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MELBOURNE, Australia, Aug. 8 /CNW/ - OceanaGold Corporation ("OceanaGold"
or "the Company") is pleased to report encouraging assay results from
exploration drilling program at the Crushington Prospect, north of its
Globe-Progress mine near Reefton, New Zealand (Figure 1); and at the Golden
Point Extension and Frasers Panel 2 Extension in the Macraes Goldfield.
The Crushington group of mines were exploited historically between the
1880's and early 1900's for high-grade gold mineralisation typically grading
12g/t Au to 17 g/t Au and hosted within steeply-dipping quartz lodes. Total
aggregate production from the major mines was approximately 390,000 ounces,
making it the third largest producer in the Reefton Goldfield. The Crushington
area lies along the geologically prospective line-of-strike within the
goldfield and is associated with a large, coherent soil geochemical anomaly.
The Company has targeted the Crushington area for its potential to host
near surface sulphide-associated resources suitable for processing through the
Company's recently commissioned processing plant at Globe-Progress. Previous
exploration results reported by the Company at the Supreme deposit, south of
Globe-Progress, have shown that this style of mineralisation is associated
with the quartz lodes, though is characteristically associated with more
complex shear structures.
Testing of the Crushington area commenced in March 2007 with a diamond
drilling program. The drilling was planned on a broadly-spaced grid, in order
to evaluate the interpreted mineralised structures and provide geological
information over the full 700 metre strike-length of the area. A total of six
(6) holes for 839.9 metres of diamond drilling have been completed to-date
(see Appendix I) in the northern, central and southern part of the prospect
area (Figure 2). Prior to the OceanaGold drilling program, the only drilling
in the area was three holes completed by CRA Exploration in the mid-1980's.
Results from the drill core samples indicate that the Crushington area
contains zones of high-grade mineralisation likely associated with the quartz
lodes that were mined historically as well as lower-grade sulphide associated
mineralisation located in close proximity to these historically mined quartz
zones (Table 1 and Figure 3).
Visible gold, along with disseminated sulphide mineralisation has been
observed in hole RDD0052, for which assays are still pending. Geological
logging has also confirmed that the drilling has intersected mineralised
lithologies that are similar to those at the Globe-Progress and Supreme
The next hole to be drilled is RDD0053, which will test the down-dip
continuation of high-grade mineralisation intersected in hole RDD0048. A
further nine exploration holes, for approximately 1,400 metres diamond
drilling are planned at the Crushington Prospect.
An exploration drilling program was also commenced at the Golden Point
Extension (Figure 4) where potential for a new zone of mineralisation has been
identified down-dip from the Golden Point open pit. A total of three diamond
drill holes have been completed in 2007 for a total of 1,038 metres drilling
Assay results confirm mineralisation widths and grade (Table 2) that are
consistent with previous mineralisation intersected in the area. The
mineralised Hangingwall structure was intersected at approximately 300 metres
depth and the results suggest that mineralisation has continuity within the
host shear zone structure.
The mineralised structure is open to the east and north and further
drilling has been planned to test for higher grade zones down-dip of the
current drilling (Figure 5). This work is scheduled to be completed later in
Infill diamond drilling has commenced at the Frasers Underground Panel 2
Extension at Macraes in order to increase geological confidence in the
resource for the area (Figure 6). This area lies down-dip of the currently
defined mineralised panel which has already been integrated into the Frasers
Underground development plans. A total of 16 deep diamond drill holes are
planned to increase the local drill hole density to a nominal 50 metre by
50 metre grid, with an objective to upgrade the resources to indicated and
following that, into the reserve base.
Two drill rigs operated by Boart Longyear are currently working on the
prospect and a total of 2,253.6 metres drilling has been completed to-date
(Appendix III). Two holes have successfully intersected the mineralised
Hangingwall shear zone (Table 3). The depth, grade and width of the
mineralised Hangingwall structure was in-line with expectations based on
intersections from the surrounding holes.
These infill drilling results have increased confidence in the grade of
the current resource for the area, which is significantly higher than that
found in Panel 1 (under development). In addition, significant widths of
stockwork-style, lower grade, mineralisation has been intersected below the
OceanaGold's CEO, Stephen Orr commented that "We are pleased with these
encouraging exploration results from Reefton and Macraes. They continue to
provide confirmation that our geological models are allowing us to
successfully target more prospective areas within the Reefton and Macraes
Goldfields. Our strategy is to discover satellite deposits that will provide
supplemental ore to the Globe-Progress and Macraes processing plants".
Mr Lachlan Reynolds, B.Sc (Honours), M.AusIMM, Principal Exploration
Geologist is the Qualified Person for the technical disclosure in this
release. Sampling of sawn diamond drill core was completed at the OceanaGold
facilities at Reefton and Macraes, New Zealand. Samples were prepared and
assayed by fire assay methods at the AMDEL laboratory located at Macraes Flat,
New Zealand. Standard reference materials were inserted to monitor the quality
control of the assay data.
Full Company Release
To view the full company release, including images and appendices please
access the link below or go to the company website www.oceanagold.com :
OceanaGold currently operates in the South Island of New Zealand and in
the Philippines. The Company's assets include New Zealand's largest gold mine
at Macraes, a new mine in the Reefton Goldfield, and two development projects;
the Frasers Underground Mine, scheduled for commissioning in the first quarter
of 2008, and the Didipio Gold-Copper Project in northern Luzon, Philippines
scheduled for completion in early 2009. The Company expects to achieve gold
production of approximately 500,000 gold equivalent ounces (AuEq) by 2009.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol "OGC".
Statements in this release may be viewed as forward-looking statements.
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 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. There are no assurances the Company can fulfil
such forward-looking statements and the Company undertakes no obligation to
update such statements. Such forward-looking statements are only predictions;
actual events or results may differ materially as a result of risks facing the
Company, some of which are beyond the Company's control.
For further information:
For further information: Mr Darren Klinck, Vice President, Corporate and
Investor Relations, OceanaGold Corporation, Tel: 61 3 9656 5300