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MELBOURNE, Nov. 24, 2015 /CNW/ - OceanaGold Corporation (TSX/ASX/NZX: OGC) (the "Company") is pleased to announce additional drill results from its brownfields exploration program in the Macraes Goldfield and from its newly acquired Waihi Gold Mine in New Zealand.
Key Highlights
Mick Wilkes, Managing Director and CEO said, "After the successful acquisition of two high quality assets in Haile and Waihi, we are now focused on creating value through organic growth, in particular adding to our resource and reserve base." He went on to say, "In July this year, we announced encouraging drill results for Macraes and are now pleased to announce further drill results that have culminated in a maiden resource at Coronation North and further potential increases to our reserves underground."
"At Waihi, drilling in the third quarter has demonstrated potential extensions of the Correnso operation at depth and laterally at targets Daybreak and Empire. Additionally, new drilling targets have been identified and we are putting together an extensive exploration program for 2016 to significantly increase the resource base."
Macraes Goldfield
In the first quarter of 2015, the Company initiated a brownfields exploration program at the Macraes Goldfield targeting extensions to the underground at Frasers and near surface along the 30-km strike of the Hyde-Macraes shear zone that hosts the gold mineralization as shown in Figure 1. Under the current drill program, over 180 holes have been drilled for 23,500 metres at Coronation North. As previously announced, initial drilling at Coronation North has discovered mineralisation that is higher grade than the existing Coronation open pit deposit located one kilometer to the south. Further drilling has confirmed continuity of this geologic structure to the northwest and southeast approaching the current Coronation open pit (Figure 2).
As a result of this drilling, the Company has now compiled a maiden resource for Coronation North that is outlined in Table 1. Resource drilling, metallurgical testwork and geologic studies are ongoing at Coronation North to further expand the resource and to convert the resource to a reserve. The Company expects to drill an additional 15 holes for 2,300 metres for the remainder of 2015 at Coronation North.
For 2016, the Company will continue drilling in the Macraes Goldfield including the Frasers Underground and expects to drill approximately 300 holes for 35,000 metres.
Table 1 – Maiden Resource of Coronation North
| Measured |
Indicated |
Measured + Indicated |
Inferred |
||||||||
| Tonnes |
g/t |
Moz |
Mt |
g/t |
Moz |
Tonnes |
g/t |
Moz |
Tonnes |
g/t |
Moz |
| 0 |
0 |
0 |
2.75 |
1.52 |
0.13 |
2.75 |
1.52 |
0.13 |
5.33 |
0.95 |
0.16 |
Table 2 and Figure 3 highlight the significant intercepts at Coronation North received since the July 2015 press release. Figure 4 is an oblique cross section along the Coronation ore shoot showing a number of the significant intersections listed in Table 2.
Table 2 – Significant Intercepts at Coronation North
| Drill Hole ID |
From (metres) |
To (metres) |
Width (metres) |
Au Grade (g/t) |
| RCD5842** |
64 |
76 |
12 |
1.88 |
| 87 |
99 |
12 |
2.43 |
|
| RCD5843** |
65 |
75 |
10 |
1.54 |
| 81 |
87 |
6 |
0.87 |
|
| 129 |
144 |
15 |
1.64 |
|
| RCD5906 |
101 |
124.6 |
23.6 |
3.91* |
| RCD6013 |
72 |
79 |
7 |
3.14 |
| 88.3 |
101 |
12.7 |
1.25 |
|
| RCH5844 |
62 |
70 |
8 |
5.93 |
| RCH5846 |
59 |
95 |
36 |
1.47 |
| RCH5907** |
65 |
73 |
8 |
3.96 |
| 89 |
95 |
6 |
0.73 |
|
| RCH5911** |
57 |
66 |
9 |
2.83 |
| 106 |
111 |
5 |
2.86 |
|
| RCH5938** |
26 |
30 |
4 |
3.89 |
| 65 |
73 |
8 |
5.66* |
|
| RCH5948** |
68 |
102 |
34 |
1.93 |
| RCH5957 |
96 |
119 |
23 |
1.87 |
| RCH5959 |
67 |
83 |
16 |
1.92 |
| 87 |
100 |
13 |
0.94 |
|
| RCH6048 |
60 |
70 |
10 |
4.62* |
| 79 |
82 |
3 |
3.15 |
Waihi Goldfield
The Company is pleased to release the first National Instrument 43-101 Technical Report ("Technical Report") for the Waihi operation, which reflects the resource and reserve net of depletion and effective June 30, 2015. The Technical Report has been filed with the stock exchanges and is also available on SEDAR and the Company's website www.oceanagold.com.
At Waihi, an extensive exploration program commenced in the third quarter of 2015 with a primary focus on targeting resource extensions within mining consents (permits) proximal to the Correnso operation and drilling of newly identified veins including Quattro, potential strike extensions of the Martha system and untested areas of the Waihi epithermal vein system. The Company expects to drill a total of 15,000 metres in the second half of 2015 utilising four underground and two surface drill rigs.
Since July 1, 2015, the Company has drilled nearly 7,000 metres targeting Correnso extensional targets with encouraging results. Resource drilling has been conducted to 60 x 60 metre spacing and reserve drilling to 30 x 30 metres. Significant results are listed in Table 3 with additional assays pending.
Table 3 – Significant Intercepts from Correnso Extension and Reserve-Resource Drilling
| Hole ID |
From (m) |
Length (m) |
True width (m) |
Au g/t |
Ag g/t |
Vein |
| 823SPCR0782 |
53.40 |
6.80 |
4.9 |
17.98 |
67.1 |
Correnso Deeps |
| 823SPCR0783 |
58.80 |
11.50 |
6.8 |
8.74 |
13.5 |
Correnso Deeps |
| 823SPCR0832 |
40.95 |
4.25 |
2.0 |
18.37 |
77.0 |
Correnso Deeps |
| 844SP2CR0839 |
169.40 |
3.33 |
2.8 |
9.99 |
9.9 |
Correnso Deeps |
| 912SRCR0819 |
78.00 |
4.00 |
3.9 |
13.08 |
20.0 |
Correnso Upper |
| 912SRCR0828 |
91.10 |
1.80 |
1.4 |
19.11 |
20.2 |
Correnso Upper |
| 915OPCR0820 |
26.00 |
1.10 |
1.0 |
20.50 |
54.4 |
Correnso Upper |
| 844SP0DR0798 |
178.00 |
5.85 |
5.3 |
11.41 |
12.4 |
Daybreak |
| 844SP0DR0807 |
169.20 |
1.60 |
1.6 |
34.25 |
28.8 |
Daybreak |
| 844SP0DR0808 |
174.85 |
4.80 |
4.8 |
6.44 |
8.9 |
Daybreak |
| 844SP2DR0822 |
135.40 |
0.80 |
0.8 |
28.00 |
34.7 |
Daybreak |
| 844SP2DR0823 |
142.30 |
3.90 |
3.9 |
33.79 |
29.3 |
Daybreak |
| 844SP2DR0825 |
130.50 |
5.90 |
5.8 |
26.06 |
20.7 |
Daybreak |
| 844SP6EN0809 |
57.90 |
4.90 |
3.2 |
14.50 |
41.0 |
Empire HW |
| 844SP2CR0841 |
188.80 |
6.10 |
4.3 |
20.84 |
23.6 |
Correnso Deeps |
| 844SP5CR0811 |
172.85 |
10.95 |
4.0 |
9.37 |
19.8 |
Correnso Deeps |
| 844SP8CR0831 |
170.70 |
10.30 |
4.7 |
18.26 |
22.2 |
Correnso Deeps |
| 912SRCR0826 |
71.90 |
1.30 |
0.8 |
53.60 |
44.0 |
Correnso Upper FW |
| 844SP6EN0809 |
88.75 |
5.90 |
5.9 |
6.86 |
15.9 |
Empire |
Quattro is a newly recognised vein located west of the old Trio workings, a previous underground operation. With only limited drilling to date, the Company has demonstrated that the Quattro vein has a strike length in excess of 500 metres with thick vein widths up to 7.6 metres. Significant intercepts at Quattro include 7.6 metres true width @ 5.6 g/t Au including 2.2 metres true width @ 14.3 g/t Au and 1.8 metres true width @ 29.1 g/t Au.
Since July 1, 2015, the Company has drilled over 2,000 metres of untested targets on and around the margins of the residual gravity highs associated with the Waihi epithermal vein system. Figure 7 illustrates a large block of untested ground in proximity to the Royal, Daybreak and Union veins that was drill tested with drill hole 844SP0RE0817. This hole intercepted several narrow mineralised veins between Royal and Union assaying up to 0.75 metres (true width) @ 21.5 g/t Au. Table 4 summarises this and other significant exploration results.
Table 4 – Significant Intercepts in Waihi Exploration Drilling
| Hole ID |
From (m) |
Length (m) |
True width (m) |
Au g/t |
Ag g/t |
Vein |
| 844SP0RE0817 |
200.10 |
0.65 |
0.55 |
5.25 |
5.0 |
New vein between Union and Royal |
| 844SP0RE0817 |
205.10 |
0.80 |
0.75 |
21.50 |
12.8 |
New vein between Union and Royal |
| 844SP0RE0817 |
210.00 |
1.00 |
0.8 |
6.24 |
5.1 |
New vein between Union and Royal |
| 844SP0RE0817 |
227.00 |
1.00 |
0.9 |
12.90 |
51.5 |
New vein between Union and Royal |
| 844SP0RE0817 |
317.00 |
3.15 |
2.7 |
8.33 |
12.2 |
Royal Remnants adjacent to Stope |
| 844SP0RE0817 |
441.90 |
2.80 |
0.5 |
5.23 |
8.5 |
New vein between Royal and Empire |
| 844SP8EX0835 |
180.20 |
8.90 |
5.6 |
2.59 |
16.4 |
Strike extension of Grace Vein |
| 844SP8EX0835 |
306.00 |
4.00 |
1.4 |
7.82 |
26.0 |
Correnso Deeps North |
| 844SP8EX0844 |
192.30 |
43.20 |
~30 |
1.84 |
5.0 |
Correnso Deeps North |
| 844SP8EX0844 |
229.00 |
5.50 |
3.8 |
5.41 |
6.9 |
Correnso Deeps North |
In 2016, the Waihi exploration program encompasses over 34,000 metres of drilling of brownfields and greenfields targets. The brownfields program will continue to test the resource extensions of the Martha and Correnso structures and the newly discovered veins. In 2016, the Company will recommence drilling of the WKP prospect in the Hauraki region where previous drill campaigns returned high grade intercepts that included 9.7 metres (7.5 metres true width) @ 17.2 g/t Au and 7.9 metres @ 5.1g/t Au.
The Company expects to spend approximately US$7 million to US$12 million on exploration at Macraes and Waihi in 2016.
Maps and tables showing drilling results for Macraes and Waihi can be accessed with the following link: http://www.oceanagold.com/investors-and-media/filings/. In line with ASX listing requirements, OceanaGold has provided the information required by JORC Code Table 1 for the Macraes and Waihi mines in its ASX announcement. JORC Code Table 1 is not required under National Instrument 43-101. Readers are referred to the ASX website at www.asx.com.au or the OceanaGold website at www.oceanagold.com to view JORC Code Table 1.
About OceanaGold
OceanaGold Corporation is a significant multinational gold producer with assets located in New Zealand, the Philippines and the United States. The Company's assets encompass its flagship operation, the Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. On the south island of New Zealand, the Company operates the largest gold mine in the country at the Macraes Goldfield which is made up of the Coronation open pit and the Frasers underground mine. On the west coast of the South Island, the Company operates the Reefton Gold Mine. The Company recently announced the completion of the acquisition of the high-grade Waihi Gold Mine which is located on the north island of New Zealand. In South Carolina, United States, the Company is currently developing the top-tier Haile Gold Mine with commercial operation expected to commence in early 2017. OceanaGold has a pipeline of organic growth and exploration opportunities in the Australasia and Americas regions.
OceanaGold has operated sustainably over the past 25 years with a proven track record for environmental management and community and social engagement. The Company has a strong social license to operate and works collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build capacity and not dependency.
In 2015, the Company expects to produce and attribute 380,000 to 410,000 ounces of gold from the combined New Zealand and Didipio operations and produce 22,000 to 23,500 tonnes of copper from the Didipio operation.
Competent/Qualified Person's Statement
The mineral resource and exploration results were prepared in accordance with the standards set out in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code") and in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects 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").
Information relating to Macraes mineral resources and exploration results in this document has been verified by, is based and fairly represents information compiled by or prepared under the supervision of Sean Doyle, a Chartered Professional with the Australasian Institute of Mining and Metallurgy and an employee of OceanaGold (NZ) Ltd. Information relating to Waihi exploration results in this document has been verified by, is based on and fairly represents information compiled by or prepared under the supervision of Lorrance Torckler, a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of OceanaGold (NZ) Ltd. Both S. Doyle and L. Torckler have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code and both are Qualified Persons for the purposes of the NI 43-101. Messrs Doyle and Torckler consent to the inclusion in this public report of the matters based on their information in the form and context in which it appears.
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
Image with caption: "Figure 1 – Current Exploration Targets at Macraes Goldfield (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552235.jpg
Image with caption: "Figure 2 – Coronation North Drilling (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552237.jpg
Image with caption: "Figure 3 – Plan showing Coronation North Significant Intersections (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552239.jpg
Image with caption: "Figure 4 –Coronation North Oblique Section Along the Ore Shoot (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552241.jpg
Image with caption: "Figure 5 – Oblique View to the NW of Waihi Operations and Exploration Targets (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552247.jpg
Image with caption: "Figure 6 – Correnso Long Section (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552243.jpg
Image with caption: "Figure 7 – Drilling of Untested Areas within Waihi (CNW Group/OceanaGold Corporation)". Image available at: http://photos.newswire.ca/images/download/20151124_C8715_PHOTO_EN_552245.jpg
Investor Relations - Toronto: Sam Pazuki, Tel: +1 416 915 3123; Media Relations - Melbourne, Andrea Atell, Tel: +61 3 9656 5300; [email protected] | www.oceanagold.com | Twitter: @OceanaGold
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