An open pit resource has been detailed by OceanaGold Corporation (TSX & ASX: OGC) at the historic Gladstone workings at Waihi to add to the company’s target of life extension.
The company’s annual resource and reserve statement update released prior to Easter details a maiden indicated resource at Gladstone of about 98,000 ounces gold and 235,000 oz silver and an inferred 12,000 oz Au and 19,000 oz Ag.
The report showed that Waihi proven-probable reserves had grown to 81,000 tonnes open pit @ 2.94 grams/tonne Au and 29.4 g/t Ag, while Waihi Underground had 930,000t @ 5.58 g/t Au and 11.1 g/t Ag.
Macraes has a proven-probable 31.3 Mt @ 1.08 g/t Au for the open pit operations and 1.81 Mt @ 2.12 g/t for underground.
This gave a total reserve for NZ operations if 34.9 Mt @ 1.29 g/t gold for 1.45 M oz Au and 1.1 M oz Ag.
The upgraded resource statement for NZ operations takes in measured-indicated resources at Waihi open pit targets of 2.23 Mt @ 2.43 g/t Au and 13.7 g/t Ag, and Waihi underground of 1.03 Mt @ 5.64 g/t Au and 11.13 g/t Ag.
The measured-indicated figures for Macraes are 83.1 Mt open cut grading 1.04 g/t Au and underground of 9.9 Mt @ 2.65 g/t gold.
The company’s resource picture for New Zealand also includes 100% ownership of the historic Blackwater underground mine where there is at depth an inferred 900,000t @ 23 g/t gold.
Blackwater has been on the blueprint shelf for the past few years.
Also on the ledger is a retained interest of 20% in the Sams Creek project near Takaka on the upper South Island, in partnership with MOD Resources Ltd (ASX: MOD) which was selling its stake to planned Australian IPO Condamine Resources.
That 20% stake represents a proven-probable 2 Mt @ 1.3 g/t Au for about 100,000 oz. MOD has earlier cited a total resource for Sams Creek of slightly more than 1 M oz of gold.
OceanaGold said with the closure of the Globe-Progress mine at Reefton in late 2016 and, as a result, associated resources at Reefton have been removed from the company inventory.
Commenting on the report, OceanaGold chief executive Mick Wilkes said he was pleased to announce the start of the permitting process for the Martha open cut deep extensions project which will deliver significant socio-economic benefits to Waihi and many other stakeholders for “many years to come.”
He said the company had spent about $30 M on global exploration in the past year that resulted in identifying the new Gladstone resource.
Brownfields exploration activity at Martha and the Waihi region was expected to result in a 10 year mine life, while greenfield exploration continued on the WKP prospect, north of Waihi as well as on regional targets in the Carolines of the US and on exploration targets in Argentina.