/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO
US NEWSWIRE SERVICES./
MELBOURNE, March 31,
2015 /CNW/ - OceanaGold Corporation (TSX/ASX/NZX:
OGC) (the "Company") is pleased to announce the updated
Resource and Reserve Statement as at 31
December 2014.
Key Highlights
- Increase in Proven and Probable reserves at Didipio after
depletion.
- Total consolidated Proven and Probable gold reserves of 85.9 Mt
@ 1.09 g/t for 3.02 Moz of gold including 3.58 Moz of silver and
0.21 Mt of copper.
- Total consolidated Measured and Indicated resources of 181 Mt @
1.35 g/t Au for 7.82 Moz of gold including 13.8 Moz of silver and
0.24 Mt of copper.
- Didipio Measured and Indicated resources of 2.02 Moz of gold,
4.32 Moz of silver and 0.24 Mt of copper (57.3 Mt @ 1.10 g/t Au,
2.34 g/t Ag and 0.42% Cu).
- Macraes Goldfield Measured and Indicated resources of 3.58 Moz
of gold (101 Mt @ 1.11 g/t Au).
- Frasers Underground mine life extended to the end of 2016 at
current rates.
- Reefton Goldfield Measured and Indicated resources of 0.70 Moz
of gold (14.4 Mt @ 1.50 g/t Au).
Mick Wilkes,
Managing Director and CEO commented, "OceanaGold has a solid
resource base from its portfolio of high quality assets. We have
seen a year-on-year increase in resources at Didipio driven by the
strong results generated from the optimisation study. We continue
to add mine life to our Frasers Underground operation, which has
been extended by an additional year of production at similar rates
to previous years."
On a consolidated basis, the Company's total
Proven and Probable ("P&P") reserves stand at 85.9 Mt with 3.02
Moz of gold, 3.58 Moz of silver and 0.21 Mt of copper. This
represents a slight decrease from the previous year as a result of
mine depletion but partly offset from an increase to Didipio
reserves following the Didipio optimisation study. The P&P
reserves were calculated using US$1,250/oz gold and US$3.20/lb copper.
At Didipio in the
Philippines, P&P reserves were slightly higher due to
the at depth expansion of the underground mine design. The increase
was partly offset by a reduction of reserves from the open pit
following the changes made to the mine design in the optimisation
study and from mine depletion. Overall, the Didipio reserves
increased to 47.6 Mt from 45.6 Mt while the gold reserve increased
to 1.70 Moz from 1.59 Moz with a slight increase in reserve grade
to 1.11 g/t. Copper reserve remained steady year-on-year after
depletion.
In 2014, the Company completed the geophysical
survey of the Didipio area to identify new drill targets. In 2015,
the Company continued drilling within the mine area to find
additional sources of mill feed with some promising early
results.
In New Zealand,
P&P reserves stand at 38.4 Mt @ 1.07 g/t Au for 1.32 Moz of
gold, a reduction from the previous year due mainly to mine
depletion. At the Frasers Underground, additional reserves were
defined resulting in an extension to the mine life out to the end
of 2016, one year later than previously stated. In each of the past
several years, the Company has successfully defined additional
reserves at the Frasers Underground, resulting in additional mine
life at the operation.
Measured and Indicated ("M&I") resources
(inclusive of reserves) for the Company now stand at a total of 181
Mt @ 1.35 g/t Au for 7.82 Moz of gold including 13.8 Moz of silver
and 0.24 Mt of copper. The M&I gold resource has decreased 0.52
Moz from the previous year as a result of mine depletion and a
reduction in the M&I gold resource at Macraes due to the pit
wall failure at the Frasers pit. The decrease was partly offset by
additional Didipio M&I gold resources following the
optimisation study and increased stockpiles and from an increase to
the Round Hill M&I resource.
The M&I silver resource increased by 4.32 Moz
from the previous year due to the estimation of the silver content
in the Didipio ore body. The M&I copper resource decreased
slightly as a result of mine depletion.
Total Company Inferred resources stand at
104 Mt @ 1.2 g/t Au for 4.1 Moz of
gold including 2.5 Moz of silver and 0.04 Mt of copper.
OceanaGold Managing Director and CEO,
Mick Wilkes stated "In the Philippines, we are preparing our Paco
tenements for a geophysical survey and anticipate drilling there
later this year. We will continue to drill the Didipio near mine
area and follow-up on the recent drilling. Once we have
transitioned to the underground at Didipio, we will carry out
infill drilling to convert inferred resources and drill the ore
body at depth, which we believe is open."
"In New Zealand,
the Company will continue infill drilling at the Frasers
Underground mine to increase reserves. With the weaker New Zealand dollar and lower fuel costs, the
optionality at Macraes has significantly improved. As a result, the
Company will undertake a surface drilling program targeting
low-strip mineralisation. Success from this drilling program along
with continued improvement in economic conditions may result in a
mine life at Macraes beyond 2017 in the current mine
configuration."
Mr. Wilkes added, "The Company will also continue
to pursue external high quality, low-cost reserves and resources
that would further complement our business."
About OceanaGold
OceanaGold Corporation is a significant
multinational gold and copper producer with over 24 years of
operating sustainably in New
Zealand and more recently the
Philippines. Its flagship operation is the Didipio Mine
located in the northern Philippines which commenced commercial
production on April 1, 2013 and has a
current mine life to 2030. In New
Zealand on the South Island, OceanaGold operates the
country's largest gold operation at the Macraes Goldfield and the
Reefton Gold Mine on the West Coast. OceanaGold has an unwavering
commitment to the environment and to the host communities in which
it operates in and works collaboratively with its valued
stakeholders to create opportunities, build capacity and leave a
positive, long-lasting legacy well beyond the mining life
cycle.
In 2015, the Company expects to produce 295,000
to 335,000 ounces of gold from the combined New Zealand and Didipio operations and 21,000
to 23,000 tonnes of copper from the Didipio operations.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol
OGC.
Technical Disclosure
The estimates of Mineral Resources and Reserves
were prepared in accordance with the standards set out in the
Australasian Code for the Reporting of Mineral Resources and Ore
Reserves of December 2012 (the "JORC
Code") and in accordance with National Instrument 43-101 of the
Canadian Securities Administrators ("NI 43-101"). The JORC Code is
the accepted reporting standard for the Australian Stock Exchange
Limited ("ASX") and the New Zealand Stock Exchange Limited
("NZX").
Unless stated otherwise, in respect of the
mineral projects of the Company referred to in this update, the
scientific and technical information (including disclosure
regarding mineral resources and mineral reserves) is based upon the
following NI 43-101 compliant technical reports (collectively, the
"Technical Reports"):
- "Technical Report for the Macraes Project located in the
Province of Otago, New Zealand"
dated February 12, 2010, prepared by
R. Redden, then Development and Technical Services Manager, and
J.G. Moore, Group Mine Geology
Manager, both of Oceana Gold
(New Zealand) Limited (the
"Macraes Technical Report");
- "Technical Report for the Reefton Project located in the
Province of Westland, New Zealand"
dated May 24, 2013, prepared by K.
Madambi, Technical Services Manager and J. Moore, Chief Geologist,
both of Oceana Gold (New Zealand) Limited (the "Reefton Technical
Report"); and
- "Technical Report for the Didipio Gold / Copper Operation Luzon
Island" dated October 29, 2014,
Simon Griffiths, General Manager of
Studies, and Jonathan Moore, Chief
Geologist of Oceana Gold
(New Zealand) Limited, and
Michael Holmes, Chief Operating
Officer, of OceanaGold Corporation (the "Didipio Technical
Report").
Simon Griffiths,
Knowell Madambi and Jonathan Moore
are full-time employees of the Company's subsidiary, Oceana Gold (New
Zealand) Limited. Michael
Holmes is a full-time employee of OceanaGold Corporation.
Rod Redden was a full time employee
of Oceana Gold (New Zealand) Limited until February 2012. The Technical Reports have been
filed with the Canadian securities regulatory authorities and are
available for review at www.sedar.com under the Company's
profile.
For further information regarding the
El Dorado property, reference
should be made to the following NI 43-101 technical report which
has been filed and is available at sedar.com under the name of
Pacific Rim Mining Corp.: "Technical Report Update on the El Dorado
Project Gold and Silver Resources, Department of Cabanas, Republic
of El Salvador" dated March 3, 2008, prepared by Steven Ristorcelli and Peter A. Ronning of Mine Development
Associates.
The El Dorado
resource estimate referred to herein was prepared by Mr.
Steven Ristorcelli, C.P.G, of Mine
Development Associates, Reno,
Nevada (who is an independent Qualified Person as defined in
NI 43-101) and conforms to current CIM Standards on Mineral
Resources and Reserves. Mr Ristorcelli is a Registered Professional
Geologist in the states of California and Wyoming and a Certified Professional Geologist
with the American Institute of Professional Geologists.
Where the mineral reserve and mineral resource
estimates of the Company's Reefton, Macraes and Didipio operations
set out in this media release differ from those set out in the
Technical Report for the relevant property, such differences arise
from updates to such mineral reserve and mineral resource estimates
as a result of either depletion through production, addition due to
exploration activities or revised economic assumptions. The
latest updates of mineral reserves for each of the Company's
New Zealand projects were prepared
by, or under the supervision of, K. Madambi, while the mineral
reserves for Didipio were prepared under the supervision of M.
Holmes. The updates of mineral resources for the Didipio
project were prepared by, or under the supervision of, J. G. Moore, while the updates of mineral
resources for Macraes and Reefton were updated by S. Doyle.
M. Holmes, K. Madambi, J. G. Moore
and S. Doyle are Members and Chartered professionals with the
Australasian Institute of Mining and Metallurgy and each is a
"qualified person" for the purposes of NI 43-101. S. Doyle is also
a member of the Australian Institute of Geoscientists. All such
persons are "qualified persons" for the purposes of NI 43-101 and
have sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and to the activity which
they are undertaking to qualify as a Competent Person as defined in
the JORC Code. Messrs Moore, Madambi, Doyle, Holmes and Ristorcelli consent to
inclusion in this media release of the matters based on their
information in the form and context in which it appears.
Cautionary Note Regarding Mineral Resources
and Mineral Reserves
The Company's disclosure of Mineral Reserve and
Mineral Resource information is governed by NI 43-101 under the
guidelines set out in the Canadian Institute of Mining, Metallurgy
and Petroleum (the "CIM") Standards on Mineral Resources and
Mineral Reserves, adopted by the CIM Council, as may be amended
from time to time by the CIM ("CIM Standards"). The disclosure of
Mineral Reserve and Mineral Resource information for properties
held by the Company is based on the reporting requirements of the
2012 JORC Code. CIM definitions of the terms "Mineral Reserve",
"Proven Mineral Reserve", "Probable Mineral Reserve", "Mineral
Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource", are substantially
similar to the JORC Code corresponding definitions of the terms
"ore reserve", "proved ore reserve", "probable ore reserve",
"Mineral Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource", respectively. Estimates
of Mineral Resources and Mineral Reserves prepared in accordance
with the 2012 JORC Code would not be materially different if
prepared in accordance with the CIM definitions applicable under NI
43-101.
There can be no assurance that those portions of
such Mineral Resources that are not Mineral Reserves will
ultimately be converted into Mineral Reserves. Mineral Resources
are not Mineral Reserves and do not have demonstrated economic
viability. All Mineral Reserves are within the Mineral
Resource.
Cautionary Statement for Public
Release
Certain information contained in this public
release may be deemed "forward-looking" within the meaning of
applicable securities laws. Forward-looking statements and
information relate to future performance and reflect the Company's
expectations regarding the generation of free cash flow, execution
of business strategy, future growth, future production, estimated
costs, results of operations, business prospects and opportunities
of OceanaGold Corporation and its related subsidiaries. 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 materially from those expressed
in the forward-looking statements and information. 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
forward-looking statements and information. Such forward-looking
statements and information 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. Although the Company
believes that any forward-looking statements and information
contained in this press release is based on reasonable assumptions,
readers cannot be assured that actual outcomes or results will be
consistent with such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and information.
The Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements and information,
whether as a result of new information, events or otherwise, except
as required by applicable securities laws. The information
contained in this release is not investment or financial product
advice.
SOURCE OceanaGold Corporation