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MELBOURNE, Oct. 15, 2015 /CNW/ – OceanaGold Corporation (TSX/ASX/NZX: OGC) (“OceanaGold“) is pleased to announce it has received approval from New Zealand’s Overseas Investment Office (OIO) for its acquisition of the Waihi Operation, from Newmont Mining Corporation. The financial closing of the transaction is now anticipated to take place on 30 October 2015.
The Waihi combined open pit and underground Measured and Indicated Resources (inclusive of reserves) as at 30 June 2015 were estimated as 1.52 Mt at 6.33 g/t Au and 24.0 g/t Ag containing 310 koz of gold and 1,175 koz of silver. Inferred Resources total 0.61 Mt at 7.73 g/t Au and 16.7 g/t Ag containing 152 koz of gold and 329 koz of silver.
The combined open pit and underground Proved and Probable Reserves, as at 30 June 2015, were estimated as 1.52 Mt at 6.33 g/t Au and 24.0 g/t Ag containing 310 koz of gold and 1,173 koz of silver.
Mick Wilkes, OceanaGold’s Managing Director and CEO, said the Company was pleased to receive OIO’s approval and looks forward to integrating the operation into its business and welcoming the Waihi Operation employees.
“The Waihi Operation represents a strong strategic fit with our existing business and we are excited to welcome this high quality asset and its talented team into OceanaGold. We are looking forward to working with employees, contractors and local stakeholders to add further value to this unique operation by extending mine life and seeking out operational efficiencies,” he said.
In line with ASX listing requirements, OceanaGold has provided the information required by JORC Code Table 1 for the Waihi Operation in its ASX announcement. JORC Code Table 1 is not required under National Instrument 43-101. Readers are referred to the ASX website at www.asx.com.au or the OceanaGold website at www.oceanagold.com to view JORC Code Table 1.
About OceanaGold
OceanaGold Corporation is a significant multinational gold producer with mines located in New Zealand and 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 Frasers and Coronation open pits and the Frasers underground mine. On the west coast of the South Island, the Company operates the Reefton Open Pit mine. At the end of April 2015, the Company announced the acquisition of the high quality Waihi Gold Mine located on the North Island of New Zealand. With the receipt of final approval from the New Zealand Overseas Investment Office, the transaction is anticipated to close on 30 October 2015. In the Philippines, OceanaGold owns and operates its flagship operation, the Didipio Gold-Copper Mine located on the island of Luzon. OceanaGold has a pipeline of organic growth and exploration opportunities in the Australasian and Americas regions. The Company recently completed the acquisition of Romarco Minerals Inc., along with its principal asset, the Haile Gold Mine located in South Carolina, USA. Haile is currently under construction and expected to begin production in the fourth quarter of 2016.
OceanaGold has operated sustainably over the past 25 years with a proven track record for environmental management and community and social engagement. The Company has a strong social license to operate and works collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build capacity and not dependency.
In 2015, the Company expects to produce and attribute 380,000 to 410,000 ounces of gold from the combined New Zealand and Didipio operations and produce 22,000 to 23,500 tonnes of copper from the Didipio operation.
Technical Disclosure
The Waihi operation has been in full production since 1988 and all mine site infrastructure has been completed to support the open pit and underground operations including. The Waihi operation holds the permits, water rights, certificates, licences and agreements required to conduct its current operations. A localised failure of the north wall occurred in April 2015 which undercut the main access ramp. Operations were suspended in April 2015 and the open pit mining contract terminated in June 2015. Studies are in progress to regain access to the bottom of the pit.
The estimates of Mineral Resources and Reserves were prepared in accordance with the standards set out in the Australasian Code for the Reporting of Mineral Resources and Mineral Reserves of 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”) and the New Zealand Stock Exchange Limited (“NZX”).
Information relating to Geology, Sampling, Data Verification and Mineral Resources in this document was prepared by or under the supervision of Peter Church. Peter Church is a Chartered Professional Member of the Australasian Institute of Mining. Mr Church is a full time employee of Waihi Gold Company Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Qualified Person for the purposes of NI 43-101. Mr Church consents to the inclusion in the report of the matter based on his information in the form and context in which it is reported.
Information relating to Mineral Reserves, Mine Planning, Project Infrastructure, Capital and Operating Costs, and Economic Analysis in this document was prepared by or under the supervision of Trevor Maton. Trevor Maton is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy. Mr Maton is a full time employee of Waihi Gold Company Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Qualified Person for the purposes of NI 43-101. Mr Maton consents to the inclusion in the report of the matter based on his information in the form and context in which it is reported. Mr Maton has relied on Dino Bertoldi for information related to the Mineral Processing, Metallurgical Testing, and Recovery Methods.
Cautionary Statement for Public Release
Certain information contained in this public release, including any information relating to the Company’s future financial or operating performance 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 future growth, 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 such as production forecasts are subject to a variety of risks and uncertainties which could cause actual events, performance, achievements or results to differ materially from those expressed in the forward-looking statements. 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. 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. Some of these risks and uncertainties include: general economic and market factors (including changes in global, national or regional financial credit, currency or securities markets); changes or developments in global, national or regional political conditions (including any act of terrorism or war); changes in laws (including tax laws) and changes in GAAP or regulatory accounting requirements; fluctuations in the price of gold; inability to obtain required consents, permits or approvals; and other risk factors as outlines in the Company’s annual and interim filings. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the Company believes that any forward-looking 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 information, whether as a result of new information, events or otherwise, except as required by applicable securities laws. All forward looking information contained in this public release is qualified by this Cautionary Statement. The information contained in this release is not investment or financial product advice.
SOURCE OceanaGold Corporation