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:
- "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.;
- "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);
- "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.
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