Slide 1: Didipio Operations Site Visit Day 2
Didipio Operations Site Visit Day 2 March 2015
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: Process Plant Operations
Process Plant Operations 3 OceanaGold Corporation Innovation Performance Growth
Slide 4: Processing Highlights
Processing Highlights Didipio Process Plant Ramp Up • Pebble crusher installed and Schedule 4,000,000 300,000 commissioned in November 3,500,000 250,000 2014 Throughput (Mtpa) 3,000,000 2,500,000 200,000 • Debottlenecking activities 2,000,000 150,000 1,500,000 completed in 2014 100,000 1,000,000 500
Slide 5: Pebble Crusher
Pebble Crusher • Previous bottleneck was accumulation of harder rock • Installation of the SABC circuit allows for larger discharge ports to be fitted in the SAG mill • Hard ore particles pass on to a cone crusher – reduced from 50mm to < 10mm • Rejoins the SAG feed where it is able to pass straight
Slide 6: Process Plant Flow Sheet
Process Plant Flow Sheet 6 OceanaGold Corporation Innovation Performance Growth
Slide 7: Processing 2014
Processing 2014 Year Year Q4 2014 Q3 2014 Q2 2014 Q1 2014 2014 2013* Mill feed Mt 0.87 0.85 0.64 0.75 3.11 2.58 Mill feed grade gold g/t 1.39 1.09 0.80 1.40 1.19 0.94 Mill feed grade copper % 0.83 0.90 0.79 0.90 0.86 0.98 Recovery gold % 90.2 88.3 89.4 90.2 89.5 83.0 Recovery copper % 93.8 92.3 93.3
Slide 8: Processing Costs
Processing Costs • Processing cost for 2014 at $11.18 tonne of ore milled • Process costs expected to range between $9 to $11 per tonne milled • Concentrate Transport, and Smelting $315/DMT of concentrate 2014 • 2014 power costs: $0.26/kW/hr • Jan 2015 power cost: $0.16/kW/hr • Diesel fuel consumpti
Slide 9: Processing: Percent of Nameplate Capacity
Processing Percent Achieved of Nameplate Capacity 2.5Mtpa 160% 140% 120% 100% 80% 60% 40% 20% 0% Mar/13 Jun/13 Aug/13 Oct/13 Mar/14 Aug/14 Oct/14 Jan/13 Nov/13 Jun/14 Jan/14 Nov/14 Feb/13 Apr/13 Jul/13 Sep/13 Feb/14 Jul/14 Sep/14 Dec/12 May/13 Dec/13 May/14 Dec/14 Apr/14 Didipio actual Forecast Didi
Slide 10: 2014 Processing Cost Actuals
2014 Processing Cost Actuals Processing Costs Actual $25.00 $20.00 $15.00 $ /tonne milled $10.00 $5.00 $0.00 Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14 Jul/14 Aug/14 Sep/14 Oct/14 Nov/14 Dec/14 10 OceanaGold Corporation Innovation Performance Growth
Slide 11: Process Plant Ramp-Up
Process Plant Ramp-Up Status Completion Water Treatment Plant Completed & in-operation Q2 3rd Stage Tailings Pump Completed & in-operation Q3 Cone Crusher into SAG Circuit Completed & inAccess operation Platform Q4 Installation next planned Tech Taylor Valve Replacement Q1 2015 Cyclone Feed Pu
Slide 12: Didipio Concentrate Production Profile
Didipio Concentrate Production Profile Copper Concentrate Production • 100% of concentrate sold (DMT) to Trafigura 12,000 • Shipments made to 10,000 smelters in Asia; typically Korea and Japan 8,000 • Gold grade in concentrate increasing, copper grade 6,000 24 – 25% • Transportation logistics 4,000
Slide 13: Concentrate Transport
Concentrate Transport • Transport Route is approx. 354 kilometres • Benchmark TC/RCs – $92/DMT /$c 9.20/lb (2014) – $107/DMT /$c 10.70/lb (2015) • Trucking Cost to Port $55/DMT of concentrate 2014 13 OceanaGold Corporation Innovation Performance Growth
Slide 14: OHPL Routes Phase 1 and Phase 2
OHPL Routes Phase 1 and Phase 2 OHPL Specifications 69kV single circuit • Steel pole structure with vertical transmission lines Conductor • Phosphorous Conductor • Diameter – 26.30mm 13.8kV single circuit • Underbuilt horizontal transmission line Conductor • Quail Conductor • Diameter – 11.35mm Eart
Slide 15: OHPL
OHPL Length of Powerline • Stage 1 – Bambang to Didipio Substation – Approximately 63kms • Stage 2 – Bayombong NGCP Substation to Bambang– Approximately 10kms Capital Cost • Approximately $15 million • Expected supply cost once online $0.14 kWh to $0.15 kWh Schedule • Stage 1 is planned to be comple
Slide 16: OHPL Progress Photos
OHPL Progress Photos Stage 1 take off pole at Bambang Stage 1 pole installation progress 16 OceanaGold Corporation Innovation Performance Growth
Slide 17: OHPL Progress Photos
OHPL Progress Photos Stage 2 NGCP Substation Transformer Stage 1 pole installation progress installation at Bayombong in progress Stage 1 pole staging 17 OceanaGold Corporation Innovation Performance Growth
Slide 18: Process Plant – Looking Forward
Process Plant – Looking Forward • Flotation reagent optimisation • SAG mill liner design change • Cleaner circuit GRG recovery program • Promotion of Philippine nationals into positions previously held by externally resourced employees • Implementation for the Preventive Maintenance Strategy 18 Ocea
Slide 19: Exploration
Exploration 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: OceanaGold's Philippine Tenements
OceanaGold’s Philippine Tenements North Luzon Didipio Tenements Tenements North Luzon Didipio • Over 80k hectares of prospective ground • Exploration still Surigao constrained by permitting issues Surigao Tenements • Currently active in Didipio PDMF area and Paco EPs • Proactive in generating new pr
Slide 21: Didipio PDMF - Near Mine Exploration
Didipio PDMF - Near Mine Exploration • Conducted deep IP/MT Didipio PDMF Area survey over 30.4 line- San Pedro DDDH236 450.4m EOH True Blue km using Titan 24 in DDDH235 DDDH233 2014 445.2m EOH 356.6m EOH MINE DDDH230 501.3m EOH • Identified targets for DDDH237 542.6m EOH PIT DDDH231 drilling from a
Slide 22: Didipio – Resource Geology
Didipio – Resource Geology Limit of Oxidation New Stage 5 & 6 Pit Designs Previous Stage 5/6 Pit Design Underground Mine AuEq g/t Dark Dark Diorite Diorite 22 OceanaGold Corporation Innovation Performance Growth
Slide 23: Didipio – Resource Geology
Didipio – Resource Geology Proposed UG Workings with Pit Stages 5 and 6 and 1.5+ g/t Au Eq Ore Solid September 2014 Reserve Estimates 1 Reserve Area Tonne Au Cu Contained Contained s (g/t) (%) Au Cu (Mt) (Moz) (kt) Open Pit 22.10 0.96 0.45 1.681 100.5 Underground 15.92 1.86 0.43 0.952 68.6 Stage 6 S
Slide 24: Didipio FTAA - Regional Exploration
Didipio FTAA - Regional Exploration • Several targets Runruno Au-Mo ready for drilling TNN • Cabinwangan Cu-Au±Mo Cabinwangan Cu-Au EP-02-03 and Papaya are EPA-02-67 EP-02-07 Mogambos the priority EP-02-06 MMB Cu-Au-Ag Cu-Au 4 holes, 1200m for scout targets drilling San Pedro Mining Permit Area • Re
Slide 25: Papaya Prospect
Papaya Prospect MAP Didipio • 12km west of Didipio • Grid soil sampling delineated 1.42 g/t Au and 6.81% Cu NE-SW trending Au-Cu (±Pb-Zn-V) anomalies • Anomaly coincides with 2m @ 1.91 g/t Au 2m @ 1.48 g/t Au sericite-clay alteration zone PPYCH02: 4m @ 0.26% Cu • Rock samples range from and 0.03g/t
Slide 26: Cabinwangan (EPA-II-67)
Cabinwangan (EPA-II-67) MAP Didipio Drilling Highlights (MetEx): • Partly outcropping mineralised 31m @ 0.35 g/t Au & 0.85% Cu 28m @ 0.65 g/t Au & 0.27% Cu 13m @ 0.75 g/t Au & 0.25% Cu Cu-Au porphyry south of the 7m @ 1.16 g/t Au & 0.57% Cu Runruno Au-Mo deposit • High grade Au and Cu results return
Slide 27: Paco EP's
Paco EP’s Exploration Permit EX-XIII-02 Bayugo Deposit: 125M tonnes at 0.60% Cu and 0.66 g/t Au (M&I) Kalayaan Exploration Permit EX-XIII-04 Surigao-Agusan Mining District Showing Gold-Copper Mines/ Deposits/ Boyongan Deposit: 273M tonnes at 0.52% Cu and 0.72 g/t Au Significant Prospects • Covered u
Slide 28: Paco EP's
Paco EP’s Proposed IP Line Au 0.6 g/t DDH Assays contoured for the first 30 meters Cu 0.3 % of Pre-Quaternary Bedrock. Bayugo Boyongan Background Image: Magnetic Response 28 OceanaGold Corporation Innovation Performance Growth
Slide 29: Mayag EPA
Mayag EPA Mayag EPA 73.4m @ 0.70% Cu • Potential for large porphyry Cu-Au 106.2m @ 0.48% Cu deposit 65.8m @ 0.40% Cu • Previous drilling by Lepanto hit porphyry Cu mineralisation (Au 5.31 g/t Au and 0.04 % Cu Paco EP not assayed) • Drilling to commence once EP LEGEND Au anomaly in soils (>50 ppb) An
Slide 30: Manag EPA's
Manag EPA’s DDH-3: 69m @ 1.07% Cu and 1.30 g/t Au DDH-4: 125m @ 0.55% Cu and 0.65 g/t Au DDH-6: 68m @ 0.62% Cu and 1.20g/t Au DDH-10: 74m @ 0.58% Cu and 0.47 g/t Au DDH-12: 26m @ 0.70% Cu and 0.63 g/t Au EXPA-54 Manag Prospect Gold rich porphyry copper Greenwater Baren River Anidaan Baren River DDH-
Slide 31: Community
Community 31 OceanaGold Corporation Innovation Performance Growth
Slide 32: Key Community Investments Overview
Key Community Investments Overview Building Capacity Not Dependency Infrastructure Human Resource Development Enterprise Development Education Scholarships Salary Subsidies, DICORP OGSAI financial assistance • Awarding of long term contracts (camp • Partnership with local government units Health & M
Slide 33: 2014 Spend on Community Investments
2014 Spend on Community Investments Over US$3 million investment in community programs & initiatives in 2014 Infrastructure Assistance Education Capacity Building Sports and Socio-Cultural Development Enterprise Development Health and Nutrition 33 OceanaGold Corporation Innovation Performance Growth
Slide 34: Infrastructure
Infrastructure • Construction and improvement of farm to market roads and small bridges within the host and neighboring communities • Construction of day care centers, school buildings and classrooms • Construction of community police outpost, post harvest facilities – solar dryers • Construction of
Slide 35: Education
Education • Scholarships and financial assistance provided to more than 200 residents of host and neighboring communities • 48 teachers’ salaries subsidized • Supported school activities (campus journalism training, nutrition month celebrations, intramural sports activities) 35 OceanaGold Corporatio
Slide 36: Capacity Building
Capacity Building • Assessment and planning workshops with community development councils • Leadership training for university scholars • Training on Local Governance for newly elected community council members • Training on Disaster Risk Reduction Management and Basic Cost Estimation for Infrastruc
Slide 37: Health & Nutrition
Health & Nutrition • Salary subsidies for 55 community health workers and nutrition scholars • Construction and/or improvement of small water systems • Provision of medicine, materials and equipment for community clinics • Provide access to company clinic and medical team • Training on first aid for
Slide 38: Socio-Cultural and Sports
Socio-Cultural and Sports • Participation and support to village fiestas, community gatherings (weddings, wakes), • Participation and support to Municipal and Provincial Foundation Day celebrations • Support to religious/church activities 38 OceanaGold Corporation Innovation Performance Growth
Slide 39: Enterprise Development – DiCorp
Enterprise Development – DiCorp • Didipio Community Development Corporation (DiCorp) employs almost 300 from local communities • Awarded contracts in camp catering, housekeeping, laundry and employee shuttle services, manpower pool, road maintenance, copper concentrate haulage, environmental service
Slide 40: Enterprise Development – Cont.
Enterprise Development – Cont. • Livelihood Direction Setting Workshop in partnership with a local state university and provincial offices of the Departments of Agriculture, Trade and Industry • Training on Enterprise Development and Business Planning • Organized community cooperatives that now serv
Slide 41: Enterprise Development – OGSAI
Enterprise Development – OGSAI OceanaGold Sustainable Agroforestry Inc. Achievements as of Dec. 2014 309,000+ trees planted 412,000+ seedlings donated (propagated and purchased) 326+ hectares reforested (including 100 ha commercial plantation) 110 farmer/landholders benefitting from commercial & ref
Slide 42: Communications
Communications Publications and AV Presentations Events Based Campaigns • Bimmoble – Multilingual • Setting up of information community newspaper booths during Municipal and • Didipio News – Company Provincial Foundation days newsletter for employees • Participation in sponsored • AVPs on various pr
Slide 43: Other Company CSR Initiatives
Other Company CSR Initiatives Integrated River Basin Management in partnership with International River Foundation Road Safety Awareness Emergency Response to National Disasters in the Philippines Employee Donations to Children’s Hour Projects Micro financing with Grameen Australia Philippines Housi
Slide 44: 2015 Outlook
2015 Outlook Infrastructure Human Resource Development • Community Water System • College Scholarship (200 students) • 2.2 km road concreting • Salary/Subsidy • 22 km provincial road rehabilitation • Teachers (53) & maintenance • Health Workers (18) • Village Workers Engaged in SDMP • Sanitary Landf
Slide 45: oceanagold.com
oceanagold.com Innovation Performance Growth