OceanaGold Successfully Commissions Frasers Underground Mine, New Zealand


    MELBOURNE, Australia, Jan. 17 /CNW/ - OceanaGold Corporation
("OceanaGold" or "the Company") is pleased to report the successful
commissioning of the Frasers Underground mine at the Macraes operation in the
South Island of New Zealand. This is the second new gold mine that the Company
has commissioned in the past 12 months. Frasers has been completed on
schedule, at a capital cost net of gold revenue of NZ$33.4 million. This
includes NZ$7.7 million for additional development to de-risk the first year
of production.
    The Frasers Underground has been developed on the down-dip extension of
the ore body currently being mined via Macraes open-pit. This new underground
mine is scheduled to produce approximately 900,000 tonnes of ore in 2008 which
will be processed through the existing Macraes processing plant. Frasers
concentrate represents about 16% of the total throughput for the Macraes
autoclave with the remainder coming from Macraes and Reefton concentrates.
Underground development to date totals 6.5 kilometres and will continue
simultaneously as mining progresses. Exploration is ongoing and results at
depth continue to demonstrate strong continuity with numerous higher-grade
areas defined.
    John Kinyon, Vice-President of New Zealand Operations commented, "We are
pleased to have completed the Frasers Underground within our scheduled
timeframe. Development rates exceeded our targets during 2007 and were able to
access more ore faces than anticipated. As a result, Frasers has been
scheduled to produce 900,000 tonnes of ore in 2008 versus the 800,000 tonnes
per annum anticipated in the project's feasibility study. The addition of our
third mine in New Zealand gives OceanaGold significant flexibility to achieve
its 2008 production targets."

    About OceanaGold

    OceanaGold currently operates in the South Island of New Zealand and in
the Philippines. The Company's assets encompass New Zealand's largest gold
mine at Macraes which includes the recently commissioned Frasers Underground
operation, a new mine in the Reefton Goldfield also in New Zealand 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) in 2009.
    OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol "OGC".

    Cautionary Statement

    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

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