OceanaGold reports fewer reserves as Haile holds key to the upside

VANCOUVER (miningweekly.com) – TSX- and ASX-listed OceanaGold on Thursday reported an updated reserve statement showing an 8% decline in proven and probable reserves to 5.04-million ounces of gold, reflecting mine depletion that was partly offset by reserve replacement in New Zealand.

Silver reserves increased by 12% to five-million ounces, as a result of revised estimates of the silver content in the ore stockpiles.

Measured and indicated gold resources were also down by more than 14% to 9.93-million ounces, OceanaGold said.

All reserves and resources were calculated using a gold price of $1 300/oz.

“Last year, we initiated the most extensive exploration programme in our company’s history, which produced significant results across our business. In New Zealand, where we are the country’s largest gold miner, we remain committed to expanding our exploration efforts to increase resources and achieve mine life extensions at both Waihi and Macraes.

“Further, the exploration success we achieved in 2016 at the Horseshoe deposit, when combined with the Haile optimisation study offers significant upside in the near term to further increase our reserves,” president and CEO Mick Wilkes stated.

Upon completion of the Haile optimisation study in mid-2017, the company will provide an update to the Haile openpit and underground resources and reserves. Results from the 2016 exploration campaign at Haile will be incorporated into the optimisation study, including more than 35 000 m of drilling from 66 holes at the Horseshoe underground deposit.

OceanaGold drilled some 12 500 m at the Palomino target at Haile for significant intercepts including 66.3 m grading 3 g/t gold, 33.5 m grading 4.6 g/t gold, 4.2 m grading 14.2 g/t gold, and 9.1 m grading 11.7 g/t gold.

OceanaGold has also defined a maiden underground resource of 20 000 oz in the indicated category at the Martha project, at Waihi, along with 137 000 oz of gold in the inferred category from veins within the project area. Waihi overall benefited from a 22% increase in total resources year-on-year to 527 000 oz.

The Waihi underground operation showed 12% fewer ounces in reserve at 270 000 oz on the back of mine depletion, while the Didipio mine, in the Philippines showed considerable declines in resources held in the openpit. Mining at Didipio is currently suspended following a review of mining operations in the country, and OceanaGold is appealing the suspension.