OceanaGold increases New Zealand reserves by 617,0OceanaGold increases New Zealand reserves by 617,000 oz
2009-12-14 18:18 ET - News Release
Mr. Darren Klinck reports
OCEANAGOLD ANNOUNCES RESERVES UPDATE FOR MACRAES AND REEFTON OPERATIONS IN NEW ZEALAND
OceanaGold Corp. has increased mineral reserves by approximately 617,000 ounces of gold at the Macraes and Reefton gold operations located in the South Island of New Zealand.
The increased mineral reserves are reflective of an increase to the gold price assumptions used to calculate reserves from $500 (U.S.) per ounce to $800 (U.S.) per ounce. A small contribution also came from resources at the Panel 2 Deeps deposit (Macraes project) that have been upgraded from the inferred to indicated category following a diamond drilling program and subsequently put through an economic analysis.
The increased gold price and improved economics will result in an expansion of the Frasers North and Frasers South pit at the Macraes operation as well as an expansion of the Globe pit located at the Reefton operation.
Paul Bibby, chief executive officer, commented: "The reserve increases at both the Macraes and Reefton operations is an important milestone towards our objective of extending the mine life for our New Zealand operations. This update is particularly pleasing because it reflects the first reserves to be calculated for the Panel 2 Deeps deposit which was announced in April this year and is a deposit that remains open in three directions. The brownfields exploration program embarked on in the September quarter has now been ramped up with seven drills currently operating at our New Zealand mines."
The attached table outlines the Macraes and Reefton updated reserves. This does not include allowance for reserve depletion due to mining during fiscal 2009, which is expected to total approximately 300,000 ounces from Macraes and 100,000 ounces from Reefton. In accordance with company practice, a final end-of-year resource and reserve inventory calculation as at Dec. 31, 2009, will be undertaken, which will account for reserve increases minus depletion during the year.
MINERAL RESERVES AS AT NOV. 30, 2009 Proven Probable Total reserve Au Au Mt Au g/t Mt Au g/t Mt g/t MozDec. 31, 2008Reservestatement Macraes 13.44 1.22 13.43 1.32 26.87 1.27 1.097 Reefton 0.86 2.41 4.33 2.01 5.18 2.08 0.346 ----- ---- ----- ---- ----- ---- ----- Total 14.30 1.29 17.76 1.49 32.05 1.40 1.444 ----- ---- ----- ---- ----- ---- -----Additionsduring 2009 Macraes 11.78 1.31 11.78 1.31 0.495 Reefton 1.36 2.79 1.36 2.79 0.122 Total 13.14 1.46 13.14 1.46 0.617Cut-off grade for Macraes open pit is 0.5 g/t Au, the undergroundat Macraes is 1.45 g/t and for Reefton open pit is 0.7 g/t.
National Instrument 43-101 technical reports
National Instrument 43-101 -- standards of disclosure for mineral projects technical reports for the Macraes project (dated Nov. 9, 2009, by Cadzow and Moore) and the Reefton project (dated May 9, 2007, by McIntyre, White, Frew, Gossage and Penter) have been filed on SEDAR and are available on the company's website. The assumptions and methodologies used in this reserve estimate with exception of the gold price used are the same as reflected in the National Instrument 43-101 technical reports mentioned above.
Qualified persons
Mark Cadzow, chief operating officer of Oceana Gold New Zealand; and Jonathan Moore, principal resource geologist, Oceana Gold New Zealand, are the "qualified persons" as defined by National Instrument 43-101, and are responsible for the contents of the mineral reserve update. Both are members of the AusIMM.
The qualified persons, Mr. Cadzow and Mr. Moore, have reviewed and approved the contents of this news release.
We seek Safe Harbor.