Oceanagold Provides Annual Resource and Reserve Statement Update
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MEDIA RELEASE
28 March 2019
OCEANAGOLD PROVIDES ANNUAL RESOURCE AND RESERVE STATEMENT
UPDATE
(MELBOURNE) OceanaGold Corporation ( TSX: OGC) (ASX: OGC) (the “Company”) is pleased to provide
its updated annual Resource and Reserve (“R&R”) statement for the year ended December 31, 2018.
Highlights
• Total Proven and Probable Mineral Reserves of 5.56 Moz1 of gold, 3.38 Moz of silver and 0.14 Mt of
copper, with growth in gold reserves offsetting approximately 50% of 2018 mining depletion
• Total Measured and Indicated Mineral Resources of 8.59 Moz of gold, 5.52 Moz of silver and 0.16
Mt of copper, with gold resource growth nearly offsetting 2018 mining depletion
• Total Inferred Mineral Resources of 3.6 Moz of gold, 3.5 Moz of silver and 0.03 Mt of copper. A 42%
year on year increase, net of mining depletion.
• Martha Underground Indicated Mineral Resource increased to 0.33 Moz of gold and 1.30 Moz of
silver while Inferred Mineral Resources increased to 0.67 Moz of gold and 2.47 Moz of silver.
• Initial WKP resource including 0.23 Moz of gold in Indicated Mineral Resources and 0.4 Moz of gold
in Inferred Mineral Resources.
Mick Wilkes, President and CEO, “OceanaGold has a significant mineral e ndowment that has grown over
the past several years. Exploration is a key component of our value creating strategy and we have increased
our exploration budget each year since 2015. Operating and exploring in prolific gold districts in the United
States, New Zealand and the Philippines has afforded us the opportunity to make prudent investments in
extensive drill programs that have translated into growth of our resource base ”
“For the past few years, we have described our confidence in significantly increas ing the resource base and
mine life of our New Zealand operations. Over the course of the past 12 months, we have done just that with
significant increases at the Martha Underground and initial resource at our newest discovery at WKP. We
have also achieved exploration success at Macraes where we are currently investigating a mine life increase
through resource conversion and recent discovery of higher grade ore at depth at Golden Point.”
“At Haile, we continue to achieve positive exploration results by iden tifying new pockets of mineralisation
within the existing operating footprint and at depth. We do look forward to further extensive drilling at deeper
1 Moz = million troy ounces.
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targets once the Horseshoe underground is built . At Didipio, drilling towards the base of Panel 2 of the
underground has yielded increases to the resource at the operation.”
Table 1: Updated Mineral Reserves (as at December 31, 2018)
Notes:
1. Mineral Reserves are reported within current mine designs based upon US$1,300/oz gold, US$3.25/lb copper and US$17/oz silver.
2. Reported estimates of contained metal do not make allowances for processing losses.
Figure 1: Changes to Proven & Probable Mineral Reserves
The Company’s Proven and Probable (“P&P”) Reserves stand at 5.56 Moz of gold, 3.38 Moz of silver and
0.14 Mt of copper. Year-on-year, growth in reserves has offset 36% of 2018 mining depletion.
PROJECT
AREA Cut-Off Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Au Moz Ag Moz Cu Mt
MACRAES Open Pit 0.4 g/t Au 10.8 1.11 . . 22.2 0.94 . . 33.0 0.99 . . 1.05 . .
MACRAES Underground 1.2 g/t Au 0.5 2.74 . . 0.97 2.06 . . 1.47 2.29 . . 0.11 . .
BLACKWATER
WAIHI Open Pit 0.5 g/t Au 0.2 3.05 30.46 . 0.7 2.91 29.11 . 0.8 2.94 29.37 . 0.08 0.77 .
WAIHI Underground 2.9 g/t Au 0.3 5.63 11.25 . 0.3 4.88 9.76 . 0.6 5.31 10.61 . 0.10 0.20 .
NEW ZEALAND 11.8 1.33 24.1 1.08 35.9 1.16 1.34 0.97 .
DIDIPIO Open Pit 0.4 g/t AuEq 19.4 0.39 2.08 0.33 . . . . 19.4 0.39 2.08 0.33 0.24 1.29 0.06
DIDIPIO Underground 1.3 g/t AuEq 9.9 2.09 2.19 0.50 7.3 1.23 1.79 0.40 17.2 1.73 2.02 0.46 0.95 1.12 0.08
PHILIPPINES 29.2 0.97 7.3 1.23 36.6 1.02 1.20 2.41 0.14
HAILE Open Pit 0.45 g/t Au 10.2 1.86 . . 41.1 1.50 . . 51.3 1.57 . . 2.59 . .
Haile Underground 1.5 g/t Au . . . . 3.1 4.38 . . 3.1 4.38 . . 0.44 . .
USA 10.2 1.86 44.2 1.70 54.4 1.73 3.03 . .
TOTAL 51.3 1.23 75.5 1.46 127 1.36 5.56 3.38 0.14
PROVEN PROBABLE PROVEN & PROBABLE
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Table 2: Updated Mineral Resources – Measured and Indicated (as at December 31, 2018)
Figure 2: Changes to Measured & Indicated Mineral Resources
All reported Measured and Indicated Resources include Mineral Reserves.
On a consolidated basis, the Company has offset 2018 mining depletion with resource growth, mainly at
Waihi, resulting in Measured and Indicated (“M&I”) Resources totalling 8.59 Moz of gold, 5.52 Moz of silver
and 0.16 Mt of copper, a small year-on-year decrease of 0.09 Moz Au, due to 2018 mining depletion largely
being offset by the addition of the new Martha and WKP underground resources.
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Table 3: Updated Mineral Resources – Inferred Resource Statement (as at December 31, 2018)
Notes for Measured, Indicated and Inferred Resources:
1. Mineral Resources include Mineral Reserves.
2. Macraes open pit resources constrained by a NZ$2,083/oz gold price pit shell.
3. Haile open pit resources constrained by a US$1,500/oz gold price pit shell.
4. Waihi open pit resources are reported within a pit design to the 890mRL.
5. WKP and MUG resources were publicly released on March 7, 2019 and February 22, 2019 respectively, but are based on drilling and geological information compiled in 2018.
6. 50% of Waihi Measured & Indicated Resources are from Martha Underground reported at a 2.15 g/t Au cut-off, 35% from WKP reported at a 3.0 g/t Au cut-off and 15% from
Correnso reported at a 2.9 g/t Au cut-off
7. 62% of Waihi Inferred Resources are from Martha Underground which are reported at a 2.15 g/t Au-cut-off & 39% from WKP reported at a 3.0 g/t Au cut-off
8. For Didipio, all in-situ open pit resources have been depleted. Only stockpiles remain. Underground resources reported between the 2,460mRL and 1,980mRL with gold
equivalence (AuEq) cut-off based on US$1,500/oz gold and US$3.50/lb copper.
Figure 3: Changes to Inferred Resources
Consolidated Inferred Resources increased to 3.6 Moz of gold, 3.5 Moz of silver and 0.03 Mt of copper. This
represents a 42% year on year increase in Inferred gold resources mainly due to growth at Waihi.
Table 4 – Updated Mineral Resources – Minority Interest in Assets (as at December 31, 2018)
Notes:
1. OceanaGold has a 20% interest in the Sam’s Creek Project. Reported at a 0.7 g/t Au cut-off and factored by the percentage ownership.
PROJECT
AREA Mt Au g/t Moz Mt Au g/t Moz Mt Au g/t Au Moz
SAMS CREEK . . . 2.0 1.77 0.11 2.0 1.3 0.1
TOTAL . . . 2.0 1.77 0.11 2.0 1.3 0.1
INFERREDMEASURED INDICATED
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New Zealand
Waihi
Figure 4: Changes to Waihi Proven & Probable Mineral Reserves
Combined open pit and underground P&P Reserve at Waihi as at 31 st December 2018 stood at 0.18 Moz
after mine depletion. The Company continues to advance the Martha Underground Project having received
the resource consents (permits) to proceed to operations. The Company is in the process of implementing
the project thro ugh mine designs, construction and additional drilling which will add considerably to the
reserves in 2019.
Figure 5: Changes to Waihi Measured & Indicated Mineral Resources
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Over the past 18 months, the Company has drilled mainly from two underground dri ll drives to prove up
Mineral Resources beneath the Martha Open Pit. Total M&I Resources at Waihi have increased by 233% to
0.84 Moz after mine depletion.
The increase mainly relates to the updated Martha Underground and initial WKP Indicated Resources, which
now stand at 0.33 Moz and 0.23 Moz respectively. The Martha Underground and WKP resources were
publicly released on March 7, 2019 and February 22, 2019 respectively but are based on drilling and
geological information compiled in 2018.
Figure 6: Changes to Waihi Inferred Resources
The Inferred Resource at Waihi has grown 575% year-on-year to 1.1 Moz with the increase relat ed to the
addition of Inferred Resources at the Martha Underground and WKP.
The Company has an exploration target of five to eight million tonnes with grades ranging from four to six
grams per tonne for the Martha Underground Project. This exploration target is based on the assessment of
surface and underground drilling data collected by the Company in addition to the significa nt amount of
historical and archived geological and mining data from over a century of mining activity at Waihi. The
exploration target is conceptual in nature and exploration completed on this target to date is not sufficient to
define an additional Mineral Resource above what has been reported. The Martha Underground Project is a
significant component of the targeted mine life extension for the operation.
Over the course of the next 18 months, the Company will continue to drill extensively beneath the Ma rtha
Open Pit and at WKP to test the full extent of these mineralised systems.
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Macraes
Figure 7: Changes to Macraes Proven & Probable Mineral Reserves
The P&P Re serves for Macraes comprise 1.1 Moz of gold in the open pit and 0.11 Moz of gold in the
underground for a combined Mineral Reserve of 1.2 Moz. Year on year reserve growth offset 2018 mine
depletion by 65%.
Figure 8: Changes to Macraes Measured & Indicated Mineral Resources
As at 31 st December 2018, t he Macraes M&I Resources stood at 3.3 Moz of gold , including 0.68 Moz in
Frasers Underground. The year on year decrease in M&I Resources is due primarily to mine depletion at
both Coronation North and Frasers Underground. The Company has a lso removed 0.13 Moz from Frasers
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open pit related to geotechnical constraints . Some of this resource however has been transferred to the
Frasers Underground resource inventory.
Figure 9: Changes to Macraes Inferred Resources
Macraes Inferred Resources stood at 0.9 Moz of gold, a 6% increase year on year , reflecting updated
resource estimates and the inclusion of the Fraser -slip resource. This is after conversion of some Inferred
Resources to M&I Resources.
Reefton
In December 2016, the Company announced the closure of the Reefton Mi ne and as a result, associated
resources were removed from the Company’s inventory.
Resources for the nearby Blackwater Project remain on the Company’s inventory.