OGC.TO · 2017-06-26 12:00:00

Oceanagold Provides an Update ON Its Global Exploration Program

Drill Results

MEDIA RELEASE

26 June 2017

OCEANAGOLD PROVIDES AN UPDATE ON ITS GLOBAL EXPLORATION

PROGRAM

(All financial figures in US Dollars unless otherwise stated)

(MELBOURNE) OceanaGold Corporation (TSX/ASX: OGC) (the “Company”) is pleased to provide an update

on its global exploration program across its assets in the Unites States, New Zealand and the Philippines.

This exploration update follows the update provided to the market on 30 March 2016 (“March update”) and

results herein reflect drilling completed after this date.

Key Highlights

 Significant intercepts returned at Haile from the Palomino and Snake targets including:

o Palomino: 96.3m @ 3.11 g/t Au including 16.7m @ 9.06 g/t Au

o Snake: 18.3m @ 4.37 g/t Au and 27.9m @ 1.56 g/t Au

 Continued exploration success at Waihi from underground and surface drilling yielding signi ficant

intercepts including:

o Correnso: 4.2m @ 9.01 g/t Au and 5.7m @ 6.22 g/t Au

o Christina: 1.9m @ 9.40 g/t Au and 2.4m @ 9.08 g/t Au

o Gladstone: 40.2m @ 1.46 g/t Au, 13.3m @ 2.45 g/t Au and 14.6m @ 1.77 g/t Au

o Silverton: 6.9m @ 12.97 g/t Au and 5.4m @ 10.11 g/t Au

o Rex: 1.8m @ 16.0 g/t Au

 Significant widths and grade intersected in drilling at Macraes including:

o Coronation North: 22.0m @ 2.40 g/t Au and 5.9m @ 3.45 g/t Au

o Golden Point: 7.9m @ 10.02 g/t Au

 Significant infill drill intercepts from Didipio including:

o Didipio: 120.0m @ 3.2 g/t Au and 0.7% Cu, 123.0m @ 2.2 g/t Au and 0.5% Cu, and 92.0m

@ 3.6 g/t Au and 0.5% Cu

 Signed a def initive exploration and option A greement with Mirasol Resources on 18 May 2017 to

explore their 100% owned, La Curva gold project, located in Santa Cruz Province, Argentina.

Mick Wilkes, President and CEO of OceanaGold said, “The latest exploration results continue to demonstrate

the exciting organic growth potential that exists at each of our assets. The results at Palomino and Snake at

our Haile mine presents a significant opportunity at depth for further incremental resource growth, not

included in the upgraded resources we recently announced following the completion of the Haile Optimisation

Study.” He added, “In New Zeala nd, our objective is to demonstrate 10+ year mine life extensions for both

Waihi and Macraes an d continuing positive exploration results , such as what we continue to see , gives us

confidence in achieving this objective.”

“We will continue our exploration programs to further prove up resources and work with all stakeholders to

advance these opportunities through the project life cycle. These organic growth opportunities not only create

value for shareholders , but all stakeholders in the regions we operate , as we are a major employer and

significant contributor to local economies.”

The United States

Haile

The Company has drilled 35 diamond drill holes for a total of 16,957 metres year to date utilising four diamond

drill rigs. Drilling has focussed on the kilometre-long Palomino-Snake-Horseshoe corridor, including

advanced drilling of the Palomino target and the continuity of higher grade mineralisation below the Snake

pit, adjacent to the Horseshoe underground resource.

The Company completed 14 diamond dri ll holes for a total of 7,306 metres on the Palomino and Snake

targets since the March press release, with assays for five holes pending (Figure 1). The drilling intersected

significant mineralisation (Table 1) at both the Palomino and Snake targets, approximately 800 metres apart,

at depths ranging between 250 and 350 metres (Figure 2). Geologic logging and modelling confirmed

northeast plunging, lozenge-shaped zones of disseminated gold mineralisation hosted in strongly foliated,

silicified and pyritic metasediments along the southeast-dipping limb of the Haile anticlinorium

A high-grade zone has been identified at Palomino currently measuring approximately 100 metres long by

70 metres wide and 30 metres thick. The limits of mineralisation are currently defined by a drill hole spacing

of 40 to 70 metres. A preliminary resource estimate will be undertaken in the third quarter to assess economic

viability of the Palomino deposit and the need for further drilling.

The Company continues to advance regional exploration activities within several priority targets around the

Haile mine. Initial drilling of the Holly target has commenced and geophysical and geochemical data are

being evaluated to advance other targets scheduled for drilling in the fourth quarter of 2017.

Figure 1 – Plan View of Palomino and Snake Drilling, Haile Gold Mine

Figure 2 – Northwest Long Section of the Palomino-Snake-Horseshoe Mineralised Corridor

Table 1 – Significant Drill Intersections from Palomino and Snake Drilling

Drill Hole ID Project

East

NAD83

Z17N

(m)

North

NAD83

Z17N

(m)

Collar

(m)

Depth

(m) Az Dip From

(m)

Width

(m)

Gold

Grade

(g/t)

DDH0591 Snake 542919.6 3826831.4 136.2 703.6 178 -59 339.9 395.9 56.1 0.75

511.6 526.5 14.9 0.92

DDH0594 Palomino 542989.4 3826432.0 155.4 493.0 221 -58 319.3 331.4 12.2 1.02

DDH0597 Palomino 542970.8 3826079.7 155.8 599.2 333 -54 409.7 425.5 15.8 2.8

466.7 479.2 12.5 1.81

494.1 532.0 37.9 1.08

DDH0598 Snake 543426.0 3826990.2 155.4 733.3 177 -51 184.7 203.0 18.3 4.37

DDH0600 Palomino 542970.8 3826079.7 155.8 621.1 359 -65 502.2 553.4 51.2 0.70

541.8 551.0 9.1 1.90

DDH0615 Palomino 542519.3 3826368.6 145.4 602.4 146 -51 546.1 555.2 9.1 6.72

DDH0616 Palomino 542740.0 3826383.0 151.0 565.9 164 -69 341.8 376.9 35.1 1.30

387.2 483.5 96.3 3.11

Including 433.3 450.0 16.7 9.06

DDH0625 Palomino 542711.0 3826556.0 136.0 715.3 154 -63 254.1 268.7 14.6 0.95

448.6 469.9 21.3 0.69

479.1 497.3 18.3 0.75

DDH0627 Palomino 542711.0 3826556.0 136.0 654.4 139 -56 440.9 477.6 36.7 0.86

500.2 565.7 65.5 1.94

574.0 588.1 14.1 2.64

602.6 619.3 16.8 1.40

DDH0630 Snake 543189.0 3827068.0 149.0 562.5 175 -45 425.4 434.0 8.6 1.03

DDH0635 Snake 543189.0 3827068.0 149.0 535.4 159 -45 449.6 477.5 27.9 1.56

Note: true thicknesses average 75% of reported interval length based on core intersection angles.

New Zealand

Waihi

The Company has drilled 93 holes for a total of 18,134 metres year to date, utilising three underground and

up to five surface drill rigs. Drilling continues to intersect good widths and grades across multiple targets,

adding incremental resource ounces on vein extensions to those currently being mined at Correnso, Empire,

Christina and Daybreak (Figure 3).

The Company continues to progress the Martha Project exploration drill drives. The 920-metre drive is nearly

40% complete while the 820 -metre drive is nearly 75% complete to the initial drill drive locations . Drilling of

approximately 12,000 metres is scheduled to commence in the third quarter of 2017. Favona and Gladstone

drilling continues to return encouraging intercepts (Figure 3).

The Company has also commenced drilling on the Rex vein, a splay off the Royal vein, and the historically

mined Sil verton vein, adjacent to Favona. Both targets have returned significant intercepts that warrant

further drill testing. Tables 2 and 3 present significant results received since the March update.

Figure 3 – Oblique View to SW Across Waihi Mines and Targets

Table 2 – Significant Intersections from Waihi Resource Drilling

Drill Hole ID Vein East#

(m)

North#

(m)

Collar

(m)

Az# Dip From

(m)

True

width

(m)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

807ER1042 Christina 396413.9 643321.6 806.7 270.7 -5.4 138.6 140.3 1.1 11.34 14.2

807ER1046 Christina 396414.0 643321.9 808.2 280.2 27.5 77.0 81.0 1.9 9.40 10.8

912ER1037 Christina 396425.1 643297.0 913.5 314.7 -17.6 85.8 86.8 1.0 15.12 10.2

108.8 111.6 2.4 9.08 7.6

807ER1042 Christina

HW 396413.9 643321.6 806.7 270.7 -5.4 157.2 160.8 2.7 5.01 12.0

813CR1034 Correnso 396426.6 643539.5 810.7 97.8 -39.4 141.6 149.1 4.2 9.01 27.9

813CR1038 Correnso 396426.5 643541.3 810.3 50.6 -40.5 172.0 179.0 5.7 6.22 29.5

813CR1054 Correnso 396427.0 643540.6 810.2 72.7 -37.2 142.3 155.5 6.6 4.95 21.0

UW528 Favona 397515.9 643150.1 1110.6 287.7 -43.1 84.8 93.8 8.5 1.22 8.2

152.8 185.3 26.6 1.69 7.1

UW532 Favona 397406.9 643190.1 1125.2 284.1 -45 36.1 44.5 6.6 1.37 6.4

45.7 48.2 2.5 2.46 5.0

UW540 Gladstone 396922.7 642280.8 1134.3 290.9 -45.3 82.0 86.4 4.3 1.67 3.6

89.9 95.5 4.8 1.11 4.1

UW542 Gladstone 396924.5 642318.9 1133.7 307.8 -52.7 55.00 72.8 14.6 1.77 3.7

87.3 92.0 4.1 1.26 8.3

UW543 Gladstone 396926.5 642321.3 1134.0 354.4 -49.7 52.8 70.0 17.2* 1.02 4.2

UW544 Gladstone 396923.5 642281.3 1134.4 307.0 -44.9 107.0 120.5 11.2 1.00 7.6

UW549 Gladstone 396926.4 642321.1 1133.5 22.5 -43 68.7 77.2 8.5* 1.21 2.0

Drill Hole ID Vein East#

(m)

North#

(m)

Collar

(m)

Az# Dip From

(m)

True

width

(m)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

94.4 113.3 15.5 1.00 4.8

UW550 Gladstone 396924.5 642281.8 1134.5 323.0 -42.7 74.9 115.1 40.2* 1.46 4.8

UW554 Gladstone 396947.8 642363.9 1142.8 13.3 -41.4 50.0 69.9 15.2 1.23 3.1

UW556 Gladstone 397060.3 642327.6 1134.2 345.0 -46 55.2 61.3 6.0 2.81 15.5

83.7 99.1 13.3 2.45 6.7

UW534 Silverton 397060.1 642923.8 1125.4 56.4 -45.7 49.5 52.8 2.1 20.00 67.1

UW538 Silverton 397040.0 642930.6 1122.1 15.6 -44.9 63.7 68.6 2.9 5.14 15.5

UW547 Silverton 397070.4 642805.0 1117.8 76.7 -50.8 64.9 73.5 6.9 12.97 22.2

UW548 Silverton 397095.3 642820.6 1124.5 98.6 -43.4 24.0 28.9 3.9 31.90 27.3

UW552 Silverton 397091.3 642872.1 1130.6 109.8 -49 19.9 27.0 5.4 10.11 24.0

UW555 Silverton 397094.6 642875.2 1130.7 32.0 -46.4 11.6 13.5 1.6 12.76 18.7

# old Mt Eden Coordinate system

* downhole length as not possible to determine true width

Table 3 – Significant Intersections from Waihi Exploration Drilling

Drill Hole ID Vein East#

(m)

North#

(m)

Collar

(m)

Az# Dip From

(m)

True

width

(m)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

UW539 Rex HW 395382.5 642689.4 1129.7 119.1 -21.8 77.2 77.9 0.4 9.40 152.0

96.2 96.6 0.3 12.60 40.1

112.6 113.1 0.5 16.20 14.3

UW539 Rex 395382.5 642689.4 1129.7 119.1 -21.8 321.3 323.7 1.8 16.00 25.8

# old Mt Eden Coordinate system

* downhole length as not possible to determine true width

Macraes

The Company has drilled approximately 2,000 metres of diamond drill holes and approximately 8,700 metres

of reverse circulation drill holes year to date utilising one underground drill rig and two surface drill rigs.

Drilling has focused on the Golden Point, Coronation North, Trimbells and Frasers West targets (Figure 4).

Drilling at Coronation North and Golden Point successfully intercepted down plunge extensions to known

mineralisation (Table 4, Figures 5, 6, 7) and remain open at depth. Frasers West drilling highlighted the

potential of the area to contain a modest bulk, low-grade resource with a low ore to waste ratio, close to

existing haul roads and the processing plant. Drilling at Trimbells closed off the target with no further drilling

planned.

Table 4 – Significant Intersections from Coronation North

Drill Hole ID Project East#

(m)

North#

(m)

Collar

(m)

Az# Dip From

(m)

True

Width

(m)

Gold

Grade

(g/t)

RCD6337 Coronation North 70196.6 20953.2 637.6 314 -79 185.0 189.0 4.0** 1.32

200.0 222.0 22.0** 2.40*

230.0 241.0 11.0** 0.78

RCD6338 Coronation North 70150.1 20898.7 644.8 300 -81 152.4 161.0 8.6** 1.30

163.0 169.2 6.2** 2.13

RCD6339 Coronation North 70257.2 20896.7 640.6 307 -82 175.2 181.0 5.9** 3.45

RCD6349 Golden Point 70204.8 15571.4 430.9 067 -76 140.0 148.0 8.0 1.38

RCD6351 Golden Point 70367.0 15656.3 478.9 342 -81 181.7 201.7 20.1 1.28

216.3 224.2 7.9 10.02*

# Macraes Gold Project Grid

* Assays cut to 15g/t

** True widths not available

Figure 4 – Location of Macraes 2017 Drill Targets

Figure 5 – Coronation North Extension Drilling in Plan

Figure 6 – Golden Point Extensional Drilling in Plan

← Back to feed