OceanaGold Progress Update on the Didipio Project
MELBOURNE, Australia, Sept. 6, 2011 /CNW/ --
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MELBOURNE, Australia, Sept. 6, 2011 /CNW/ - OceanaGold Corporation (ASX:
OGC) (TSX: OGC) (NZX: OGC) ('the Company') is pleased to provide a
progress update on construction activities at the Didipio Project
located in northern Luzon, Philippines.
Mick Wilkes, Managing Director & CEO commented, 'We continue to make
good progress on construction activities at Didipio with the key
milestone of pouring first concrete on schedule in November 2011.
Mining activity is on track to commence in January 2012 and we expect
to commission the process plant in Q4 2012. This project will
transform OceanaGold, producing on average 100,000 ounces of gold and
14,000 tonnes of copper at cash costs net of by-product credits of
US$356/oz of gold over a 16 year mine life.'
Progress Highlights
-- A total of 258 people have been engaged for construction of the
Project which commenced in June of whom 25 are managers,
engineers or supervisors.
-- Following the appointment of the General Manager of Operations
in June, 80% of the key managers for the operations team have
now been hired and include managers for Mining, Community
Partnership, Safety, Commercial and Supply.
-- The plant site excavation is well advanced and on schedule for
commencement of the concrete works in November.
-- Long lead-time equipment already purchased such as the mills
and flotation tanks are currently being relocated to the
Philippines to a central staging area. This equipment is
scheduled to be mobilised to site from this location during the
second quarter of 2012.
-- Phase one of the accommodation camp facilities for the
construction contractors is on schedule for completion by the
end of September.
-- Geotechnical programs for the plant site have been completed
and are now underway for the Tailings Storage Facility (TSF).
This is expected to be completed by the end of September with
all results to date confirming the location and design of these
facilities.
-- The tendering process for the mining contractor is well
advanced and the contract is expected to be awarded in the next
two months. The mining contractor will begin to mobilise to
Didipio in December and open pit mining activities are expected
to commence in January 2012.
-- Tendering has commenced for an offtake agreement for the copper
gold concentrate with strong interest received from leading
metals trading companies. This process will continue through
the remainder of the year, when a contract is expected to be
finalised.
Access road upgrades continue with a key focus on improving water
drainage and widening in some areas. This is in preparation for the
arrival of additional heavy equipment in the coming weeks.
Several major contracts have been awarded including plant site
earthworks, concrete supply, concrete works and structural steel for
the concentrate storage shed, catering and freight forwarding. The
concrete batch plant is scheduled to be mobilised to site in October
with concrete contractors expected to commence laying the first
concrete in November.
The mine infrastructure design for the operations village complex and
related services is underway and are expected to be completed by late
October. Construction of the facility is expected to commence
thereafter in preparation for use in Q1 2012.
Looking ahead, we expect to have in excess of 500 workers active on the
construction team for the project by mid way through the fourth
quarter. Additionally, detailed design of the process plant should
reach 85% by this point and the completion of geotechnical drilling for
the TSF will allow for detailed design of the TSF to be completed in
Q4. Peak construction activity is expected to be achieved in Q1 2012.
Community Relations
Consistent with the Company's sustainability strategy, the Company is
engaging with the local residents to create a community held
corporation that will be encouraged to submit proposals for major
long-term service contracts for the project with a view to nurture
these into sustainable businesses that will continue well past the mine
life. To assist with this, the Company has established a Business
Manager position for this corporation who will report to the Board of
Directors of the community corporation and who will work with the
Company to secure long-term contracts for the community corporation.
The Company's support of education programs continues to be a key
priority for the local community. Fifty-two post secondary students
enrolled at Nueva Vizcaya State University and Quirino State College
are currently receiving scholarship support towards their programs.
Additionally, newly developed teacher education and training programs
have been sponsored by the Company to improve the quality of education
at the local Didipio elementary and high schools. Four teachers are
currently enrolled in graduate programs through the
Company's sponsorship.
OceanaGold is also currently working with the rural health unit of
Kasibu municipality to examine the possibility of establishing a basic
maternal/obstetric and child care facility for use by the many
surrounding communities including Didipio. This facility will be the
first of its kind in the local region and would form a part of the
Company's preventive health program in partnership with the government
health care providers.
Construction Images
- ENDS -
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 255,000 - 270,000
ounces of gold per annum from the New Zealand operations. The Company
also owns the Didipio Project in northern Luzon, Philippines where
construction activities are underway with commissioning expected in Q4
2012.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol OGC.
Full Company Release
To view the full Company release, including images please refer to the
Company's website www.oceanagold.com
Cautionary Statement regarding Forward Looking Information
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 resources or reserves
attributable to the Didipio Project, estimated production from the
Company's existing properties, development of the Didipio Project,
economic analysis relating to the Didipio Project and commencement of
construction and completion of the Didipio Project. 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.
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Ms Nova Young
Investor Relations Officer or
Mr Darren Klinck
Head of Business Development
Tel: 61(3) 9656 5300
info@oceanagold.com