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OceanaGold commences milling at Didipio


News provided by

OceanaGold Corporation

Nov 27, 2012, 08:35 ET

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

MELBOURNE, Nov. 27, 2012 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is pleased to provide a progress report on commissioning activities at the Didipio Project in the Philippines where milling commenced earlier this week.

Mick Wilkes, Managing Director & CEO stated, "We are very pleased to announce that we have commenced milling at Didipio. In June 2011, we set a goal to commence commissioning the Didipio project in the fourth quarter of 2012 and we have met that objective. Over the next week we will bring the flotation circuit on line and start to introduce ore to the plant.  We expect to be producing copper-gold concentrate in the coming weeks.  It's a great result."

He added, "We're very fortunate to have assembled such a strong construction management team that has provided the leadership to get the Project built on time to the point where our commissioning team is ramping up the plant as per the original schedule. In addition, we have assembled a very experienced operations team and both groups have been strongly supported by a dedicated group of experienced operators and tradesmen from our New Zealand operations.  We have successfully utilised the extensive expertise that exists within the company to bring this important high grade project into production, and that is something of real value which is being realised now."

HIGHLIGHTS

  • Commissioning proceeding according to plan and within timeframe
  • Rock has been introduced to the SAG Mill with the SAG Mill and Slip Energy Recovery (SER) system commissioned
  • SAG Mill has been operated in closed circuit with the cyclones
  • Ball Mill has been commissioned and the initial ball charge loaded
  • All Motor Control Centres (MCC) have been energized
  • Commissioning of the water system has been completed in most areas
  • Mining activities ramping up with more than 800,000 tonnes of ore in stockpiles including 230,000 tonnes on the ROM stockpile
  • Tailings pumping and return water from the Tailings Storage Facility (TSF) has been proven
  • Demobilization of construction contractors continues and Operations teams are in place.

Didipio Project Construction & Commissioning Progress

The structural, mechanical and piping work for the process plaon the nt is complete. The focus over the past few weeks has been completing the electrical wiring and dry commissioning the plant (bumping motors). A 30 member commissioning team is solely focussed on ramping up the process plant. The jaw crusher and conveying system to the emergency stockpile was commissioned in October. Earlier this month, the remaining sections of the conveying system to the mills were commissioned in preparation for mill commissioning (Figure 1).

Last week, water systems were commissioned followed by testing of the Ball and SAG mills using crushed rock from the emergency feeder (Figure 2). The flotation system and thickeners will be bedded down this week followed by a full run of the crushing, grinding, flotation and tailing systems in closed circuit using rock. The reagent circuit is being tested and is expected to be commissioned in about a week.

The mining contractor continued to take delivery of equipment and mined volumes increased accordingly (Figure 3&4). Since the beginning of October the focus for mining has switched from building the TSF to building ore stockpiles for the processing plant. To date, more than 800kt of ore have been mined and stockpiled, 230kt directly to the ROM Pad.

To view recent construction progress at Didipio, please visit our website at:

http://www.oceanagold.com/investors-and-media/images-and-videos/

About OceanaGold
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 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 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.

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. Forward-looking statements such as production forecasts 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. The information contained in this release is not investment or financial product advice.

PDF available at: http://stream1.newswire.ca/media/2012/11/27/20121127_C3775_DOC_EN_21256.pdf

PDF available at: http://stream1.newswire.ca/media/2012/11/27/20121127_C3775_DOC_EN_21257.pdf

PDF available at: http://stream1.newswire.ca/media/2012/11/27/20121127_C3775_DOC_EN_21258.pdf

PDF available at: http://stream1.newswire.ca/media/2012/11/27/20121127_C3775_DOC_EN_21259.pdf

SOURCE: OceanaGold Corporation

OceanaGold Corporation

Investor Relations - Melbourne
Nova Young or Darren Klinck
Tel: +61(3) 9656 5300

Investor Relations - Toronto
Sam Pazuki
Tel: +1 416 915 3123

[email protected]   |   www.oceanagold.com

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Organization Profile

OceanaGold Corporation

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