OceanaGold Corporation Announces Maiden Resource for Coronation North and Additional Drill Results At Waihi Goldfield
Nov 24 15
OceanaGold Corporation announced additional drill results from its brownfields exploration program in the Macraes Goldfield and from its newly acquired Waihi Gold Mine in New Zealand. Key Highlights: Maiden resource for Coronation North at Macraes Goldfield of 2.75 million tonnes grading 1.52 g/t for approximately 130,000 ounces in the Indicated category plus 5.33 million tonnes grading 0.95 g/t for 160,000 ounces in the Inferred category. Encouraging drilling at Correnso and Daybreak veins demonstrate potential extensions for Waihi. Significant intercepts at Correnso that include 3.9 metres @ 13.1 g/t Au, 4.9 metres @ 18.0 g/t Au and 2.0 metres @ 18.4 g/t Au. Significant intercepts at Daybreak that include 5.3 metres @ 11.4 g/t Au, 3.9 metres @ 33.8 g/t Au and 5.8 metres @ 26.1 g/t Au. Significant intercepts at Quattro that include 7.6 metres @ 5.6 g/t Au and 1.8 metres @ 29.1 g/t Au. Macraes Goldfield: In the first quarter of 2015, the Company initiated a brownfields exploration program at the Macraes Goldfield targeting extensions to the underground at Frasers and near surface along the 30-km strike of the Hyde-Macraes shear zone that hosts the gold mineralization. Under the current drill program, over 180 holes have been drilled for 23,500 metres at Coronation North. As previously announced, initial drilling at Coronation North has discovered mineralisation that is higher grade than the existing Coronation open pit deposit located one kilometer to the south. Further drilling has confirmed continuity of this geologic structure to the northwest and southeast approaching the current Coronation open pit. As a result of this drilling, the Company has now compiled a maiden resource for Coronation North. Resource drilling, metallurgical testwork and geologic studies are ongoing at Coronation North to further expand the resource and to convert the resource to a reserve. The Company expects to drill an additional 15 holes for 2,300 metres for the remainder of 2015 at Coronation North. For 2016, the Company will continue drilling in the Macraes Goldfield including the Frasers Underground and expects to drill approximately 300 holes for 35,000 metres. Waihi Goldfield: At Waihi, an extensive exploration program commenced in the third quarter of 2015 with a primary focus on targeting resource extensions within mining consents (permits) proximal to the Correnso operation and drilling of newly identified veins including Quattro, potential strike extensions of the Martha system and untested areas of the Waihi epithermal vein system. The Company expects to drill a total of 15,000 metres in the second half of 2015 utilising four underground and two surface drill rigs. Since July 1, 2015, the Company has drilled nearly 7,000 metres targeting Correnso extensional targets with encouraging results. Resource drilling has been conducted to 60 x 60 metre spacing and reserve drilling to 30 x 30 metres. Quattro is a newly recognised vein located west of the old Trio workings, a previous underground operation. With only limited drilling to date, the Company has demonstrated that the Quattro vein has a strike length in excess of 500 metres with thick vein widths up to 7.6 metres. Significant intercepts at Quattro include 7.6 metres true width @ 5.6 g/t Au including 2.2 metres true width @ 14.3 g/t Au and 1.8 metres true width @ 29.1 g/t Au. Since July 1, 2015, the Company has drilled over 2,000 metres of untested targets on and around the margins of the residual gravity highs associated with the Waihi epithermal vein system. A large block of untested ground in proximity to the Royal, Daybreak and Union veins that was drill tested with drill hole 844SP0RE0817. This hole intercepted several narrow mineralised veins between Royal and Union assaying up to 0.75 metres (true width) @ 21.5 g/t Au. In 2016, the Waihi exploration program encompasses over 34,000 metres of drilling of brownfields and greenfields targets. The brownfields program will continue to test the resource extensions of the Martha and Correnso structures and the newly discovered veins. In 2016, the Company will recommence drilling of the WKP prospect in the Hauraki region where previous drill campaigns returned high grade intercepts that included 9.7 metres (7.5 metres true width) @ 17.2 g/t Au and 7.9 metres @ 5.1g/t Au. The Company expects to spend approximately USD 7 million to USD 12 million on exploration at Macraes and Waihi in 2016.
OceanaGold Corporation Announces Unaudited Consolidated Earnings and Operational Results for the Third Quarter and Nine Months Ended September 30, 2015; Provides Production Guidance for the Year 2015
Oct 29 15
OceanaGold Corporation announced consolidated earnings and operational results for the third quarter and nine months ended September 30, 2015. For the quarter, the company reported sales of $109,581,000 against $122,838,000 a year ago. Operating profit was $5,839,000 against $15,322,000 a year ago. Earnings before interest, tax, depreciation and amortization (EBITDA) (excluding gain/(loss) on undesignated hedges) of $35,068,000 against $43,505,000 a year ago. Profit before income tax was $6,277,000 against $4,590,000 a year ago. Net profit was $6,924,000 or $0.02 basic and diluted per share against $16,884,000 or $0.05 diluted per share a year ago. Net cash provided by operating activities was $23,801,000 against $28,209,000 a year ago. Free cash flow was $1,514,000. The third quarter EBITDA decreased from the previous quarter mainly due to lower gold and copper sales revenue and higher general and administrative costs associated with the Romarco and Waihi acquisitions. The decrease in EBITDA was partly offset by lower cost of sales from lower operating costs. Cash inflows from operating activities were lower as compared to same period a year ago, mainly due to lower gold sales and lower gold and copper prices received. Payment for property, plant and equipment was $1,427,000 against $4,674,000 a year ago. Payment for mining assets: exploration and evaluation was $837,000 against $698,000 a year ago. Payment for mining assets: development was $9,630,000 against $6,400,000 a year ago. Payment for mining assets: in production was $10,408,000 against $15,869,000 a year ago.
For the nine months, the company reported sales of $364,373,000 against $420,673,000 a year ago. Operating profit was $49,619,000 against $78,886,000 a year ago. Earnings before interest, tax, depreciation and amortization (EBITDA) (excluding gain/(loss) on undesignated hedges) was $135,917,000 against $174,137,000 a year ago. Profit before income tax was $18,168,000 against $59,538,000 a year ago. Net profit was $30,418,000 or $0.10 basic and diluted per share against $73,706,000 or $0.24 diluted per share a year ago. Net cash provided by operating activities was $109,289,000 against $154,227,000 a year ago. Free cash flow was $38,255,000 against $71,348,000 a year ago. Payment for property, plant and equipment was $4,401,000 against $8,214,000 a year ago. Payment for mining assets: exploration and evaluation was $2,672,000 against $1,820,000 a year ago. Payment for mining assets: development was $31,462,000 against $22,446,000 a year ago. Payment for mining assets: in production was $32,544,000 against $50,399,000 a year ago.
For the quarter, the company reported gold production of 87,667 ounces, copper production of 5,219 tonnes and cash costs of $472 per ounce. The quarter-on-quarter increase in production was mainly due to higher production from Macraes, partly offset by lower production at Didipio which was expected.
For the nine months, the company reported gold production of 264,666 ounces against 214,751 ounces a year ago. Copper production was 17,518 tonnes against 18,263 tonnes a year ago. Cash costs were $473 per ounce against $437 per ounce a year ago. All-in sustaining costs were $736 per ounce against $818 per ounce a year ago.
The company provided production guidance for the year 2015. For the year, the company expects gold production in the range of 380,000 ounces to 410,000 ounces, copper production in the range of 22,000 tonnes to 23,500 tonnes, cash costs in the range of $420 per ounce to $470 per ounce and All-in sustaining costs in the range of $690 per ounce to $740 per ounce.