09:04:15 EDT Tue 07 May 2024
Enter Symbol
or Name
USA
CA



OceanaGold Corp
Symbol OGC
Shares Issued 300,495,708
Close 2014-03-25 C$ 2.52
Market Cap C$ 757,249,184
Recent Sedar Documents

OceanaGold's 2013 NI 43-101 reserves at 3.14Moz P+P

2014-03-26 06:36 ET - News Release

Mr. Mick Wilkes reports

OCEANAGOLD ANNOUNCES UPDATED RESOURCE & RESERVE STATEMENT

OceanaGold Corp. has released an updated resource and reserve statement as at Dec. 31, 2013.

Highlights:

  • Total proven and probable gold reserves for the company stand at 3.14 million ounces of gold and 210,000 tonnes of copper.
  • Total measured and indicated resources for the company stand at 202.1 million tonnes at 1.28 grams per tonne gold for 8.34 million ounces of gold. The measured and indicated resources include 9.48 million ounces of silver and 260,000 tonnes of copper.
  • Didipio measured and indicated resources stand at 2.06 million ounces of gold and 260,000 tonnes of copper (61.0 million tonnes at 1.05 grams per tonne gold and 0.42 per cent copper).
  • Macraes goldfield measured and indicated resources are stable at 4.01 million ounces of gold (117.3 million tonnes at 1.06 grams per tonne gold, net of mine depletion) for the fourth consecutive year.
  • Reefton goldfield measured and indicated resources are stable at 740,000 ounces of gold (15.5 million tonnes at 1.50 grams per tonne gold, net of mine depletion).

In the Philippines, the Didipio proven and probable reserves have decreased slightly since last year and stand at 45.6 million tonnes at 1.09 grams per tonne gold and 0.46 per cent copper for 1.59 million ounces of gold and 210,000 tonnes of copper. The decrease is mainly due to the depletion from open-pit mining as a result of commencement of commercial production during 2013 and the lifting of the open-pit cut-off grade from 0.50 gram per tonne gold equivalent to 0.55 gram per tonne gold equivalent (gold equivalence of gold and copper).

Proven and probable reserves in New Zealand have decreased since last year and stand at 46.2 million tonnes at 1.04 grams per tonne gold for 1.54 million ounces of gold. The decrease in reserves is due to mining depletion and a lower assumed New Zealand dollar gold price compared with 2012. An increase in gold resources as a result of resource drilling success at Coronation pit and Frasers underground, as well as lowered cut-offs for Macraes open pit has partly offset the effect of mining depletion on reserves in New Zealand.

Using $1,250-(U.S.)-per-ounce gold and $3.25-(U.S.)-per-pound copper, total company proven and probable reserves are 3.14 million ounces of gold and 210,000 tonnes of copper.

Measured and indicated resources (inclusive of reserves) for the company now total 202.1 million tonnes at 1.28 grams per tonne gold for 8.34 million ounces of gold, 9.48 million ounces of silver and 260,000 tonnes of copper. This represents a 1.61-million-ounce increase in the measured and indicated gold resources and a 9.48-million-ounce increase in the silver resource compared with the prior year which is largely due to:

  • Lower reporting cut-offs (from 0.5 gram per tonne gold in 2012 to 0.4 gram per tonne gold in 2013 due to the lower cost structure) and resource estimate updates at Macraes have added 110,000 ounces of gold net of mining depletion.
  • Drilling and resource estimate updates at Reefton have added 40,000 ounces gold net of mining depletion.
  • Open-pit mining depletion at Didipio has reduced measured and indicated resources (including stockpiles) by 80,000 ounces gold and 27,000 tonnes copper, respectively. Deep drilling during 2013 however has increased the underground measured and indicated resources by 30,000 ounces of gold.
  • Drilling success at the Sam's Creek project added 230,000 ounces of gold to the measured and indicated resource, representing OceanaGold's share. Sam's Creek is a joint venture which is now 60 per cent owned by MOD Resources Ltd.
  • The acquisition of the El Dorado project in November, 2013, has added 1.30 million ounces of gold and 9.48 million ounces of silver to the measured and indicated resource inventory.

Total company inferred resources stand at 92.4 million tonnes at 1.3 grams per tonne gold for 3.7 million ounces of gold, 1.9 million ounces of silver and 30,000 tonnes of copper.

OceanaGold managing director and chief executive officer, Mick Wilkes, said: "OceanaGold has transformed itself into a multinational gold producer with a solid mineral endowment. We will continue to develop new reserves and resources at our existing mines from in-pit and near mine exploration. We will focus on satellite projects located within the current tenements and pursue selective resource development opportunities that are complementary and add low-cost gold reserves to the business."

                  OCEANAGOLD RESERVE STATEMENT AS AT DEC. 31, 2013

              Proven                  Probable               Total reserve      
Reserve        Au    Au   Cu   Cu        Au    Au   Cu   Cu        Au    Au   Cu   Cu 
area      Mt  g/t   Moz    %   Mt   Mt  g/t   Moz    %   Mt   Mt  g/t   Moz    %   Mt   

Macraes 21.2 1.00  0.68           20.8 1.01  0.68           42.0 1.00  1.35          
Reefton  0.9 1.53  0.04            3.3 1.40  0.15            4.2 1.43  0.19          
Didipio 16.7 1.23  0.66 0.52 0.09 29.0 1.00  0.93 0.42 0.12 45.6 1.09  1.59 0.46 0.21 
        ---- ----  ---- ---- ---- ---- ----  ---- ---- ---- ---- ----  ---- ---- ----
Total   38.8 1.11  1.38      0.09 53.2 1.03  1.76      0.12 91.9 1.06  3.14      0.21 

Figures are in situ delivered to ROM. Macraes and Reefton cut-offs are based on $1,250-(U.S.)-per-ounce gold (cut-offs of 0.4 gram per tonne gold for Macraes open pit, 0.5 gram per tonne gold for Reefton and 2.1 grams per tonne gold for Frasers underground). Didipio cut-offs are net metal value based, using $1,250-(U.S.)-per-ounce gold and $3.25-(U.S.)-per-pound copper (0.55 gram per tonne gold equivalent for open pit and 1.9 grams per tonne gold equivalent for underground).

The project was previously owned by Pacific Rim Mining Corp., and the resources were reported in accordance with National Instrument 43-101 of the Canadian Securities Administrators. Pacific Rim filed an arbitration claim against the government of El Salvador seeking monetary compensation following the government's passive refusal to issue a decision on permit applications. Given the permitting situation and the carrying value of the asset, the project is not considered material to OceanaGold at this time and has been reported under JORC 2012 accordingly.

                 OCEANAGOLD RESOURCE STATEMENT AS AT DEC. 31, 2013

                                                              Measured
Resource         Resource                             Au     Au     Ag     Ag    Cu     Cu
cut-off grade    area                            Mt  g/t    Moz    g/t    Moz     %     Mt

0.4 g/t          Coronation
0.4 g/t          Deepdell                      0.55  1.34  0.02
Geologically
constrained      Golden Point
0.4 g/t          Round Hill/Southern pit       3.97  1.45  0.19
0.4 g/t          Innes Mills                   0.85  1.53  0.04
0.4 g/t          Frasers pit                   9.74  1.24  0.39
Geologically
constrained      Frasers underground           5.56  2.28  0.41
0.4 g/t          Ounce
0.4 g/t          Golden Bar                    0.09  1.54  0.00
Geologically
constrained      Stoneburn
0.5 g/t          Taylors
0.4 g/t          Stockpiles                   10.9   0.60  0.21
                 Macraes total                31.7   1.24  1.26
0.5 g/t          Globe Progress                1.82  1.79  0.10
0.5 g/t          Supreme
Geologically
constrained      Blackwater
0.5 g/t          Stockpiles                    0.19  0.90  0.01
                 Reefton total                 2.01  1.70  0.11
0.7 g/t Au       Sam's Creek(1)
0.47 g/t AuEq    Didipio open pit             10.58  1.85  0.63                 0.55  0.06
1.5 g/t AuEq     Didipio underground
0.5 g/t AuEq     Didipio stockpiles            7.42  0.43  0.10                 0.46  0.03
                 Didipio total(2)             18.0   1.26  0.73                 0.51  0.09
4 g/t AuEq       Balsamo
4 g/t AuEq       Minita                        0.61 12.23  0.24   80.6   1.59
4 g/t AuEq       South Minita
4 g/t AuEq       Nance Dulce
4 g/t AuEq       Coyotera                      0.17  7.86  0.04   57.8   0.31
4 g/t AuEq       Nueva
                 El Dorado total(3)            0.78 11.30  0.28   75.7   1.90
                 Total resource               52.4  1.41   2.38          1.90         0.09

                                                                       Indicated
Resource         Resource                               Au     Au     Ag     Ag    Cu    Cu
cut-off grade    area                             Mt   g/t    Moz    g/t    Moz     %    Mt

0.4 g/t          Coronation                     6.35  1.01   0.21
0.4 g/t          Deepdell                       0.02  1.05   0.00
Geologically
constrained      Golden Point
0.4 g/t          Round Hill/Southern pit       33.73  0.99   1.07
0.4 g/t          Innes Mills                   16.94  0.89   0.48
0.4 g/t          Frasers pit                   20.53  0.71   0.47
Geologically
constrained      Frasers underground            6.55  2.14   0.45
0.4 g/t          Ounce
0.4 g/t          Golden Bar                     1.24  1.35   0.05
Geologically
constrained      Stoneburn
0.5 g/t          Taylors                        0.28  1.50   0.01
0.4 g/t          Stockpiles
                 Macraes total                 85.6   1.00   2.75
0.5 g/t          Globe Progress                12.62  1.45   0.59
0.5 g/t          Supreme                        0.85  1.63   0.04
Geologically
constrained      Blackwater
0.5 g/t          Stockpiles
                 Reefton total                 13.5   1.46   0.63
0.7 g/t Au       Sam's Creek(1)                 4.03  1.77   0.23
0.47 g/t AuEq    Didipio open pit              35.36  0.66   0.75                0.36  0.13
1.5 g/t AuEq     Didipio underground            7.67  2.36   0.58                0.51  0.04
0.5 g/t AuEq     Didipio stockpiles
                 Didipio total(2)              43.0   0.96   1.33                0.39  0.17
4 g/t AuEq       Balsamo                        0.57  9.86   0.18  113.0   2.06
4 g/t AuEq       Minita                         1.18  9.65   0.36   58.2   2.20
4 g/t AuEq       South Minita                   1.07  9.25   0.32   64.0   2.20
4 g/t AuEq       Nance Dulce
4 g/t AuEq       Coyotera                       0.50  7.15   0.12   58.7   0.95
4 g/t AuEq       Nueva                          0.18  5.77   0.03   30.5   0.18
                 El Dorado total(3)             3.50  9.00   1.01   67.5   7.58
                 Total resource               149.7   1.24   5.96          7.58        0.17

                                                                  Measured and indicated
Resource         Resource                               Au     Au     Ag     Ag    Cu    Cu
cut-off grade    area                             Mt   g/t    Moz    g/t    Moz     %    Mt

0.4 g/t          Coronation                     6.35  1.01   0.21
0.4 g/t          Deepdell                       0.57  1.33   0.02
Geologically
constrained      Golden Point
0.4 g/t          Round Hill/Southern pit       37.70  1.04   1.26
0.4 g/t          Innes Mills                   17.79  0.92   0.52
0.4 g/t          Frasers pit                   30.27  0.88   0.86
Geologically
constrained      Frasers underground           12.11  2.20   0.86
0.4 g/t          Ounce
0.4 g/t          Golden Bar                     1.33  1.36   0.06
Geologically
constrained      Stoneburn
0.5 g/t          Taylors                        0.28  1.50   0.01
0.4 g/t          Stockpiles                    10.90  0.60   0.21
                 Macraes total                117.3   1.06   4.01
0.5 g/t          Globe Progress                14.44  1.50   0.69
0.5 g/t          Supreme                        0.85  1.63   0.04
Geologically
constrained      Blackwater                     0.00  0.00   0.00
0.5 g/t          Stockpiles                     0.19  0.90   0.01
                 Reefton total                 15.5   1.50   0.74
0.7 g/t Au       Sam's Creek(1)                 4.03  1.77   0.23
0.47 g/t AuEq    Didipio open pit              45.94  0.93   1.38                0.41  0.19
1.5 g/t AuEq     Didipio underground            7.67  2.36   0.58                0.51  0.04
0.5 g/t AuEq     Didipio stockpiles             7.42  0.43   0.10                0.46  0.03
                 Didipio total(2)              61.0   1.05   2.06                0.42  0.26
4 g/t AuEq       Balsamo                        0.57  9.86   0.18  113.0   2.06
4 g/t AuEq       Minita                         1.79 10.54   0.61   65.9   3.79
4 g/t AuEq       South Minita                   1.07  9.25   0.32   64.0   2.20
4 g/t AuEq       Nance Dulce
4 g/t AuEq       Coyotera                       0.67  7.33   0.16   58.5   1.25
4 g/t AuEq       Nueva                          0.18  5.77   0.03   30.5   0.18
                 El Dorado total(3)             4.28  9.42   1.30   69.0   9.48
                 Total resource               202.1   1.28   8.34          9.48        0.26

                                                           Inferred resource
Resource         Resource                              Au      Au   Ag      Ag    Cu    Cu
cut-off grade    area                            Mt   g/t     Moz  g/t     Moz     %    Mt

0.4 g/t          Coronation                     2.3   0.8    0.1
0.4 g/t          Deepdell                       0.6   0.6    0.0
Geologically
constrained      Golden Point                   1.5   2.6    0.1
0.4 g/t          Round Hill/Southern pit       13.5   0.9    0.4
0.4 g/t          Innes Mills                   11.3   0.6    0.2
0.4 g/t          Frasers pit                   10.9   0.6    0.2
Geologically
constrained      Frasers underground           10.8   1.7    0.6
0.4 g/t          Ounce                          3.4   0.8    0.1
0.4 g/t          Golden Bar                     3.3   1.3    0.1
Geologically
constrained      Stoneburn                      7.1   1.2    0.3
0.5 g/t          Taylors                        0.4   1.1    0.0
0.4 g/t          Stockpiles
                 Macraes total                 65.0   1.0    2.1
0.5 g/t          Globe Progress                 6.2   1.2    0.2
0.5 g/t          Supreme                        0.7   1.3    0.0
Geologically
constrained      Blackwater                     0.9  23      0.7
0.5 g/t          Stockpiles
                 Reefton total                  7.8   3.7    0.9
0.7 g/t Au       Sam's Creek(1)                 4.2   1.3    0.18
0.47 g/t AuEq    Didipio open pit              12.9   0.4    0.2                 0.2  0.03
1.5 g/t AuEq     Didipio underground            1.8   1.6    0.1                 0.4  0.01
0.5 g/t AuEq     Didipio stockpiles
                 Didipio total(2)              14.7   0.6    0.3                 0.2  0.03
4 g/t AuEq       Balsamo                        0.28  7.7    0.1    76     0.7
4 g/t AuEq       Minita                         0.08 10.4    0.0    67     0.2
4 g/t AuEq       South Minita                   0.30  7.2    0.1    48     0.5
4 g/t AuEq       Nance Dulce                    0.13 19.6    0.1   122     0.5
4 g/t AuEq       Coyotera                       0.02  5.8    0.0    72     0.0
4 g/t AuEq       Nueva                          0.03  4.7    0.0    35     0.0
                 El Dorado total(3)             0.8   9.4    0.3    71     1.9
                 Total resource                92.4   1.3    3.7           1.9        0.03

Note: All resources are inclusive of reserves.
1. OceanaGold retains a 40-per-cent interest in the Sam's Creek project on the South 
Island of New Zealand. The project contains a total of 10.1 million tonnes at 1.77 grams 
per tonne gold for 575,000 ounces of indicated resources, as well as 10 million tonnes at 
1.3 grams per tonne gold for 440,000 ounces of inferred resources. Forty per cent of the 
total Sam's Creek inventory has been included in OceanaGold's resource table. The project
is not considered material to OceanaGold.         
2. The 0.47 g/t AuEq cut-off is above the 2,390 mRL and the 1.5 g/t cut-off below the 
2,390 mRL. No resource reported below 2,180 mRL; AuEq cut-off is gold equivalent based on 
$1,450-(U.S.)-per-ounce gold and $3-(U.S.)-per-pound copper.
3. The El Dorado project is not considered material. Please refer to the company's website 
for the press release dated Oct. 8, 2013, for more details on the status of the permit 
applications and arbitration for the El Dorado project as at the end of 2013. El Dorado 
resource cut-offs are based on gold 2008 assumptions of $980 (U.S.) per ounce and $20 
(U.S.) per ounce of silver.

For Macraes and Reefton (which have shorter projected mine lives than Didipio) resource cut-offs are based on $1,250 (U.S.) per ounce gold.

Technical disclosure

The estimates of mineral resources and reserves were prepared in accordance with the standards set out in the Australasian Code for the Reporting of Mineral Resources and Ore Reserves of December, 2012 (the JORC code), and in accordance with National Instrument 43-101 of the Canadian Securities Administrators. The JORC code is the accepted reporting standard for the Australian Stock Exchange Ltd. and the New Zealand Stock Exchange Ltd.

Unless stated otherwise, in respect of the mineral projects of the company referred to in this update, the scientific and technical information (including disclosure regarding mineral resources and mineral reserves) is based upon the following National Instrument 43-101-compliant technical reports:

  1. "Technical Report for the Macraes Project located in the Province of Otago, New Zealand," dated Feb. 12, 2010, prepared by R. Redden, development and technical services manager, and J.G. Moore, group mine geology manager, both of Oceana Gold (New Zealand) Ltd.;
  2. "Technical Report for the Reefton Project located in the Province of Westland, New Zealand," dated May 24, 2013, prepared by K. Madambi, technical services manager, and J. Moore, chief geologist, both of Oceana Gold (New Zealand);
  3. "Technical Report for the Didipio Project Located in Luzon, Philippines," dated July 29, 2011, prepared by R. Redden, development and technical services manager, and J.G. Moore, group mine geology manager, both of Oceana Gold (New Zealand).

Mr. Redden was a full-time employee of the company's subsidiary, Oceana Gold (New Zealand), at the time of writing, and Mr. Madambi and Mr. Moore were, and remain, full-time employees of Oceana Gold (New Zealand). The technical reports have been filed with the Canadian securities regulatory authorities and are available for review on SEDAR under the company's profile.

For further information regarding the El Dorado property, formerly owned by Pacific Rim, reference should be made to the following National Instrument 43-101 technical report which has been filed and is available on SEDAR under Pacific Rim's name: "Technical Report Update on the El Dorado Project Gold and Silver Resources, Department of Cabanas, Republic of El Salvador," dated March 3, 2008, prepared by Steven Ristorcelli and Peter A. Ronning of Mine Development Associates.

The El Dorado resource estimate referred to herein was prepared by Steven Ristorcelli, CPG, of Mine Development Associates, Reno, Nev. (who is an independent qualified person as defined in National Instrument 43-101), and conforms to current CIM standards on mineral resources and reserves.

Where the mineral reserve and mineral resource estimates of the company's Reefton, Macraes and Didipio operations set out in this update differ from those set out in the technical report for the relevant property, such differences arise from updates to such mineral reserve and mineral resource estimates as a result of depletion through production, addition due to exploration activities or revised economic assumptions. The latest updates of mineral reserves for each of the company's New Zealand projects were prepared by, or under the supervision of, Mr. Madambi, while the mineral reserves for the Didipio project were prepared under the supervision of R. Corbett. The updates of mineral resources for the Didipio project were prepared by, or under the supervision of, Mr. Moore, while the updates of mineral resources for the Macraes and Reefton projects were updated by S. Doyle. Mr. Madambi, Mr. Moore and Mr. Doyle are members and chartered professionals with the Australasian Institute of Mining and Metallurgy and each is a "qualified person" for the purposes of National Instrument 43-101. Mr. Doyle is also a member of the Australian Institute of Geoscientists. Mr. Corbett is a registered professional engineer in the province of Ontario, and is a qualified person for the purposes of National Instrument 43-101.

All such persons are qualified persons for the purposes of National Instrument 43-101 and have sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as a competent person as defined in the JORC code. Mr. Moore, Mr. Madambi, Mr. Doyle, Mr. Corbett and Mr. Ristorcelli consent to this resource and reserve update based on their information in the form and context in which it appears.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.