Slide 1: Didipio Mine Analyst Visit Day 1
Didipio Mine Analyst Visit Day 1 November 10 2014 Innovation Performance Growth
Slide 2: Cautionary Notes
Cautionary Notes 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, securiti
Slide 3: Didipio Overview
Didipio Overview 3 OceanaGold Corporation Innovation Performance Growth
Slide 4: Didipio Overview
Didipio Overview First FTAA signed and in production Nominal Production Gold: 100 koz Copper: 14 kt P&P Reserves1 Gold: 1.77 Moz Copper: 216.5 kt M&I Resources1 Gold: 2.08 Moz Copper: 250.2 kt Mine Life OP: 2017 UG: 2028 1. Reserves and Resources are based on the Didipio Technical Report dated 29 Oc
Slide 5: Didipio Overview
Didipio Overview • Didipio straddles the provinces of Nueva Vizcaya and Quirino • 270 km NNE of Manila • 700 metres above sea level • 22-km gravel all-weather access road to site 5 OceanaGold Corporation Innovation Performance Growth
Slide 6: Didipio Overview
Didipio Overview Didipio • Didipio is located in a Type III – no pronounced maximum rainfall period • Operations planned based on expected rainfall 6 OceanaGold Corporation Innovation Performance Growth
Slide 7: Site Overview
Site Overview 7 OceanaGold Corporation Innovation Performance Growth
Slide 8: Camp Management & Travel
Camp Management & Travel • Dicorp continue excellent delivery of catering and camp admin service • Addition of full fitted gym with instructor and healthy eating programme to follow • Alignment of Travel Team with Camp Admin Team to utilise synergies • Contract services managed by OGPI to ensure con
Slide 9: 2014 Capex
2014 Capex Amount Sustaining Capital (including debottlenecking) $10m to $15m TSF Construction $5m to $10m Open Pit Pre-Strip $15m Total 2014 Capex Budget $30m to $40m 9 OceanaGold Corporation Innovation Performance Growth
Slide 10: Didipio Safety
Didipio Safety 10 OceanaGold Corporation Innovation Performance Growth
Slide 11: Didipio Safety
Didipio Safety • 2.3 million man hours without a lost-time injury • Achieved over 10 million man hours without a lost-time injury for nearly a two-year period • Heavy focus on health & safety from day one • Recognized for safety performance 11 OceanaGold Corporation Innovation Performance Growth
Slide 12: Strong Safety Performance
Strong Safety Performance Safety No Lost time incidents since April 5, 2014 12 month moving average TRIFR=1.6 Last medical treatment injury was September 27, 2014 10 million manhours worked without a lost time injury hit last March 28, 2014 Established Didipio Academy – a TESDA accredited training i
Slide 13: Safety Recognition
Safety Recognition • Didipio Training Academy won the National Kabalikat Awards bestowed by TESDA (Technology Skills Development Authority) • Besting Toyota and Coca Cola among others • National News : Women in Mining: one runs 100-Ton truck • “Typhoon Yolanda” Response • OGPI sent delegation to hel
Slide 14: Didipio Training Academy
Didipio Training Academy • TESDA accredited Didipio Training Academy won the national Kabalikat Awards Besting Toyota and Coca Cola • Woman in Mining; one runs 100 ton truck Marina Bartolome, who stands 4’11”, is dwarfed by the large-scale haul truck When asked who was the better driver between her
Slide 15: Typhoon Yolanda “Haiyan”
Typhoon Yolanda “Haiyan” • Three weeks volunteer work for Emergency Response Team • Transporting Equipment to and from typhoon site • Logistical challenge • Psychological de-briefing 15 OceanaGold Corporation Innovation Performance Growth
Slide 16: Regional Recognition – Emergency Response
Regional Recognition – Emergency Response 16 OceanaGold Corporation Innovation Performance Growth
Slide 17: Mining Operations
Mining Operations 17 OceanaGold Corporation Innovation Performance Growth
Slide 18: Mining Operations
Mining Operations • Mining is carried out by Delta Earthmoving • Contractor performing well and steady production achieved • Explosives manufactured and supplied to hole by Orica • Some Staff Seconded to Delta to Improve Safety, Training and Maintenance Performance • Monthly Ore and Waste Movement 2
Slide 19: 2014 YTD Production (as of 30 Sep 2014)
2014 YTD Production (as of 30 Sep 2014) YTD Stats Mining Total Ore Mined Mt 5.9 Waste Mined Mt 12.9 Ore Au Grade g/t 0.63 Ore Cu Grade % 0.54 Processing Mill Feed Mt 2.2 Au Grade g/t 1.11 Cu Grade % 0.87 Au Recovery % 89.2 Cu Recovery % 93.6 Production Gold oz 71,473 Copper t 18,263 By-product Costs
Slide 20: 2014 YTD Production (as of 30 Sep 2014)
2014 YTD Production (as of 30 Sep 2014) Monthly Gold Production (ounces) 12,000 10,000 8,000 6,000 4,000 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Monthly Copper Production (tonnes) 3,000 2,500 2,000 1,500 1,000 500 - Jan Feb Mar Apr May Jun Jul Aug Sep 20 OceanaGold Corporation Innovation Perform
Slide 21: ROM Ore Mined
ROM Ore Mined FY14 - Total ROM Tonnage 700,000 2,500,000 600,000 2,000,000 500,000 Monthly Tonnes Cumulative Tonnes 1,500,000 400,000 300,000 1,000,000 200,000 500,000 100,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Actual (t) Cumulative Budget Cumulative Actual 21 OceanaGold Corporation Innovation
Slide 22: 2014 Mining Cost Actuals
2014 Mining Cost Actuals Mining Cost (before pre-strip) 3.50 3.00 2.50 $/tonne mined 2.00 1.50 1.00 0.50 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep 22 OceanaGold Corporation Innovation Performance Growth
Slide 23: Current Mining Operations
Current Mining Operations Total tonnes (as of Aug Remaining Tonnes ( as of Sept Design Stripping ratio Au Oz Cu t Completion 2014 Optimized Pit) 2014 actual surf) Stage 3 0.26 2.95 95,801 11,792 2.20 1-Jul-15 Stage 4/5 2.62 31.45 248,035 41,137 29.72 1-Sep-16 Stage 6 3.04 46.88 332,052 45,758 46.81
Slide 24: Tailings Storage Facility
Tailings Storage Facility • Current height of the TSF wall: RL2780 • Ultimate level: RL2820 est. end of 2018 • Current capacity: 3,108,186 m3, ultimate capacity: 4,861,850 m3 Robust design: • The ability to construct a clay and flitter core Dam in a high / extremely high rainfall geographical area.
Slide 25: TSF Flow Through
TSF Flow Through Successful Design & Build 25 OceanaGold Corporation Innovation Performance Growth
Slide 26: Didipio Optimisation Study Highlights
Didipio Optimisation Study Highlights • Underground development to commence 1 year earlier; now in Q1 2015 • Access to high grade material in late 2017; brought forward by 2 years • Crown pillar moved higher by 80 m, underground extension to 2010mRL two mining domains established. Larger Undergrou
Slide 27: Optimised Design
Optimised Design • Open pit redesigned to fit Limit of geological orientation of the Oxidation ore body, improve ramp and lift crown pillar New Stage 5 & 6 Pit Designs • Open pit mining completed at the end of 2017 Previous Stage 5/6 Pit Design • Improved production profile Underground Mine through
Slide 28: Enhanced Economics
Enhanced Economics Original Open Pit Design Optimised Open Pit Design • Earlier access to high grade underground feed + deferred mining costs enhanced cash flow profile • Smaller open pit $215 million in cost savings between 2018 and 2020 • Larger underground and higher mining rates lower unit
Slide 29: Mining Operations Enhancements
Mining Operations Enhancements • Drill & blast review to optimize fragmentation and reduce wall damage; • Results are safer & stable walls • Increased crusher & mill throughput • Increased the bench excavation heights; • Optimize digging fleet and bucket capacity • Increased excavation production •
Slide 30: Mining Operations – Looking forward
Mining Operations – Looking forward • Optimisation study released for OC and UG; • Significant reduction in open pit strip ratio (1:4.5 to 1:2.7) • Operational optimisation and design improvements ongoing • Underground expected to commence in Q1 2015 • Further optimisation of underground development
Slide 31: Environment Management
Environment Management 31 OceanaGold Corporation Innovation Performance Growth
Slide 32: Environment Management Overview
Environment Management Overview Environment Management Initiatives ISO Environmental Management System Environmental Leadership & Capacity Building Water Management International RiverFoundation Partnership Noise and dust abatement Sound management of Tailings Storage Facility 32 OceanaGold Corporat
Slide 33: Cyanide Free Operation
Cyanide Free Operation 33 OceanaGold Corporation Innovation Performance Growth
Slide 34: Environmental Management System (EMS)
Environmental Management System (EMS) • The project is implementing an Environmental Management System compliant with ISO 14001:2004 Standards • Target: ISO EMS Stage 2 certification scheduled on November 19-21, 2014 • Passed EMS Stage 1 audit in August w/ • Zero NC Note that EMS Focuses on the foll
Slide 35: Water Management
Water Management Process Plant 100% Discharge to TSF 87-96% Recycled/Re-used 4-13% Raw water from pit dewatering wells Tailings Storage Facility 35 OceanaGold Corporation Innovation Performance Growth
Slide 36: Water Treatment Plant
Water Treatment Plant • Commissioned in August 2014 after 8-month completion • Built and commissioned by Company workforce • 34 metre diameter thickener • 4,500 m3 capacity • 2,000 m3/hr throughput rate • Water discharged cleaner than water extracted from river • Lower TSS level to < 70 ppm • DENR e
Slide 37: Guppy fish at TSF and Water Treatment Plant
Guppy fish at TSF and Water Treatment Plant 37 OceanaGold Corporation Innovation Performance Growth
Slide 38: Open Pit Water Management
Open Pit Water Management • Dewatering boreholes at pit perimeter are used as clean-water supply for camp and processing plant • Water used for dust suppression • Regular water quality analysis • Treatment of non- compliant water at Water Treatment Facility or pumped to TSF 38 OceanaGold Corporation
Slide 39: Erosion Control & Slope Stabilisation
Erosion Control & Slope Stabilisation Coco coirs/mats and vetiver grass 39 OceanaGold Corporation Innovation Performance Growth
Slide 40: Progressive Re-vegetation
Progressive Re-vegetation Before After 40 OceanaGold Corporation Innovation Performance Growth
Slide 41: Sewage Treatment Plant
Sewage Treatment Plant • 5 units operational • Daily TSS , weekly BOD, 3x a week • Chlorine, and weekly coliform tests, • Flowrate monitored on-line 41 OceanaGold Corporation Innovation Performance Growth
Slide 42: Regular Dust Suppression
Regular Dust Suppression 42 OceanaGold Corporation Innovation Performance Growth
Slide 43: Air Quality Monitoring
Air Quality Monitoring 43 OceanaGold Corporation Innovation Performance Growth
Slide 44: Noise and Vibration Monitoring
Noise and Vibration Monitoring 44 OceanaGold Corporation Innovation Performance Growth
Slide 45: Employee Environment Stewardship
Employee Environment Stewardship E-HERO PROGRAM 45 OceanaGold Corporation Innovation Performance Growth
Slide 46: Small Scale Mining Operations
Small Scale Mining Operations Small Scale Mining: A Legacy Community Environmental Issue 46 OceanaGold Corporation Innovation Performance Growth
Slide 47: Didipio Site SSM
Didipio Site SSM SSM 47 OceanaGold Corporation Innovation Performance Growth
Slide 48: SSM Silted/Turbid
SSM SSM Silted/Turbid SSM Clear Water 48 OceanaGold Corporation Innovation Performance Growth
Slide 49: OceanaGold Corporation Innovation Performance Growth
49 OceanaGold Corporation Innovation Performance Growth
Slide 50: OceanaGold Corporation Innovation Performance Growth
50 OceanaGold Corporation Innovation Performance Growth
Slide 51: Reforestation
Reforestation • 100 trees per 1 tree Reforestation fell/cut • 656 hectares total area planted to date 51 OceanaGold Corporation Innovation Performance Growth
Slide 52: Reforestation
Reforestation 52 OceanaGold Corporation Innovation Performance Growth
Slide 53: Reforestation
Reforestation Total of 94.26 Ha 53 OceanaGold Corporation Innovation Performance Growth
Slide 54: Environmental Management
Environmental Management July 2013 - Oceana Gold partnered with the International River Foundation, a Brisbane based environmental NGO that works in partnerships around the world to fund and promote the sustainable restoration and management of river basins. The IRF promotes long term relationships
Slide 55: oceanagold.com
oceanagold.com Innovation Performance Growth