OCEANAGOLD ANNOUNCES UPDATED RESOURCE AT GLOBE DEEPS IN REEFTON GOLDFIELD
MELBOURNE, May 30, 2011 /CNW/ --
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES.
MELBOURNE, May 30, 2011 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX:
OGC, NZX: OGC) ('the Company') is pleased to announce exploration
results from the Reefton Goldfield in the West Coast region of the
South Island of New Zealand.
Highlights
-- Increase of 95,000 oz Au of Inferred Resources at Globe Deeps
-- Globe Deeps Deposit remains open down-dip
-- Globe pit re-optimisation planned for Q3 2011
During H2 2010, a major drilling program was undertaken to evaluate both
open-pit and underground potential beyond the limit of the Globe
Progress pit design. All assay results from the program, known as Globe
Deeps, have been returned, and a resource estimate has been completed.
While the Globe Deeps program was in progress, the Globe Progress open
pit was re-optimised, based on revised economic parameters. This led to
a significant increase in reserves, which was included in the December
31, 2010 Oceanagold resource inventory and released on February 15,
2011. The toe of the expanded pit coincided with the limit of resource
drilling prior to the Globe Deeps drilling. All Globe Deeps
intersections intersect mineralisation down-dip of this expanded pit.
12 drill holes for a total of 4,745 metres were drilled and completed by
the end of December 2010 (Figure 1 and Table 1). Four of these drill
holes were reported in December 2010, while the remaining drill holes
are presented in this release.
The Globe Deeps program has confirmed that the style(1), width, and continuity of gold mineralisation, currently being mined in
the Globe Progress open pit, extends at least a further 150 meters
down-dip below the current pit design. Significant drill intercepts
(estimated true thicknesses) include RCD0007: 9.6m @ 2.81 g/t Au,
RCD0011: 15.6m @ 3.52 g/t Au, RCD0012 7.0m @ 2.94 g/t Au, 11.7m @ 3.47
g/t Au and 14.0m @ 3.42 g/t Au.
Gold grade across these zones is highly variable, with the highest
grades returned in excess of 30 g/t Au. The higher gold grades are
typically associated with mineralised quartz veins and breccias of the
type that were historically mined in the Globe Underground Mine.
Underground workings, which are frequently encountered in the open pit,
were intersected during drilling.
Broader zones of gold mineralisation encountered by the drill program
correlate with mineralisation surrounding historically mined
quartz-rich shoots that dip 30-50 degrees towards the SW. These zones
of mineralisation are interpreted to comprise mineralised footwall and
hanging wall structures adjacent to the main Globe Progress Shear Zone.
Grade control data and geological mapping within the Globe Progress
open pit, up-dip of Globe Deeps, locate these broader zones at the
intersection of the Globe Progress Shear and cross-cutting mineralised
faults and quartz veins.
Updated Mineral Resource
An Inferred Resource of 1.55 Mt @ 1.91 g/t Au for a total of 95,000
ounces of contained gold has been defined based on the Globe Deeps
drilling program. This represents a 14% increase to the resource at the
Globe deposit at Reefton. This resource is likely to expand further
down-dip once a follow-up drill program is completed. Further infill
and extension drilling is expected to be undertaken later this year.
Figure 2 shows the ore body geometry in relation to the current pit
design limit and existing topography. The toe of the current pit design
limit coincides with the limit of drilling prior to the Globe Deeps
program. Consequently, a pit re-optimisation is planned for Q3 2011.
Based on the existing topography, any pit expansions are expected to
result in a similar strip ratio.
Table 1: Final assay results from the 2010 Globe Deeps Drill Program
Hole ID From (m) To (m) Intercept (m) True width (m) Au (g/t)
RCD0001A NSA
RCD0004 NSA
RCD0005A 314 9.0 7.6 2.83
305
RCD0006 247 264 17.0 13.4 2.21
274 283 9.0 7.0 2.79
RCD0007 329 336 7.0 5.6 1.17
351 9.6 2.81
339 12.0
258 5.17
257 1.0 0.8
RCD0008 257 259 2.0 1.8 1.93
270 289 19.0 17.1 4.80
RCD0009 239 1.0 1.0 5.84
238
283 292 9.0 9.0 1.49
RCD0010 313 324 11.0 6.9 4.47
327 329 2.0 1.2 1.96
332 340 8.0 5.0 3.78
RCD0011 269 20.0 15.6 3.52
249
285 4.7 1.92
279 6.0
RCD0012 293 9.0 7.0 2.94
284
344 15.0 11.7 3.47
329
371 18.0 14.0 3.42
353
RCD0013 305 4.0 2.0 1.73
301
315 7.0 3.4 3.87
308
RCD0014 280 11.0 8.4 3.05
269
Note: previously released results in blue italics
Mick Wilkes, CEO commented, 'We are very pleased with the continued
success that the exploration program at Reefton has demonstrated. Globe
Deeps is open at depth and continues to show promise of further
extensions. There is strong continuity to the mineralisation and we
believe the vast majority of these resources will be converted to
reserves in the future, further exending the minelife at Reefton.'
Qualified Persons
Jonathan Moore, Principal Resource Geologist for Oceana Gold New Zealand
Limited is the 'qualified person' pursuant to National Instrument
43-101 of the Canadian Securities Administrators and is a member of the
AusIMM.
Mr Moore has 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 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. Samples,
collected at 1m intervals from both reverse circulation chips and sawn
diamond core, were prepared and assayed by fire assay methods at the
OceanaGold facilities at Reefton, New Zealand, the SGS facilities in
Westport and Waihi, New Zealand and the ALS facilities in Brisbane,
Australia. Standard reference materials were inserted to monitor the
quality control of the assay data.
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 9 May 2007,
which is available at sedar.com under the Company's name.
Full Company Release
To view the full company release, including images please refer to the
company's website www.oceanagold.com
About OceanaGold
OceanaGold Corporation is a significant Asia Pacific 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 approximately 270,000 ounces of gold
per annum from the New Zealand operations. The Company also owns the
Didipio Project in northern Luzon, Philippines where pre-construction
activities are now underway.
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. 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 most recent Annual Information
Form prepared and filed with securities regulators. 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.
_______________
(1) The mineralisation comprises zones of mineralised shears, quartz stock
works, fault gouge, breccias and quartz veins.
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Ms Nova Young
Investor Relations Officer
or
Mr Darren Klinck
Head of Business Development
Tel: 61(3) 9656 5300
Email: info@oceanagold.com