Consistently Delivering On Commitments - OceanaGold · SAG Mill grate Aperture of grate is...
Transcript of Consistently Delivering On Commitments - OceanaGold · SAG Mill grate Aperture of grate is...
Corporate PresentationJuly 2017
Consistently Delivering On Commitments
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Cautionary & Technical Statements
Cautionary Notes - Information Purposes Only
The information contained in this presentation is provided by OceanaGold Corporation (“OGC”) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to
issue, securities of OGC or other financial products. The information contained herein is not investment or financial product advice and has been prepared without taking into account the investment objectives, financial
situation or particular needs of any particular person. The views, opinions and advice provided in this presentation reflect those of the individual presenters only. No representation or warranty, express or implied, is made
as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusion contained in this presentation. To the maximum extent permitted by law, none of OGC or any of its directors, officers,
employees or agents accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Furthermore, this
presentation does not constitute an offer of shares for sale in the United States or to any person that is, or is acting for the account or benefit of, any U.S. person (as defined in Regulation S under the United States
Securities Act of 1933, as amended (the "Securities Act")) ("U.S. Person"), or in any other jurisdiction in which such an offer would be illegal. OGC’s shares have not been and will not be registered under the Securities Act.
Cautionary Statement Concerning Forward Looking Information
Certain information contained in this presentation may be deemed “forward-looking” within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect
OGC’s expectations regarding the generation of free cash flow, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of OGC 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 are subject to a variety of risks and uncertainties which
could cause actual events or results to differ materially from those expressed in the forward-looking statements and information. They include, among others, the accuracy of mineral reserve and resource estimates and
related assumptions, inherent operating risks, and those risk factors identified in OGC’s most recent annual information forms prepared and filed with securities regulators which are available on SEDAR at www.sedar.com
under OGC’s name.
There are no assurances OGC can fulfil forward-looking statements and information. Such forward-looking statements and information are only predictions based on current information available to management of OGC as
of the date that such predictions are made; actual events or results may differ materially as a result of risks facing OGC, some of which are beyond OGC’s control. Although OGC believes that any forward-looking
statements and information contained in this presentation are 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. OGC expressly disclaims any intention or obligation to update or revise any forward-looking statements and information, whether as a result
of new information, events or otherwise, except as required by applicable securities laws. The information contained in this release is not investment or financial product advice.
Technical Disclosure
The exploration results were prepared in accordance with the standards set out in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”) and in
accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). The JORC Code is the accepted reporting standard for the Australian
Stock Exchange Limited (“ASX”) . For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the Haile Mine, the Macraes Mine and the Didipio Mine
please refer to the NI 43-101 compliant technical reports available at sedar.com under the Company’s name.
General Presentation Notes
▶ All AISC and cash costs are net of by-product credits unless otherwise stated
▶ All financials are denominated in US Dollars unless otherwise stated
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Copper18,000 – 19,000 tonnes
(was 15,000 to 17,000 tonnes)
Melbourne
Vancouver
Didipio
Waihi
Macraes
Haile
Corporate CommissioningOperation
LOM: 2032+
LOM: 2019+
LOM: 2020+
LOM: 2034+
OceanaGold Overview
Revised 2017 Guidance
Gold550,000 – 600,000 ounces
(was 550,000 to 610,000 ounces)
AISC
US$600 – US$650 per ounce(unchanged)
PORTFOLIO OF HIGH-QUALITY, GLOBALLY DIVERSE ASSETS
United States44%
Canada14%
Europe29%
ANZ9%
Asia
3%Other1%
Shareholder Geographic Composition
Market CapitalisationC$2.6 billion
Trading Liquidity (3-Mo Ave)~C$24 million / day
Market Metrics(1)
1. As at 26 Jun 2017
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Financial Position (as at Mar 31, 2017)
Total Liquidity$85.8m
CASH
$70.6 million(does not include ~$90m in marketable securities)
UNDRAWN FACILITY
$15.2 million
Total Debt$332.8m
EQUIPMENT LEASES
$48.0 million
DRAWN FACILITY
$284.8 million
STRONG BALANCE SHEET & CASH FLOWS UNDERPINS SELF-FINANCING CAPABILITY
NET DEBT / TOTAL ASSETS
13%
NET DEBT
$262m
NET DEBT / EBITDA(1)
0.3(2017E Consensus)
1. Source: Bloomberg
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Gold Mining Company of Choice
AISC Margin(1)
(2017E)
$575 / oz
Significant cash flow generation
Free Cash Flow Yield(2)
(2017E)
10.6 %
Solid pipeline of organic growth opportunities
Haile ExpansionWaihi Martha Project
Extensive global exploration
Delivering consistent positive results & value
Return on Invested Capital(3)
(3-Year Average)
13.3 %
EBITDA Margin(4)
(Q1 2017)
62.8 %
Notes:
1. Based on the midpoint of Company’s 2017 Guidance at a gold price of $1,200/oz
2. CIBC Research (24 Apr 2017)
3. Bloomberg
4. Company results
COMPELLING VALUE PROPOSITION FROM GROWING, HIGH-MARGIN GOLD PRODUCER
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CONTINUE DELIVERING ON OUR COMMITMENTS
Consistent Positive Performance
-6
-4
-2
0
2
4
6
8
10
AEM
KG
C
OG
C
PAAS
ABX
SSRI
ED
V
CG
TH
O
NEM HL
NG
D
DPM
KD
X
PPP
BTO KL
EG
O
CD
E
GU
Y
GG
TG
Z
TXG
RO
XG
AG
I
AR
AKG
PG
AU
Y
ASR
IAG
DG
C
PVG
TM
R
ALO
5-Year Production and Cost Guidance Track Record
Number of Hits Number of Misses
Source: RBC Capital Markets
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Strong Margins
Compelling Returns & Margins
-10%
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014 2015 2016 2017E
EBITDA Margin(1)
OceanaGold Peer Average
-5%
0%
5%
10%
15%
20%
25%
2010 2011 2012 2013 2014 2015 2016 2017E
Return on Invested Capital(1)
OceanaGold Peer Average
Solid Returns
0%
2%
4%
6%
8%
10%
2016
Return on Invested Capital(1)
OceanaGold Peer Average
0%
10%
20%
30%
40%
50%
2016
EBITDA Margin(1)
OceanaGold Peer Average
(3)(2)
(1) Bloomberg (2) Capital IQ (3) Barclays Research
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Strong Cash Flow Margins
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
TM
R*
PVG
*
OG
C
RO
XG
BTO
TXG
GU
Y
AEM
KD
X
NG
D
GG
ASR
ABX
ED
V
AG
I
EG
O
CD
E
PAAS
TH
O KL
NEM AR
HL
SSR
I
AU
Y
TG
Z
DG
C
DPM
KG
C
AKG
IAG
CG
ALO
PG
PPP
Sustaining Free Cash Flow Margins(2017E to 2019E)
SOLID BUSINESS WITH TOP TIER ASSETS SET TO DELIVER STRONG MARGINS
Source: RBC Capital Markets
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OceanaGold Strategy
POSITIONED WELL TO DELIVER ON HIGH MARGIN GROWTH OPPORTUNITIES
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Focus on organic growth
M&A in 2015Didipio construction
2011 to 2017E Capex Variance(1)
~240%
0
5
10
15
20
25
30
35
40
2011 2012 2013 2014 2015 2016 2017E
USD
m
Annual Exploration Capital Spend Profile
A Focus on Organic Growth
1. Based on the midpoint of exploration capex guidance range of $30m to $40m
SIGNIFICANT ORGANIC GROWTH POTENTIAL UNDERPINS DEEP VALUE
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Growing Existing Assets
Brownfields & Greenfields explorationHAILE 2032
Annual Reserve
replenishment
DIDIPIO 2032Annual Reserve
replenishment
Extensional drilling at DidipioNear-mine targets
WAIHI 2019 10+ yearsMartha Project, Brownfields &
Greenfields exploration
MACRAES 2020 10+ yearsRound Hill Project,
Brownfields exploration
CURRENT MINE LIFE
OBJECTIVE FOR INCREASED MINE LIFE
AREAS OF FOCUS
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Growth Opportunities
POSITIONED IN MULTIPLE GOLD PROVINCES
HAILE
CAROLINA TERRANEDIDIPIO
CAGAYAN VALLEYPHILIPPINE FAULT ZONE
MACRAES
COROMANDEL VOLCANIC ZONE
WAIHI
OTAGO TERRANE
LOCRIAN RESOURCES
MYANMARLAOS
GSV & NUG
CARLIN TRENDCORTEZ TREND
LA CURVA JV
DESEADO MASSIF
UNITED STATES PRODUCTION
2017 GUIDANCE(1)
Gold(oz)
110,000 – 130,000(was 150,000 – 170,000)
AISC(per oz sold)
$600 – $650(2)
(was $500 – $550)
RESOURCES
P&PReserves
Gold(Moz)
3.46
Total Resources
(2)Gold(Moz)
4.35
1. Production includes both commercial and non-commercial production2. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves
Haile
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Area Issue SolutionEstimated
CostExpected Completion
SAG Mill grate Aperture of grate is inadequate Replace with larger grate $50k July 2017
Regrind inflowSub-optimal density of fine grind material
Close the feed circuit $200k July 2017
CIL Piping SystemInadequately sized piping system
Redesign and install a new piping system
$700k August 2017
CIL Tank Liners De-lamination of CIL tank liners Removal and re-apply new liner Nil (warranty) December 2017
Control systemSystem response slower than expected due to volume of data; longer to tune circuits
Review and upgrade over time $2M - $3M Staged upgrades over time
SOME COMMMISSIONING ISSUES BUT CLEAR PATH FORWARD
Commissioning Focus Areas
Achieved nameplate throughput capacity numerous times in Q2
Team has identified a pathway forward
Confident in our revised timeframe
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Haile Optimisation Study
OPTIMISATION STUDY RESULTS DEMONSTRATES INHERENT VALUE
UPGRADED RESERVES70% increase in Reserves (3.46 Moz reserves vs. 2.02 Moz previously)
ENHANCED ECONOMICS(1)
Cash flows of $1.4 billion based on current reserves, $1.8 billion based on current total mineable inventory(2)
CONTINUED HIGH MARGINSLOM AISC $650 – $700 per ounce
1. Pre-tax and undiscounted 2. Mineable inventory includes Inferred Resources in mine plan 3. Based on mineable inventory
Ledbetter SnakeMill ZoneChampion Small
Horseshoe
LONGER MINE LIFE, HIGHER PRODUCTIONIncreased mine life to 2034(3) at nominal LOM gold production of 189,000 oz (vs. 13.25 years @ 127 koz)
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New Mine Plan
NEW MINE PLAN DRIVES ENHANCED VALUE AT HAILE
Pit shells based on $1,150/oz gold price
OPEN PIT PHYSICALS
Total Resources 3.66 Moz
Reserves 3.02 Moz
LOM Strip Ratio 8.7 : 1
Mining rate 30 Mtpa
Mining cost $1.45 - $1.55 / t mined
Initial Capex (including site infrastructure & mining fleet)
$132m
LOM Sustaining Capex $194m
UNDERGROUND PHYSICALS
Total Resources 0.69 Moz
Maiden Reserves 0.44 Moz
Mining rate 0.7 Mtpa
Mining cost $35 – $40 / t milled
Mining method Long-hole open stope
Pre-production Capex $55m
LOM Sustaining Capex $25m
HORSESHOE UNDERGROUND
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Production & Process Scheduling Profile
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Process Plant Ore Feed Profile(‘000 tonnes)
OP Ore to Mill UG Ore to Mill
-
0.50
1.00
1.50
2.00
2.50
3.00
0
50
100
150
200
250
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Gold
Gra
de (
g/t
)
Gold
Pro
duct
ion (
‘000 o
z)
LOM Gold Production and Grade Profile
Payable Gold Gold Grade Processed (g/t)
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Cost Overview
Operating Costs
Open Pit Mining costs $ / t mined 1.45 – 1.55
Underground Mining costs $ / t mined 35 – 40
Processing costs $ / t milled 10 – 11
Site G&A costs $ / t milled 3 – 4
LOM AISC $ per oz 650 – 700
STUDY CONFIRMS HIGH-MARGIN BUSINESS OVER LIFE OF MINE
Capital Costs (US$m) Initial Capital LOM Sustaining Capital
Open Pit 67 75
Underground 55 26
Process Plant 67 25
Site Infrastructure 65 119
Total Capital 254 245
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Haile LOM Cash Flows
5931
8 14
157135
118
75 68
114144
116
76 63
177
70
-300
-200
-100
0
100
200
300
400
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
USD
m
Pre-tax Cash Flow Profile
Revenue Operating Cost Expansion Capex Sustaining Capex Net Cash Flow
STRONG CASH FLOW GENERATION PROFILE
Pre-tax cash flows(1) based on Reserves
$1.4 billion
Pre-tax cash flows(1) based on total mineable inventory
$1.4 billion
1. Undiscounted
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Project Timelines
ESTIMATED TIMING FOR THE EXPANSION
2016 2017 2018 2019 2020 2021
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Permitting Process
Underground development
Optimisation Study
Plant expansion
Preparing permit applications
Engineering & procurement
First underground ore processed
Today
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Haile Drilling
$8M+ BUDGET – GROWING THE RESOURCE BASE
A
A’
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Haile 2017 Exploration
Ledbetter Snake
Mill Zone
Champion Small
Horseshoe
Palomino
Reserve Design
>0.4 g/t Au
Palomino
Snake
Horseshoe
Metavolcanic rocks
Metasedimentary rocks
RedHill
1 g/t Augrade shell
Palomino & Snake DrillingSeptember, 2016 – June, 2017
Assays pending
Assays reported
Metased/Metavol contact
100 m Northwest view700 m thickness
< 0.0350.035 – 0.150.15 – 0.400.40 – 0.800.80 – 1.501.50 – 3.003.00 – 5.00> 5.00
Au grade(g/t)
DD
H06
18
DD
H0
621
Section A-A
Snakeshoe
1. As at 31 Dec 2016 – refer to www.oceanagold.com2. Total Resources = M&I and Inferred Resources. M&I Resources are
inclusive of reserves
NEW ZEALAND
Auckland
Wellington
Christchurch
Blackwater
DunedinGold-TungstenProject
Waihi
Reefton
Macraes
PRODUCTION
2017GUIDANCE
WAIHI
Gold(oz)
110,000 – 120,000
AISC(per oz sold)
$740 – $790
MACRAES
Gold(oz)
180,000 – 190,000
AISC(per oz sold)
$950 – $1,000
RESOURCES(1)
WAIHI MACRAES
P&PReserves
Gold(Moz)
0.35 1.21
Silver(Moz)
1.31 -
Total Resources
(2)
Gold(Moz)
0.57 4.79
Silver(Moz)
1.58 -
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Waihi - A Top Tier Asset
December 31, 2015
Total Resource(1)
430,000ounces
December 31, 2016
Total Resource(1)
570,000ounces
December 31, 2014
Total Resource(1)
360,000ounces
1. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves.
EXPLORATION CONTINUES TO UNLOCK VALUE
~300 koz mined during 2015 and 2016
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Waihi 2017 Exploration
Significant exploration program planned for Waihi in 2017
Other Opportunities
SIGNIFICANT GROWTH PIPELINE & DRILL PROGRAM
Brownfields drilling: 17,000m+Greenfields drilling: 6,000m+
Martha Project
DRILL DRIVE 1Construction status(1): 75% completeCompletion: Q3 2017Diamond drilling planned: 12,200m
DRILL DRIVE 2Construction status(1): 40% completeCompletion: Q4 2017
Underground Drilling
Infill and extensional: 18,000m+
1. As at 31 May 2017
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Waihi - Martha Project
Daybreak
Development as
at 31 May 2017
Martha Open Pit
Resource targetscoloured blocks
Historic Underground
Development
800m RL DRILL PROGRAM – 12,200m
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Waihi - Martha Project
Resource targetscoloured blocks
Daybreak
Development as
at 31 May 2017
Historic Underground
Development
Martha Open Pit
EXTENSIVE DRILL PROGRAM PLANNED
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Regional Exploration Projects
Dome Field North & SouthMap/sample/geophysics
OhuiMap/sample/target generation/access
Twin HillsMap/sample/target generation
White BluffsGeophysics/target generation/access
GlamorganMap/sample/geophysics/target generation/access
HaurakiMap/sample/geophysics - drilling at WKP
Sinter
depositsWater table silicaHydrothermal breccia
COROMANDEL GOLD DISTRICT PRODUCTION >12 MOZ AU, 52 MOZ AG
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Coronation North
Coronation
Golden Point
Round Hill
FRUG
Macraes – Coronation North
CONTINUE TO GROW THE RESOURCE BASE
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Coronation North
Coronation
Golden Point
Round Hill
FRUG
OPPORTUNITY TO ADD OUNCES TO ROUND HILL PROJECT
Macraes – Golden Point
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Macraes Beyond
Round HillDeposit
Relocated Process Plant
STUDY ADVANCING: Additional technical & economic work underway
CONCEPT: New location + build of smaller process plant w/Tungsten circuit
MINE LIFE EXTENSION: Potential for mine life of 10-12 years
ROUND HILL/GOLDEN POINT
~1.38 Moz Resource(1)(2)
1. As at 31 Dec 2016
2. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves
ADVANCING THE MACRAES ROUND HILL PROJECT
PHILIPPINES
San Fernando (Port)
Far Southeast(Goldfields/Lepanto)
Manila
Island of Mindanao
Island of Luzon
Masbate (B2Gold)
Co-O(Medusa)
Didipio
PRODUCTION
2017GUIDANCE
Gold(oz)
150,000 – 160,000(was 110,000 – 130,000)
Copper(t)
18,000 – 19,000(was 15,000 – 17,000)
AISC(per oz sold)
$70 – $120(1)
(was $130 – $180)
1. Costs based on a copper price assumption of $2.50 / lb and a gold price of $1,2002. As at 31 Dec 2016 – refer to www.oceanagold.com3. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves
RESOURCES(2)
P&PReserves
Gold(Moz)
1.46
Copper(Mt)
0.18
Total Resources
(3)
Gold(Moz)
2.06
Copper(Mt)
0.24
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Didipio Mining Transition
UNDERGROUNDFirst ore expected at end of 2017
PROJECT INFRASTRUCTUREVentilation, water pumping and paste plant on track
TRANSITION TO UNDERGROUND MINING ADVANCING WELL AT DIDIPIO
Didipio paste fill plant under construction
OPEN PITNear completion
STOCKPILES>24 million tonnes @ 0.54 g/t Au, 0.37% Cu expected after completion of open pit
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INFILL AND EXTENSIONAL DRILLING CONTINUES
Didipio Drill Program
DESIGNED DRILLHOLESInfill drilling across 500m verticalFive levels and two panels
TOTAL METERAGE~300 drill holes for >51km of drilling
UPSIDETesting depth extensionsNear mine targets
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STAKEHOLDERS
DEVELOPMENTOPERATIONS
GROWTH
CONTINUED FOCUS ON CREATING VALUE, DELIVERING ON COMMITMENTS & STAKEHOLDER ENGAGEMENT
2017 Priorities
Commercial production at Haile
Continue to advance Didipio U/G construction
Increase resource base through exploration
Advance technical and optimization studies
Further improve on safety
Continue to deliver meaningful benefits to our host communities
Deliver on guidance and cash flows
Continued strong stakeholder engagement
Increase global ESG engagement
REVISED 2017 GUIDANCE
Gold Production
550,000 – 600,000ounces
Copper Production
18,000 – 19,000tonnes
All-In Sustaining Costs
US$600 – US$650per ounce
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Executive Management Team
A MANAGEMENT TEAM WITH BROAD AND DEEP EXPERIENCE
Mick Wilkes
President & Chief
Executive Officer
Mark Cadzow
EVP and
Chief Development Officer
Scott McQueen
EVP and
Chief Financial Officer
Michael Holmes
EVP and Chief Operating
Officer
Craig Feebrey
EVP Exploration
Mark Chamberlain
EVP Corporate Development
Yuwen Ma
EVP Human Resources
Liang Tang
Company Secretary &
Corporate Counsel
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Board of Directors
• Mining engineer with over 35 years broad international experience as a Director/CEO for a wide range of international publicly listed mining, mining finance, and other mining related companies
• Served on the board of numerous resource public companies, which currently include Evolution Mining, Asian Mineral Resources Ltd and Syrah Resources where he serves as the non-executive Chairman
• Over 30 years industry experience
• Developed major projects in Australia & SE Asia
• Strong Operations background in hard rock mining
• Strong in Community and Government relations
• Extensive SE Asian experience
• Over 20 years of senior management and financial expertise in the field of natural resources
• Most recently she held the position of President and CEO of Romarco Minerals
• Dr. Garrett is currently CEO of Wellgreen Platinum and also a director of TriStar Gold. Inc.
• Dr. Garrett holds a PhD in Engineering in addition to a Master of Arts (MA) in Mineral Economics from the University of Texas at Austin.
Jim Askew
Chairman
Mick Wilkes
President & CEODiane Garrett
Director
• Chairman of OceanaGold (Philippines), Inc. and Philippine resident of the Australia-Philippines Business Council
• Appointed by Philippine President as private sector member of Governing Council of the Philippines Council for Agriculture, Aquatic & Natural Resource.
Joey Leviste
Director
• Mining engineer with over 30 years’ experience in mine development and operations
• Former Chairman of Quadra FNX Mining Ltd., until its takeover in 2012, a company he co-founded as CEO in 2002
• Currently on the Board for First Point Minerals and San Marco Resources
Bill Myckatyn
Director
• Former Australian Ambassador to The People’s Republic of China from 2007 – 2011
• Joined the Australian public service in 1986 and has held various postings throughout Asia and Europe prior to his posting in Beijing
• Serving as the non-executive director of ASX listed Fortescue and SmartTrans
Dr. Geoff Raby
Director
• Over 35 years in financial management of mining & renewable energy companies
• Management roles with Placer Dome & Gibraltar Mines, board roles with Pan American Silver & New Gold
• Currently on the boards of Tahoe Resources & Grenville Strategic Royalty
Paul Sweeney
Director
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Argentina – New Opportunities
40
Mineral Resource and Reserves
PROJECT
AREA
PROVEN PROBABLE PROVEN & PROBABLE RESERVE
Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt
MACRAES Open Pit 12.2 1.08 - - 18.1 1.12 - - 30.3 1.10 1.07 - . - -
MACRAES Underground 0.54 2.70 - - 1.31 2.30 - - 1.85 2.42 0.14 - . - -
WAIHI Open Pit 0.16 3.05 30.5 - 0.66 2.91 29.1 - 0.81 2.94 0.08 29.4 0.77 - -
WAIHI Underground 0.37 9.14 18.1 - 0.76 6.56 13.1 - 1.13 7.40 0.27 14.7 0.54 - -
DIDIPIO Open Pit 28.6 0.47 2.5 - 2.40 0.94 2.3 0.45 31.1 0.51 0.51 2.5 2.46 0.35 0.11
DIDIPIO Underground 2.3 2.48 2.6 - 13.7 1.76 2.5 0.43 15.9 1.86 0.95 2.5 1.27 0.44 0.07
HAILE 19.6 2.19 - - 10.9 1.82 - - 30.5 2.06 2.02 - - - -
TOTAL 63.7 1.26 - - 47.8 1.60 - - 112 1.41 5.04 - 5.0 - 0.18
PROJECT
AREA
MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE
Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt
MACRAES Open Pit 17.5 1.11 - - 65.1 0.95 - - 82.5 0.99 2.62 - - - - 39 0.9 1.1 - - - -
MACRAES Underground 3.88 3.11 - - 7.34 2.06 - - 11.2 2.42 0.87 - - - - 3.5 1.4 0.2 - - - -
REEFTON 1.26 1.83 - - 6.55 1.49 - - 7.8 1.54 0.39 - - - - 1.4 1.1 0.0 - - - -
BLACKWATER - - - - - - - - - - - - - - - 0.9 23 0.7 - - - -
WAIHI Open Pit 0.16 3.05 30.5 - 0.66 2.91 29.1 - 0.8 2.94 0.08 29.4 0.77 - - - - - - - - -
WAIHI Underground 0.37 9.13 15.5 - 0.88 6.57 11.5 - 1.2 7.33 0.29 12.7 0.51 - - 0.7 6.9 0.2 13.5 0.3 - -
DIDIPIO Open Pit 28.9 0.48 2.48 0.34 7.1 0.65 2.15 0.30 36.0 0.51 0.59 2.41 2.79 0.33 0.12 2.4 0.5 0.0 2.0 0.2 0.2 0.01
DIDIPIO Underground 2.57 2.50 2.58 0.48 17.2 1.74 2.38 0.46 19.8 1.84 1.17 2.41 1.53 0.46 0.09 6.5 1.3 0.3 1.6 0.3 0.4 0.02
HAILE Open Pit 36.8 1.78 - - 33.6 1.68 - - 70.3 1.73 3.92 - - - - 19 1.1 0.7 - - - -
TOTAL 91.3 1.35 - - 138 1.34 - - 229.7 1.34 9.93 - 5.6 - 0.21 73 1.3 3.1 - 0.8 - 0.03
PROJECT
AREA
MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE
Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt
SAMS CREEK . . . . 2.0 1.77 . . 2.0 1.77 0.11 . . . . 2.0 1.3 0.1 . . . .
TOTAL . . . . 2.0 1.77 . . 2.0 1.77 0.11 . . . . 2.0 1.3 0.1 . . . .
Notes:
1. Reserves are reported within current mine designs using economic assumptions unless otherwise noted: US$1,300/oz gold, US$3.00/lb copper and US$19/oz silver.
2. Didipio reserves based on US$1,250/oz gold and US$3.20/lb copper.
3. Haile reserves based on US$950/oz gold price.
4. Estimates of contained metal do not make allowances for processing losses.
Notes:
1. Mineral Resources include Mineral Reserves.
2. Macraes and Reefton open pit resources constrained by a NZ$2,200/oz gold price pit shell. Macraes underground resources are geologically constrained.
3. The commencement of Reefton closure and rehabilitation was announced on 19 December 2016.
4. The Waihi open pit resources are reported to a 0.5 g/t Au cut-off within a pit design to the 890mRL. The underground resources are based on a NZ$1,857/oz gold price.
5. For Didipio, open pit resources are reported above the 2,460mRL and underground resources between the 2,460mRL and 2,070mRL. Open pit resources use AuEq cut-off based on US$1,300/oz gold and US$3.00/lb copper. Underground resources use AuEq cut-off based on
US$1,450/oz gold and US$3.80/lb copper
6. Haile open pit resources are reported to a 0.41 g/t Au cut-off within a US$1,200/oz gold price pit shell
Notes:
OceanaGold has a 20% interest in the Sams Creek Project. The tabulated resource is factored by the percentage ownership.
RESERVE STATEMENT (31 December 2016)
RESOURCE STATEMENT (31 December 2016)
MINORITY INTEREST RESOURCE STATEMENT (31 December 2016)
Does not include recently updated Haile Resources