Oceanagold Reports Growing High-Grade Resources at Wkp IN New Zealand
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MEDIA RELEASE
24 February 2020
OCEANAGOLD REPORTS GROWING HIGH-GRADE RESOURCES AT WKP IN NEW
ZEALAND
(MELBOURNE) OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the “Company”) is pleased to announce
updated high-grade mineral resources at its WKP (Wharekirauponga) prospect, located ten kilometres north
of the Waihi Gold Mine in New Zealand.
Highlights
Indicated Resources increase 80% to 1.0 million tonnes grading 13.4 g/t gold for 421,000 ounces
and 25.5 g/t silver for 803,000 ounces on the East Graben vein.
Inferred Resources increase 79% to 1.9 million tonnes grading 12 g/t gold for 717,000 ounces and
20 g/t silver for 1,230,000 ounces from the East Graben zone and T-Stream vein.
Mick Wilkes, President and CEO of OceanaGold said, “The high-grade WKP resource continues to grow,
which further demonstrates the solid organic growth potential of our business particularly in New Zealand, a
top-tier jurisdiction. WKP is a game-changing opportunity for our business, for our shareholders and for New
Zealand. OceanaGold has a long history of operating to the highest environmental and social standards for
the past 30 years and we have demonstrated our ability as a responsible mining company to not only advance
opportunities through to production but also rehabilitate and close operations in collaboration with our
stakeholders.”
“For the past year, we have been focused on resource definition drilling on the East Graben vein and
associated footwall veins where significant high-grade intercepts were reported in November 2019. The East
Graben vein zone, including the proximal high-grade footwall veins, has demonstrated a strike length of at
least 1,000 metres that is open in both directions along strike with a defined 200-metre vertical extent and
additional up and down dip potential.”
“The WKP opportunity is another key component of our Waihi District Study which is scheduled for completion
in the second quarter of 2020. We will continue to drill at WKP this year with over 5,500 metres of drilling
planned to include step-out drilling from two new sites. The Waihi District Study will include the resource of
Martha Underground, WKP and other targets at a single future point in time however, exploration drilling will
continue throughout this year and into future years to further grow the resource base.”
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Table 1: Updated WKP Project Mineral Resource Table (as at Dec 31, 2019)
Resource Category
RESOURCES
Mt Au g/t Au Koz Ag g/t Ag Koz
Indicated 0.98 13.4 421 25.5 803
Inferred 1.9 12 717 20 1,230
Notes:
- Resources are constrained to within a conceptual underground design based upon the cut-off grade of 2.5 g/t gold which is defined
at a gold price of NZD2,083/oz (US$1,500/oz @ USD:NZD 0.72)
- No dilution is included in the reported figures and no adjustments have been allowed for mining recoveries
- The tabulated resources are estimates of metal contained as troy ounces of gold and do not include allowances for processing.
- All figures are rounded to reflect the relative accuracy and confidence of the estimates and totals may not add correctly.
- There is no certainty that Mineral Resources that are not Mineral Reserves will be converted to Mineral Reserves.
The reported resources at WKP are based on an additional 11,300 metres in 24 holes drilled since the
previous estimate from March 2019. It is also based on a conceptual underground mine design and on
preliminary work currently underway for the Waihi District Study. The Indicated Resource relates entirely to
mineralisation within the well drilled portions of the East Graben vein while the Inferred Resource is
dominated by mineralisation contained within the East Graben vein and two significant high-grade footwall
veins. These three structures contain more than 80% of the Inferred Resource while the remaining resource
is from the East Graben hanging-wall veins and at the T Stream vein where there has been limited drilling
to-date.
Two new drill sites were recently consented (permitted) and drilling has commenced to test the southwestern
strike potential of the East Graben vein zone. The 5,500 metres of drilling planned for 2020 will continue to
test both lateral and vertical extensions of the resources and drill test the strike extent potential of the T-
Stream and Western Vein zones (Figure 1).
The Company continues to advance the Waihi District Study, a preliminary economic assessment that
encompasses multiple ore targets. The Martha Underground and WKP Projects represent the most
significant of these opportunities. Exploration drilling continues at both targets to support the study which is
expected to provide an outlook of Waihi’s growth over the next several years. The study will include
production rates, mining methods, operating costs and capital investments and is expected to be completed
in the second quarter of 2020.
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Figure 1 – Plan View of geology and distribution of known major veins at WKP.
Figure 2 – Long Section of East Graben Vein
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All drill data in relation to the WKP Resource 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 the WKP results to 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.
- ENDS -
For further information please contact:
Investor Relations Media Relations
Sam Pazuki
Tel: +1 720 602 4880
Melissa Bowerman
Tel: +61 407 783 270
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. On 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 mines
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.
For 2020, the Company expects to produce between 360,000 and 380,000 ounces of gold from Haile, Waihi
and Macraes combined at a consolidated All-In Sustaining Costs ranging from $1,075 to $1,125 per ounce
sold.
Competent/Qualified Person’s Statement
The resources 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’
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(“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”).
Information relating to WKP Mineral Resource and Exploration Results in this document has been verified
by, is based on and fairly represents information compiled by or prepared under the supervision of Mr Peter
Church, a Chartered Professional of the Australasian Institute of Mining and Metallurgy and an employee of
OceanaGold. Mr Church has 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 is Qualified Persons for the purposes of the NI 43 101. Mr Church consents 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.
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