/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES/
MELBOURNE, Australia, Aug. 22 /CNW/ - OceanaGold Corporation
("OceanaGold" or "the Company")(TSX, ASX, NZX:OGC) is pleased to provide an
update on the development activities at its Didipio Gold-Copper project in
northern Luzon, Philippines.
The 21 kilometre road upgrade into the Didipio project currently has two
contractors mobilized on the project. Light cars and trucks are already
utilizing the road to and from local communities. Current work is focusing on
upgrading the road to all weather access, which will be available by late
The EPCM contract was awarded to Ausenco (Brisbane) in the second
quarter. Final phase engineering is now well underway and Ausenco is
undertaking the detailed design for site construction activities scheduled to
commence in Q4 2007. Site earthworks will begin in Q4 at Tubo with particular
focus on the access road and the construction of an accommodation camp where
the box cut for the drainage tunnel will be located. Manufacturing of the main
Didipio accommodation camp will also start in Manila in Q4 for construction at
site in late Q1 2008.
The mills, which were ordered in late 2006 are still on schedule to
arrive in September 2008. These are the long lead-time items and the shells
are currently being built in South Africa by Outokumpu.
The company is on schedule to commission and commence production at
Didipio during the first half of 2009.
Patrick Goodfellow, Vice President - Philippines stated "We are pleased
with the project to date and have been working closely with Ausenco over the
past few weeks to progress the engineering and design. The access road to site
has held up well after recent heavy rains in Luzon and we are on schedule to
commence site earthworks in the fourth quarter of this year. We have also made
good progress with staffing up our team both in Manila and at site as we ramp
up the construction phase."
The Company has approximately US$162M in cash for the construction of the
Didipio project and for general corporate purposes. These funds are invested
in low risk, term deposits with ANZ Bank, Commonwealth Bank of Australia and
Societe Generale. The project has a mine life of at least 15 years and is
forecasted to produce an average of 120,000 ounces of gold and 15,000 metric
tonnes of copper per year.
The Company has assembled an exploration team in the Philippines and has
commenced exploration fieldwork on the Papaya project in northern Luzon.
Exploration fieldwork on the nearby Runamok project is expected to mobilize in
December. The Company expects to receive the final permit for the Manhulayan
project in the next two weeks. A team will mobilize to the Surigao peninsula
immediately following receipt to establish an access road and field camp for
use during fieldwork and drilling at Manhulayan in Q4 2007. The last
exploration at this gold-copper porphyry system was in 2001 when two previous
drill holes reported 295 metres @ 0.32% Cu & 0.15 g/t Au (290 Au eq gram
metres) and 185 metres @ 0.33% Cu & 0.16 g/t Au (189 Au eq. gram metres).
CEO Steve Orr commented "We believe we are well positioned with the
financing, personnel, and infrastructure in place to deliver on one of the
strongest growth profiles of any intermediate gold company in the market
today. We will continue to channel our efforts to successfully commissioning
the Frasers Underground in New Zealand along with Didipio in the Philippines
in 2008/2009 while at the same time cultivating further growth opportunities
through organic exploration and accretive acquisitions as they present
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