Oceanagold Announces Significant Intercepts at Macraes Exploration Targets; Eyes MINE Life Extension
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MEDIA RELEASE
22 October 2018
OCEANAGOLD ANNOUNCES SIGNIFICANT INTERCEPTS AT MACRAES
EXPLORATION TARGETS; EYES MINE LIFE EXTENSION
(MELBOURNE) OceanaGold Corporation (TSX: OGC / ASX: OGC) (the “Company”) is pleased to provide
an update on its extensive exploration program at Macraes in New Zealand where since November 2017,
the Company has drilled 287 holes for 33,249 metres mainly at Golden Point, Coronation North, Coronation,
Deepdell North and Frasers Underground (“FRUG”) targets – see Figure 1.
This release follows the update provided to the market on 8 November 2017 (“November 2017 update”) and
results herein reflect activity completed after this date.
Selection of Significant Drill Results*
• 49.0 metres @ 5.05 g/t Au at Coronation North
• 25.0 metres @ 4.83 g/t Au at Coronation North
• 38.0 metres @ 2.99 g/t Au at Coronation North
• 15.0 metres @ 4.28 g/t Au at Golden Point
• 9.0 metres @ 3.85 g/t Au at Golden Point
• 9.0 metres @ 4.63 g/t Au at Golden Point
• 9.0 metres @ 2.26 g/t Au at Coronation
• 6.0 metres @ 4.54 g/t Au at Deepdell North
* downhole length as not possible to determine true width
Mick Wilkes, President and CEO of OceanaGold said, “The Macraes Gold Mine has successfully operated
since 1990 and today is one of the most efficient operations in the world. It has generated meaningful cash
flows and consistently delivered mine life extensions. It is an operation that had an initial 7-year mine life in
1990, a 2-year mine life in 2007, a 4-year mine life in 2013 and today after 28 years of operations , has a
current mine life to 2021. It is an operation that has delivered significant benefits to the local econom ies in
Otago and clearly demonstrating world-class environmental practices.”
He added, “Over the course of the past year, we have invested $5 million drilling several targets on the 32-
kilometre strike length of the Hyde -Macraes Shear Zone . The latest drill results have exceeded our
expectations and we seek to leverage these results into tangible resource growth.”
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“More recently, we have been working on a new mine plan focused on the economic extraction of ore
currently not in Reserves but located within existing deposits. This work, coupled with the exploration
success indicate the potential for a profitable mine life extension beyond 2021 at today’s gold price.
Additionally, we continue to investigate the technical and economic viability of the Round Hill Project, which
represents a potential redevelopment of Macraes that could add an incremental 10 years of mine life to the
operation.”
“Drilling at Golden Point, which is an exploration target within the Round Hill Project, has yielded significant
drill intercepts close to surface and at depth. Based on these results, we are following up with further drilling
and investigating a potential underground mine.”
At Golden Point, 19 holes for 4,634 metres have been drilled since November 2017, targeting the down-
plunge continuation of the Golden Point mineralisation. Significant mineralisation was intercepted in 14 holes
(Table 1, Figure 2 and Figure 3) extending the mineralised zone east. Drill results continue to highlight a
potential pit lay-back plus now a potential underground with recent gold intercepts returning 9.0 metres @
4.63 g/t Au, 9.0 metres @ 3.85 g/t Au, 11.8 metres @ 2.35 g/t Au and 6.6 metres @ 3.97 g/t Au.
Mineralisation closer to surface and proximal to the pit wall delivered significant intercepts that included 15.0
metres @ 4.28 g/t Au and 5.0 metres @ 5.22 g/t Au. Mineralisation remains open down plunge of both
Golden Point and Round Hill deposits. These results along with previous drill results support a potential pit
re-optimisation and will be incorporated into an updated resource estimate. The updated resource a nd pit
optimisation will guide the advancement of the Round Hill Project.
Drilling at Coronation North, Coronation and Deepdell consisted of targeted infill programs in support of an
updated 2019 Life of Mine Plan (“LOMP”). At Coronation North (Table 1 and Figure 4), a discovery made in
late 2015, 86 holes for 8,226 metres were drilled predominantly within the current pit design. The drill results
were in-line with expectations and resulted in a conversion of an additional 14,000 ounces to Measured and
Indicated Resource categories.
At Deepdell North (Table 1 and Figure 5), 90 holes for 9,289 metres were drilled as part of an infill drill
program to confirm continuity of the lower zone of mineralisation and better delineation of the main ore
shoot. The resource estimate update is under review.
At Coronation (Table 1 and Figure 6), 72 holes for 8,779 metres were drilled targeting a proposed Stage 5
cut-back of the existing pit to increase the understanding of the ore shoots as well as providing flexibility
around the LOMP. Drill results demonstrate additional resources and the inclusion of a Coronation Stage 5
would extend the mine life at Macraes by approximately five months.
At the Frasers Underground (Table 1 and Figure 7), 20 holes for 2,320 metres were drilled as part of a
resource definition program to support the LOMP.
Looking ahead, drilling will focus on completion of the Coronation North drill-program in the fourth quarter
and further step out drilling at Golden Point and Round Hill , specifically targeting down-dip extensions to
mineralisation intersected earlier this year.
Mick Wilkes added, “This year at Macraes, production has been significantly higher than in previous years
due to the discovery of higher grade ore from Coronation North. The operation has contributed materially to
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the Company’s strong 2018 free cash flow generation while next year the operation is expected to continue
contributing materially to the Company, both in terms of production and free cash flow generation. The
Macraes operation is highly levered to the gold price and the resource is vast. With some of the best
technical expertise in the gold mining industry, I remain confident that the Macraes operation will be an
important part of the OceanaGold business for many years to come .”
Table 1 – Significant Intersections from Macraes
Hole ID East#
(m)
North#
(m)
Collar RL
(m) Azi# Dip From
(m)
To
(m)
Down
Hole**
(m)
Gold
Grade
(g/t)
Deposit
DDH6850 70464.92 15833.21 427.84 271 -70 171.9 180.9 9.0 4.63 Golden Point
DDH6851 70468.69 15785.3 436.99 71 -90 226.2 232.8 6.6 3.97 Golden Point
DDH6913 70470.79 15783.47 437.02 270 -65 176.0 185.0 9.0 3.85 Golden Point
DDH6917 70396.29 15767.93 452.2 281 -71 189.0 204.0 15.0 4.28 Golden Point
DDH6934 70488.63 15679.74 448.6 265 -75 234.0 245.8 11.8 2.35 Golden Point
RCH6859 70175.72 15749 404.27 71 -90 95.0 100.0 5.0 5.22 Golden Point
RCH6919 69699.84 21174.65 600.1 71 -90 27.0 39.0 12.0 5.24 Coronation North
RCH6920 69674.42 21199.41 600.11 71 -90 44.0 70.0 26.0 3.14 Coronation North
RCH6921 69700.12 21225.92 599.84 71 -90 83.0 108.0 25.0 4.83 Coronation North
RCH6929 69333.3 21348.01 645.86 85.8 -70 102.0 110.0 8.0 6.09 Coronation North
RCH6935 69517.9 21290.76 587.76 71 -90 12.0 61.0 49.0 5.05 Coronation North
RCH6939 69332.04 21343.98 645.8 90 -70 60.0 98.0 38.0 2.99 Coronation North
RCH6942 69568.52 21275.9 589.69 71 -90 24.0 53.0 29.0 2.48 Coronation North
RCH6959 69301.65 21336.39 642.26 45 -75 72.0 82.0 10.0 4.63 Coronation North
RCH7072 69848.31 21100.28 537.83 71 -90 0.0 17.0 17.0 3.06 Coronation North
RCH7081 69774.88 21180.95 535.53 71 -90 18.0 23.0 5.0 3.88 Coronation North
RCH6875 70025.4 17122.97 506.71 71 -90 105.0 111.0 6.0 2.94 Deepdell North
RCH6887 70025.58 17275.15 506.37 71 -90 72.0 78.0 6.0 3.68 Deepdell North
RCH6997 70174.85 17451.09 490 71 -90 95.0 101.0 6.0 4.54 Deepdell North
RCD7021 70225.4 20023.78 683.77 71 -90 108.7 119.8 11.1 1.70 Coronation
RCH7034 70172.43 20023.43 687.68 71 -90 104.0 113.0 9.0 2.26 Coronation
UDH8657 70928 12212 5.58 338 2 35.0 43.0 8.0 5.29 Frasers UG
UDH8660 71947.53 12482.06 -262.78 59 -45 6.0 12.0 6.0 3.74 Frasers UG
UDH8675 71971 12548 -277 215 -46 9.9 18.5 8.6 2.54 Frasers UG
UDH8676 72001 12561 -281.5 211 -51 0.0 3.0 3.0 9.02 Frasers UG
UDH9003 70111.7 12151.94 281.47 309 -47 13.0 22.1 9.1 4.11 Frasers UG
UDH9004 70116.1 12153.05 282.05 25 -23 42.0 58.0 16.0 2.27 Frasers UG
# Macraes Gold Project Grid
* Assays bottom cut 0.4g/t, top cut 15g/t, allowing 2m of internal dilution
** downhole length as not possible to determine true width
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Figure 1 – Location plan of Macraes line of strike targets, Coronation North, Coronation, Deepdell, Golden
Point (Round Hill Project) and FRUG
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Figure 2 – Plan View of Golden Point Extensional Drilling
Figure 3 – Down Dip Extension Drilling to the East at Golden Point
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Figure 4 – Plan view of Coronation North infill drilling
Figure 5 – Plan view of Deepdell North infill drilling
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Figure 6 – Plan view of Coronation infill drilling
Figure 7 – Plan view of FRUG drilling
All drill data and additional information in relation to Macraes can be found on the Company’s website at
http://www.oceanagold.com/investor-centre/filings/. In line with ASX listing requirements, OceanaGold has
appended the information required by JORC Table 1 for Macraes exploration results t o its ASX
announcement. JORC 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
Table 1.
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- ENDS -
For further information please contact:
Investor Relations Media Relations
Sam Pazuki
Tel: +1 416 915 3123
Melissa Bowerman
Tel: +61 459 900 099
Jeffrey Sansom
Tel: +61 3 9656 5300
[email protected] [email protected]
www.oceanagold.com | Twitter: @OceanaGold
About OceanaGold
OceanaGold Corporation is a mid -tier, high-margin, multinational gold producer with assets located in the
Philippines, New Zealand and the United States. The Company’s assets encompass the Didipio Gold-Copper
Mine located on the island of Luzon in the Philippines. O n the North Island of New Zealand, the Company
operates the high-grade Waihi Gold Mine while 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 a series of open pit min es
and the Frasers underground mine. In the United States, the Company operates the Haile Gold Mine, a top-
tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a significant pipeline of
organic growth and exploration opportunities in the Americas and Asia-Pacific regions.
OceanaGold has operated sustainably since 1990 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.
The Company expects to produce 500,000 to 540,000 ounces of gold and 15,000 to 16,000 tonnes of copper
with All-In Sustaining Costs that range from $725 to $775 per ounce sold.
Competent/Qualified Person’s Statement
The exploration results were prepared in accordance with the standards set out in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Resu lts, 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 standar d
for the Australian Stock Exchange Limited (“ASX”).