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OceanaGold reports exploration results at Haile

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OceanaGold reports exploration results at Haile

Canada NewsWire

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MELBOURNE, Aug. 16, 2018 /CNW/ - OceanaGold Corporation (TSX:OGC) (ASX: OGC) (the "Company") is pleased to announce an update on exploration activity at the Company's Haile gold mine in South Carolina, U.S.A. This exploration update follows the update provided to the market on 8 November 2017 ("November update") and results herein reflect activity completed after this date.

Selection of significant drill results within and/or adjacent to pit designs

  • 46.6 metres @ 4.93 g/t between Ledbetter and Snake
  • 32.3 metres @ 10.14 g/t at Mill Zone
  • 77.7 metres @ 4.04 g/t at upper Ledbetter
  • 21.3 metres @ 4.51 g/t at Red Hill
  • 45.1 metres @ 1.17 g/t between Mill Zone and Mustang

Mick Wilkes, President and CEO of OceanaGold said, "I am very pleased to announce the results of brownfields drilling at Haile over the past nine months that are expected to add more low-cost ounces to our reserves.  These results demonstrate the potential for additional mineralisation close to surface between current pit designs and at depth. Comprehensive geological reassessment from mapping and core logging has identified important structural controls that are being applied to our 3D models which will play a critical role in ongoing and future target generation.  Haile's exploration team is also driving innovative modelling for emerging geophysical targets that will be pursued in 2019."

"Since acquiring the Haile Gold Mine in late 2015, we have delivered a 70% increase in reserves and, through our exploration program, we continue to learn more about the genesis of the mineralisation. Through this greater understanding, we are improving our mine planning and design which fits well with our continued focus on improving productivities and reducing costs."

"In addition to exploration, the Company continues to advance the expansion of the process plant with the pebble crusher now fully constructed and commissioned. The Tower and Isa Mills, critical processing equipment for the expansion and recovery enhancement, are scheduled for completion in the first quarter of 2019."

Since the last exploration update on November 8, 2017, the Company has drilled 100 drill holes for a combined 26,149 metres at Haile using four surface diamond drills. Resource infill and extension drilling has targeted low-cost reserve growth areas in and around the Ledbetter, Mustang, Mill Zone, Snake, Red Hill, and Haile deposits (Figure 1).

Favourable extension drill results are expected to add ore-grade mineralisation between pit designs at low strip ratios (Table 1). Pit designs will likely be merged between the Mill Zone/Mustang (e.g. DDH0715: 45.1m @ 1.17 g/t from 91.9m) and Ledbetter/Snake pit designs (e.g. DDH0669: 46.6m @ 4.93 g/t from 243.8m). Drilling below the northwest wall of the Mill Zone Phase 1 pit returned positive results and a Phase 2 layback design is in progress (e.g. DDH0736: 32.3m @ 10.14 g/t from 59.6m).

Infill and delineation drilling continue to support our models and robust mineralisation, notably in the upper Ledbetter area (e.g. DDH0678: 77.7m @ 4.04 g/t from 173.2m and DDH0771: 75.9m @ 1.57 g/t from 203.1m) (Figures 1 & 2). Shallow, medium-grade drill intercepts have been confirmed in diamond holes at Red Hill which is scheduled for mining in 2019 (e.g. DDH0805: 21.3m @ 4.51 g/t from 54.0m) (Figure 1). An 18-hole diamond drill program was conducted outside the reserve pit design at the Snake West extension and returned positive results (e.g. DDH0755: 64.8m @ 0.97 g/t from 198m) (Figures 3 and 4). Further drilling is planned in the second half of 2018 at Ledbetter, Mill Zone and Snake.

Assays received from delineation drilling continue to validate high-grade, continuous mineralisation at the Horseshoe underground deposit (e.g. DDH0609: 233.5m @ 2.87 g/t from 168.6m).

Figure 1 – Selected Drill Holes and Significant Intercepts (November 2017 to July 2018) (CNW Group/OceanaGold Corporation)

Figure 2 – Cross Section A-A' With Drill Hole and Assay Results (CNW Group/OceanaGold Corporation)

Figure 3 – Map of the 18-Hole Snake West Drill Program (CNW Group/OceanaGold Corporation)

Figure 4 – Cross Section B-B' With Snake West Drill Hole and Assay Results (CNW Group/OceanaGold Corporation)

Table 1 – Significant Drill Hole Intercepts from November 2017 To July 2018

Drill Hole ID

East
NAD83Z17N
(m)

North
NAD83Z17N
(m)

Collar RL
(m)

Az

Dip

From
(m)

To
(m)

Width
(m)

Gold
Grade
(g/t)

Project

DDH0763

542037

3826320

126

219

-40

49.3

99.2

49.9

0.77

Haile

DDH0765

542037

3826320

126

145

-45

35.5

58.2

22.7

1.99

Haile

DDH0609

543593

3826925

154

0

-90

168.5

402.0

233.5

2.87

Horseshoe

DDH0611

543535

3827016

159

180

-76

405.1

427.1

22.0

1.76

Horseshoe

DDH0666

542779

3826865

140

126

-62

218.1

233.3

15.2

3.75

Ledbetter

DDH0672

542779

3826865

140

149

-63

120.8

139.1

18.3

2.00

Ledbetter

DDH0678

542585

3826899

147

172

-54

173.2

250.9

77.7

4.04

Ledbetter

DDH0744

542744

3826842

140

159

-50

144.0

185.1

41.2

1.16

Ledbetter

DDH0744

542744

3826842

140

159

-50

209.5

244.5

35.1

1.13

Ledbetter

DDH0747

542744

3826842

140

30

-85

222.0

239.6

17.6

2.86

Ledbetter

DDH0749A

542402

3826829

150

193

-71

252.3

275.2

22.9

3.14

Ledbetter

DDH0749A

542402

3826829

150

193

-71

287.0

321.8

34.8

0.97

Ledbetter

DDH0752

542520

3826856

143

165

-65

105.9

142.7

36.8

3.25

Ledbetter

DDH0756

542542

3827061

156

145

-57

196.8

213.5

16.7

7.26

Ledbetter

DDH0756

542542

3827061

156

145

-57

264.6

342.6

78.0

1.57

Ledbetter

DDH0758

542542

3827061

156

157

-56

274.3

332.6

58.3

1.54

Ledbetter

DDH0771

542676

3826926

152

132

-79

203.1

279.0

75.9

1.57

Ledbetter

DDH0786

542822

3826854

138

141

-74

207.3

221.5

14.2

5.40

Ledbetter

DDH0787

542638

3827052

155

133

-74

270.1

306.6

36.6

0.89

Ledbetter

DDH0703

541546

3826703

157

155

-48

275.3

283.3

8.0

12.11

Mill Zone

DDH0704

541427

3826258

147

99

-48

144.5

170.2

25.7

1.06

Mill Zone

DDH0710

541569

3826674

156

164

-40

263.7

277.4

13.7

5.84

Mill Zone

DDH0715

541948

3826788

147

179

-47

91.9

137.0

45.1

1.17

Mill Zone

DDH0723

541569

3826674

156

157

-48

257.0

264.5

7.6

3.39

Mill Zone

DDH0725

541352

3826432

155

125

-57

221.7

230.6

8.9

3.44

Mill Zone

DDH0729

541730

3826453

60

0

-90

0.6

41.7

41.1

2.00

Mill Zone

DDH0731

541696

3826458

60

336

-68

7.8

70.8

63.0

4.37

Mill Zone

DDH0732

541652

3826398

60

317

-45

5.8

29.2

23.4

4.49

Mill Zone

DDH0743

541345

3826412

155

105

-40

234.6

251.4

16.8

2.05

Mill Zone

DDH0743

541345

3826412

155

105

-40

257.5

295.6

38.1

1.61

Mill Zone

DDH0762

541474

3826587

155

134

-40

249.2

267.8

18.6

5.39

Mill Zone

DDH0730

541419

3826550

154

115

-40

255.9

271.1

15.2

4.20

Mill Zone

DDH0736

541681

3826430

60

314

-55

59.6

91.9

32.3

10.14

Mill Zone

DDH0739

541625

3826321

60

275

-44

26.0

40.6

14.6

5.01

Mill Zone

DDH0751

541984

3826480

132

322

-77

71.8

86.4

14.6

1.98

Mill Zone

DDH0751

541984

3826480

132

322

-77

117.8

151.3

33.5

0.78

Mill Zone

DDH0669

542779

3826865

140

109

-54

243.8

290.5

46.6

4.93

Mustang

DDH0674

542779

3826865

139

204

-82

224.8

235.3

10.5

4.06

Mustang

DDH0716

542387

3826937

153

159

-70

253.4

297.7

44.3

1.14

Mustang

DDH0717

542553

3827097

155

121

-61

293.0

334.2

41.2

0.81

Mustang

DDH0803

542602

3826262

145

0

-90

26.5

63.1

36.6

2.33

Red Hill

DDH0805

542579

3826276

145

0

-90

54.0

75.3

21.3

4.51

Red Hill

DDH0806

542659

3826278

145

0

-90

59.0

70.7

11.8

2.60

Red Hill

DDH0807

542626

3826263

151

0

-90

41.6

55.2

13.6

4.60

Red Hill

DDH0792

543041

3826690

111

165

-50

193.4

204.3

10.9

2.32

Snake

DDH0742

542953

3826934

139

142

-56

234.5

249.0

14.5

1.89

Snake Pit

DDH0746

543148

3826726

131

164

-65

88.8

116.9

28.1

4.43

Snake Pit

DDH0773

543117

3826572

120

150

-71

63.3

84.6

21.3

1.19

Snake Pit

DDH0685

542758

3826647

137

163

-67

268.1

323.7

55.6

1.04

Snake West

DDH0693

542870

3826712

141

120

-57

143.0

161.9

18.9

10.95

Snake West

DDH0698

542871

3826675

143

100

-84

305.7

362.8

57.1

0.81

Snake West

DDH0698

542871

3826675

143

100

-84

55.6

67.7

12.1

2.41

Snake West

DDH0705

542871

3826675

143

139

-64

247.3

305.2

57.9

0.82

Snake West

DDH0720

542821

3826543

144

143

-60

228.4

267.0

38.6

1.43

Snake West

DDH0726

542851

3826578

145

133

-53

244.1

273.0

29.0

1.03

Snake West

DDH0726

542851

3826578

145

133

-53

73.3

144.9

71.6

0.51

Snake West

DDH0728

542851

3826578

145

144

-65

239.0

260.7

21.7

1.07

Snake West

DDH0733

542890

3826424

156

99

-78

147.6

172.7

25.1

1.36

Snake West

DDH0741

542758

3826647

137

143

-68

317.5

353.2

35.7

0.74

Snake West

DDH0755

542758

3826647

137

163

-67

198.0

262.8

64.8

0.97

Snake West

DDH0759

542809

3826648

139

119

-65

230.2

305.4

75.2

0.89

Snake West

DDH0760

542837

3826519

147

134

-58

175.8

178.2

2.4

11.91

Snake West

DDH0760

542837

3826519

147

134

-58

203.1

227.8

24.7

1.03

Snake West

 

All drill hole data and additional information in relation to the Haile Gold Mine 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 Haile 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.

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 over the past 27 years 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.

In 2018, the Company expects to produce 500,000 to 540,000 ounces of gold and 15,000 to 16,000 tonnes of copper with All-In Sustaining Costs that range from $725 to $775 per ounce sold.

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 the accepted reporting standard for the Australian Stock Exchange Limited ("ASX").  

Information relating to Haile exploration results in this document has been verified by, is based on and fairly represents information compiled by or prepared under the supervision of John Jory, a Certified Professional Geologist and Member of the American Institute of Professional Geologists and an employee of OceanaGold. Mr Jory 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 Jory 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.  

OceanaGold Corporation (CNW Group/OceanaGold Corporation)

SOURCE OceanaGold Corporation

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