Slide 1: Didipio Operations Site Visit - Day 1
April 2016 Didipio Operations Site Visit - Day 1
Slide 2: Cautionary & Technical Statements
Cautionary & 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 t
Slide 3: Didipio Overview
Didipio Overview
Slide 4: Didipio Overview
Didipio Overview Island of Luzon Didipio San Fernando (Port) Far Southeast (Goldfields/Lepanto) Manila Masbate (B2Gold) Paco Co-O (Medusa) Island of Mindanao *Note: Resources are inclusive of reserves 4
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 provincial road to site ▶ Manila to Didipio corresponds to 402 km ▶ Didipio to Kasibu – Bambang is 62 km ▶ Didipio to Poro Point is 355 km 5
Slide 6: Didipio Mine Aerial Shot
Didipio Mine Aerial Shot ocean oo Respect e Integrity © Teamwork © Innovation * Action ¢ Accountability
Slide 7: Employment Information
Employment Information Point of Hire No. Percentage Male Female From Didipio, Kasibu, Nueva Vizcaya 145 28% 110 35 From Other Barangays of Kasibu 43 8% 37 6 From Other Towns of Nueva Vizcaya 62 12% 53 9 From Quirino Province 47 9% 44 3 From Other Province 223 43% 193 30 TOTAL 520 100% 437 83 OGPI Co
Slide 8: Brief History
Brief History ▶ CAMC Exploration Phase (1992) ▶ Financial or Technical Assistance Agreement (FTAA) No. 001 (1994) ▶ OceanaGold merges with Climax Mining – Didipio acquired in transaction (2006) ▶ Didipio Project put on care & maintenance during Global Financial Crisis (2008) ▶ Re-commencement of con
Slide 9: Didipio Operations Management Team
Didipio Operations Management Team David Way Edgar Rivera Russell Graham Nericel Langres General Manager Asset Protection Manager Commercial Manager Community Relation & Communications Manager Jason Magdaong Imma Kaamino Environment Manager Human Values Manager Annabel Punzalan Occupational Health &
Slide 10: Site and Community Services
Site and Community Services Site and Community Services Department comprises of 3 main areas/teams Site Services Concentrate Logistics Mobile Maintenance ▶ Infra project ▶ Handles safe & ▶ Maintenance management services efficient transport services to all of copper light vehicles and ▶ Engineering
Slide 11: Didipio Operations Highlights
Didipio Operations Highlights ▶ OceanaGold received the highest awards, the Presidential Mineral Industry Environmental Award (PMIEA) including Safest Surface Mining Operation, and ▶ Safest Mining Operation (Metallic Category). On January 19, 2016, ▶ The President of the Republic of the Philippines,
Slide 12: Didipio Operations Highlights
Didipio Operations Highlights The Didipio Operations Environmental Management System (“EMS”) ISO 14001:2004 was recertified under the Integrated Management System (“IMS”) with OSHAS 18001:2007 in December 2015 by the Certification International Philippines, Inc. (“CIP”). 12
Slide 13: Didipio Operation AIFR for 2015
Didipio Operation AIFR for 2015 12 Month Mov. Avg AIFR 2015 14.0 12.0 10.0 10.4 8.0 6.0 4.0 2.0 0.0 13
Slide 14: Didipio Operation TRIFR for 2015
Didipio Operation TRIFR for 2015 12 Month Mov. Avg TRIFR 2015 3.0 2.5 2.0 1.8 1.5 1.0 0.5 0.0 14
Slide 15: Financial
Financial 2013 2014 2015 Gold Ounces Sold (oz) 52,813 110,510 123,901 Copper Sold (t) 19,741 25,886 22,764 Gold Sales Revenue ($’000) 67,952 139,356 140,867 Copper Sales Revenue ($’000) 140,690 183,206 121,806 Ave. price received gold ($/oz) 1,287 1,261 1,137 Gold Equivalent Oz sold (oz) 162,158 255
Slide 16: Didipio Operating Statistics
Didipio Operating Statistics Year Year Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015 Lost time injuries 0 1 0 0 2 1 Gold production oz 35,122 30,042 28,829 33,094 106,256 127,086 Copper production t 6,102 6,198 5,219 5,591 25,010 23,109 Total ore mined Mt 1.9 1.3 1.6 2.3 8.38 7.1 Total waste mined Mt 4.
Slide 17: Didipio Overview
Didipio Overview DIDIPIO 2016 GUIDANCE RESERVES AND RESOURCES* Gold Production oz 130,000 – 145,000 Moz Mt g/t Au % Cu Mt Au Copper Production t 19,000 – 21,000 P&P 44.1 1.09 1.55 0.41 0.18 Reserves AISC per oz sold $300 – $350 M&I 54.8 1.07 1.88 0.40 0.22 Resources Cash Costs per oz sold $20 – $70
Slide 18: Mining Operations
a) OCEANAGOLD MINING OPERATIONS
Slide 19: Mining Operations
Mining Operations ▶ Mining is carried out by Delta Earthmoving (National) ▶ Contractor performing well and record production achieved for the year (TMM, Ounces and high grade ore) ▶ In-hole Explosives supply and load contract with Orica ▶ Maintenance strategies implemented with Delta for improved eq
Slide 20: Mining Fleet
Mining Fleet ▶ Fleet consists of: » 4 x PC2000 (200-tonne excavators) » 3 x 120-tonne excavators » 26 x 100-tonne trucks (777D & 785) » 9 x dozers (D9 and D8) plus other ancillary equipment ▶ Open pit workforce consisting of » 456 workers » 58 supervisors » 10 Managers/Superintendents 20
Slide 21: 2015 Production Graphs
2015 Production Graphs 2015 Monthly Gold Production 2015 Monthly Copper Production 2,500 16,000 14,000 2,000 12,000 10,000 1,500 8,000 Ounces 6,000 1,000 Tonnes 4,000 500 2,000 - - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Actual Mine to D
Slide 22: Didipio Ore Inventory
Didipio Ore Inventory Expected to have over 24 million tonnes stockpiled by end of 2017 Didipio Stockpile Inventory 17.0 16.0 15.0 14.0 Ore (Mt) 13.0 12.0 11.0 10.0 Mar 2015 Oct 2014 Jan 2015 Apr 2015 May 2015 Jun 2015 Feb 2015 Jul 2015 Oct 2015 Nov 2015 Nov 2014 Dec 2014 Aug 2015 Sep 2015 Dec 2015
Slide 23: Geological Practices
Geological Practices Industry best practice ▶ Modelling by using a combination of hard and soft domains; ▶ Ordinary Kriging estimation tools; ▶ Pit mapping integrated with geological modelling on a regular basis; ▶ Sampling and QA/QC practices reviewed monthly; ▶ Grade control sampling with RC rig a
Slide 24: Geotechnical Engineering
Geotechnical Engineering Slope Stability Monitoring using Radar
Slide 25: Current Mining Operations
Current Mining Operations Actively mining stages 5 and 6. Design Strip Ratio Gold (ounces) Copper (tonnes) Remaining Tonnes Completion Date Stage 5 1:0 46,453 4,783 0.6 July 2016 Stage 6 1 : 0.98 343,391 45,284 22.3 December 2017 25
Slide 26: Open Pit Mining Initiatives
Open Pit Mining Operations Initiatives ▶ Optimise Electronic Blasting System (EBS); ▶ Schedule optimisation of all dumps and stockpiles; ▶ Maintenance strategies & increased availabilities; ▶ Open pit contract management; ▶ Aligning mining schedule with wet weather patterns; ▶ Geotechnical assessmen
Slide 27: TSF Design
TSF Design ▶ Current Crest RL2783m, current freeboard 6.8m ▶ Current storage capacity 3.5Mm3 tailings and flood storage ▶ Storage equivalent to store a 1:10,000 year flood (2.9Mm3) without spilling. (Design requires min 1:100 year storage). ▶ Exceeds International and Philippine Standards recommende
Slide 28: Current Status
Current Status ocean o.o TAILINGS STORAGE FACILITY-UPSTREAM - ¥ \\_ Filter Zone Ree Clay Core TAILINGS STORAGE FACILITY - DOWNSTREAM STAGE 14 y 3B ZONE FLOWTHROUGH. INSION 28 Respect e Integrity © Teamwork © Innovation * Action ¢ Accountability
Slide 29: Didipio UG Project
DIDIPIO UG PROJECT
Slide 30: Underground SLOS Mine
Underground SLOS Mine ▶ 1.6mtpa ▶ Bottom up primary/secondary ▶ Cemented Paste Backfill ▶ 200m panels (crown and sill) ▶ Truck haulage ▶ Q4 2017 Production Start ▶ Staged pumping ▶ Twin portal access ▶ Surface primary fans 30
Slide 31: Geology
Geology Biak Shear Monzonite Diorite Dark Diorite Stringer Zone Monz-Dio Porphyry ≥1.5 g/t AuEQ Grade Shell ≥1.1 g/t AuEQ Grade Shell 31
Slide 32: Sub Levels
Sub Levels ▶ 30m sub levels ▶ 200m panels ▶ Crown and sill pillars ▶ Footwall drives ▶ Ore drives ▶ Vent connections ▶ Escape ways ▶ Truck loading 32
Slide 33: Underground Production Plan
Underground Production Plan 33
Slide 34: UG Project Production Profile
UG Project Production Profile Note: Additional 2yrs of production stoping has been designed 34
Slide 35: CAPEX
CA P EX OCEANAGOLD Yr.1 Yr.2 Yr.3 Total USSM USSM USSM Development 9 22 22 52 UG Mobile Equipment Pre-Production 9 2 16 27 UG Mobile Equipment Rebuilds 0 0 1 1 UG Mobile Equipment - Sustaining 0 0 0 UG Electrical Equipment 1 7 1 UG Infrastructure 2 19 2 23 UG Other 2 0 1 3 Total 23 50 48 116 UG UG L
Slide 36: Permanent Equipment
Permanent Equipment SPRAYMEC MF050VC RG001 ROAD GRADER TH001 SANDVIK HAUL TRUCK DT001 UG TRUCK AGITATOR TRUCK LF600 LHD R2900 CAT JUMBO DRILL DD421 IT62H CARRIER CAT TH514 TELEHANDLER CC1400(2X150) kW VENT FAN 36
Slide 37: Auxiliary Pumping
Auxiliary Pumping Target 100l/s maximum discharge for decline Stage mobile pumping installations with redundancy 37
Slide 38: Primary Vent Fans
Primary Vent Fans Planned Vent fans Vent fan Locations 38
Slide 39: Environment Management
ENVIRONMENT MANAGEMENT
Slide 40: Regulatory Citations
Regulatory Citations 2015 ▶ Presidential Mineral Industry Environmental Award ▶ Safest Surface Mining Operation Award and ▶ Safest Mining Operation-Metallic Category ▶ Pusong Minero Awards for OGPI ERT and DELTA Mining ▶ Finalist – PCCI E3 awards ▶ Mother Nature Award – PCAPI ▶ Success Story Award (
Slide 41: Didipio Integrated Management System
Didipio Integrated Management System (ISO 14001:2004/OHSAS 18001:2007 41
Slide 42: Water Management
Water Management Process Plant 100 % Discharge to TSF 80 % Recycled/Re-used Tailings Storage Facility 42
Slide 43: Water Management
Water Management 1. Regular testing ofProcess water quality 2. Treatment in WaterPlant Treatment Facility prior to discharge. 3. No discharge if water quality is not within DENR standard. 43
Slide 44: 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 45: Clarifier Overflow
Water Treatment Plant Clarifier Overflow 45
Slide 46: Erosion Control, Slope Stabilization and Progressive Rehabilitation
Erosion Control, Slope Stabilization and Progressive Rehabilitation March 2015 July 2014 December 2015 November 2015 46
Slide 47: Effective Hazardous Waste / Proper Chemical Management
Effective Hazardous Waste / Proper Chemical Management Centralized Hazwaste Storage Management Hydrocarbons and chemicals are stored in bunded areas 47
Slide 48: Third-party Environmental Compliance Audit (ECA)
Third-party Environmental Compliance Audit (ECA) 48
Slide 49: Biodiversity Monitoring
Biodiversity Monitoring ®) OCEANAGOLD ~ 7 DN + UPLB Uneversity of the Philippines Los Baios Foundation incorporated Ecological Assessment and Monitoring of Biodiversity in Terrestrial and Aquatic Ecosystems in Didipio Gold Copper Project & Nueva Vizcaya, Philippines Respect © Integrity © Teamwork ©
Slide 50: Employee Environment Stewardship
Employee Environment Stewardship E-HERO PROGRAM 50
Slide 51: Small Scale Mining Operations
Small Scale Mining Operations 51
Slide 52: Continuing Reforestation
Continuing Reforestation 52
Slide 53: Establishment of Nurseries
Establishment of Nurseries 53
Slide 54: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD