OceanaGold announces additional drill results

Significant intersections (true widths)

• 22.8 g/t gold (Au) and 39 g/t silver (Ag) over 48.9 m.
• 169 g/t Au and 164.2 g/t Ag over 3.1 m.
• 45.6 g/t Au and 81.5 g/t Ag over 2.2 m.
• 41.4 g/t Au and 81.6 g/t Ag over 9 m.
• 52.2 g/t Au and 28.8 g/t Ag over 3.6 m.

Michael Holmes, President and CEO of OceanaGold, said: “The drill results at WKP continue to demonstrate the significance of this discovery for OceanaGold, our shareholders and for New Zealand. Much of the drilling to date has focused on the East Graben vein, which represents nearly all the reported resources and this vein is only one of three currently identified major mineralised structures at WKP. Drilling along the East Graben vein zone has defined in excess of 1000 m strike that includes multiple, discrete, high-grade gold-silver bearing hanging and footwall veins.”

“For 2021, our plan includes extensive drilling with two drill rigs, balanced between infill drilling of the East Graben vein zone and testing extensions of the East Graben vein and nearby T-Stream and Western veins, which are the other two major structures currently identified at WKP. Our next mineral resource update for WKP is expected in mid-2021 and will include the drill results from 2020 campaign.”

“We are advancing the Waihi District opportunities concurrent to finalising the consent application for underground access to WKP. The consenting process remains the critical path for success and we continue to work with all stakeholders as we advance the Waihi District to production in concert with our values as a responsible mining company.”

“The Waihi District represents the potential for significant socio-economic contributions for the rural communities in the Coromandel region and for New Zealand. The economic benefits, we believe, will play a critical role in the post-COVID-19 economic recovery for New Zealand as we have estimated AUS$1.4 billion of in-country investments and the addition of 300 new jobs to our existing 900-person countrywide workforce. OceanaGold is one of the top-rated ESG gold miners globally. We operate to the highest environmental and social standards which has enabled us to run a sustainable mining business in New Zealand for over three decades.”

Since the November 2019 exploration and subsequent February 2020 resource updates, the company has drilled approximately 4000 m at WKP focusing on resource definition drilling of the East Graben vein; one of three, major low-sulfidation epithermal gold-silver veins identified to-date within the WKP prospect.

In February 2020, the company reported an updated indicated resource of 1 million t grading 13.4 g/t Au and 25.5 g/t Ag for 421 000 oz of Au and 803 000 oz of Ah on the East Graben vein. Additionally, an inferred resource of 1.9 million y at a grade of 12 g/t gold and 20 g/t silver for 717 000 oz of Au and 1 230 000 oz of Ag was reported with more than 80% of the inferred resource contained within the East Graben and two high-grade footwall veins. The remaining resource is from either the East Graben footwall or hanging wall veins including approximately 2% of the resource reported from the parallel T-Stream vein.

Drilling at WKP during 2020 comprised both extensional and infill drilling targeting resource growth and resource conversion, respectively. This drilling has continued to intersect mineralisation of width and grade that support the block model on the East Graben vein, increasing the confidence in continuity and extension of mineralisation within the East Graben vein and associated hanging and footwall veins.

Although drilling to date has been almost entirely focused on defining the extent of mineralisation on the East Graben vein, it remains open both to the southwest and northeast of the currently defined 1 km strike length and both up- and down-dip outside the vertical interval of approximately 200 m defined to-date. In addition, drilling has highlighted the importance of several other hanging wall and footwall veins. The southern footwall splay is one such vein where a significant shoot hosting an inferred resource of 0.4 million t at a grade of 24.6 g/t Au and 25 g/t Ag for 310 000 oz of Au and 319 000 oz of Ag continues to be defined by drilling and is open to the south and up-dip. Historic intercepts to-date on the T-Stream and Western veins exhibit significant down hole width and grade including:

• 19.5 m at 4.5 g/t Au, 3.2 m at 37 g/t Au and 9 m at 6.3 g/t Au from the Western vein zone.
• 9.7 m at 17.2 g/t Au and 1.8 m at 61 g/t Au from the T-Stream vein zone.

The results indicate further drilling is required to assess the full extent of mineralisation and potential for additional resources. In 2021, the company expects to execute on a balanced drill programme of approximately 10 500 m utilising two drill rigs. The first rig will continue infill drilling of approximately 4650 m on the East Graben vein zone and the other will test extensions of the East Graben vein and nearby T-Stream and Western veins with 5850 m planned.

A resource model update is planned for mid-2021.

Read the article online at: https://www.globalminingreview.com/exploration-development/25012021/oceanagold-announces-additional-drill-results/