OceanaGold announces increased reserves at the Macraes Mine in New Zealand


MELBOURNE, Australia, Jan. 18 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is pleased to announce an increase of 259,000 ounces of gold to the mineral reserve inventory at the Macraes mine in Otago, New Zealand, which extends the mine life out to at least 2016.

These reserves are in addition to the Company's December 2009 announcement of an increase of 495,000 ounces of reserves. When combined, this brings the total additional gold reserves at the Macraes mine to 754,000 ounces.

The additional mineral reserves announced today follow a comprehensive geologic interpretation and economic analysis for the "Southern Pit" deposit. The gold price assumption used to calculate reserves was US$800/oz. Further specifics are set out in "Table A" below.

Paul Bibby, CEO commented, "The additional reserves that have been added at the Macraes open pit mine are a further reflection of the potential that exists within the Macraes goldfield to convert resources to reserves. There is a significant resource base at Macraes and over the past few months we have successfully added three years to the mine life through this conversion program, extending the operation out to at least 2016. We expect further positive results from the programs to continue over the coming months."

                   Table A - Southern Pit Mineral Reserves

    Southern Pit Mineral Reserves at Macraes

                      Proven            Probable          Total Reserve
                    Mt    Au g/t      Mt    Au g/t     Mt    Au g/t    Au Moz
    Southern Pit     -         -    6.46      1.25   6.46      1.25     0.259

    Note: The cut-off grade for all Macraes open pits is 0.5g/t (which
    includes Southern pit)

NI 43-101 Technical Report

An NI 43-101 technical report for the Macraes Project (dated November 9, 2009) has been filed on SEDAR and is available on the Company's website. The assumptions and methodologies used in this reserve estimate with exception of the gold price used are the same as those reflected in the NI 43-101 technical report mentioned above.

Qualified Persons

Mark Cadzow, Chief Operating Officer - New Zealand and Jonathan Moore, Principal Resource Geologist, both of Oceana Gold New Zealand Limited are the "qualified persons" as defined by the NI 43-101 report and are responsible for the contents of the Mineral Resource estimate and forthcoming technical report. Both are members of the AusIMM.

The Qualified Persons, Mr Cadzow and Mr Moore have reviewed and approved the contents of this news release.

About OceanaGold

OceanaGold Corporation is a significant Pacific Rim 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 expects to produce approximately 300,000 ounces of gold from the New Zealand operations in 2009. The Company also owns the Didipio Gold-Copper Project in northern Luzon, Philippines.

OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.

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.

SOURCE OceanaGold Corporation

For further information: For further information: Mr Darren Klinck, Vice President, Corporate and Investor Relations, Tel: +61(3) 9656 5300

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