VANCOUVER, BC, Sept. 14,
2023 /CNW/ - OceanaGold Corporation (TSX:
OGC) ("OceanaGold" or the "Company") announces that it has
mined first development ore from the Horseshoe Underground and
is on track to deliver first stope ore in October 2023 at its Haile Gold Mine ("Haile") in
the United States. The Company
also provides an update in respect to open pit operations and
exploration activities at Haile.
Highlights:
- First development ore has been mined from the Horseshoe
Underground mine and first stope production is expected in October
with ramp-up to occur through the fourth quarter and first half of
2024. Grade control drilling at Horseshoe Underground has delivered
results in-line with or above model expectation to date.
- Haile's third quarter 2023 gold production has been adversely
impacted by lower than estimated ore grades encountered in the
now-completed Mill Zone pit. We now expect Haile's third quarter
gold production to be around 23,000 ounces, and Haile's full-year
production to be around 25,000 ounces below 2023 guidance ranges.
With strong operating performance expected at Didipio and Macraes,
expected full-year consolidated gold production for the Company
remains within the lower end of the original guidance range.
- Haile 2023 resource definition and exploration campaign
highlights include (core length):
- 73.9m @ 13.03 g/t Au (UGD0002) –
Horseshoe Underground (resource conversion)
- 7.5m @ 3.65 g/t Au (DDH1177) –
Palomino (extension)
- 6.3m @ 2.89 g/t Au (DDH1173) –
Palomino (extension)
Gerard Bond, President & CEO
of OceanaGold, said "We are pleased to have mined first development
ore from the Horseshoe Underground. The team has done a tremendous
job in planning and safely executing the work to deliver this
important growth project. We remain on track to have first stoping
ore in October and will then ramp up to full target mining rates
through the first half of 2024. The future of Haile continues to be
exciting and with the release of today's drilling results,
including a high grade resource conversion result in the Horseshoe
inferred resource, it is clear that there continues to be
considerable upside to our current plan."
David Londono, Chief Operating
Officer Americas, said "Although mining from Mill Zone in 2023 has
been disappointing through the second and third quarter, the
reconciliation challenges encountered are in a localized area
within Mill Zone pit where mining is now complete, and mining has
now shifted to Ledbetter Phase II. Previous phases of the Ledbetter
pit have reconciled well versus our resource model, and we remain
confident in our long-term production profile for the mine,
particularly with Horseshoe Underground becoming a meaningful
contributor in 2024 and beyond."
Horseshoe Underground Achieves First Ore
Development of the Horseshoe Underground has progressed with
approximately 2,230 metres ("m") of total development to date.
Lateral development is well advanced on the 1025 and 1000 levels,
and the decline has progressed down to the 975 level. Development
ore equating to ~3,800 tonnes from the 1025 level (figure 1) has
been mined and currently stockpiled on surface for processing.
Three stopes are planned to be mined in 2023, commencing in
October. Stopes sizes range from 25,000 to 35,000 tonnes and will
be initially mined on the 1000 and 975 levels, with total stope ore
production expected to contribute approximately 90,000 tonnes to
the mine plan in 2023 (figure 2). Underground stoping is expected
to ramp-up in the fourth quarter and reach the full target mining
rate by mid-2024.
Grade control drilling on a 15m by
20m spacing is progressing from
underground in advance of development, with nine holes drilled to
date. The holes are reconciling consistently well to the block
model and provide confidence in the resource as we approach our
first stopes.
Haile Operations Update
As disclosed with our second quarter results, the short term
mine plan at Haile was adversely impacted by negative grade
reconciliation in the lower levels of the Mill Zone pit. We now
expect Haile's third quarter gold production to be approximately
23,000 ounces, and full-year production to be around 25,000 ounces
lower than 2023 guidance. We also expect Haile's third quarter cash
costs and AISC to be materially higher due to the lower gold
production.
Full-year 2023 guidance for Haile will be updated with the
release of third quarter results. OceanaGold continues to expect to
be within full-year consolidated gold production guidance range for
the Company given the strong operating performance expected at
Didipio and Macraes, albeit toward the lower end of the range.
As per the 2023 mining schedule, mining at Mill Zone pit was
completed in August 2023 and has
shifted to stripping Ledbetter Phase II. During the transition
between pits, material to the mill is being fed from surface
stockpiles, with Horseshoe Underground and Ledbetter open pit
progressively providing ore for processing in the fourth
quarter.
Despite poor grade reconciliation in the lower benches of Mill
Zone pit in the second and third quarter of 2023, Mill Zone has
reconciled in-line with resource model expectations (+1% ounces)
since mining began in 2018. Short-term negative reconciliation seen
in the last two quarters is a combination of local variation in
grade and wider drill spacing at bottom benches of the pit. For
more detail on Haile long term reconciliation, please see 2022
Reserve and Resource news release dated March 31, 2023.
Haile Exploration Update
A program of resource definition and conversion drilling at
Horseshoe Underground totalling ~18,400m is in progress and is
scheduled to be completed by the end of 2024. To date, conversion
drilling totalling 2,617m in six
holes has been completed, with an additional 2,600m planned by 2023 year end. Drilling has
targeted the conversion of the lower Horseshoe inferred resource
with two holes to date, UGD0001 and UGD0002. UGD0001 had
substantial deviation and did not return a significant result,
while UGD0002 returned 73.9 m @ 13.03
g/t Au, showing better than expected grade (table 1). The lower
extension of the Horseshoe resource remains open.
Resource conversion drilling continued at Palomino, located
approximately 800 metres southwest of the Horseshoe Underground
mine, and where future access may be gained from underground
infrastructure (figure 3). Following data cut-off for the end of
year 2022 Annual Resource and Reserve statement, 9,818m and 19 holes of resource conversion
drilling have been completed with all but two holes intersecting
mineralisation and returning results in line with expectations,
including 60.4m @ 7.95g/t Au in hole
DDH1164 and 40.0m @ 3.50g/t Au in
hole DDH1189 (figure 3 and table 1). The Palomino resource
conversion program has now been completed with a resource model
update scheduled in Q1 2024 following receipt of all outstanding
assays from the lab.
Twenty regional exploration holes within the mining lease have
been drilled from surface in 2023 across early-stage (Horsetail,
Aquarius, Ramona, Capricorn) and extensional (Palomino) targets,
testing the prospective metasediment–metavolcanic contact where the
contact is poorly defined or sparsely drilled (figure 4). Two
significant intercepts have been returned testing the northeast
extension of the Palomino deposit with hole DDH1177 intersecting
7.5m @ 3.65g/t Au from 527.7m and hole DDH1173 intersecting 6.3m @ 2.89 g/t Au from 483.5m (figure 3 and table 1). Drilling at the
Ledbetter extensional target has commenced and remains in
progress.
Table 1: Haile Drill Intersections. NSR = No Significant
Result.
Hole
ID
|
From
(m)
|
To
(m)
|
Core Length
(m)
|
Au
g/t
|
Target
|
Drill
Category
|
UGD0001
|
-
|
-
|
-
|
NSR
|
Horseshoe
|
Resource
Conversion
|
UGD0002
|
306.8
|
380.7
|
73.9
|
13.03
|
Horseshoe
|
Resource
Conversion
|
incl.
|
311.7
|
348.3
|
36.5
|
20.93
|
Horseshoe
|
Resource
Conversion
|
DDH1144
|
401.6
|
464.2
|
62.6
|
2.44
|
Palomino
|
Resource
Conversion
|
and
|
483.9
|
488.8
|
4.9
|
7.14
|
Palomino
|
Resource
Conversion
|
DDH1145
|
435.5
|
454.4
|
18.9
|
5.40
|
Palomino
|
Resource
Conversion
|
and
|
468.4
|
482.0
|
13.6
|
3.53
|
Palomino
|
Resource
Conversion
|
and
|
492.8
|
515.2
|
22.5
|
4.73
|
Palomino
|
Resource
Conversion
|
DDH1152
|
331.4
|
360.2
|
28.8
|
4.15
|
Palomino
|
Resource
Conversion
|
and
|
369.1
|
392.0
|
22.9
|
2.50
|
Palomino
|
Resource
Conversion
|
DDH1153
|
-
|
-
|
-
|
NSR
|
Palomino
|
Resource
Conversion
|
DDH1156
|
416.6
|
423.9
|
7.3
|
4.44
|
Palomino
|
Resource
Conversion
|
DDH1159
|
311.1
|
315.4
|
4.3
|
7.78
|
Palomino
|
Resource
Conversion
|
and
|
440.5
|
445.7
|
5.2
|
2.79
|
Palomino
|
Resource
Conversion
|
and
|
454.9
|
473.2
|
18.3
|
3.54
|
Palomino
|
Resource
Conversion
|
and
|
488.4
|
508.2
|
19.8
|
3.80
|
Palomino
|
Resource
Conversion
|
DDH1161
|
366.5
|
373.8
|
7.3
|
1.72
|
Palomino
|
Resource
Conversion
|
and
|
384.5
|
407.3
|
22.9
|
3.58
|
Palomino
|
Resource
Conversion
|
and
|
425.7
|
451.5
|
25.8
|
1.70
|
Palomino
|
Resource
Conversion
|
and
|
459.1
|
474.4
|
15.3
|
5.53
|
Palomino
|
Resource
Conversion
|
DDH1164
|
351.3
|
354.4
|
3.1
|
14.87
|
Palomino
|
Resource
Conversion
|
and
|
415.9
|
476.3
|
60.4
|
7.95
|
Palomino
|
Resource
Conversion
|
and
|
487.0
|
497.6
|
10.7
|
2.14
|
Palomino
|
Resource
Conversion
|
DDH1165
|
384.9
|
395.1
|
10.2
|
3.55
|
Palomino
|
Resource
Conversion
|
and
|
407.3
|
421.1
|
13.7
|
2.88
|
Palomino
|
Resource
Conversion
|
DDH1167
|
313.2
|
349.8
|
36.6
|
1.64
|
Palomino
|
Resource
Conversion
|
and
|
396.8
|
399.7
|
2.9
|
6.26
|
Palomino
|
Resource
Conversion
|
and
|
421.4
|
441.2
|
19.8
|
2.19
|
Palomino
|
Resource
Conversion
|
DDH1168
|
469.7
|
475.8
|
6.1
|
4.04
|
Palomino
|
Resource
Conversion
|
DDH1169
|
-
|
-
|
-
|
NSR
|
Palomino
|
Resource
Conversion
|
DDH1170
|
426.2
|
442.1
|
15.9
|
1.76
|
Palomino
|
Resource
Conversion
|
and
|
480.8
|
500.4
|
19.6
|
3.28
|
Palomino
|
Resource
Conversion
|
and
|
508.0
|
517.1
|
9.1
|
2.41
|
Palomino
|
Resource
Conversion
|
DDH1189
|
550.3
|
590.3
|
40.0
|
3.50
|
Palomino
|
Resource
Conversion
|
DDW1192
|
542.2
|
557.4
|
15.3
|
4.93
|
Palomino
|
Resource
Conversion
|
DDH1173
|
483.5
|
489.7
|
6.3
|
2.89
|
Palomino
|
Extension
|
DDH1177
|
527.7
|
535.2
|
7.5
|
3.65
|
Palomino
|
Extension
|
For further information relating to drill hole data for Haile
please refer to the Company's website
at https://oceanagold.com/investor-centre/tsx-asx-filings.
www.oceanagold.com | Twitter: @OceanaGold
About OceanaGold
OceanaGold is a growing intermediate gold and copper producer
committed to safely and responsibly maximizing the generation of
Free Cash Flow from our operations and delivering strong returns
for our shareholders. We have a portfolio of four operating mines:
the Haile Gold Mine in the United States
of America; Didipio Mine in the
Philippines; and the Macraes and Waihi operations in
New Zealand.
Qualified Person
Statement
The exploration results in this press release were prepared in
accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators ("NI 43-101").
Information relating to the Haile exploration results in this
document has been verified and is based on and fairly represents
information compiled by or prepared under the supervision of Craig
Feebrey, a Member of the Australasian Institute of Mining and
Metallurgy and an employee of OceanaGold. Mr Feebrey 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 Qualified Persons for the purposes of the NI 43-101.
Mr Feebrey consents to the inclusion in this public report of the
matters based on their information in the form and context in which
it appears.
QA/QC at Haile Gold Mine
Since July 2017 all Haile
exploration core samples have been prepared at the ALS lab in
Tucson, Arizona, and analysed at
the ALS lab in Reno, NV. Samples
are pulverized from a 450g sample to 85% passing 75 mesh.
Approximately 225g of pulp sample is used for fire assay. Assays
are based on a 30g fire assay aliquot for gold with Atomic
Absorption finish 3g/t Au. Some holes are composited and analysed
for carbon, sulphur and multi-elements using LECO and ICP-OES
methods. ALS labs used for Haile OceanaGold samples are ISO 17025
certified.
Blanks and standards are inserted every 20th sample. Check
assays are submitted to the SGS lab in Kershaw, SC for 5% of the intervals each
quarter. Assays are duplicated for >95% of the samples within 5%
of their original assay. ALS samples show no evidence of
contamination or instrument drift. Precision and accuracy of CRMs
compared to expected values have been consistently with 5% RSD and
often within 3%. Graphs showing expected values and two standards
of deviation have been produced and evaluated. Barren marble and
sand are inserted as blanks every 20th sample. Certified reference
materials from RockLabs are inserted every 20th sample. All blanks
and CRMs are handled by the Geotech Supervisor and are stored in
the locked OceanaGold office.
All drill hole samples are handled and transported from the
drill rigs to the secured Haile Exploration warehouse by OceanaGold
personnel. Access to the property is controlled by locked doors and
cameras monitored by OceanaGold security. The main gate requires an
electronic employee badge to enter. Samples are packaged at the
Haile Exploration warehouse by the Geotech Supervisor and
geotechnicians. Samples are trucked in sealed plastic barrels by
certified couriers with submittal forms that are verified during
sample pick-up and delivery to ALS. No sample shipments have been
recorded as missing or tampered with.
Technical Reports
For further information, please refer to the following NI 43-101
technical report:
a) "NI 43-101 Technical Report Haile
Gold Mine Lancaster County, South
Carolina" dated March 31,
2022, prepared by D. Carr,
Chief Metallurgist, G. Hollett, Group Mining Engineer, and J.
Moore, Chief Geologist, each of OceanaGold Management Pty Limited,
Michael Kirby of Haile Gold Mine,
Inc., J. Poeck, M. Sullivan, D. Bird, B. S. Prosser and J. Tinucci
of SRK Consulting, J. Newton
Janney-Moore and W. Kingston of Newfields and L. Standridge
of Call and Nicholas.
The above document has been filed with the Canadian securities
regulatory authorities and is available for review electronically
from the Canadian System for Electronic Document Analysis and
Retrieval (SEDAR) at www.sedar.com under the Company's
profile.
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.
SOURCE OceanaGold Corporation