Announcement
MINE: OGC: OGC announces Extensions to Mineralization at Reefton in NZ
11:41am
OGC
12/04/2010
MINE
REL: 1141 HRS OceanaGold Corporation
MINE: OGC: OGC announces Extensions to Mineralization at Reefton in NZ
OCEANAGOLD ANNOUNCES EXTENSIONS TO MINERALIZATION
AT THE REEFTON GOLD MINE
(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the
"Company") announces that results from the first phase of a brownfields
exploration program have identified a number
of extensions to the gold mineralization at the General Gordon, Souvenir and
Empress deposits at the Reefton gold mine in New Zealand.
Figure 1 below provides an aerial view of the location of these deposits in
relation to the processing plant (top right corner of Figure 1). Souvenir,
which is the furthest south of the three deposits, is less than three
kilometres from the processing plant for the Reefton mine and within the
current mining permit.
HIGHLIGHTS
- Drilling programs have identified mineralized extensions at Souvenir and
General Gordon deposits which are likely to result in increased reserves and
pit expansions. Follow up drilling at these identified areas is already
underway.
- Mineralized extensions were also intersected at the Empress 1 deposit with
further work planned to examine potential underground mining opportunities.
- Following intensive mapping and geochemical sampling programs, six
additional highly prospective near mine targets have been identified along
the mineral trend. A drilling program focused on these targets has commenced.
Souvenir Deposit
Table A below provides a summary of selected intercepts from the reverse
circulation (RC) infill drilling program at the Souvenir deposit. Highlights
include 14 metres @ 6.90 g/t at RRC0068 and 12 metres @ 8.26 g/t at RRC0072.
Given the success of this program, a 12 hole follow up RC drilling program
was recently commenced.
2 Figure 2 below is a cross section from the Souvenir deposit showing holes
RRC065, RRC067 and RRC068 from the Phase I drilling program. RRC068
intercepted 14 metres (true thickness of 10.5 metres) of 6.90 g/t gold
outside the previously optimized pit shell. The follow up Phase II program is
currently targeting further down-dip continuation of the ore body to
determine the extent of the mineralization. Based on assay results to date,
an increase to reserves and a subsequent expansion of the Souvenir open pit
is expected. The extent of the revised open pit will be determined once the
new zones of mineralization at depth have been determined by the current
drilling.
Empress Deposit
At the Empress deposit, the brownfields drilling program targeted extensions
to mineralization at depth. A two-hole diamond drilling program (Table B) was
undertaken with results indicating a strong mineralized package continuing at
depth (e.g. 18 metres @5.56 g/t gold at RDD0077) and below the current
planned open pit limits. This feasibility of mining this area by underground
methods will be evaluated.
3 General Gordon Deposit
Results from a three hole RC program at the General Gordon deposit have
identified good widths of mineable grade at depth as outlined in Table C
below. As with Souvenir, a follow up RC program is underway to test the limit
of these extensions. Based on results to date, a re-optimization of this
deposit is
expected and will likely result in an enlarged open pit design and an
expanded reserve.
4 Exploration Ramp Up
Since commencing the brownfields exploration program during the second half
of 2009, OceanaGold has significantly increased the size of the Reefton
exploration team which now comprises 13 geologists and field assistants. The
Company holds permits over greater than 95% of the historic two million ounce
hard rock production goldfield which stretches for more than 30 kilometres.
Following a recent detailed structural and geochemical review of the current
mining footprint, a three-pronged approach to the exploration program has
been developed in conjunction with the ongoing brownfields program:
1. Diamond Drilling of six near mine highly prospective targets commencing
this month;
2. A five man team undertaking grid line regolith geochemical sampling over
the next 14 most prospective targets commencing this month;
3. Reefton Geologists will be focusing later this year on the historic high
production Capleston, Crushington and Big River goldfields to identify both
regolith sampling and drill targets.
Figure 3 below provides an overview of the targets outlined in this
three-pronged approach to the exploration program.
The Reefton goldfield is significant in Australasia for being a multi-million
ounce producer in the late 1800's and early 1900's but with virtually no
production since circa 1920 (apart from the Blackwater Mine which ceased
producing in 1951) until the commissioning of OceanaGold's Reefton operation
in 2007. Most historic mining in Reefton was from high grade underground
operations with head grades from 15 to 34 g/t gold. These deposits were
traditionally narrow veined structures that were discovered at surface and
mined down dip. The immediate focus of OceanaGold's exploration program is to
identify extensions within the current open pits as well as near mine
satellite pits. Using modern technology and advancements in geologic
understanding we aim to identify other large deposits not exposed at surface
and much like those historically mined in the region.
Paul Bibby, CEO commented, "These encouraging results from Reefton, combined
with the more than 120,000 ounces of reserves that were added in December
2009, are a very good start to this brownfields exploration program. With the
majority of the new mineralized extensions being open at depth, combined with
the ongoing brownfields drilling and focused near mine potential, we are very
excited about what the future may hold for the Reefton gold mine."
5 Qualified Persons
Mark Cadzow, Chief Operating Officer - New Zealand and Jonathan Moore,
Principal Resource Geologist, both of Oceana Gold New Zealand Limited are the
"qualified persons" pursuant to National Instrument 43- 101 of the Canadian
Securities Administrators. Both are members of the AusIMM.
The Qualified Persons, Mr Cadzow and Mr Moore have prepared the technical
information and approved the contents of this news release.
Quality Control
Mr Jonathan Moore, B.Sc (Hons) Geology and Dip.Grad. Physics, is the
Principal Resource Geologist with Oceana Gold (NZ) Ltd and is the Qualified
Person under National Instrument 43-101 - Standards of 6 Disclosure of
Mineral Projects ("NI 43-101") for the technical disclosure in this release
and has verified the data disclosed, including sampling, analytical and test
data underlying the information contained in this release. Based on the
current interpretation, the assay intervals as presented are believed to
represent true thicknesses. Samples, collected at 1m intervals from both sawn
diamond core and reverse circulation percussion chips, were prepared and
assayed by fire assay methods at the on site AMDEL facility at Reefton and
the SGS facility at Westport, New Zealand. Standard reference materials were
inserted to monitor the quality control of the assay data.
The down-dip extensions discussed above are continuations at depth of
deposits already disclosed as resources in previous NI 43-101 technical
reports. The extent to which these down dip extensions are converted to
additional resources will be determined following the completion of the
follow up drilling programs.
For further scientific and technical information (including disclosure
regarding mineral resources and mineral reserves) relating to the Reefton
project, please refer to the NI 43-101 compliant technical report entitled
"Independent Technical Report for the Reefton Project located in the Province
of Westland, New Zealand" dated May 9, 2007, prepared by J. S. McIntyre, I.
R. White and R. S. Frew of Behre Dolbear Australia Pty Limited, B. L. Gossage
of RSG Global Pty Limited and R. R. Penter of GHD Limited available at
www.sedar.com under the Company's name.
- ENDS -
For further information please contact:
Mr Darren Klinck
Vice President, Corporate and Investor Relations
Tel: +61(3) 9656 5300
About OceanaGold
OceanaGold Corporation is a significant Pacific Rim gold producer with
projects located on the South Island of New Zealand and in the Philippines.
The Company's assets encompass New Zealand's largest gold mining operation at
the Macraes goldfield in Otago which is made up of the Macraes open pit and
the Frasers Underground mines. Additionally on the west coast of the South
Island, the Company operates the Reefton open-pit mine. OceanaGold produces
between 270,000 - 300,000 ounces of gold per annum from the New Zealand
operations. The Company also owns the Didipio Gold-Copper Project in northern
Luzon, Philippines.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol OGC.
Cautionary Statement
Statements in this release may be forward-looking statements or
forward-looking information within the meaning of applicable securities laws.
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. Such forward-looking
statements include, without limitation, statements with respect to any future
reserves attributable to the Reefton project and estimated production from
the Company's existing properties. Forward-looking statements are subject to
a variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking statements
including, 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 Annual Information Form prepared and
filed with securities regulators in respect of its most recently completed
financial year. There are no assurances the Company can fulfil such
forward-looking statements and, subject to applicable securities laws, the
Company undertakes no obligation to update such statements. Such
forward-looking statements 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.
Accordingly, readers should not place undue reliance on forward-looking
statements. It is also noted that mineral resources that are not mineral
reserves do not have demonstrated economic viability.
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES.
End CA:00193624 For:OGC Type:MINE Time:2010-04-12:11:41:45
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