OceanaGold Reports Positive Preliminary Results from Didipio Optimization Study

OceanaGold Corp. (TSX:OGC,ASX:OGC) announced preliminary results from the Didipio optimization study, which has “identified significant value from the existing operation and ore body.” It is expected to be completed early in Q4.

Key outcomes include:

• Underground development to be brought forward by one year to commence in the first quarter 2015.
• Access to high grade ore to be brought forward by two years with first underground production now expected to be in the third quarter of 2017 with full ramp-up to a mining rate of 1.6 million tonnes per annum (‘Mtpa’) by 2020.
• Redesigned underground to include two underground mining domains that will increase the mine productivity rate to 1.6 Mtpa (from 1.2 Mtpa) over a longer underground mine life.
• Improved geotechnical understanding, optimized open pit design and revised open pit/underground interface will reduce open pit waste mining by nearly 70 million tonnes (Figure 3) whilst only reducing ore supplied from the open pit by approximately one year.
• Improved project economics including increased cash flows and a longer mine life – to be finalized in the updated NI 43-101 Technical Report.

Mick Wilkes, managing director and CEO of OceanaGold, commented:

Based on the results of the Study, the underground portion of the Didipio operation will be brought forward by one year with development expected to commence in the first quarter of 2015 subject to receiving final regulatory approvals. Access to high grade ore will be brought forward by two years with first ore delivered for processing in the third quarter of 2017. The underground crown pillar will now be established at RL2460, approximately 80 metres higher than in the original plan thus allowing for two active production areas in the underground resulting in an increase of the mining productivity rate to 1.6 Mtpa and a reduction in the cut-off grade. Additionally, the detailed Study along with a comprehensive infill drill program during the last 12 months has resulted in the expansion of the underground by 170 meters deeper than originally planned to RL2010.

Click here to read the full OceanaGold Corp. (TSX:OGC,ASX:OGC) press release.