OceanaGold intersects significant high-grade mineralisation on Martha and Empire veins at Waihi

 

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MELBOURNE, June 11, 2018 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the "Company") is pleased to announce the intersection of high-grade mineralisation along two large veins (Martha and Empire) beneath the Martha Pit at Waihi in New Zealand. These results stem from the latest round of drilling from two drill drives beneath the Martha pit and form part of a more extensive ongoing exploration program that includes surface and underground drilling.

Selection of Significant Intercepts

Empire Vein

• 5.0 metres @ 65.3 g/t Au, 100 g/t Ag
• 9.0 metres @ 29.4 g/t Au, 288 g/t Ag
• 3.6 metres @ 31.9 g/t Au, 447 g/t Ag
• 3.5 metres @ 24.2 g/t Au, 105 g/t Ag

Martha Vein

• 42.0 metres* @ 7.1 g/t Au, 46 g/t Ag
• 4.4 metres @ 19.8 g/t Au, 30 g/t Ag
• 10.5 metres @ 8.6 g/t Au, 18 g/t Ag
• 11.7 metres @ 7.1 g/t Au, 14 g/t Ag

Mick Wilkes, President and CEO of OceanaGold said, "The latest drill results further demonstrates the significant mineralisation that resides beneath the Martha Pit. These results are from a drill program that form only a subset of a much more extensive drill program along kilometres of combined strike and hundreds of metres of vertical vein extent. The exploration program is designed to unlock the million-ounce resource target at Waihi which we expect would sustain current mining operations out to 2030 at historical production levels."

He added, "Over the course of the next 18 months, we will continue with our drill programs and expect to make periodic updates to Waihi's mineral resource throughout this period. Our strategy is to own and operate high-margin, long-life assets and the Martha Project aligns well with this strategy as we expect it can deliver significant value for shareholders and benefits local stakeholders at Waihi."

On March 28, 2018, the Company announced the Martha Project which comprises an underground mine ("the Martha Underground Mine") and the recommencement of open pit mining operations from Phase 4 of the Martha Pit. Consent applications were subsequently lodged May 25, 2018.

Since the November 2017 update, drilling at the Martha Project has focussed on resource development from two underground drill drives utilising up to four drill rigs. Over the course of the coming 12 months more than 47,000 metres alone will be drilled from both underground and surface on this project.

Drilling continues from drill drives that are being extended from the current underground mine approximately 900 metres on two levels under the Martha open pit (Figure 1, 920DD, 800DD). Drilling with up to four diamond rigs is testing the Martha, Empire, Royal and Edward veins with a known combined strike extent of 3,200 metres over a 500-metre vertical range. This latest drilling exceeds expectations and includes; 5.0 metres at 65.3 g/t gold; 9.0 metres at 29.4 g/t gold; 3.6 metres at 31.9 g/t gold and 7.9 metres at 14.1 g/t gold (Figures 2 and 3, Appendix A). These recent intersections represent structures of similar widths and grades to those that have been historically mined from the underground (Figures 2 and 3). In addition, a large number of mineralised veins have been intersected around the Empire and Martha veins, outside of the targeted shapes, that will contribute to the updated model.

The exploration target within the Martha Underground (Figure 1) is expected to yield tonnages of between 3.5 million and 5.0 million tonnes and grades ranging between 5.0 g/t and 7.0 g/t gold for 500,000 to 700,000 ounces of gold. This exploration target is conceptual in nature and was generated from an assessment of surface and underground drilling data collected by the Company as well as historical and archived geological and mining data from over a century of mining activity at Waihi. It is anticipated that the permitting process for the Martha Project will be completed by the end of 2019, with resource potential to allow continuity of mining operations at Waihi to at least 2030.

Drilling from the two underground drill drives are expected to continue for the remainder of the year in conjunction with other drill programs at Waihi and regionally.

All drill data including the JORC Code Table 1 for the Waihi exploration results can be found on the Company's website at http://www.oceanagold.com

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 480,000 to 530,000 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 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' ("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 Waihi exploration results in this document has been verified by, is based on and fairly represents information compiled by or prepared under the supervision of Lorrance Torckler, a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of OceanaGold. Mr Torckler 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 Torckler 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.  

Appendix A: Waihi Exploration Drilling Results.

Table 1 – Significant Intersections from Incremental Waihi Resource Drilling

 

Table 2 – Significant Intersections from Waihi Martha UG Resource Drilling

 

SOURCE OceanaGold Corporation

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