Slide 1: Haile Gold Mine Site Visit Presentation
March 2 / 3, 2017 Haile Gold Mine Site Visit Presentation
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: Introduction / Haile Operation
INTRODUCTION / HAILE OPERATION
Slide 4: Agenda and Itinerary
Agenda and Itinerary 7:00 AM Depart Ballantyne Hotel via CLT Express for HGM Depot 8:15 AM Arrive @ HGM Depot 8:30 AM OGC-HGM Welcome/Introductions to the Haile Operations Team 8:40 AM Safety Induction 9:00 AM Mine Tour / PAG Cell / Process Plant / Tailings Facility 11:30 AM Exploration Presentation
Slide 5: Haile Operations Team
Haile Operations Team MARK CADZOW EVP & CRAIG CRAIGFEEBREY FEEBREY EVP & Head of Exploration Chief Development Officer Head of Exploration DAVID THOMAS DAVID BICKERTON General Manager & VP Project Execution VP Project Execution Structure JOHN JORY Director of Exploration QUENTON JOHNSTON SCOTT MCDAN
Slide 6: Health, Safety and Security
a) OCEANAGOLD HEALTH, SAFETY AND SECURITY STOP AND THINK A Personal Preliminary Risk Assessment must be performed: ® At the start of each shift or new task When the task changes from plan if there Is no SOP or procedure in place Where there Is a significant change in the environment * At the Introdu
Slide 7: Visitor Induction
Visitor Induction All visitors must: ▶ Remain under HGM escort ▶ Be aware of Slip/Trip or Fall opportunities » Walking Surfaces » Changing Ground Conditions ▶ Obey all signage and rules ▶ Wear all appropriate PPE, as provided ▶ Seat belts must be worn on mine site ▶ Photographs can be taken with per
Slide 8: Emergency Response Procedures
Emergency Response Procedures In case of emergency, remain with your escort and follow all directions given. ▶ Notify security of incidents or injuries immediately. ▶ Contact information: » From external cell: 803-475 – 1276 » From an internal handset: Extension – 1276 » From a HGM Radio: Radio Chan
Slide 9: Safety Progress
Safety Progress ▶ Project TRIFR 5.72 (YTD 2017) ▶ Emergency response capability Using 1,000,000 hour multiplier continues to grow. Rescue Team ▶ 2017 Health and Safety Strategy and membership totals 49 throughout the Action Plan developed and communicated. workforce. ▶ Mine Regulator (MSHA) training
Slide 10: Overview
a) OCEANAGOLD OVERVIEW
Slide 11: Top Tier Jurisdiction
Top Tier Jurisdiction ▶ ~60 miles north of Columbia, SC ▶ ~60 miles south of Charlotte, NC 11
Slide 12: Haile Overview
Haile Overview 2017 GUIDANCE Gold Production oz 150,000 – 170,000(1) AISC per oz sold $500 – $550 Cash Costs per oz sold $400 – $450 ▶ First gold pour » 20 January 2017 ▶ Advancing Haile expansions » Optimisation study expected mid-2017 ▶ Commercial production » Expected in early Q2 2017 1. Costs ba
Slide 13: 2017 Unit Costs
2017 Unit Costs Mining Cost USD / tonne mined 1.80 – 1.90 Processing Cost USD / tonne milled 11 – 12 G&A Cost USD / tonne milled 4–5 ▶ Mining Costs » As operations ramp-up over time, mining costs are expected to decrease to closer to $1.60/t ▶ Mining Costs » Are expected to decrease with higher thro
Slide 14: Capex Overview
Capex Overview 2017 GUIDANCE Included in AISC Non-Sustaining $35m – $40m 0 Sustaining – – Pre-Stripping $17m – $22m $17m – $22m Exploration $8m – $10m $6m – $8m ▶ Non-sustaining Capex » Haile process plant expansion (to increase throughput to 3Mtpa): $10m – $15m » Administrative building/workshops/o
Slide 15: Environment, Community & Government
ENVIRONMENT, COMMUNITY & GOVERNMENT
Slide 16: Environmental
Environmental ▶ SC Department of Health and Environmental Control (SC DHEC) » Fifteen site inspections from five different agencies, to date since construction commencement » Good to excellent ratings with no actionable items or Notices of Violations (NOV) ▶ Site inspections by other regulators » US
Slide 17: Environmental Obligations
Environmental Obligations ▶ Over 800 separate obligations » 23 Management Plans and 34 Issued Permits ▶ Regulating bodies » SC Department of Health and Environmental Control (SC DHEC) » SC Department of Transportation (SC DOT) » US Army Corp of Engineers (US ACOE) » US Environmental Protection Agenc
Slide 18: Permitting
Permitting ▶ Completed in 2016 » Water Treatment Plant » PAG Cell 1A » 465 Pond » 19 Pond » Run-of-Mine (ROM) pad redesign » Mill Zone Pit redesign » Closure of Outfall 002 » Removal of Sulphate Bio-Reactor Cells » Tailings Storage Facility (TSF) » PAG Cell 1B 18
Slide 19: Community
Community Local Community ▶ Active engagement with the local community to maintain relationships » Supporting civic, humanitarian, academic, sports and social initiatives » Community leadership and organization meetings ▶ Maintaining strong relationship with local vendors and service providers ▶ A k
Slide 20: Community
Community Political ▶ Strong political relationships – unsolicited support » South Carolina priority jobs and training » Sharing positive feedback from their constituents – Haile employees » Integral to the success of future permit actions and modifications. ▶ Active engagement with State, Local and
Slide 21: Haile Gold Mine Land
Haile Gold Mine Land ▶ Haile Gold Mine land position » 5,623 acres owned / controlled » 368 acres mitigation property » No associated royalty ▶ Project land development » Maintaining strong relationship with neighboring land owners » Strong position to enhance land control for Haile expansion » Cont
Slide 22: Regional Land
Regional Land ▶ OceanaGold Exploration (OGE) land position » 3,918 acres owned/controlled » 2,501 acres OGE leased property » 52 acres OGE other controlled (OGE property under contract) » 6,471 total OGE acres » 12,462 total acres for OGE and HGM » Increase of approximately 2,500 acres in 2016 » No
Slide 23: Employment
a) OCEANAGOLD EMPLOYMENT
Slide 24: Employment
Employment ▶ Total Haile Gold Mine Employees 314 » Haile Gold Mine 265 » OceanaGold Exploration 49 ▶ Turnover rate » Haile Gold Mine 2.64% » OceanaGold Exploration 0% ▶ 2017 Recruitment & Effective Turnover Management » Skills and culture fit » Competitive compensation and benefits » Enhanced traini
Slide 25: Employment - Training
Employment - Training ▶ Training & Development » MSHA classes conducted weekly with additional classes held as needed » On-the-Job training (OJT) conducted on an ongoing basis » Success Factors implementation December 15, 2016 » 2016 Training: Valuing Cultural Diversity, Union Avoidance, and Harassm
Slide 26: Employment - Workforce
Employment - Workforce ▶ 84% of Haile’s workforce comes from the local communities 8 158 1 1 2 2 7 4 2 2 5 26
Slide 27: Project Execution
PROJECT EXECUTION
Slide 28: Project Team Safety Statistics
Project Team Safety Statistics Safety & Environmental Status Description Statistic Commentary Lost Time incidents 2 >2.1M construction and commissioning hours expended on the project since OGC acquisition. TRIFR 6.22 Since OGC ownership. Environmental Non 0 Maintained exemplary environmental record
Slide 29: Project Overview
Project Overview General Project Status 2,500 metric tonnes of structural steel installed. 18,500 cubic metres of plant concrete placed. 19,200,000 square feet of liner placed and welded onsite. 57,297 linear feet of piping installed across the plant. TSF constructed and permitted for use ahead of s
Slide 30: Project Manpower
Project Manpower Project Manpower (#) 889 768 787 669 627 642 623 525 495 397 401 345 290 224 177 185 30
Slide 31: Project Highlights
Project Highlights Description Commentary OGC Safety Culture Continued improvement of safety culture within project and operations. Good Development platform for operations to select good performing contractors. OGC Owners Model Successful transition of the project (during execution phase) from EPCM
Slide 32: Project Execution Milestones
Project Execution Milestones Project Milestones Date Completed Engineering Design Complete 30 June 2016 All Major Equipment on site 20 Aug 2016 First Rock into Crusher (First Ore to Crusher 02 Dec 2016) 21 Oct 2016 All Plant Concrete Complete 25 Oct 2016 All Plant Steel Complete 11 Nov 2016 Area 300
Slide 33: Commissioning Org Chart
Commissioning Org Chart Integrated Owners Commissioning and Operational Team ▶ Commissioning team made up of commissioning specialists, technical experts and experienced OGC Operators. ▶ Commissioning Manager working side by side with Processing Manager to ensure operational and maintenance resource
Slide 34: Project Model
Project Model Owners Team: Construct – Commission – Operate ▶ Direct engagement with engineers and construction contractors » Quick decisions and escalation of issues to appropriate levels, keeping the construction momentum going. Poor performers scope reduced, high performers rewarded. ▶ Commission
Slide 35: Haile Commissioning
Haile Commissioning Process For Commissioning – Simple and Effective ▶ Crushing and conveying » De-risks mill feed, enables testing of commissioning systems, identification of potential construction QA issues. ▶ Water circuit including tails feed and return » Bring water into the tail end of plant,
Slide 36: Haile 2017 Project Execution
Haile 2017 Project Execution 2017 Project Execution Team Engagement at Haile ▶ PAG Cell 1C » Utilisation of existing experienced PEX Team members and contractors to complete next stage of PAG ▶ Process Plant ramp up and de-bottlenecking » Experienced team to identify bottlenecks and improve operabil
Slide 37: Plant Overview
Plant Overview June 30th 2016 September 7th 2016 February 21st 2017 37
Slide 38: Primary Crushing and Storage
Primary Crushing and Storage June 30th 2016 September 7th 2016 February 21st 2017 38
Slide 39: Grinding and Classification
Grinding and Classification June 30th 2016 September 7th 2016 February 17th 2017 39
Slide 40: Carbon Handling and Refinery
Carbon Handling and Refinery June 30th 2016 September 7th 2016 January 21st 2017 40
Slide 41: Tailings Treatment
Tailings Treatment June 30th 2016 September 7th 2016 January 21st 2017 41
Slide 42: Tailings Storage Facility (TSF)
Tailings Storage Facility (TSF) June 30th 2016 September 7th 2016 January 2017 42
Slide 43: Reagents
Reagents June 30th 2016 September 7th 2016 February 2017 43
Slide 44: Mining
a) OCEANAGOLD MINING erik
Slide 45: Mine Department Staff
Mine Department Staff Mine operations and Technical Services Headcount Department Current Headcount Planned Headcount Mining Operations 92 96 Superintendents (Mining Operations) 8 8 Mining Projects 3 6 Technical and Supervision 23 25 Mine Maintenance Mechanics 21 27 Mine Maintenance Management 8 8 T
Slide 46: Mine Fleet
Mine Fleet Equipment list NI 43-101 Fleet Revised Fleet Comments Drills: 6 ½" blast hole drills (CAT MD6290) 3 2 One drill traded in. 4½" blast hole drills (CAT MD5150C) 0 2 Sample and wall control drilling Loading units: CAT993 Loader 1 1 CAT992 Loader 1 0 Back up to ROM Hitachi 1900 Shovel 1 1 CAT
Slide 47: Mine Layout
Mine Layout ocean ovo 47 Respect e Integrity © Teamwork © Innovation * Action ¢ Accountability
Slide 48: Mining Progress
Mining Progress Excellent environmental and safety performance with regulators. ▶ Excellent safety and environmental record with MSHA and DHEC. ▶ Mine critical major infrastructure projects completed ▶ Technical improvement studies ongoing. ▶ Total Mined project to date 17 million tonnes. ▶ Ore mine
Slide 49: Mining, Progress
Mining, Progress ▶ Mining sulfide ore in Mill Zone Pit ▶ Mining 95RL and 90RL benches in Mill Zone Pit ▶ Mining at Snake Pit has commenced ahead of schedule ▶ RC grade control validation scheduled for Q2 2017. Mill Zone Pit Current Bench RL ▶ Strip Ratio for remainder of Mill Zone Pit: 4.7 Sulphide
Slide 50: Pit Designs
Pit Designs Snake Phase 1 Pit Design Modifications May 2016 Pit Design February 2017 Pit Design ▶ Ramp was moved to better accommodate the proposed Horseshoe Underground portal that will be driven from Snake Phase 2. 50
Slide 51: Planned Production Mining
Planned Production Mining ▶ 2017 Total Material Mined target is 22.2Mt ▶ 2017 Total Ore target - 2.8mt at 2.45 g/t. ▶ 2017 Mill Feed 2017 target - 2.1Mt at 3.1 g/t ▶ Mine Production 2017 to 2022 » Total Tonnes Mined = 145Mt » Total Ore Mined = 25Mt » Ave Grade = 1.57 g/t ▶ This will be revised after
Slide 52: Haile Resources & Reserves
Haile Resources & Reserves HAILE MINERAL RESOURCES Mt Grade g/t Moz Measured and 70.3 1.73 3.92 Indicated Inferred 19.4 1.23 0.71 MII 89.7 1.60 4.63 Note: Open pit resource $1,200/oz Au price, Cutoff grades: Open pit 0.41 g/t Au HAILE MINERAL RESERVES Au Grade Mt koz g/t Proven 19.9 2.19 1,382 Proba
Slide 53: Mining Opportunities
Mining Opportunities Independent Groundwater Review Improved Dewatering Efficiencies Completed Independent Geotechnical Review De-risk Mill Zone pit slopes Mining Fleet Review Reduction in Ore Dilution Redesign of Mill Zone and Snake Revised Ramp Design pits Ore Definition Study Full Review Geologic
Slide 54: Mining Schedule, End of Year 1
Mining Schedule, End of Year 1 54
Slide 55: Mining Schedule, End of Year 2
Mining Schedule, End of Year 2 55
Slide 56: Mining Schedule, End of Year 5
Mining Schedule, End of Year 5 56
Slide 57: Mining Schedule, End of Year 10
Mining Schedule, End of Year 10 57
Slide 58: Haile Optimisation Study
Haile Optimisation Study Champion Small Mill Zone Haile Chase Ledbetter Snake $950/oz O/P reserve shell Mill Zone $1,200/oz O/P resource shell Deeps Mustang Palomino Horseshoe 2017 - 2020 Post-2020 Annual Gold Production Avg. Annual Gold Production 150,000 – 200,000 250,000 ounces ounces HAILE OPTIM
Slide 59: Haile Underground PEA
Haile Underground PEA High-level study demonstrates robust economics Mill Zone Haile Chase Ledbetter Snake Mill Zone Deeps $950/oz O/P reserve design Mustang $1,200/oz O/P resource shell Palomino Horseshoe Est. annual U/G production 80 – 100koz 2016 exploration results excluded from study; (2019 – 2
Slide 60: Haile Underground PEA
Haile Underground PEA Technical & Economically viable Mill Zone Haile Chase Ledbetter Snake Mill Zone Deeps Mustang $950/oz O/P reserve design Palomino Horseshoe $1,200/oz O/P resource shell Mining method: open stoping with backfill UNDERGROUND OPERATING COSTS (US$/t UG Processed) Plant expansion: 6
Slide 61: Ore Processing
ORE PROCESSING
Slide 62: Haile Operation Milestones
Haile Operation Milestones ▶ 28th December 2016 - First ore through the mill ▶ 19th January 2017 - Poured first Doré ▶ Targeting commercial production Q2 2017 62
Slide 63: Haile Gold Mine, Processing
Haile Gold Mine, Processing Process Physicals, Jan to Late Feb Actual Budget Mill Feed Kt 186 215 Avg. Gold Grade g/t 2.64 2.03 Utilisation % 62 65 Total Recovery % 81 68 Gold Produced oz 12,785 9,543 63
Slide 64: Production Ramp Up
Production Ramp Up ▶ Designed to reach nameplate within 6 months ▶ Recognizes commissioning issues in first few months ▶ Similar approach to the plan for Didipio 64
Slide 65: Design and Operations
Design and Operations Metallurgy – Process Circuit 65
Slide 66: Run of Mine (ROM) Pad and Grizzly
Run of Mine (ROM) Pad and Grizzly Desired Outcomes ▶ Reduces scheduling conflicts with mine ▶ More flexibility for mine (unconstrained material movement) ▶ Enhanced blending / more consistent plant feed grade 66
Slide 67: Coarse Ore Stockpile/ Surge Bin + Emergency Stockpile
Coarse Ore Stockpile/ Surge Bin + Emergency Stockpile Desired Outcomes ▶ Decoupling of crushing operations from milling ▶ Crushing and Milling can run when each are down/up 67
Slide 68: Primary Cyclone Feed Pump
Primary Cyclone Feed Pump Initial Design Design Modification ▶ Single installed primary cyclone feed ▶ Standby primary cyclone feed pump pump 68
Slide 69: Flash Float Upgrade
Flash Float Upgrade ▶ Larger unit for increased throughput ▶ Improved Grinding Circuit operation and maintainability ▶ Industry proven cell design 69
Slide 70: Full Cyanide Kill
Full Cyanide Kill Initial Design Design Modification ▶ INCO process target <20 ppm ▶ Full cyanide kill (target < 0.5 ppm) ▶ Improved Water Balance 70
Slide 71: Expansion greater than 3 Mtpa
Expansion greater than 3 Mtpa Manage mass recovery, optimise Flash flotation cleaner / regrind fine grinding Maintain residency time and Flotation rougher expansion recovery 30% reduction in residence time Leach tank expansion being assessed Some pump modifications Reviewing pipes and pumps 71
Slide 72: Maintenance Strategy
Maintenance Strategy Finalising Emerson Catapult Project ▶ Utilises extensive database from other mines and industrial facilities to establish » Equipment criticality » Preventive and predictive schedules » Incorporates all components and parts into Pronto CMMS ▶ Preventive and predictive approach r
Slide 73: Tailings Storage Facility
Tailings Storage Facility 50 Cum. Design Capacity Actual Design Capacity 45 Year 7/8 40 35 Million Tonnes 30 Year 4 25 20 Year 2 15 Pre-Production 10 5 0 1 2 3 4 Stage 73
Slide 74: Geology and Exploration
a) OCEANAGOLD GEOLOGY AND EXPLORATION Unterval! CYS — 650.3 ee .
Slide 75: Haile 2016 Exploration Summary
Haile 2016 Exploration Summary Significant exploration potential at Haile & Carolinas ▶ Haile exploration - Brownfields » Horseshoe drilling increased resource grade & confidence » Drilled 35,307m in 85 holes with 4 core rigs » Pit/UG optimisation in progress ▶ Carolinas regional exploration - Green
Slide 76: Horseshoe 2016 Drill Results
Horseshoe 2016 Drill Results Gold From To Length Hole ID Grade (m) (m) (m) (g/t) DDH526 172.8 233.8 61 13.0 DDH529 194.1 244.1 50 18.7 DDH532 218.9 276.9 58 17.5 DDH532 223.3 265.2 41.9 22.3 DDH538 169.6 215 45.4 5.1 DDH541 167.7 218.3 50.6 6.8 DDH542 230.4 241.7 11.2 35.0 DDH543 237.7 254.5 16.8 11
Slide 77: Horseshoe Cross Section
Horseshoe Cross Section A’ January to September 2016 Drill Holes Metavolcanics 1 g/t Au shell Metavolcanics Grade g/t Au < 0.035 0.035 – 0.15 Metasediments 0.15 – 0.40 0.40 – 0.80 0.80 – 1.50 1.50 – 3.00 3.00 – 5.00 > 5.00 Looking N50°E 300 m section thickness Shear Zone 100 m Contact
Slide 78: Haile Exploration 2017 plan
Haile Exploration 2017 plan Significant exploration potential at Haile & Carolinas ▶ Haile exploration - Brownfields » Haile mine - drill infill & step-out targets (26,000m drilling) adjacent to existing pits » 300,000 oz Measured, Indicated and Inferred Resource growth target » Support Haile Optimi
Slide 79: Haile 2017 Drill Plan
a) Haile 2017 Drill Plan OCEANAGOLD Planned 2017 ——~ priting Planned & \ Completed Jan, 2016 - Feb. Drill Holes N 2017 Drilling
Slide 80: Palomino & Snakeshoe
Palomino & Snakeshoe Expanding area of drilling focus in the underground at Haile $950 reserve pit $950 reserve pit SW NE Red Hill 1 g/t Au 1 g/t Au volcanics grade shell sediments grade shell Snake Horseshoe Palomino target zone Snakeshoe volcanics 1 km sediments Haile Gold Mine Northwest-looking L
Slide 81: 2017 Brownfields Exploration
2017 Brownfields Exploration ▶ Resource delineation drilling of UG targets – Palomino, Mustang , Mill Zone ▶ Haile Optimization Study support in Q1 and Q2 2017 (drilling, models, geotech, met) Haile long section, looking North Champion Small Mill Zone Haile Chase Ledbetter Snake 2017-2018 Mill Zone
Slide 82: 2017 Greenfields Exploration
2017 Greenfields Exploration ▶ Focused 2017 exploration at priority targets proximal to Haile mine ▶ Carolina terrane prospectivity and ranking system drives new land acquisition ▶ Exploration under coastal plain sands using geochemistry & geophysics 82
Slide 83: Innovation Performance Growth OceanaGold
f www.oceanagold.com Innovation @ Performance @ Growth OCEANAGOLD