2017 Fact book THE GOLD MINING COMPANY OF CHOICE - OceanaGold
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2017 Fact book THE GOLD MINING COMPANY OF CHOICE
2
Haile Mill Zone Open Pit, USA
CAUTIONARY STATEMENT REGARDING FORWARD- Such factors include, among others, future prices of gold; general not place undue reliance on forward-looking statements and
LOOKING INFORMATION business, economic and market factors (including changes in information due to the inherent uncertainty therein. All forward-
global, national or regional financial, credit, currency or securities looking statements and information made herein are qualified by
The information and statements within this 2017 Fact Book may
markets), changes or developments in global, national or regional this cautionary statement.
be deemed as “forward-looking statements” or “forward-looking
political and social conditions; changes in laws (including
information” within the meaning of applicable securities laws. This 2017 Fact Book may use the terms “Measured”, “Indicated”
tax laws) and changes in GAAP or regulatory accounting
and “Inferred” Resources. U.S. investors are advised that
All statements in this 2017 Fact Book, other than statements requirements; the actual results of current production,
while such terms are recognised and required by Canadian
of historical fact, which address events or developments the development and/or exploration activities; the outcome of
regulations, the Securities and Exchange Commission does not
Company expects to occur, are “forward looking statements” any pending litigation and regulatory matters; the ability to
recognise them. “Inferred Resources” have a great amount of
or “forward-looking information”. Forward looking statements obtain required consents, permits or approvals; conclusions
uncertainty as to their existence and as to their economic and
or information may include, but are not limited to, statements of economic evaluations and studies; fluctuations in the value
legal feasibility. It cannot be assumed that all or any part of an
with respect to the future financial and operating performance of the United States dollar relative to the Canadian dollar, the
Inferred Resources will ever be upgraded to a higher category.
of the Company, its subsidiaries and affiliated companies, its Australian dollar, the Philippines Peso or the New Zealand dollar;
Under Canadian rules, estimates of Inferred Resources may
mining projects, the future price of gold, the estimation of Mineral changes in project parameters as plans continue to be refined;
not form the basis of feasibility or other economic studies. U.S.
Reserves and Mineral Resources, the realisation of Mineral possible variations of ore grade or recovery rates; failure of plant,
investors are cautioned not to assume that all or any part of
Reserves and resource estimates, costs of production, estimates equipment or processes to operate as anticipated; accidents,
Measured or Indicated Resources will ever be converted into
of initial capital, sustaining capital, operating and exploration labour disputes and other risks of the mining industry; impacts
reserves. U.S. investors are also cautioned not to assume that
expenditures, costs and timing of the development of new arising from natural disasters, including extreme weather events;
all or any part of an Inferred Resource exists, or is economically
deposits, costs and timing of the development of new mines, costs political instability or insurrection or war; labour force availability
or legally mineable.
and timing of future exploration and drilling programs, timing of and turnover; adverse judicial decisions; delays in obtaining
filing of updated technical information, anticipated production financing or governmental approvals, or in the completion of This document does not constitute an offer of securities for sale
amounts, requirements for additional capital, governmental development or construction activities, or in the commencement in the United States or to any person that is, or is acting for the
regulation of mining operations and exploration operations, of operations; as well as those factors discussed in the section account or benefit of, any U.S. person (as defined in Regulation
timing and receipt of approvals, consents and permits under entitled “Risk Factors” in this document. Readers are cautioned S under the United States Securities Act of 1933, as amended
applicable mineral legislation, environmental risks, title disputes that the foregoing list of factors is not exhaustive. (the “Securities Act”)) (“U.S. Person”), or in any other jurisdiction
or claims, limitations of insurance coverage and the timing and in which such an offer would be unlawful.
Although the Company has attempted to identify important
possible outcome of pending litigation and regulatory matters.
factors that could cause actual actions, events or results to differ The exploration results in this 2017 Fact Book were prepared in
Often, but not always, forward-looking statements and materially from those described in forward-looking statements accordance with the standards set out in the 2012 Edition of the
information can be identified by the use of words such as and information, there may be other factors that cause actual ‘Australasian Code for Reporting of Exploration Results, Mineral
“may”, “plans”, “expects”, “projects”, “is expected”, “budget”, results, performance, achievements or events to differ from Resources and Ore Reserve’ (“JORC Code”) and in accordance
“scheduled”, “potential”, “estimates”, “forecasts”, “intends”, those anticipated, estimated or intended. Also, many of the with National Instrument 43-101 – Standards of Disclosure for
“targets”, “aims”, “anticipates” or “believes” or variations factors are outside or beyond the control of the Company, its Mineral Projects of the Canadian Securities Administrators (“NI
(including negative variations) of such words and phrases, officers, employees, agents or associates. 43-101”). The JORC Code is the accepted reporting standard for
or may be identified by statements to the effect that certain the Australian Stock Exchange Limited (“ASX”).
Forward-looking statements and information contained herein
actions, events or results “may”, “could”, “would”, “should”,
are made as of the date of this 2017 Fact Book and, subject to For further scientific and technical information (including
“might” or “will” be taken, occur or be achieved. Forward-looking
applicable securities laws, the Company disclaims any obligation disclosure regarding mineral resources and mineral reserves)
statements and information involve known and unknown risks,
to update any forward-looking statements and information, relating to the Haile Mine, the Macraes Mine, the Waihi Mine
uncertainties and other factors which may cause the actual
whether because of new information, future events or results and the Didipio Mine please refer to the NI 43-101 compliant
results, performance or achievements of the Company and/or
or otherwise. There can be no assurance that forward-looking technical reports available at sedar.com under the Company’s
its subsidiaries and/or its affiliated companies to be materially
statements and information will prove to be accurate, as actual name or on our website www.oceanagold.com.
different from any future results, performance or achievements
results and future events could differ materially from those All AISC and cash costs are net of by-product credits unless
expressed or implied by the forward-looking statements.
anticipated in such statements. Accordingly, readers should otherwise stated. All financials are denominated in US Dollars
unless otherwise stated.
Cover Page - Haile Gold Mine at Dusk, South Carolina, USA
3
Waihi Gold Mine, New Zealand Women of Didipio
Section 3:
Section 1: Section 2: FINANCIALS
INtroduction operations & INVESTOR
INFORMATION
Section 1: Introduction 4 Section 2: Operations 12 Section 3: Financials & Investor Information 36
· Portfolio of High Quality, Globally Diverse · 2017 Production / Cost Guidance 12 · Shareholder Information 38
Assets 4 · Reserves and Total Resources · Five Year Financial Summary
14 40
· Vision, Values and Strategy 5 · United States: Haile Gold Mine · Balance Sheet
16 41
· Letter from the Chairman 6 · Philippines: Didipio Gold Mine · Capital Expenditure Program
20 42
· Letter from the President and CEO 7 · New Zealand: Waihi Gold Mine · Operating Expenditures
24 43
· Company Overview and History 8 · New Zealand: Macraes Gold Mine · Board of Directors
28 44
· 2016 Operating and Financial Summary 10 · New Zealand: Reefton Rehabilitation · Executive Management Team
32 45
· Other Investments 33 · Glossary of Terms 46
· Reserves and Resources 34 · Corporate Directory 47
4
A Portfolio of High Quality,
Globally Diverse Assets
Vancouver
Gold Standard Ventures
and NuLegacy Gold
Haile
Lom: 2030+
Didipio
Lom: 2032+ Corporate
Operation
minority Investments
Waihi
Lom: 2019+
Melbourne
Macraes
La Curva Joint Venture
LOM: 2020+
5
Vision, Values,
Strategy
Our Vision: To be the Gold Mining
Company of Choice, operating high
quality assets delivering superior
returns in a responsible manner.
We have an unwavering focus on the
health and safety of our people and the
well-being of our local communities.
We have an unrelenting commitment
to upholding the highest standards
in environmental and sustainability
throughout the mine life cycle.
Our Values:
Respect | Integrity | Teamwork |
OceanaGold strives to be the Gold Mining Company, the Partner, and the Employer of Choice. Innovation | Action | Accountability
Our values shape our culture and
LONG-TERM STRATEGY define the character of our Company.
(2021+) They serve as a guide for how we
want our people to behave and
make decisions. These beliefs, which
MID-TERM STRATEGY Continue geographic &
production diversity drive our behaviour, reflect the
(2017 – 2020) ‘OceanaGold’ way of doing things.
Maintaining our Our People: We have adopted six
strong margin & grow
production
leadership qualities expected in
Maintain current Focus on cost OceanaGold’s People. These are
production at reduction &
500-600 koz organic growth
the defining qualities of our current
Operate 5 – 7 quality mines and future leaders. We hope to
Operate four mines around the Americas, inspire a multi-national pool of
Australasia, SE Asia talent who actively demonstrate
these behaviours and who can be
retained and promoted to grow
Continued strong with the business.
focus on ROIC
6
LETTER FROM
THE CHAIRMAN
Dear Valued Stakeholders, We have a robust business comprising high
quality and high-margin assets that we expect
will generate significant free cash flows, which
We are pleased to present our latest Fact Book can then be deployed to further strengthen our
which covers our performance in 2016 and our balance sheet, pay dividends and invest in value-
plans for the year ahead. creating opportunities.
OceanaGold continues to define itself as a We anticipate this year and in the years ahead
responsible miner and the gold mining company to unlock significant growth opportunities in the
of choice. As we strive towards realising our business particularly in New Zealand and the
Vision, we draw on a rich history and proven track United States. Commissioning of Haile, in South
record of being an environmentally and socially Carolina, continues to advance and commercial
responsible mining company. production is on schedule to be announced at the
We deliver sustainable value and significant operation in the first half of 2017.
benefits to our host communities while consistently We will continue to create value through exploration
delivering strong returns to shareholders by supported by increased exploration expenditure in
achieving or exceeding our production guidance both New Zealand and the United States. We will
from our international spread of world-class also complete studies for the potential expansion
We deliver sustainable value and mining operations. of Haile as well as the Martha Project at Waihi.
significant benefits to our host In 2016, we again achieved solid financial results There is significant organic growth potential within
communities while consistently from our portfolio of high quality assets. With our business across all sites and we’re making the
growth in production and higher margins expected investment in exploration and project studies to
delivering strong returns to in 2017, we are further strengthening our balance unlock these value creation opportunities.
shareholders by achieving or sheet and shoring up our business to create
exceeding our production guidance additional value.
from our international spread of On the back of these results, the Board of Directors Sincerely,
world-class mining operations. was pleased to maintain the Company’s ordinary
dividend policy of US$0.02/share each year and
in early 2017, we declared a semi-annual ordinary
dividend of $0.01 per share.
Jim Askew, Chairman
7
LETTER FROM The last year was transformational for
THE PRESIDENT OceanaGold in many ways. We are particularly
proud of completing the development of Haile
AND CEO within 15 months of becoming the project owner.
It was a great accomplishment.
Dear Valued Stakeholders, environment, social and community performance
at the Didipio operation.
OceanaGold’s latest Fact Book provides details and The company will continue to focus on progressing
insights in to our journey to achieving our vision of our safety and environmental management
becoming the gold mining company of choice. programs and work even harder to further improve
relations with communities and governments.
Our Vision is to build a global business capable of
operating multiple mines across different jurisdictions. Over the near to medium term we are confident
that our current portfolio of operating assets will
Building the capabilities to operate internationally continue to produce gold at an annual rate of
is important, and our early successes at Haile 500,000 to 600,000 ounces a year. Beyond
shows we are continuing to execute on the plan. that, we are looking for ways to enhance
Operating a decentralised business model the value of the business both organically
has allowed us to run the business efficiently. and through being in-tune with acquisition
Moreover, we have developed a competitive opportunities that would be complimentary
advantage from having an international outlook, to our current asset mix.
however, we remain focused in our primary areas OceanaGold’s journey to becoming the
of business in the Australasia, Southeast Asia and Gold Mining Company of Choice continues
the Americas regions. and we look forward to bringing our
Our newest operation, the Haile Gold Mine, stakeholders with us on this journey as
has increased the size of the company in terms we move into 2017/18.
of production, profitability, and the number of
people we employ.
Sincerely,
The last year was transformational for OceanaGold
in many ways. We are particularly proud of
completing the development of Haile within 15
months of becoming the project owner. It was a
great accomplishment.
Mick Wilkes, President & CEO
On par with the Haile achievement were the
awards we again won in the Philippines for
operational and safety excellence and our
8
Nericel Langres, Community Relations &
Communications Manager at Didipio, Philippines
COMPANY OVERVIEW
& HISTORY
OceanaGold Corporation is a multinational, mid- The Company also has a significant pipeline of organic
tier gold mining company with significant operating, growth and exploration opportunities within the
development and exploration experience on a global Australasia, Southeast Asia and Americas regions.
scale. The Company owns a suite of high-quality world- In 2016, the Company produced 416,741 ounces of
class assets located in the United States, New Zealand gold and 21,123 tonnes of copper. The Company is a
and the Philippines. high-margin producer with All-In Sustaining Costs (AISC)
The Company is publicly listed on the Toronto Stock of $708 per ounce and cash costs of $452 per ounce on
Exchange (TSX) and the Australian Securities Exchange sales in 2016.
(ASX) under the ticker “OGC”. It delisted from the New The successful commissioning of the Haile mine underpins
Zealand Stock Exchange in December 2016. an expected increase in total production in 2017 of
OceanaGold owns the Didipio Gold-Copper Mine approximately 550,000 to 610,000 ounces of gold, plus
on Luzon Island in the Philippines. In New Zealand, copper, at an AISC of US$600-US$650 per ounce.
OceanaGold is the country’s largest gold miner with two OceanaGold’s vision is to be the Gold Mining Company
significant operations: the Macraes Goldfield on the of Choice operating high quality assets delivering
South Island; and the Waihi Gold Mine on the North superior returns in a responsible manner.
Island. In December 2016, the Company announced
that it would fully close and rehabilitate the Reefton The Company has a 27-year track record as a responsible
operation located on the West Coast of the South miner and good corporate citizen. The Company values
Island. The Company’s newest operation is the Haile maintaining a collaborative relationship with all its
Gold Mine located in South Carolina, USA. stakeholders to identify and invest in social programs that
are designed to build capacity, not dependency, beyond
the mine’s life cycle.
9
Macraes, NZ Didipio, Philippines Haile, USA
1990 2000 2010
1990 2003 2011 2015
Macraes Mining Company Limited Oceana Gold Limited. Didipio Mine construction Acquired Waihi Gold Mine
commenced gold production at recommenced in June. in New Zealand from
Macraes. Newmong Mining Corp.
2004
Oceana Gold Limited listed on asx and nzx. 2012
1991 Didipio Mine construction Acquired Romarco Minerals
Reefton Goldfield acquired from completed and first gold inc. and continued
2006 development of the Haile
cra Limited. produced in December.
Didipio Gold-Copper Project acquired through Gold Mine.
merger with Climax Mining Limited.
1999 2013
Made strategic investment
Pressure oxidation and autoclave Didipio Mine commenced
2007 in Gold Standard Ventures.
facility commissioned at Macraes, commercial production in April.
only one of three in the Southern OceanaGold Corporation incorporated and
Hemisphere. listed on TSX. 2016
2014
Made strategic investment
Four millionth ounce of gold
Reefton open pit Mine commissioned. in NuLegacy Gold.
poured from New Zealand
operations.
Flotation cells commissioned at Macraes, the Delisted from the New
largest of this type operating in the world. Zealand stock exchange.
Declared annual dividend.
2008 2017
Frasers Underground Mine commissioned. First gold poured from the
Haile Gold Mine.
Didipio placed under care and maintenance
following global financial crisis.
10
Operating Statistics
2016 OPERATING
Consolidated 2016 2015 2014 2013 2012
Gold Produced oz 416,741 419,153 307,463 325,732 232,909
RESULTS Copper Produced
Didipio
t 21,123
2016
23,109
2015
25,010
2014
23,059
2013
-
2012
Gold Produced oz 147,150 127,086 106,256 66,277 -
Copper Produced t 21,123 23,109 25,010 23,059 -
Total Ore Mined t 9,199,375 7,063,642 8,380,658 8,787,878 -
Operating Summary Ore Mined Grade Gold g/t 0.92 0.82 0.65 0.58 -
OceanaGold’s strong operating performance in
Ore Mined Grade Copper % 0.48 0.47 0.54 0.58 -
2016 was driven by the producing assets in New
Zealand and the Philippines. The results from Total Waste Mined incl. pre-strip t 17,332,769 24,554,687 16,975,568 14,398,928 -
producing assets in 2016 include: Mill Feed t 3,499,584 3,581,471 3,111,516 2,578,295 -
• Didipio: annual production of 147,150 ounces Mill Feed Grade Gold g/t 1.50 1.24 1.19 0.94 -
of gold – and 21,123 tonnes of copper-with Mill Feed Grade Copper % 0.61 0.68 0.86 0.98 -
gold sales of 149,663 ounces at an AISC of Recovery Gold % 89.9 89.1 89.5 83.0 -
US$239 per ounce sold;
Recovery Copper % 93.8 94.6 93.7 91.5 -
• Waihi: 116,028 ounces of gold with gold sales of Macraes & Reefton2 2016 2015 2014 2013 2012
116,169 ounces at an AISC of US$735 an ounce;
Gold Produced oz 153,563 222,093 201,207 259,455 232,909
• Macraes and Reefton: 153,563 ounces of Total Ore Mined t 4,971,248 5,608,026 4,389,736 8,650,072 6,872,686
gold with gold sales of 171,314 at an AISC of
Ore Mined Grade Gold g/t 1.04 1.37 1.39 1.31 1.34
US$1,099 per ounce sold.
Total Waste Mined incl. pre-strip t 27,052,932 27,717,355 23,767,522 56,544,293 54,580,473
The combined annual gold output was 416,741
Mill Feed t 6,067,798 7,751,911 7,100,328 7,290,217 7,432,375
ounces while for copper it was 21,123 tonnes.
Mill Feed Grade Gold g/t 0.96 1.10 1.06 1.35 1.20
For 2017, the Company expects to produce1
between 550,000 to 610,000 ounces of gold Recovery Gold % 83.5 80.8 82.9 81.3 81.0
along with 15,000 to 17,000 tonnes of copper. Waihi3 2016 H2 2015
It is estimated that 20% of gold production will Gold Produced oz 116,028 69,973
come from the Philippines and 80% will come from Total Ore Mined t 478,862 285,599
operations in New Zealand and the United States.
Ore Mined Grade Gold g/t 8.07 8.53
Total Waste Mined incl. pre-strip t 213,840 55,684
Mill Feed t 489,300 282,658
Mill Feed Grade Gold g/t 8.07 8.46
Recovery Gold % 91.0 91.0
Notes:
1. Haile first ore through mill in December 2016 but commercial operation scheduled for mid-2017.
2. Reefton entered care and maintenance in Q1 2016.
3. Waihi H2 2015 reflects production attributable to OceanaGold.11
FINANCIAL RESULTS
Financial Snapshot
Year ended 31 December 2016 2015 2014 2013 2012
Revenue US$m 628.6 508.0 563.3 553.6 385.4
EBITDA1 US$m 283.6 193.5 239.8 262.4 144.6
Operating profit US$m 156.1 72.6 109.3 135.2 53.1
Earnings before income tax1 US$m 151.7 56.5 99.0 106.1 31.7
Net earnings before impairment and
US$m 134.0 56.9 112.2 92.8 20.7
undesignated hedges
Net earnings/(loss) US$m 136.5 53.1 111.5 (47.9) 20.7
Diluted earnings/(loss) per share US$ 0.22 0.14 0.36 (0.16) 0.08
Cash and cash equivalents US$m 68.9 185.5 51.2 24.8 96.5
Gold sold 2
oz 437,146 401,350 318,972 308,081 230,119
Average gold price received US$ / oz 1,225 1,136 1,273 1,382 1,675
Copper sold 2
tonnes 21,413 22,764 25,886 21,290 -
Average copper price received US$/lb 2.22 2.35 3.11 3.23 -
Cash operating cost 3
US$ / oz 452 458 418 426 940
All-In Sustaining Costs 3
US$ / oz 708 709 785 868 -
1. Excluding gain / (loss) on undesignated hedges and non-cash impairment charge
2. Includes Didipio Q1 2013 pre-commerical production of 2,791 ounces of gold and 1,549 tonnes of copper sold
3. Net of by-product credits based on ounces of gold sold and includes the Didipio nine-month period of commerical production in 2013
Shannon Richards, Waihi Geologist, New Zealand2017 Production and Cost Guidance
Didipio Waihi Macraes Haile (1) Consolidated
Gold Production ounces 110,000 - 130,000 110,000 - 120,000 180,000 - 190,000 150,000 - 170,000 550,000 - 610,000
Copper Production tonnes 15,000 - 17,000 - - - 15,000 - 17,000
Cash Costs $ per ounce ($20) - $40 $460 - $510 $600 - $650 $400 - $450 $370 - $420
All-In Sustaining Costs (2)
$ per ounce $130 - $180 $740 - $790 $950 - $1,000 $500 - $550 $600 - $650
Notes:
1. Haile guidance reflects full year expected production and cost guidance. Production and costs prior to declaration of commercial production will be capitalised and reflected on the balance sheet.
2. AISC calculation conforms to the methodology outlined by the World Gold Council. It includes all cash costs, corporate G&A, maintenance capital expenditures, capitalised mining expenditures and
exploration. It excludes growth capital such as additional development such as the plant expansion at the Haile Gold Mine and Didipio Underground. Haile Gold Room, USA13
2
SECTION
OPERATIONS14
Reserve Statement (as at December 31 2016)
PROJECT PROVEN PROBABLE PROVEN & PROBABLE
AREA Cut-off Mt Au g/t Ag g/t Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Au Moz Ag Moz Cu Mt
MACRAES Open Pit 0.4g/t Au 12.2 1.08 - 18.1 1.12 - - 30.3 1.10 - - 1.07 - -
MACRAES Underground 2.1g/t Au 0.54 2.70 - 1.31 2.30 - - 1.85 2.42 - - 0.14 - -
WAIHI Open Pit 0.5g/t Au 0.16 3.05 30.5 0.66 2.91 29.1 - 1.81 2.94 29.4 - 0.08 0.77 -
WAIHI Underground 3.5g/t Au 0.37 9.14 18.1 0.76 6.56 13.1 - 1.13 7.40 14.7 - 0.27 0.54 -
NEW ZEALAND - 13.2 1.39 - 20.8 1.45 - - 34.1 1.43 - - 1.56 1.30 -
DIDIPIO Open Pit 0.52g/t AuEq 28.6 0.47 2.5 2.4 0.94 2.3 0.45 31.1 0.51 2.5 0.35 0.51 2.46 0.11
DIDIPIO Underground 1.3g/t AuEq 2.3 2.48 2.6 13.7 1.76 2.5 0.43 15.9 1.86 2.5 0.44 0.95 1.27 0.07
PHILIPPINES - 30.9 0.62 - 16.1 1.64 - - 47.0 0.97 - - 1.46 3.73 0.18
HAILE Open Pit 0.48g/t Au 19.6 2.19 - 10.9 1.82 - - 30.5 2.06 - - 2.02 - -
USA - 19.6 2.19 - 10.9 1.82 - - 30.5 2.06 - - 2.02 - -
TOTAL - 63.7 1.26 - 47.8 1.60 - - 111.6 1.41 - - 5.04 5.0 0.18
Reserves are reported within current mine designs using economic assumptions unless otherwise noted: US$1,300/oz gold, US$3.00/lb copper and US$19/oz silver.
Didipio reserves based on US$1,250/oz gold and US$3.20/lb copper.
Haile reserves based on US$950/oz gold price.
Estimates of contained metal do not make allowances for processing losses.
Resource Statement (as at December 31 2016)
PROJECT MEASURED INDICATED MEASURED & INDICATED
AREA Cut-off Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Au Moz Ag Moz Cu Mt
MACRAES Open Pit 0.4g/t Au 17.5 1.11 - - 65.1 0.95 - - 82.5 0.99 - - 2.62 - -
MACRAES Underground - 3.88 3.11 - - 7.34 2.06 - - 11.2 2.42 - - 0.87 - -
REEFTON 0.5g/t Au 1.26 1.83 - - 6.55 1.49 - - 7.8 1.54 - - 0.39 - -
BLACKWATER - - - - - - - - - - - - - - - -
WAIHI Open Pit 0.5g/t Au 0.16 3.05 30.5 - 0.66 2.91 29.1 - 0.8 2.94 29.37 - 0.08 0.77 -
WAIHI Underground 3.5g/t Au 0.37 9.13 15.5 - 0.88 6.57 11.5 - 1.2 7.33 12.67 - 0.29 0.51 -
NEW ZEALAND - 23.1 1.62 - - 80.5 1.18 - - 103.6 1.28 - - 4.25 1.27 -
DIDIPIO Open Pit 0.5g/t AuEq 28.9 0.48 2.48 0.34 7.1 0.65 2.15 0.30 36.0 0.51 2.41 0.33 0.59 2.79 0.12
DIDIPIO Underground 1.12g/t AuEq 2.57 2.50 2.58 0.48 17.2 1.74 2.38 0.46 19.8 1.84 2.41 0.46 1.17 1.53 0.09
PHILIPPINES - 31.4 0.64 - - 24.3 1.42 - - 55.8 0.98 - - 1.76 4.32 0.21
HAILE Open Pit 0.41g/t Au 36.8 1.78 - - 33.6 1.68 - - 70.3 1.73 - - 3.92 - -
USA - 36.8 1.78 - - 33.6 1.68 - - 70.3 1.73 - - 3.92 - -
TOTAL - 91.3 1.35 - - 138 1.34 - - 229.7 1.34 - - 9.93 5.6 0.2115
Inferred Resource Statement (as at December 31 2016)
PROJECT INFERRED RESOURCE
AREA Cut-Off Mt Au g/t Ag g/t Cu % Au Moz Ag Moz Cu Mt
MACRAES Open Pit 0.4g/t Au 39 0.9 - - 1.1 - -
MACRAES Underground - 3.5 1.4 - - 0.2 - -
REEFTON 0.5g/t Au 1.4 1.1 - - 0.0 - -
BLACKWATER - 0.9 23.0 - - 0.7 - -
WAIHI Open Pit 0.5g/t Au - - - - - - -
WAIHI Underground 3.5g/t Au 0.7 6.9 13.5 - 0.2 0.3 -
NEW ZEALAND - 46 1.9 - - 2.7 0.3 -
DIDIPIO Open Pit 0.5g/t AuEq 2.4 0.5 2.0 0.2 0.0 0.2 0.01
DIDIPIO Underground 1.12g/t AuEq 6.5 1.3 1.6 0.4 0.3 0.3 0.02
PHILIPPINES - 9 1.1 - - 0.3 0.5 0.03
HAILE Open Pit 0.41g/t Au 19 1.1 - - 0.7 - -
USA 19 1.1 - - 0.7 0.0 -
TOTAL 73 1.3 - - 3.1 0.8 0.03
Mineral Resources include Mineral Reserves.
Macraes and Reefton open pit resources constrained by a NZ$2,200/oz gold price pit shell. Macraes underground resources are geologically constrained.
The commencement of Reefton closure and rehabilitation was announced on the 19th December 2016.
The Waihi open pit resources are reported to a 0.5 g/t Au cut-off within a pit design to the 890mRL. The underground resources are based on a
NZ$1,857/oz gold price.
For Didipio, open pit resources are reported above the 2,460mRL and underground resources between the 2,460mRL and 2,070mRL.
Open pit resources use AuEq cut-off based on US$1,300/oz gold and US$3.00/lb copper. Underground resources use AuEq cut-off based on
US$1,450/oz gold and US$3.80/lb copper.
Haile open pit resources are reported to a 0.41 g/t Au cut-off within a US$1,200/oz gold price pit shell.
Resource Statement for Minority Interests (as at December 31 2016)
ASSET MEASURED INDICATED INFERRED
Mt Au g/t Au Moz Mt Au g/t Au Moz Mt Au g/t Au Moz
Sams Creek - - - 2.0 1.77 0.11 2.0 1.3 0.1
Total - - - 2.0 1.77 0.11 2.0 1.3 0.1
OceanaGold’s interest in the Sams Creek Project has reduced from 40% to 20%. The tabulated resource is factored by the percentage ownership.
Conducting a Safety Audit at Haile, USA16
2017 AISC Guidance
Facts & Stats
US$ 500 – 550 per oz sold
2017 PRODUCTION Guidance
UNITED STATES: Gold:
Haile Gold Mine 150,000 – 170,000 ounces
Estimated Mine Life
P&P Reserves1
2030+
Gold: 2.02 Moz
M&I RESOURCES2 2017 Capital budget guidance
Charlotte
Non-Sustaining Capital: US$ 35 - 40 M
Columbia HAILE Gold: 3.92 Moz Pre-Stripping: US$ 17 - 22 M
Exploration: US$ 8 - 10 M
2017 Operations Metrics
2017 Unit Costs
1. Haile open pit only. As at 31 Dec 2016; refer to Ore Mined: 2.5 – 3.0 Mt
www.oceanagold.com Mining Costs: US$ 1.80 – 1.90 / t mined Mill Feed: 2.0 – 2.5 Mt
2. M&I Resources are inclusive of reserves Processing Costs: US$ 11.00 – 12.00 / t milled Head Grade: 2.5 – 2.7 g / t
G&A Costs: US$ 4.00 – 5.00 / t milled Recoveries: 75 – 80%
Haile Mill Zone Open Pit, USA17
Haile gold mine
Overview
Overview
The Haile Gold Mine in South Carolina, United
States, is the latest addition to OceanaGold’s suite
of high-margin gold producing operations. Haile
is located in Lancaster County, 110 kilometres
Haile has an northeast of South Carolina’s capital, Columbia.
impressive gold Haile is a top-tier asset which came under
resource base of OceanaGold’s control when the Company acquired
Romarco Minerals in October 2015. Haile contains
nearly 4 million both open pit and underground mineral resources.
ounces in the An optimisation study is expected to be delivered in
Measured and mid-2017 to better assess the potential for the entire
Indicated category, project including underground mining opportunities.
Grinding Mills, Haile, USA
with an additional The first gold pour of approximately 440 ounces of
gold was celebrated in January 2017 and extends
0.7 million Inferred
gold mining activities in the Haile area from the first Total material movement is expected to ramp up Moderately to steeply dipping ore bodies sit within
ounces. gold strike accomplished by Colonel Benjamin Haile to 22.5 million tonnes per year (61,471 tonnes a regional corridor that is approximately 1 km wide
in 1827 in a creek near the current mine site. per day) for the first three years, followed by 35.6 and over 3.4 km long. Most of the mineralisation
Haile has an impressive gold resource base of nearly 4.0 million tonnes per year (97,439 tonnes per day) for is restricted to the laminated metasiltstone of the
million ounces in the Measured and Indicated category, four years. Richtex Formation.
with an additional 0.7 million Inferred ounces. The gold mineralisation zones within the laminated
The life of the mine is currently estimated to at least 2030. Haile Geology metasediments can vary in distance from the
metavolcanic contact, and can appear at different
Geologically, Haile is situated in the Carolina stratigraphic levels within the metasediments.
Haile Mining & Processing Terrane, formerly referred to as the Carolina Slate Gold mineralisation is associated with pyrite,
Belt, which also hosts the past-producing Ridgeway pyrrhotite and molydbenite mineralisation. Detailed
Conventional open pit mining methods are used and Brewer Gold Mines. This geological feature
with a combination of hard rock and soft rock being ore microscopy and scanning electronic mapping
supports other mining operations and was the indicate that the gold is found as native gold,
encountered during the mining process. location of the first gold rush in the United States, electrum and within gold-bearing tellurides. These
Most of the mine’s material will be hard rock, which pre-dating the California gold rush. minerals are found as inclusions and along fractures
will be drilled and blasted prior to loading. It is The mineralisation is present at the contact between within pyrite.
expected that the mine will produce 2.3 million metamorphosed volcaniclastic and metamorphosed
tonnes of gold-bearing ore per year for the delivery sedimentary rocks of the Neoproterozoic to early
to the process plant (6,300 tonnes per day for 365 Cambrian age.
days per year).18
HAILE EXPLORATION
AND OPTIMISATION STUDY
Last year, OceanaGold commenced an extensive The study’s objective is to further define Haile’s
exploration program with an exploration development concept under which the open pit,
expenditure of over US$7 million to further define producing around between 150,000 and 200,000
the resource base at the Haile deposit and along ounces of gold per annum between 2017-2020, will
the Carolina Terrane. be joined by an underground operation to lift total
Drilling focused on the Horseshoe underground target annual production to 250,000 ounces of gold per
which delivered high-grade intercepts and strengthened annum from 2020+.
the Company’s confidence in the resource. The Haile optimisation study is expected to be
Results from last year’s exploration campaign are completed in mid-2017, at which time the Company
currently being incorporated into the optimisation study. will provide an update on the Haile open pit and
underground Reserves and Resources.
Haile 2017 Exploration Program: Budget of US$8M to US$10M allocated for Haile and Regional Targets
David Ball, Haile Commissioning Mechanical Engineer, USA19
Haile Processing Plant, USA
Haile Resource Definition Drilling
2016 & 2017 Drill Progress (as at April 2017)
Reshawn Talford, Warehouse Technician, Haile, USA
Reshawn Talford, Warehouse Technician, Haile, USA20
2017 AISC Guidance
Facts & Stats
PHILIPPINES: 2017 PRODUCTION Guidance
US$ 130 – US$ 180 per oz sold
DIDIPIO GOLD
Gold:
AND COPPER MINE 110,000 – 130,000 ounces
COPPER:
15,000 – 17,000 tonnes
Estimated Mine Life
DIDIPIO
P&P Reserves 2032+
Gold: 1.46 Moz
Copper: 0.18 Mt
Manila
M&I RESOURCES 2017 Capital budget guidance
Sustaining Capital: US$ 8 – 10 M
Gold: 1.76 Moz
Growth Capital: US$ 60 – 65 M
Copper: 0.21 Mt Exploration: US$ 5 – 8 M
2017 Unit Costs 2017 Operations Metrics
Mining Costs: Ore Mined: 3.5 – 4.0 Mt
US$ 3.00 – 3.20 / t mined
Mill Feed: 3.5 Mt
Processing Costs:
US$ 7.00 – 8.00 / t milled Head Grade:
G&A Costs: 1.10 – 1.20 g/t Au, 0.40 – 0.50% Cu
US$ 6.00 – 7.00 / t milled Recoveries: 88 – 90% Au; 92 – 94% Cu21
DIDIPIO GOLD AND
Didipio Processing Plant, Philippines
COPPER MINE Overview
Didipio Overview
Didipio is an award-winning high-grade gold and
copper mine in the Northern Philippines on the island
of Luzon, about 270 kilometres north of Manila. It has
2016 PMSEA AWARDS won numerous awards for its safety, environmental
Presidential Mineral Industry performance, and social development programs.
Environment Award.
First Place- Overall Safest Surface
For a second consecutive year, Didipio Mine
Mining Operation was awarded the Presidential Mineral Industry
First Place- Safest Mining Environmental Award (PMSEA), recognising its
Operation, Metallic Category exemplary efforts in responsible mining. It was also
First Place- Safest Mineral presented with additional awards in categories
Processing Concentrator recognising its excellence in Minerals Processing, Didipio Mining
Category; and,
Safety, Community Development and Agroforestry.
Third Place- Best Mining Forest, Currently transitioning to Underground mining of ore
The Didipio operation is globally competitive
Underground Mining
Metallic Category
is expected to commence
achieving All-In Sustaining Costs (net
of copper by-product credits) of
in the Second Half of 2017
$239 per ounce in 2016. Gold
production for the 2016 year
was 147,150 ounces. Copper Didipio Geology
production was 21,123 tonnes. The primary deposit is an alkalic gold-copper porphyry system, roughly elliptical in shape at
surface (450 metres long by 150 metres wide) with a vertical pipe-like geometry that extends
to at least 800 metres below the surface. Gold and chalcopyrite (a copper ore), along with pyrite
and magnetite, are the main metallic minerals in the deposit. Higher-grade gold and copper
mineralisation is closely associated with the Quan Porphyry and Bugoy Breccia.
Open Pit mining is contracted out to a local Filipino third party with obligations to ensure targets
for Filipino training and employment are met. The open pit mining, which commenced in 2012
includes conventional drill & blast, load and haul.
Commercial production followed the successful commissioning of the process plant on April 1,
2013. Open-pit mining continues from the final cutback, Stage 6. Mining in the pit is expected to
be completed in the first half of 2017, at which point more than 24 million tonnes of ore will have
been stockpiled on the surface for future processing and blending with high-grade underground
ore feed, expected to commence at the end of 2017.22
Didipio Processing Philippines Financial or Technical Assistance Agreement (FTAA).
The Didipio Mine is held under a Financial or Technical Assistance
Agreement (“FTAA”) reached with the Republic of the Philippines in
June 1994. The FTAA originally covered 370 square kilometres within
the provinces of Nueva Vizcaya and Quirino. Following a series of
• Conventional SAG/Ball mill grinding circuit with Concentrate produced from Didipio is transported mandatory annual relinquishments, the FTAA area has been reduced to
secondary pebble crusher, gravity circuit, froth by a fleet of 43 trucks that travel 350 kilometres approximately 128 square kilometres.
flotation and concentrator by road to the Poro Poro port located on the west Under the FTAA, the Company is obliged to comply with social and
• Ball Mill Work Index of 14.6 kW/h coast of Luzon. environmental requirements in accordance with the provisions of the
OceanaGold sells all of Didipio’s concentrate mining law. In 2005, the Company made a Partial Declaration of Mining
• Products: Gold doré & gold/copper concentrate
production to a third party commodities trader Project Feasibility over an area of approximately 9.75 square kilometres
under an Offtake Agreement that includes treatment within the FTAA area.
Ore is processed in a conventional SAG/Ball mill and refining charges. More than 80,000 dry metric
grinding circuit with a secondary pebble crusher Over the greater FTAA area, the Company was granted a further Five-
tonnes of concentrate were shipped in 2016. Year Extension of the Exploration Period of the FTAA (“Extension”) in
circuit, followed by froth flotation for recovery
of gold/copper concentrate. A gravity circuit is The current offtake agreement expires in 2018. March 2016. The terms and conditions of the Extension include the
incorporated within the grinding circuit to produce implementation of the approved Exploration and Environmental Work
gold bullion on site. Programs. Also as part of the requirements, the Company secured a
Certificate of Approval of its Two-Year Community Development
Program in November 2016, allowing exploration activities to proceed.
Under the FTAA, the Company is granted a period of up to five (5)
Didipio Processing Plant Flowsheet years from the Commencement of Commercial Production (April
1, 2013) within which to recover its pre-operating expenses, taxes,
duties, fees, costs, levies, imposts, and property expenses. After the
recoupment period the Philippine Government’s share in the Net
Revenue commences.
The Government’s share is 60% of Net Revenue less taxes, duties, fees,
costs, levies, imposts and other expenses paid or accrued as expenses
by the Company, including excise, customs, sales, corporate taxes and
value added taxes, as well as the 2% net smelter royalty payments and
any distribution made to the holder of the 8% carried interest payable to
addendum claim owners and surface owners.
The FTAA provides for a further three-year period to recover the pre-
operating and property expenses as a depreciation allowance.
The Company has been granted a six-year corporate tax holiday with
a potential extension for a further two-year period upon fulfillment of
certain conditions.
The Company secured an Environmental Compliance Certificate (“ECC”)
in 1999 which was revised and further revised to include a series of
project modifications. The current ECC was granted in December 2012.23
Didipio EXPLORATION
AND underground
Didipio Underground Facts:
Mining Type:
Mining rate: 1.6 Mtpa Pre-production capital cost:
Long hole open Estimated Mining Costs:
stoping with cemented by 2020 with two
$27 / t mined ~$133 million
paste backfill underground mining domains (2015 to 2017)
Progress of the underground mine continues to advance
Philippines Exploration Didipio Underground Training:
with the first underground ore expected to be processed
in late 2017. The underground ore feed is higher grade OceanaGold, through its Philippine subsidiaries, also Building Capacity, Not Dependencey
than the open pit grade and once in production it is has several Exploration Permits and Applications The OceanaGold Underground Training
expected to be blended with the open pit stockpiles. throughout the Philippines. In mid-2016, a 5-year Facility is the first in Asia. It was built to provide
The underground operation is expected to ramp up to extension of exploration activities in the Didipio FTAA appropriate training for local residents from
1.0 Mtpa in 2018. When construction of a second mining area was awarded. the Quirino and Nueva Vizcaya provinces as
phase is completed by 2020, the mining rate is expected Following approval by the Mines and Geosciences a precursor to employment with OceanaGold
to increase to 1.6 Mtpa. The ore body remains open at Bureau of the Community Development Programs (Philippines) Inc.
depth and is the subject of infill and extensional drilling. (CDP), and in consultation with host barangays, In partnership with Site Skills, OceanaGold
Following the cessation of open pit mining in the first half OceanaGold commenced exploration groundwork in has developed a leading training facility that is
of 2017, and underground mining ramps up, the 24 Mt of November 2016. building important capacity within the Filipino
stockpiles at 0.54 g/t Au, 0.37% Cu will supplement the mill By the end of 2016, more than 6,000 metres of workforce in Northern Luzon. Site Skills offers
feed to continue achieving the 3.5Mt annual throughput. drilling on the Mogambos prospect and other international best practice training, assessment
Underground ore will contribute approximately 0.7Mt of Didipio near-mine targets including the underground and competency assurance, for trade specific
throughput increasing to approximately 1.6Mt in 2020, resource extension, was completed. Target generation and industrial skills.
where throughput will remain stable until 2032. The using geochemical sampling and geological mapping The first graduates, including women, are
remaining ore will be sourced from the stockpiled material. is continuing during 2017 in the remaining FTAA area. now employed in positions ranging from
underground operators, surveyors, safety
inspectors and trainers.
An additional 30 trainees are expected to be
taken on in 2017.24
2017 AISC Guidance
New Zealand: Facts & Stats
US$ 740 – US$ 790 per oz sold
Waihi Gold MIne 2017 PRODUCTION Guidance
Gold:
110,000 – 120,000
ounces of gold
Estimated Mine Life
Auckland WAIHI
2019+
P&P Reserves
Gold: 0.35 Moz
SILVER: 1.30 Moz
M&I RESOURCES 2017 Capital Budget Guidance
Capitalised Mining: US$ 5 – 7 M
Gold: 0.37 Moz
Sustaining Capital: US$ 5 – 7 M
SILVER: 1.35 Moz Non-Sustaining Capital: US$ 2 – 3 M
Exploration: US$ 12 - 15 M
2017 Unit Costs 2017 Operations Metrics
Mining Costs: Ore Mined: 500 – 600 kt
US$ 45 – 46 / t mined
Mill Feed: 500 – 600 kt
Processing Costs:
Head Grade: 7.0 – 7.6 g/t
US$ 26 – 27 / t milled
Recoveries: 90 – 92%
G&A Costs:
US$ 18 – 20 / t milled25
WAIHI Overview
Overview
Waihi Gold Mine is located on the North Island
of New Zealand on the Coromandel Peninsula.
Mining in the region started in the late 1800s, with
Waihi reserves at production since reaching more than 11 million
the end of 2016 ounces of gold.
were estimated at Current mining operations include the Correnso
1.94 million tonnes underground operation, which began producing
in early 2015, and from other veins in the system,
grading 5.54 grams including Correnso Deeps, Empire and Daybreak. Main Street, Waihi Township at Dusk, New Zealand
of gold a tonne.
Waihi reserves at the end of 2016 were estimated
at 1.94 million tonnes grading 5.54 grams of gold a
tonne (350,000 ounces).
Mining Facts
Mining operations at Waihi were concentrated on
the Correnso underground mine in 2016. Actively Mining Operation: Mining Method: Mining Depth: Stope size:
mined areas are located between 150 metres and Correnso Underground Modified Avoca 200-300 metres below surface 15 metres high
300 metres below surface, and the mining reserve is
about 120 metres high by 600 metres long.
History of Waihi
Waihi has a rich mining history. Between 1879 and 1952, about 12 million tonnes of ore was mined,
yielding 1,056 tonnes of silver-gold bullion. The historic mine extracted four main parallel lodes, together
with numerous branch and cross lodes. These early workings reached a total depth of 600 metres from
the surface on 16 levels. Following exploration drilling in the early 1980s, permits were obtained for
open pit mining at the Martha open pit. Modern-day mining operations started in 1988. The open pit has
since been expanded and a number of underground mines have been developed in the area.
Waihi Underground Operation, New Zealand26
WAIHI GEOLOGY
AND PROCESSING
Waihi Core Samples, New Zealand
Waihi Geology Waihi Processing
The Waihi area is situated at the southern end of the • Waihi’s gold occurs as fine grained electrum (gold-
Coromandel Range, which is part of a Miocene to Pliocene silver alloy) hosted within quartz veins.
andesite, dacite and rhyolite sub-aerial volcanic sequence. • The silver to gold ratio for Waihi’s Correnso
underground deposit ranges from 2:1 up to 5:1.
The andesite and dacite volcanics of the Coromandel Group • Liberation is achieved via a conventional SAG/Ball mill
host the majority of the epithermal gold-silver deposits within comminution circuit with secondary pebble crusher.
north/northwest to northeast trending vein systems while a The comminution circuit product size is 53 microns.
small number are hosted in the rhyolites and ignimbrites of the • Nominal throughput: 1.3Mtpa of open pit material
overlying Whitianga Group. only or 0.9Mtpa of underground material only
• Ball Mill Work Index: 17 kWhr/t.
• Gold and silver recovery are via conventional
Cyanidation, Carbon in Pulp (CiP) and AARL Elution.
Waihi Processing Plant, New Zealand • Positive water balance, water treatment plant capacity
of over 9 billion litres per annum.
Conveyor CV 19
20” cyclone 10” cyclone
Conveyor CV 04 (Variable speed)
Conveyor CV 05
Ball mill Thickener
Trommel SAG mill Process
oversize Trommel Water tank
undersize 10” cyclone
Conveyor CV 06 feed pump
Scats crusher Trommel 20” cyclone feed pump
Tank 1A to 5
Leach tanks x6
Tailings pumps Tank 6 to 12
adsorption
tanks x6
Loaded carbon
Tailings Storage
Facility Barren eluate
Loaded eluate
Electrowinning cells
Doré bars
Barren carbon
Correnso Underground Mine at Waihi, New Zealand Smelting furnace Drying furnace
Elution column Acid wash
column27
Waihi Township and Martha Open Pit
Waihi Exploration
The Coromandel region has a significant mineral 20 koz Indicated Resource and 137 koz Inferred Resource
endowment with total recorded production of 12Moz Au has been announced.
and 52Moz Ag. Additionally, the Company added incremental ounces
OceanaGold’s Waihi mines and surrounding areas have to the Correnso, Empire and Daybreak resources
demonstrated strong potential for resource extensions. and demonstrated excellent resource potential in the
Since acquiring the Waihi Gold Mine in 2015, the Gladstone and Favona areas.
Company has engaged in an extensive exploration The Martha area will be a key focus for the exploration
program testing below the current workings at Correnso team in 2017 and 2018 to increase and upgrade the
and other underground targets such as Daybreak, Empire resource base.
and Martha.
To facilitate this program, OceanaGold plans to commence
During 2016, 35,000 metres of surface and underground two underground exploration drives in 2017 from which
exploration drilling was completed at Waihi and defined drilling will test the deeper extensions of known veins as
a significant exploration target beneath the current open indicated by the planned drill drives in the Martha Project
pit at Martha, where a maiden underground resource of Exploration graphic below.
Regional Exploration Targets Martha Project Exploration28
2017 AISC Guidance
New Zealand: Facts & Stats
US$ 950 – US$ 1,000 per oz sold
MACRAES GOLDFIELD 2017 PRODUCTION Guidance
Gold:
180,000 – 190,00 ounces
Estimated Mine Life
Open Pit
P&P Reserves
2020 +
UNDERGROUND
GOLD: 1.21 Moz 2019+
M&I RESOURCES 2017 Capital Budget Guidance
Capitalised Mining: US$ 35 – $40 M
OPEN PIT: 2.62 Moz
Reefton Sustaining Capital: US$ 10 – $12 M
Blackwater
UNDERGROUND: Exploration: US$ 5 – $8 M
0.87 Moz
Christchurch
MACRAES 2017 Unit Costs 2017 Operations Metrics
Mining Costs (Open Pit): Ore Mined (Open Pit): 4.0 – 4.5 Mt
Dunedin US$ 1.10 – 1.30 / t mined
Ore Mined (Underground): 0.9 – 1.0 Mt
Mining Costs (Underground):
US$35 – 38 / t mined Mill Feed: 5.0 – 5.6 Mt
Processing Costs: US$ 7.00 - 8.00 / t milled Head Grade: 1.1 – 1.3 g/t
G&A Costs: US$ 1.50 - 2.00 / t milled Recoveries: 81 – 83%29
MACRAES Benches of 7.5 metres are drilled and are mined in three Macraes Processing Plant at Night, New Zealand
2.5 metre flitches. Mine technicians collect samples
from the drill rig at 2.5 metre vertical intervals which are
GOLDFIELD dispatched to an on-site laboratory for gold analysis.
The Mine geologists use the assay data, in conjunction
with geological mapping, to create a 3D model of the
grade distribution for each flitch. These models are used
to delineate areas of ore and waste.
Macraes Overview Explosives are used to loosen the rock prior to excavation
The Macraes Goldfield contains New Zealand’s largest by hydraulic diggers. Ore Spotters supervise the extraction
gold producing operation. OceanaGold‘s mining and of the ore. Dump trucks haul the ore to the Run of Mine
exploration permits at Macraes cover 26,685 hectares, (ROM) pad for processing. The average strip ratio is
including 35 kilometres of strike along the Hyde-Macraes approximately 8-10:1 but it can fluctuate depending on
Shear Zone. the mine plan and amount of pre-strip activity.
Macraes has been in operation since 1990 and has
produced approximately 4.6 million ounces of gold. The Macraes Mining Facts
current operations consist of the Coronation and Frasers
open pits, and the Frasers underground mine. In 2017, Current operations: Open pit stockpiles: Underground depth:
the Company will mine the Coronation North deposit. Coronation and Coronation North open pits, 4.8Mtpa @ 0.56 g/t 795 metres
and Frasers underground
Macraes is two kilometres east of Macraes township. The
region has a rich and long gold production history dating
back to the late 1800s. OceanaGold commissioned the Frasers underground The main entrance to the mine is a 5.0 metre wide by
The ore at Macraes is refractory which requires a mine in January 2008. It was developed to target down- 6.0 metre high decline that spirals down beside the ore
complex treatment path to liberate the gold, including dip extensions of the Hangingwall Shear mineralisation at a gradient of 1 vertical metre per 7 horizontal metres.
the use of an autoclave in a pressure oxidation process. mined in the Frasers open pit. The underground mine is Access to the mining faces is by smaller 4.5 metre by 5.0
now 795 metres below surface and 290 metres below metre headings.
After 27 years of successful treatment of the refractory sea level, and has more than 60 kilometres of developed
ores, OceanaGold is a recognised as an expert in
the treatment of this particular type of gold ore. The
tunnel drives. Geology
Company’s in-house expertise means a larger pool of The mining method used is retreat long hole open The Hyde-Macraes Shear Zone is a mineralised schist up
gold deposits can be considered as part of OceanaGold’s stoping. Narrow pillars are left between the stope voids to 150 metres thick, known as the Intrashear Schist. The
growth strategy. which are 15 metres wide and up to 200 metres long. thickest part of the shear zone, which consists of several
Production stoping is also undertaken on a second and stacked mineralized zones, can be up to 25 metres thick
thinner mineralised shear, 10 to 20 metres below, and
Operations Overview sub-parallel to the Hangingwall Shear.
and it is the most strongly mineralised structure.
Macraes open pits supplied nearly 4 million tonnes of The Macraes open pit and underground deposits at
The mine produces ore using a highly mechanised Macraes operations are centred on the Hangingwall
ore to the processing plant in 2016, while the Frasers
mining fleet of electric/hydraulic powered drill rigs, Shear. The “ore body” dips at 15 to 20 degrees. Gold is
underground mine supplied a further 0.9 million tonnes
large 50-tonne dump trucks, and tele-remote controlled primarily associated with suphides, and occurs principally
of ore. The Company supplements the process plant with
loaders. A fibre optic cable, linked to the lower levels of as micoblebs within pyrite and arsenopyrite grains.
low-grade stockpile ore.
the Frasers underground mine allows for remote bogging
from a facility on the surface when required.30
Macraes Processing Plant, New Zealand
MACRAES PROCESSING
Processing Facts
Technologies: Autoclave, Process Plant Capacity: Ball Mill Work Index:
fine grinding, flash flotation 6 million tonnes 12.5 kW/h per tonne
The process plant at Macraes operation is capable of treating approximately 6
million tonnes of ore per annum. Refractory ore requires multistage processing.
To liberate the gold and ensure high recoveries the ore is put through crushing,
grinding, flotation, fine grinding, pressure oxidation, carbon in leach (CIL),
elution, electro winning and smelting.
The processing plant is located within a short distance of the open pits and
includes an autoclave for pressure oxidation for the processing of sulphide ore.
Grind size is important to the oxidation kinetics and the feed is first finely ground.
The end-product is a bar of doré bullion which is approximately 92% pure
weighing 18-20 kilograms and containing about 600 gold ounces. The doré bars
are sold and transported to the Perth (Australia) Mint to be refined.31
MACRAES
EXPLORATION
Inspection of Exploration Drill Core, Macraes, New Zealand
OceanaGold has been operating in the
Macraes Goldfield since 1990. Over the
years, the Company has mined a series of
open pits and an underground operation.
The Company has also successfully
replenished reserves. Drilling at Coronation
North throughout 2016 resulted in
significant growth to the resource resulting
in extension of open pit mine life to 2020.
Multiple targets along the Hyde-Macraes
Shear Zone are currently being drilled to
provide extensions to known mineralisation
and to improve confidence in the resource
around Coronation, Coronation North,
Nunns and Frasers Underground. Drill
programs were also completed at the
Highlay, Mareburn and Trimbells prospects.
Looking ahead to 2017, extensional and
infill drilling of Coronation North and
Coronation will continue, infill drilling will
occur at Frasers West, drilling down plunge
of Deepdell North and Golden Point is
proposed, and reconnaissance drilling of
regional targets will be prioritised.32
Reefton Closure
and Rehabilitation
Gold has been synonymous with Reefton in the West
Coast region of New Zealand’s South Island since the first
gold rush in the 1860s. OceanaGold operated the Globe Globe Pit Lake, Reefton
Progress open pit mine, sited seven kilometres southeast of
the historic township of Reefton.
Mining started in 2006, followed by the commissioning of the
processing plant in 2007. The mine produced 610,000 ounces
of gold, adding to the rich gold mining history of the region.
The mine was a significant contributor to the local and
national economies producing more than NZ$1 billion
of gold over its life. In December 2016, OceanaGold
announced that it would be closed.
The land on which the Globe Progress mine is located
is administered by the New Zealand Department of
Conservation and is included in the Victoria Forest Park.
Through the Reefton operation, OceanaGold has proudly
demonstrated its strong environmental management practices
by operating the mine in the middle of a conservation park
that receives a high amount of rainfall each year.
A comprehensive closure and rehabilitation program is now
underway. Once closure and restoration is complete, the
site will be returned to the Department of Conservation.
That the land covering the Reefton project area is included in a
conservation park is a demonstration of successful co-existence
between mining and the environment where the strongest
environmental management practices have been adopted.
There is currently a NZ$20 million liability bond in place for
rehabilitation and full closure costs at Reefton.
Duncan Ross, Environment Superintendent, Reefton, New ZealandYou can also read
