 6.26 2.41 0.48 - -
Geologically Frasers
Constrained Underground
Panel 2 Deeps 0.35 3.56 0.04 - -
0.5g/t Golden Bar 1.27 1.42 0.06 - -
0.5g/t Taylors 0.28 1.50 0.01 - -
0.5g/t Stockpiles 5.69 0.64 0.12 - -
---------------------------------------------------
MACRAES TOTAL 84.25 1.13 3.05 - -
---------------------------------------------------
0.7g/t Globe Progress 9.82 2.06 0.65 - -
0.7g/t Empress 0.80 1.89 0.05 - -
0.8g/t Souvenir 0.18 3.04 0.02 - -
0.8g/t Supreme - - - - -
Geologically
Constrained Blackwater - - - - -
0.7g/t Stockpiles 0.37 1.15 0.01 - -
---------------------------------------------------
REEFTON TOTAL 11.17 2.03 0.73 - -
---------------------------------------------------
0.7g/t Main Zone - - - - -
---------------------------------------------------
SAMS CREEK TOTAL - - - - -
---------------------------------------------------
*0.4 g/t/ Didipio Copper
1.0g/t Gold Project 63.27 1.01 2.05 0.44 0.28
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DIDIPIO TOTAL 63.27 1.01 2.05 0.44 0.28
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TOTAL RESOURCE 158.69 1.14 5.83 - 0.28
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RESOURCE INFERRED RESOURCE
CUT OFF RESOURCE Au Au
GRADE AREA Mt g/t Moz Cu % Cu Mt
------------------------------------------------------------------
0.5g/t Coronation 2.98 1.12 0.11 - -
0.5g/t Deepdell 0.32 1.03 0.01 - -
Geologically
Constrained Golden Point 1.48 2.55 0.12 - -
0.4g/t Round Hill/
Southern Pit 18.38 1.22 0.72 - -
0.5g/t Innes Mills/
Southern Pit 0.24 0.71 0.01 - -
0.5g/t Frasers Pit 9.41 0.70 0.21 - -
Geologically Frasers
Constrained Underground
P1 & P2 4.62 1.99 0.30 - -
Geologically Frasers
Constrained Underground
Panel 2 Deeps 0.54 3.69 0.06 - -
0.5g/t Golden Bar 4.96 1.36 0.22 - -
0.5g/t Taylors 0.41 1.05 0.01 - -
0.5g/t Stockpiles - - - - -
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MACRAES TOTAL 43.34 1.27 1.77 - -
---------------------------------------------------
0.7g/t Globe Progress 1.23 1.71 0.07 - -
0.7g/t Empress 0.21 1.57 0.01 - -
0.8g/t Souvenir 0.25 1.46 0.01 - -
0.8g/t Supreme 0.84 1.46 0.04 - -
Geologically
Constrained Blackwater 0.48 21.90 0.34 - -
0.7g/t Stockpiles - - - - -
---------------------------------------------------
REEFTON TOTAL 3.01 4.81 0.47 - -
---------------------------------------------------
0.7g/t Main Zone 13.50 1.78 0.77 - -
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SAMS CREEK TOTAL 13.50 1.78 0.77 - -
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*0.4 g/t/ Didipio Copper
1.0g/t Gold Project 23.80 0.43 0.33 0.25 0.06
---------------------------------------------------
DIDIPIO TOTAL 23.80 0.43 0.33 0.25 0.06
---------------------------------------------------
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TOTAL RESOURCE 83.66 1.24 3.34 - 0.06
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* 0.4g/t EqAu (greater than)2550mRL and 1.0g/t (less than)2550mRL.
No resource reported below 2270mRL. EqAucut-off is gold equivalent
based on US$500/oz gold and US$1.90/lb copper.
Technical Disclosure
The estimates of Mineral Reserves for
The estimates of Mineral Resources were prepared by, or under the supervision of J. G. Moore.
J. G. Moore, R. Redden and J. Wyche are Members of the Australian Institute of Mining and Metallurgy and are the Qualified Persons, as defined by the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). J.G. Moore, R. Redden and J. Wyche have sufficient experience, which is relevant to the style of mineralisation and type of deposits under consideration, and to the activities which they are undertaking, to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("JORC Code"). J. G. Moore and R. Redden are full-time employees of OceanaGold whilst J. Wyche is a full-time employee of Australian Mine Design and Development Pty Ltd.
J.G. Moore, R. Redden and J. Wyche consent to the inclusion in this report of the matters based on their information in the form and context in which the information appears.
The following NI 43-101 technical reports have been filed and are available at www.sedar.com under the Company's name: (a) "Technical Report for the Macraes Project located in the Province of Otago,
Cautionary Note Regarding Mineral Resources and Mineral Reserves
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 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 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.
About OceanaGold
OceanaGold Corporation is a significant Pacific Rim gold producer with projects located on the South Island of
OceanaGold is listed on the
Cautionary Statement
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. Such forward-looking statements include, without limitation, statements with respect to any future reserves attributable to the Southern Pit deposit and estimated production from the Company's existing properties. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including, 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 Annual Information Form prepared and filed with securities regulators in respect of its most recently completed financial year. 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. It is also noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.
For further information: Mr Darren Klinck, Vice President, Corporate and Investor Relations, Tel: +61(3) 9656 5300
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