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MELBOURNE, Australia, March
31, 2021 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX:
OGC) (the "Company") is pleased to provide its annual Resource and
Reserve ("R&R") statement for the year-ended 31 December 2020 and announce the filing of a
Feasibility Study technical report prepared in accordance with
National Instrument 43-101 for the Martha Underground Project
within the Waihi District.
Highlights
- Increased Proven and Probable ("P&P") Gold Reserves by 0.75
Moz, net of depletion, or 14% year-on-year to 143 Mt at 1.32 g/t Au for 6.06 Moz.
- Declared Initial P&P Gold Reserve at Martha Underground of
4.5 Mt at 4.33 g/t Au for 0.62 Moz in conjunction with the
Feasibility Study.
- P&P Reserves of 40.8 Mt at 0.99 g/t Au for 1.3 Moz at
Macraes, including 2.6 Mt at 2.10 g/t Au for 0.16 Moz at Golden
Point Underground expected to deliver first production in the
fourth quarter of 2021.
- Increased total Measured and Indicated ("M&I") Gold
Resources by 0.66 Moz, net of depletion, or 7% year-on-year to
243 Mt at 1.28 g/t Au for 10.0
Moz.
- Declared Inferred Gold Resources of 75 Mt at 1.8 g/t Au for 4.4
Moz, net of depletion, an increase of 2% year-on-year or 0.1
Moz.
Michael Holmes, President and CEO
of OceanaGold said, "We are pleased to declare gold Reserves of
6.06 Moz and 10.0 Moz of Measured and Indicated Resources, a
0.75 Moz increase in reserves net of depletion, reflecting our
commitment to creating value through exploration, a quality asset
base and consistent performance."
"At the Waihi gold mine in New
Zealand the Feasibility Study has defined an initial P&P
Reserve of 0.62 Moz of gold for the Martha Underground Project,
confirming our confidence in delivery of the asset and our vision
for the Waihi District. Just North
of Waihi, drilling is ongoing at the Wharekirauponga ("WKP")
Prospect to convert resources, test extensions to known mineralised
veins and support the Pre-Feasibility study targeted for release in
late 2021."
"On the South Island of New
Zealand, the Macraes life of mine has been extended to 2028
and the Golden Point Underground is on-track for first production
later this year with an initial Reserve of 0.16 Moz of gold."
"At the Haile gold mine in the United
States of America, 2.43 Moz of gold Reserve is contained
within the optimised open pit while an important underground
Reserve of 0.42 Moz is growing through conversion of a large
resource base totalling 0.53 Moz of Indicated Resource and 0.9 Moz
of Inferred Resource. Exploration continues to focus on both
continued resource conversion as well as underground discovery with
the objective to match production from the new underground mines
with the open pit operations and ultimately extend gold production
past the current life of mine of 2032."
Reserves
As at 31 December 2020, the
Company's P&P Reserves stood at 143
Mt at 1.32 g/t Au for 6.06 Moz of gold, including 4.65 Moz
of silver and 0.15 Mt of copper, representing a 0.75 Moz increase
in gold Reserves year-on-year net of depletion (Table 1). The 14%
year-on-year net increase is attributable to model updates of 1.00
Moz, reflecting the commitment to exploration drilling and organic
growth as demonstrated by first-time reporting of 4.5 Mt at 4.33
g/t Au for 0.62 Moz Reserves at Martha Underground and 2.6 Mt at
2.10 g/t Au for 0.16 Moz at Golden Point Underground in
New Zealand. Economic factors
represent a minor contribution of 0.10 Moz to the net increase in
P&P Reserves (Figure 1).
Resources
As at 31 December 2020, the
Company's M&I Resources stood at 243
Mt at 1.28 g/t Au for 10.0 Moz of gold, 14.0 Moz of silver
and 0.17 Mt of copper (Table 2). On a consolidated basis, the
Company increased M&I Resources by 0.66 Moz, year-on-year net
of depletion, mainly due to the successful drilling-related
resource upgrades of 0.65 Moz, predominantly at New Zealand operations. Changes in economic
factors also had a positive impact of approximately 0.46 Moz
(Figure 2).
Adjustments to M&I Resources include a net reduction of 0.18
Moz in 2020 that reflects a reduction at Macraes partially off-set
by an addition at Waihi associated with operational changes,
including:
- Macraes: reductions due to a proportion of Round Hill Open-pit
resources that were excised immediate to the new Golden Point
Underground and removal of non-economic Frasers Underground
resources, and
- Waihi: additions due to a proportion of Martha Underground
resource now reported within the Martha Open-pit.
Consolidated Inferred Resources, year-on-year, increased by 0.1
Moz to 4.4 Moz of gold, while silver and copper Inferred Resources
also increased to 6.3 Moz and 0.04 Mt, respectively (Table 3,
Figure 3).
Pricing and Sensitivities
The Company used gold prices of $1,500 per ounce and $1,700 per ounce for estimating P&P Reserves
and Mineral Resources, respectively, and a silver price of
$17.00 per ounce for estimating both
Reserves and Resources. The metal price assumptions used are
aligned with the three-year trailing average gold and silver price
actuals of $1,477 per ounce and
$17.49 per ounce, respectively (2018
to 2020 year-end). The Company believes the three-year trailing
average metals pricing most appropriately reflect the economic
conditions at the time of mineral reserve estimation. The Company
estimates a $1,300 gold price, a
$200/oz decrease as compared to the
current three-year trailing average utilised, would result in a
reduction of approximately 4% in P&P Reserves.
New Zealand
Waihi
Reserves at Waihi stood at 0.63 Moz gold after reclassification
of the Martha Open Pit reserve of 0.08 Moz. This 0.52 Moz increase
year-on-year is due to the newly declared Martha Underground
reserve of 4.5 Mt at 4.33 g/t Au for 0.62 Moz (Figure 4).
The Waihi M&I Resources stood at 1.83 Moz gold, representing
a year-on-year increase of 0.39 Moz due primarily to the conversion
of Inferred Resources at Martha Underground and model updates (see
16 February 2021 press release) and
the addition of open pit resources at Martha and Gladstone (Figure 5).
In 2021, the Company expects to drill 27,000 metres at Martha
Underground with a focus on resource conversion (20,000 metres) and
resource extension (7,000 metres). The Company has revised the
Exploration Target for Martha Underground which now stands at 5 to
7 million tonnes with a grade of 4.0 to 5.0 g/t gold. It is
important to note that the Exploration Target is exclusive of the
reported Mineral Resources and relates to the portion of the
deposit that has not yet been adequately drill tested (see
cautionary statement below).
Cautionary Statement: The Exploration Target is based on the
assessment of surface and underground drill data collected by the
Company in addition to the significant amount of historical and
archived geological and mine data from over a century of mining
activity at Waihi. The Exploration Target is conceptual in nature
and insufficient exploration has been undertaken in the areas that
the Exploration Target relates to estimate a Mineral Resource. It
is uncertain if further exploration will result in the estimation
of a Mineral Resource.
The Waihi Inferred Resources stood at 1.4 Moz gold. This
represents a 0.1 Moz increase due to the expansion of the Martha
Open Pit resource (Figure 6).
At the WKP project located 10 kilometres north of the existing
Waihi facilities, the Company reported an Indicated Resource of 1.0
Mt at 13.4 g/t Au and 25.5 g/t Ag for 0.42 Moz of gold and 0.80 Moz
of silver, in addition to an Inferred Resource of 1.9 Mt at 12 g/t
Au and 20 g/t Ag for 0.72 Moz of gold and 1.23 Moz of silver, as
reported in the 2019 Resource and Reserve Statement. These
estimates remain unchanged in the current R&R statement. The
Company intends to incorporate 2020 (4,000 metres) and 2021
drilling (estimated 10,500 metres) into an updated resource model
supporting the completion of a Pre-Feasibility study by 2021
year-end.
Macraes
The P&P Reserves for Macraes stood at 1.30 Moz gold with
1.08 Moz in the open pits and 0.22 Moz of gold in the Frasers and
Golden Point underground mines
(Figure 7). Year-on-year drilling-related reserve growth has
increased Reserves 0.20 Moz net of 2020 depletion due mainly to the
addition of 0.17 Moz at Golden Point Underground and reserve growth
at Frasers Open Pit.
![Figure 7: Changes to Macraes Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation) Figure 7: Changes to Macraes Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)](https://mma.prnewswire.com/media/1478405/Figure7_10.jpg)
The Macraes M&I Resources stood at 3.60 Moz of gold,
including 0.56 Moz for the Frasers Underground and Golden Point
Underground mines (Figure 8). The year-on-year net increase in
M&I Resources of 0.15 Moz is attributable to model updates of
0.40 Moz, reflecting successful exploration drill programs as
demonstrated by first-time reporting of the Golden Point
Underground resource (10 September
2020), open pit resource growth and to a lesser extent, 0.14
Moz reflected in economic factors. Adjustments reflect Round Hill
Open Pit reductions due to a loss of resources associated with the
allocation to Golden Point Underground and removal of non-economic
Frasers Underground resources (see Figure 8).
Macraes Inferred Resources stood at 0.8 Moz of gold, a decrease
from the previous year, due mainly to the conversion of Inferred
Resources to the Indicated category and, to a lesser extent,
depletion (Figure 9).
Reefton
Resources for the Blackwater Project remain on the Company's
inventory and are unchanged from the 31
December 2019 reported resources.
United States of
America
Haile
P&P Reserves totalled 2.84 Moz of gold including 0.42 Moz in
the Haile Underground (Figure 10). Depletion has largely been
offset by resource conversion and changes in economic factors.
Total Haile M&I Resources stood at 3.18 Moz of gold,
including 0.53 Moz for the Haile Underground. Depletion
during 2020 has been offset by economic factors (Figure 11).
Year-on-year, Inferred Resources remain essentially unchanged
with resource update reductions being offset by changes in economic
factors (Figure 12). Haile growth focuses on resource conversion
drilling and exploration of underground targets.
Philippines
Didipio
Didipio P&P Reserves stood at 1.28 Moz of gold, 2.7 Moz of
silver and 0.15 Mt of copper, a small year-on-year increase (Figure
13). The increase is largely due to a lowered reserve reporting
cut-off grade (0.76 g/t AuEq cut-off) in areas adjacent to
development planned to access higher grade stoping areas (1.16 g/t
AuEq cut-off). The reserves include 23 Mt of low and medium grade
open pit stockpiles, 5.3 Mt of which are based upon a 0.27 g/t AuEq
cut-off, the remainder based on an approximate 0.4 g/t AuEq
cut-off. The Company continues to work with the Philippine National
Government on renewal of Didipio's operating agreement (the
Financial or Technical Assistance Agreement or "FTAA"), and the
mine remains in a state of operational standby. As the renewal
discussion is continuing to progress and detailed planning and
consultation is underway for recommencement of operation, the
Company maintains reporting of Didipio as a Mineral
Reserve.
![Figure 13: Changes to Didipio Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation) Figure 13: Changes to Didipio Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)](https://mma.prnewswire.com/media/1478424/Figure13_16.jpg)
Didipio M&I Resources stood at 1.43 Moz of gold, 2.93 Moz of
silver and 0.17 Mt of copper, a small year-on-year increase of 0.05
Moz due to lowered resource reporting cut-off grade (0.67 g/t AuEq
cut-off at increased gold price of $1,700 per ounce) (Figure 14). The resources
include 23 Mt of low and medium grade open pit stockpiles.
Inferred Resources stood at 0.4 Moz of gold, 0.6 Moz of silver
and 0.04 Mt of copper, a 0.1 Moz year-on-year increase due to
lowered cut-off grade (Figure 15).
Other
OceanaGold's interest in the Sam's Creek project in New Zealand remains unchanged at
20%.
As part of the requirements under the listing rules of the
Australian Stock Exchange, the Company has filed a separate
document containing the material summaries and JORC Table 1
information related to the resource and reserves. These can be
found at
https://oceanagold.com/investor-centre/tsx-asx-filings/.
Martha Underground Feasibility Study
The Waihi District – Martha Underground Feasibility Study,
31 March 2021, provides an update of
information contained in the Waihi District PEA, 30 August 2020 for all Waihi geological resources
and for mining evaluations for Martha Underground. The Feasibility
Study includes an initial Reserve at Martha Underground of 4.5 Mt
at 4.33 g/t Au for 0.62 Moz. The Feasibility Study also includes
reporting of an additional 0.26 Moz of Indicated Resource at Martha
Underground that has for the most part been converted from Inferred
Resource (see comparison of the resources in Tables 5 and 6 below).
Correspondingly, this conversion has resulted in a 0.20 Moz
decrease in Inferred Resources.
Authorised for release to market by OceanaGold Corporate Company
Secretary, Liang Tang.
www.oceanagold.com | Twitter: @OceanaGold
About OceanaGold
OceanaGold is a multinational gold producer committed to the
highest standards of technical, environmental, and social
performance. For 30 years, we have been contributing to excellence
in our industry by delivering sustainable environmental and social
outcomes for our communities, and strong returns for our
shareholders. Our global exploration, development, and operating
experience has created an industry-leading pipeline of organic
growth opportunities and a portfolio of established operating
assets including Didipio Mine in the
Philippines; Macraes and Waihi operations in New Zealand; and Haile Gold Mine in
the United States of America.
Technical Disclosure
All Mineral Reserves and Mineral Resources were calculated as at
December 31, 2020 and have been
calculated and prepared in accordance with the standards set out in
the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves dated December
2012 (the "JORC Code") and in accordance with National
Instrument 43-101 of the Canadian Securities Administrators ("NI
43-101"). The JORC Code is the accepted reporting standard for the
Australian Stock Exchange Limited ("ASX").
The definitions of Ore Reserves and Mineral Resources as set
forth in the JORC Code have been reconciled to the definitions set
forth in the CIM Definition Standards. If the Mineral Reserves and
Mineral Resources were estimated in accordance with the definitions
in the JORC Code, there would be no substantive difference in such
Mineral Reserves and Mineral Resources.
Any updates of Mineral Resources for Macraes and Blackwater have
been verified and approved by J. Moore while the updates of Mineral
Reserves for Macraes open pits have been verified and approved by,
or are based on information prepared by, or under the supervision
of, P Doelman. The Mineral Reserves for Macraes underground have
been verified and approved by or are based upon information
prepared by, or under the supervision of, T. Cooney.
Any updates of Mineral Resources for Waihi have been verified
and approved by, or are based on information prepared by, or under
the supervision of, P. Church. The Mineral Reserves for Waihi have
been verified and approved by, or are based on information prepared
by, or under the supervision of, T. Maton for open pit and D.
Townsend for underground.
The updates of Mineral Resources for Haile open pit and
underground have been verified and approved by, or are based on
information prepared by, or under the supervision of, J. G. Moore.
The updates of Mineral Reserves for Haile open pits have been
verified and approved by, or are based on information prepared by,
or under the supervision of, G. Hollett and the Mineral Reserves
for Haile underground have been verified and approved by or are
based upon information prepared by, or under the supervision J.
Poeck.
The Mineral Resources for Didipio have been verified and
approved by, or are based on information prepared by, or under the
supervision of, J. Moore while the Mineral Reserves for Didipio
underground have been verified and approved by or are based upon
information prepared by, or under the supervision P.
Jones.
Messrs, Church, Doelman, Maton and Townsend are full-time employees of the
Company's subsidiary, Oceana Gold
(New Zealand) Limited. Messrs
Cooney, Hollett, Jones, and Moore are full-time employees of the
Company's subsidiary, OceanaGold Management Pty Limited. Both
OceanaGold (Philippines) Inc. and
Haile Gold Mine Inc. are subsidiaries of the Company.
G. Hollett is a Professional Engineer (P.Eng) registered with Engineers and
Geoscientists of British Columbia
(EGBC). Messrs Church, Cooney, Doelman, Jones, Maton, Moore and
Townsend are Members and Chartered
Professionals with the Australasian Institute of Mining. J. Poeck
is a full-time employee of SRK Consulting and a registered member
of the Society for Mining, Metallurgy and Exploration (SME) and a
QP member of Mining and Metallurgical Society of America
(MMSA).
All such persons are "qualified persons" for the purposes of NI
43-101 and have sufficient experience relevant to the style of
mineralisation 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.
J. Poeck and Messrs Church, Cooney, Doelman, Hollett, Jones,
Maton, Moore, and Townsend consent
to inclusion in this public release of the matters based on their
information in the form and context in which it appears. The
estimates of Mineral Resources and Mineral Reserves contained in
this public release are based on, and fairly represent, information
and supporting documentation prepared by the named qualified and
competent persons in the form and context in which it appears.
The estimates of Mineral Resources and Reserves contained in
this public release are based on, and fairly represent, information
and supporting documentation prepared by the named qualified and
competent persons in the form and context in which it appears.
For further scientific and technical information supporting the
disclosure in this media release (including disclosure regarding
Mineral Resources and Mineral Reserves, data verification, key
assumptions, parameters, and methods used to estimate the Mineral
Resources and Mineral Reserves, and risk and other factors)
relating to the Didipio Gold-Copper Mine, the Macraes Mine, the
Haile Gold Mine the Waihi Gold Mine and the Blackwater project,
please refer to the following NI 43-101 compliant technical reports
and the Blackwater Preliminary Economic Assessment released on
21 October 2014 available at
www.sedar.com under the Company's name:
- "NI 43-101 Technical Report, Macraes Gold Mine, Otago,
New Zealand" dated October 14, 2020, prepared by D. Carr, Chief
Metallurgist and T. Cooney, General Manager of Studies, both of
OceanaGold Management Pty Limited and P. Doelman, Tech Services and
Project Manager, S. Doyle, Principal
Resource Geologist and P Edwards, Senior Project Geologist, each of
OceanaGold (New Zealand)
Limited";
- "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 of Oceana Gold (New
Zealand) Limited up until January
2018 and J. G. Moore, Chief Geologist, of Oceana Gold (New
Zealand) Limited (the "Reefton Technical Report");
- "Technical Report for the Didipio Gold / Copper Operation Luzon
Island" dated October 29, 2014,
prepared by Simon Griffiths, General
Manager of Studies, of Oceana Gold
(New Zealand) Limited up until
March 2017, J. G. Moore, Chief
Geologist, of Oceana Gold
(New Zealand) Limited, and
Michael Holmes, Chief Operating
Officer of OceanaGold Corporation (the "Didipio Technical
Report");
- Waihi District Study - Martha Underground Feasibility Study NI
43-101 Technical Report" dated March 31,
2021, prepared by T. Maton, Study Manager and P. Church,
Principal Resource Development Geologist, both of Oceana Gold (New
Zealand) Limited, and D. Carr, Chief Metallurgist, of
OceanaGold Management Pty Limited (the "Waihi Technical Report");
and
- "NI 43-101 Technical Report Haile Gold Mine Lancaster County, South Carolina" dated
September 30, 2020, prepared by
David Carr, Tom Cooney and Jonathan
Moore of OceanaGold Management Pty Limited, John Jory and Michael
Kirby of Haile Gold Mine, Joanna
Poeck, Matt Sullivan,
Dave Bird, Fernando Rodrigues, Brian S. Prosser and John Tinucci of SRK Consulting, Jay Newton Janney-Moore and William Lucas Kingston of Newfields and
Larry Standridge of Call and
Nicholas (the "Haile Technical Report").
Cautionary Note Regarding Mineral Resources and Mineral
Reserves
The Company's disclosure of Mineral Reserve and Mineral Resource
information is governed by NI 43-101 under the guidelines set out
in the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") Standards on Mineral Resources and Mineral Reserves, adopted
by the CIM Council, as may be amended from time to time by the CIM
("CIM Standards"). The disclosure of Mineral Reserve and Mineral
Resource information for properties held by the Company is based on
the reporting requirements of the JORC Code. CIM definitions of the
terms "Mineral Reserve", "Proven Mineral Reserve", "Probable
Mineral Reserve", "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource", are
substantially similar to the JORC Code corresponding definitions of
the terms "Ore Reserve", "Proved Ore Reserve", "Probable Ore
Reserve", "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource",
respectively. Estimates of Mineral Resources and Mineral Reserves
prepared in accordance with the JORC Code would not be materially
different if prepared in accordance with the CIM definitions
applicable under NI 43-101.
There can be no assurance that those portions of such Mineral
Resources that are not Mineral Reserves will ultimately be
converted into Mineral Reserves. Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability. All
Mineral Reserves are within the Mineral Resource.
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 Logo (CNW Group/OceanaGold Corporation) OceanaGold Corporation Logo (CNW Group/OceanaGold Corporation)](https://mma.prnewswire.com/media/1478445/Logo_22.jpg)
SOURCE OceanaGold Corporation