Oceanagold Reports Significant Increase IN Mineral Resources at Waihi IN New Zealand
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MEDIA RELEASE
7 March 2019
OCEANAGOLD REPORTS SIGNIFICANT INCREASE IN MINERAL RESOURCES AT
WAIHI IN NEW ZEALAND
(MELBOURNE) OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the “Company”) is pleased to announce
an updated Mineral Resource estimate for the Martha Underground Project (the “Project”) and recent
exploration results highlighting continued high -grade gold intersections at the Company’s Waihi Gold Mine
(“Waihi”) located in New Zealand.
Highlights
• Increased total Indicated Resource by 136% to 331,000 ounces of gold.
• Increased total Inferred Resource by 97% to 667,000 ounces of gold.
Table 1: Updated Martha Project Mineral Resources
Resource Category Cut-off RESOURCES
Au g/t kt Au g/t Au koz
Indicated 2.15 2,129 4.84 331
Inferred 2.15 4,522 4.59 667
Notes:
- Resources are reported below the consented Martha Phase 4 open pit design,
- Resources are constrained to within a conceptual underground designed based upon the incremental cut-off grade and at a gold price of NZD$2,142/oz.
- No dilution is included in the reported figures and no adjustments have been made to allow 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.
Significant Drill Results
True Width Gold Grade Silver Grade Location
(metres) g/t g/t
10.7 36.0 221.8 Harry-Empire Intersection
4.7 47.2 67.9 Royal Vein
16.5 10.1 17.1 Martha Vein
5.8 18.8 53.3 State Vein
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8.8 10.6 121.0 Royal Vein
1.3 70.7 71.7 Martha Vein
6.1 14.8 60.2 Edward Vein
4.1 19.8 14.6 Dominion Vein
Mick Wilkes, President and CEO, “I am very pleased to announce a further increase to the mineral resource
estimate for the Martha Underground Project. Over the past two years, we have made prudent investments
in extensively drilling out the mineralised structures beneath the Martha Open Pit. Since that time, we have
reported dozens of significant drill intercepts and a growing resource which has now culminated into an
Indicated Resource of 331,000 ounces of gold and Inferred Resource of 667,000 ounces.”
“The consenting (permitting) process was completed nearly a month ago and we continue to add significant
resources as we seek to achieve our exploration targets. W e are in the process of implementing the project
development and mine plans. Once fully developed and ramped -up, production from the Martha
Underground is expec ted to increase to recent historical levels while delivering significant socio -economic
benefits to New Zealand.”
Over the course of the next twelve to eighteen months, the Company will continue its extensive exploration
program along the two underground drill drives to further discover and convert resources. The Waihi vein
system is extensive and the primary structures such as the Martha, Empire, Edward and Royal veins are in
part well defined . The exploration target is associated with these structures, however , additional veins ,
notably Dominion, State, Republic and Harry that are branches of and linking splays between these major
veins are also returning high-grade intersections.
Following positive updates in August 2018 and October 2018 for the Martha Underground , drilling has
continued at multiple drill locations extending 900 metres along two vertically separated underground drill
drives (800m-drill drive and 920m-drill drive, Figure 1) and from several surface locations. These drives are
advancing well with the breakthrough from the 920-drill drive to the Martha open pit now established and the
800-drill drive over 90% complete.
Since the commencement of the Martha Underground drill program, approximately 30,700 metres have been
drilled to define mineralisation along sections of the Martha, Royal, Empire and Rex veins that support the
geological and resource model . Following receipt of the Martha Underground consent, the focus of drillin g
with six underground rigs and two surface rigs is balanced between growing the Resource and converting
areas to an Indicated Resource status sufficient to support feasibility studies and mine planning.
The intersection of high-grade mineralisation to date supports the exploration target reported in August 2018
with a potential volume of between 5 million and 8 million tonnes at a grade of between 4.0 g/t and 6.0 g/t
gold. This exploration target is based on the assessment of surface and underground dril ling data collected
by the Company in addition to the significant amount of historical and archived geological and mining data
from over a century of mining activity at Waihi. Exploration targets are conceptual in nature; there has been
insufficient exploration to define a mineral resource of the potential volume and grade stated and that it is
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uncertain if further exploration will result in the target being delineated as a mineral resource of this size and
grade.
Mick Wilkes added, “ The recent drill result s at Waihi continue to demonstrate the significant exploration
potential at the Martha Underground. We will continue to invest in our extensive drill program from the two
underground drill drives and have allocated a budget of over $11 million for 2019 to go with the $8 million
planned spend for our newly discovered WKP prospect which we reported an initial resource of 234,000
ounces of gold in the Indicated category and 401,000 ounces of gold in Inferred Resources .”
Figure 1 – Long Sectional Oblique View showing Martha Open Pit, Martha Underground, Main Target Areas
(pink) and Current Martha Underground Resource Areas (yellow).
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Figure 2 – Plan View showing holes drilled from August 2017 to January 2019 within the Martha vein system
and the dominant targeted veins (Martha, Empire, Royal, Edward). Pink = Main Target Areas, Yellow = Current
Martha Underground Resource Areas, Green = Recent and Current Mining Areas.
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Table 2 - Significant Intersections from the Waihi Martha Underground Resource Drilling
Hole ID
East# North# Collar RL
Az# Dip From
(m)
To
(m)
True
width
(m)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Vein
(metres) (metres) (metres)
800DC1RN1240 395901.9 643001.1 780.8 209.9 7.2 82.60 95.10 8.8 10.59 121.0 Royal
800DC1RN1245 395900.9 643001.1 779.4 226.6 -21.5 121.40 128.10 2.9 8.74 14.8 Royal
800DC1RN1246 395905.4 643002.2 778.6 127.4 -57.6 25.00 33.90 6.8 5.10 8.1 Royal
800SP1MR1214 395967.2 643097.5 778.7 290.7 -33.6 234.80 239.90 4.4 10.59 73.1 Martha
800SP1MR1214 395967.2 643097.5 778.7 290.7 -33.6 180.70 191.40 6.9 5.05 6.5 Dreadnought
800SP1MR1224 395967.2 643097.5 779.7 290.6 1.2 206.10 218.50 10.7 36.01 221.8 Harry-Empire
800SP1MR1224 395967.2 643097.5 779.7 290.6 1.2 159.40 163.75 4.2 15.99 37.7 Empire
800SP1MR1224 395967.2 643097.5 779.7 290.6 1.2 123.70 132.80 6.4 10.49 13.8 Dreadnought
800SP1MR1224 395967.2 643097.5 779.7 290.6 1.2 268.90 273.90 4.7 6.32 49.3 Martha
800SP1MR1258 395967.8 643098.3 779.2 304.6 -16.0 136.20 142.20 3.6 22.17 25.3 Dreadnought
800SP1MR1258 395967.8 643098.3 779.2 304.6 -16.0 188.70 201.20 10.8 4.72 10.7 Harry
800SP1MR1258 395967.8 643098.3 779.2 304.6 -16.0 205.00 213.20 8.2* 5.53 8.8 Harry-Martha
800SP1MR1269 395967.8 643098.1 779.0 300.7 -22.6 198.90 219.00 16.5 10.10 17.1 Martha
800SP1MR1277 395967.9 643098.4 779.9 311.0 6.3 148.50 149.30 0.8 61.10 73.3 Empire
800SP3MN1237 395989.8 643115.4 779.5 339.9 -12.6 187.80 192.90 4.1 19.84 14.6 Dominion
800SP3MN1237 395989.8 643115.4 779.5 339.9 -12.6 142.90 149.00 4.3 7.84 16.5 Empire
800SP3MR1221 395991.0 643115.3 779.9 8.7 -2.0 200.70 209.15 8.5* 13.26 208.4 Republic
800SP3MR1221 395991.0 643115.3 779.9 8.7 -2.0 200.70 203.20 2.3 15.16 59.3 Empire
800SP3MR1227 395990.8 643115.3 779.7 6.2 -8.1 236.10 253.80 13.6 5.84 10.1 Martha
800SP3MR1227 395990.8 643115.3 779.7 6.2 -8.1 196.00 197.10 0.9 28.90 33.3 Empire
800SP3MR1227 395990.8 643115.3 779.7 6.2 -8.1 183.00 187.65 3.7 6.95 11.5 Empire
800SP3MR1231 395991.1 643115.3 779.9 13.2 -2.6 206.70 216.00 7.8 7.24 28.9 Empire
800SP3MR1244 395990.6 643115.4 780.0 359.7 4.0 190.90 197.40 5.8 18.76 53.3 State
800SP3MR1248 395990.3 643115.5 779.3 353.0 -22.6 167.05 179.70 8.1 7.07 14.1 Empire
800SP3MR1248 395990.3 643115.5 779.3 353.0 -22.6 181.00 184.30 2.1 20.34 27.2 State
800SP3MR1248 395990.3 643115.5 779.3 353.0 -22.6 163.00 166.40 2.8 9.09 12.5 Dreadnought
800SP3MR1257 395990.5 643115.6 779.7 356.1 -7.1 187.50 197.20 8.4 4.53 4.6 State
800SP3MR1262 395990.7 643115.4 779.3 2.9 -14.0 202.40 207.20 4.6 12.00 13.7 State
800SP3MR1265 395991.2 643115.4 779.6 12.5 -7.7 208.20 214.00 3.6 18.32 38.7 Empire
800SP3MR1265 395991.2 643115.4 779.6 12.5 -7.7 255.30 261.35 5 7.72 9.8 Martha
800SP3MR1278 395989.5 643115.2 779.4 334.0 -16.3 141.10 145.40 4.2 12.89 20.6 Empire
920RCCRN1202 395746.7 642915.6 919.6 195.1 -12.5 67.00 69.30 2.2 21.88 27.6 Royal
920RCCRN1242 395747.0 642915.0 919.8 185.6 -4.3 69.55 71.00 1.3 25.91 247.5 Royal
920RCCRN1256 395747.6 642915.0 919.5 173.0 -6.8 71.10 75.50 4.3 7.94 50.4 Royal
920RCCRN1270 395749.4 642915.4 919.8 136.8 -3.5 101.80 107.35 4.7 47.17 67.9 Royal
920SP2MN1254 396156.3 643097.5 921.9 348.2 -27.0 309.95 313.40 2.1 21.05 15.3 State
920SP3MR1217 396038.3 643058.1 921.6 337.2 -6.8 355.20 356.80 1.3 70.70 71.7 Martha
920SP5MN1205 395810.5 642983.3 919.5 333.5 -0.6 292.10 296.50 3.4 22.71 32.9 Martha
920SP5MN1205 395810.5 642983.3 919.5 333.5 -0.6 298.30 303.10 3.4 9.34 9.7 Martha
920SP5MN1228 395809.6 642983.0 918.5 316.6 -24.2 166.50 171.20 4.7* 6.10 77.1 Boxall
920SP8GT1238 395480.7 642862.5 925.8 341.7 4.8 127.10 135.10 6.4 7.77 61.2 Empire
920SP9MN1264 395464.4 642833.2 925.6 267.1 -36.1 119.40 127.30 6.1 14.76 60.2 Edward
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920SP9MN1281 395464.8 642832.2 926.4 238.3 -2.9 76.60 81.80 3.3 8.68 38.0 Edward
UW678 395585.4 642598.2 1113.2 83.5 -55.5 176.10 180.30 3.4 13.13 10.0 Rex
# Old Mt Eden Coordinate system
* Downhole length as not possible to determine true width
All drill data in relation to the Waihi Project can be found on the Company’s website at
http://www.oceanagold.com/investor-centre/filings/. In line with ASX listing requirements, OceanaGol d has
appended the information required by JORC Table 1 for Waihi Exploration 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: +1 416 915 3123
Melissa Bowerman
Tel: +61 459 900 099
[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 Phil ippines. 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 op en 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 work s
collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build
capacity and not dependency.
In 2019, the Company expects to produce between 500,000 to 550,000 ounces of gold and 14,000 to 15,000
tonnes of copper at All-In Sustaining Costs ranging between $850 and $900 per ounce sold.
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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 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 t he accepted reporting standard
for the Australian Stock Exchange Limited (“ASX”).
Information relating to Waihi Mineral Resource and Exploration Results in this document has been verified
by, is based on and fairly represents information compiled by or pr epared 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 matt ers 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. Fo rward-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 operation s, 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
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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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