Slide 1: Consistently Delivering On Commitments - Macraes Site Visit
Consistently Delivering On Commitments November 25, 2015 Macraes Site Visit Innovation • Performance • Growth
Slide 2: Cautionary and Technical Statements
Cautionary and Technical Statements 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
Slide 3: Presentation Outline
Presentation Outline • Overview • History of Macraes Gold Operation • Environment and Our Community • Health and Safety • Operational Performance • Exploration Results • Organic Growth 3 OceanaGold Corporation Innovation Performance Growth
Slide 4: Macraes Goldfield Overview
Macraes Goldfield Overview GOLD Avg. Unit Operating Costs OPEN PIT & UNDERGROUND O/P Mining Costs NZD / t mined 1.50 – 1.60 U/G Mining Costs NZD / t mined 53 – 55 Auckland Processing Costs NZD / t milled 9.50 – 10.50 Waihi Site G&A Costs NZD / t milled 2.00 – 2.50 Wellington Capital Costs (2015) Ree
Slide 5: Macraes Operation Overview
Macraes Operation Overview • 415 employees • 175 in the Underground mining Operation • 125 in the Open Pit Mining Operation • 80 in the Processing Plant • 35 in Services and Administration (HR, Environment, Tech Services, Commercial) • 80 full time equivalent Contractors: • Analytical Laboratory ons
Slide 6: The History – Gold Grade
The History – Gold Grade “…it was 30 years ago on the 17th August when we received the results from the first drill hole drilled by Homestake 100m down dip and on the axis of the Round Hill shoot – composite 26m @ 6.23g/t – an intercept you never forget! At the time we never envisaged a mine the siz
Slide 7: Orebodies of Macraes
Orebodies of Macraes Orebodies treated over life of operation. • Golden Point • Round Hill • Southern Pit • Innes Mills • Frasers • Frasers Underground • Frasers South • Frasers North • Deep Dell • Gold Bar • Coronation Spreading some 20km north and south along the line of strike. 7 OceanaGold Corpo
Slide 8: The Evolution of the Gold Recovery Process
The Evolution of the Gold Recovery Process 1990 Oxide Circuit: • 250 tph • 2.02g/t • 90% Au Recovery 8 OceanaGold Corporation Innovation Performance Growth
Slide 9: Macraes Processing Plant Flowsheet
MACRAES PROCESSING PLANT FLOWSHEET ROUGHERS/SCAVENGERS Run-of- mine EMERGENCY ore FEED CYCLONE CLEANERS ROM BIN Scats UNIT CLEANER- BALL MILLS CELLS SCAVENGERS JAW GRIZZLY CRUSHER GRAVITY CELL SAG MILL 02 MILL 01 CON THICKENER MILL 350 REGRIND MILL Transition from Oxide to Sulfide ~ 1995: • Increase
Slide 10: Macraes Processing Plant Flowsheet
MACRAES PROCESSING PLANT FLOWSHEET RECLEANERS 6x16 m³ Run-of- mine EMERGENCY ore FEED CYCLONE CLEANERS 4x38 m³ ROM BIN Scats UNIT CLEANER- BALL MILLS CELLS SCAVENGERS 5x38 m³ JAW GRIZZLY CRUSHER Run-of- SAG MILL 02 mine MILL 01 ore ROM 15m CON BIN WASH THICKENER MILL 350 JAW REGRIND MILL MILL 500 RO
Slide 11: Macraes Processing Plant Flowsheet
MACRAES PROCESSING PLANT FLOWSHEET RECLEANERS 6x16 m³ Run-of- mine EMERGENCY ore FEED CYCLONE CLEANERS 4x38 m³ ROM BIN Scats UNIT CLEANER- BALL MILLS CELLS SCAVENGERS 5x38 m³ JAW GRIZZLY CRUSHER Run-of- SAG MILL 02 mine MILL 01 ore MACRAES VENT ROM 15m CON CON SCRUBBER BIN Limestone WASH STORAGE THI
Slide 12: Macraes Processing Plant Flowsheet
MACRAES PROCESSING PLANT FLOWSHEET RECLEANERS 6x16 m³ Run-of- mine EMERGENCY ore FEED CYCLONE CLEANERS 4x38 m³ ROM BIN Scats UNIT CLEANER- BALL MILLS CELLS SCAVENGERS 5x38 m³ JAW GRIZZLY CRUSHER Run-of- SAG MILL 02 mine MILL 01 ore MACRAES VENT ROM 15m CON CON SCRUBBER BIN Limestone WASH STORAGE THI
Slide 13: Autoclave
Autoclave Recovery improvement realised was Refractory gold associated with sulphides approximately 10% overall Pressure oxidation autoclave (30 bar and Reefton concentrate is highly refractory 220ºC) was commissioned in 1999 and makes for an ideal autoclave feed 13 OceanaGold Corporation Innovation
Slide 14: Sound Environmental Management
Sound Environmental Management An unwavering commitment to the environment today, for tomorrow Native Fauna Ecology Rehabilitation • Creation of lizard rock piles to • Three covenant areas • Restoring lands to support provide additional habitat showcasing natural vegetation grazing Water Rainbow Tro
Slide 15: Investing in Our Local Community
Investing in Our Local Community $6 Billion* of Revenue with a big proportion being spent right here in Otago EDUCATION SUSTAINABLE DEVELOPMENT COMMUNITY Macraes Development INVESTMENT Community trust established this year Education Sports and Socio-Cultural (NZ$2.3M) Health and Research Sustainable
Slide 16: Health and Safety Performance
Health and Safety Performance 25 2016 Key Initiatives / Safety & LTI MTI RWI LTIFR Health Campaigns MTIFR RWIFR TRIFR • Develop a sustainable ‘As Good as 20 Gold’ program (cultural change) • Ongoing task observation emphasis 15 on principal hazards and critical controls 10 • Continued improvement ar
Slide 17: Macraes Open Pit
Macraes Open Pit Mining Fleet: • 12 x CAT 789 • 2 x Hitachi 3600 • 1 x Hitachi 2500 • 1 x CAT 5230B • 2 x Montibert 330CL Drills (Grade Control) • 2 x D45 KS Dill Techs (waste) • Numerous Ancillary Equipment 17 OceanaGold Corporation Innovation Performance Growth
Slide 18: Frasers Underground
Frasers Underground Mining Fleet: • 3 x Development Jumbo • 2 x Production Dills • 1 x Cable Bolter • 3 x CAT R1700 Remote Boggers • 2 x CAT R2900 Manual Boggers • 5 x Toro 50D Trucks 18 OceanaGold Corporation Innovation Performance Growth
Slide 19: 2015 at a Glance
2015 at a Glance 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: Mining Performance
Mining Performance Open Pit Mining Statistics $1.40 120 $1.20 100 $1.00 80 Tonnes Moved $0.80 US$/tonne 60 $0.60 40 $0.40 $0.20 20 $0.00 0 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 Mining Costs Per Tonne Total Movement Underground Mining Statistics $60.00 120 $50.00 100 $40.00 80 Tonnes
Slide 21: Processing Performance
Processing Performance $9.00 Processing Statistics 600 $8.00 500 $7.00 $6.00 400 Tonnes Milled $5.00 US$/tonne 300 $4.00 $3.00 200 $2.00 100 $1.00 $0.00 0 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 Processing Costs Per Tonne Tonnes Processed 1.20 83 82 1.00 Mill Feed Grade (g/t) Total Rec
Slide 22: Macraes Exploration Strategy
Macraes Exploration strategy Extend Macraes mine life through: • Targeted drilling of potential high value low stripping ratio pits to establish solid mine life • Extend exploration to known and new areas in current permits • Investigate new areas outside current permits (new prospecting permits) •
Slide 23: Macraes North 2015 versus 2014 Results
Macraes North 2015 versus 2014 Results 23 OceanaGold Corporation Innovation Performance Growth
Slide 24: 2015 Exploration Drilling
2015 Exploration Drilling Target Metres Drilled # of Holes Coronation North 25,712 227 Coronation South 912 14 Innes Mills 8,632 85 Longdale 562 24 Frug 7,425 37 Total 43,243 387 Coronation North Maiden Resource Tonnes (M) g/t Au Ounces Proven & Probable - - - Measured & Indicated 2.75 1.52 0.13 Inf
Slide 25: FRUG 2015 Results
FRUG 2015 results 25 OceanaGold Corporation Innovation Performance Growth
Slide 26: 2016 Drilling
2016 Drilling North of Macraes • 300 drill holes • 35,000 metres South of Macraes 26 OceanaGold Corporation Innovation Performance Growth
Slide 27: Exploration Strategy: Macraes North
Exploration strategy: Macraes North 27 OceanaGold Corporation Innovation Performance Growth
Slide 28: Exploration Strategy: 2016 FRUG Exploration
Exploration strategy: 2016 FRUG Exploration 28 OceanaGold Corporation Innovation Performance Growth
Slide 29: Exploration Strategy: Macraes South
Exploration strategy: Macraes South 29 OceanaGold Corporation Innovation Performance Growth
Slide 30: Macraes South Target: Ounce
Macraes South Target: Ounce 30 OceanaGold Corporation Innovation Performance Growth
Slide 31: Macraes South Target: Wilsons
Macraes South Target: Wilsons 31 OceanaGold Corporation Innovation Performance Growth
Slide 32: Macraes Gold – Tungsten Project
Macraes Gold – Tungsten Project • Scoping study completed in Q2 2015 • Feasibility study commenced in Q3 2015 • Results expected in mid-2016 • Concept • Development of new 3-4 Mtpa plant • Plant constructed in new location to unsterlize current deposit • Initial circuit to process tungsten • Potenti
Slide 33: oceanagold.com
oceanagold.com Innovation Performance Growth