Slide 1: Corporate Presentation Haile Gold Mine – Site Visit
Corporate Presentation March 3rd and 4th 2016 Haile Gold Mine – Site Visit
Slide 2: Introduction
a) OCEANAGOLD INTRODUCTION
Slide 3: Agenda and Itinerary
Agenda and Itinerary Agenda 7:00 AM Depart Ballantyne Hotel via CLT Express for HGM Depot 8:30 AM Arrive @ HGM Depot 8:45 AM OGC-HGM Welcome/Introductions to the Haile Operations Team 8:50 AM Safety Induction 9:00 AM Haile History – Safety – Community - Environmental 9:30 AM Geology 10:00 AM Mine 10
Slide 4: Oceana Team – Haile Operation
Oceana Team – Haile Operation MARK CADZOW EVP & Chief Development Officer DAVID THOMAS DAVID BICKERTON CRAIG FEEBREY General Manager & VP Project Execution Head of Exploration VP Haile Operations Project Execution Structure SIMON GRIFFITHS JAMES BERRY Director Operations Director of Exploration QUEN
Slide 5: Health, Safety and Security
Section Two HEALTH, SAFETY AND SECURITY OceanaGold Corp Total Recordable Injury Frequency Rate 14 12 10 8 6 4 2 0 2011 2012 2013 2014 2015
Slide 6: Safety
Safety Performance, Project to date ▶ TRIFR = 3.2 (1 recordable incident in 309,000 man-hours). ▶ High Potential (INX 4 or 5) = Nil ▶ Principal hazard observations = Nil ▶ Emergency drills = Nil ▶ Drug and alcohol testing non-negative = 2 Includes all activities at Haile including Operations, Projec
Slide 7: Safety, Integration of OGC Systems
Safety, Integration of OGC Systems Progress Summary Completed In Progress ▶ Alignment on pre-shift meetings ▶ Full review of MSHA on boarding training ▶ Daily, weekly and monthly ▶ Leadership training (JHA, Stop & Think) reporting ▶ Incident management deployment and ▶ Temporary INX installation tra
Slide 8: Safety Induction
SAFETY INDUCTION
Slide 9: History, Environment, Community & Government
Section Three HISTORY, ENVIRONMENT, COMMUNITY & GOVERNMENT
Slide 10: History “Gold in South Carolina?”
History “Gold in South Carolina?” ▶ First discovered by Colonel Benjamin Haile ▶ Beginning with placer mining “panning” in 1827 ▶ Mining continued with trenching, underground and open pit methods through the early 1990s 10
Slide 11: History
History ▶ HGM mined on and off for nearly 200 years ▶ Dr. Adolf Theis introduced the barrel chlorination process to Haile in 1887 ▶ Previous mining operations at Haile used mercury, chlorination and cyanide heap leaching into the 90’s 11
Slide 12: 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 13: Community
Community ▶ Firm commitment to the Community ▶ Hiring Local ▶ Spending Local ▶ Integral to the success of Haile ▶ Supporting: Academic, Sports, Arts, Civic and Humanitarian Initiatives 13
Slide 14: Community
Community Political ▶ Strong political relationships – unsolicited support » Sharing positive feedback from their constituents » Integral to the success of future permit actions and modifications ▶ Active engagement with State, Local and County Governments » Uncontested actions: re-zoning, road clos
Slide 15: Community
Community Regulatory/NGO ▶ HGM maintains a strong rapport with the State and Federal regulatory agencies and State enforcement agencies. ▶ Consistent high marks from DHEC (Department of Environmental Control) inspections ▶ HGM maintains an active dialog and favourable rapport with the Conservation C
Slide 16: Training
Training ▶ Training Programs » MSHA classes conducted every two weeks with additional classes held as needed. On-the-Job Training (OJT) conducted on an ongoing basis. Working with ReadySC to develop a leadership training program. ▶ Initiatives » Working with Apprenticeship Carolina to establish Appr
Slide 17: Employment
Employment ▶ Total Haile Gold Mine Employees 195 » Haile Gold Mine 159 » OceanaGold Exploration 36 ▶ Recruiting: On time and on budget ▶ Over the next 8 months, 127 additional new hires will be added ▶ 2016 year end total is projected to be approximately 350 employees ▶ Turnover rate as of February
Slide 18: Environmental Team
Environmental Team ▶ Technical Depth » Four members w/ Professional Engineer and 2 Technicians » Over 15 Years combined on-site experience » Diverse backgrounds – Exploration, Process, Water Management » Professional Engineer – Over 25 years experience in construction ▶ Technical Ability » Air, Soil
Slide 19: Environmental - Permitting
Environmental - Permitting ▶ SC Department of Health and Environmental Control (SC DHEC) » Four on-site inspections in three months » Representatives from five internal DHEC agencies » Good to Excellent Ratings in 35 categories ▶ Expedited Construction Approvals » Staged approach by local office » S
Slide 20: Environmental – Systems
Environmental – Systems ▶ Implementing Management Control System (ISO 14000:2015 compliant) ▶ Gathering Key Critical Information into database » Plan Commitments and Permit Obligations » Ground Water / Stormwater Data » Depressurization Wells » Weather Station » Air Sampling » Hydrology Mapping » In
Slide 21: Environmental - Water
Environmental - Water ▶ Ground Water and Storm Water » Submitted Quarterly and Bi-annual Reports to SC DHEC » No comments or concerns ▶ Wetlands » Completed Baseline Surveys » Includes Vegetative Analysis » Working closely with contractors » Reports to Army Corp of Engineers & EPA ▶ Depressurization
Slide 22: Permitting
Permitting Baseline Studies ▶ Hydrology ▶ Surface and Groundwater Sampling ▶ Cultural Resources ▶ Wetland Delineation ▶ Wildlife Studies ▶ Threatened and Endangered Species ▶ Geochemistry ▶ Geotechnical ▶ Noise 22
Slide 23: Permitting
Permitting Regulatory Federal ▶ Corps of Engineers 404 (Wetlands) State ▶ Mine Operating Permit ▶ State 401 Water Quality Certification ▶ Air Permit ▶ Tailing Storage Facility Dam Permit ▶ Storm Water 23
Slide 24: Permitting
Permitting Project Requirements Road Closure ▶ 18 County roads closed – 1 State road closure ▶ County and effected landowner consent ▶ Judicial process Abandoned Cemetery Relocation (1800 – 1919) ▶ Archeological study ▶ Approval from State Historical Preservation Organization ▶ Negotiation with loca
Slide 25: Optimization - Permitting
Optimization - Permitting Production ▶ 10,000 TPD » DHEC will determine minor or major modification » Major will require public notice ▶ ROM » Minor air/construction permit modification » Air emissions will be reduced » Design will stay within the current permit footprint » No wetland/stream impact
Slide 26: Permit Boundary
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Slide 27: HGM Land
HGM Land HGM Land Position ▶ 5,382 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 27
Slide 28: Regional Land
Regional Land OceanaGold Exploration (OGE) Land Position ▶ 3,849 acres owned/controlled ▶ 131 acres OGE leased property ▶ 119 acres OGE other controlled (OGE property under contract) ▶ 4099 total OGE acres ▶ 9,849 total acres for OGE and HGM Regional Land Development ▶ Priority focus on top five reg
Slide 29: Geology
a) OCEANAGOLD GEOLOGY Interval! CYI.S - 65903
Slide 30: 550-470 Million Years Ago
550-470 Million Years Ago Modified from Coleman, 2005 & NPS Website Carolinia Carolinia 30
Slide 31: 470-430 Million Years Ago
470-430 Million Years Ago Carolinia 31
Slide 32: 450-320 Million Years Ago
450-320 Million Years Ago Carolinia 32
Slide 33: 320-280 Million Years Ago
320-280 Million Years Ago Carolinia Carolinia 33
Slide 34: 200 Million Years Ago
200 Million Years Ago Carolinia 34
Slide 35: Southeastern US Geology
Southeastern US Geology with Historical Gold Mines 35
Slide 36: Southeastern US Geology
Southeastern US Geology From Dube & Gosselin, 2007 36
Slide 37: Haile Block Model
Haile Block Model Extensive exploration program initiated at Haile; regionally Ledbetter Mustang Champion Horseshoe Small Snake Block model South Pit based on 2,102 holes and Palomino 418.3km of 600 drilling 601 meters 37
Slide 38: Haile Resources
Haile Resources HAILE MINERAL RESOURCES Mt g/t Moz M&I Resources 71 1.75 4.0 Inferred 20 1.23 0.8 Resources Note: Combined open pit and underground resource using 0.411 g/t , 2.74 g/t cutoff , & $1200 gold price 38
Slide 39: Reserves
Reserves ▶ Proven and Probable Mineral Reserves at US$950/oz Gold 39
Slide 40: Haile Exploration Program
Haile Exploration Program Extensive exploration program initiated at Haile; regionally Horseshoe Mustang Palomino Commenced Further Initial regional Additional drill infill and extension of drilling at targets identified extension infill drilling at Cypress and and form 2016 drilling at Haile planne
Slide 41: Haile Exploration Results
Haile Exploration Results RECENT DRILL RESULTS AT HORSESHOE(9) HORSESHOE DEPOSIT LONG SECTION True Au Drill Hole From (m) Width Grade (m) (g/t) DDH-519 173.7 21.3 21.66 198.1 23.5 6.55 DDH-520 164.4 10.9 1.36 184.2 13.9 1.15 202.7 14.2 1.53 DDH-518 169.5 11.6 2.43 183.5 13.0 5.47 201.9 13.3 10.57 in
Slide 42: Horseshoe Deposit Cross Section
Haile Exploration Results HORSESHOE DEPOSIT CROSS SECTION 42
Slide 43: Mining
a) OCEANAGOLD MINING
Slide 44: Mining, Progress
Mining, Progress PROGRESS SUMMARY MINING ▶ Mining ramp-up underway at Mill Zone pit ▶ Review and re-forecast of mine plan and budget ▶ Full mining fleet now deployed ▶ Operator recruitment and training ongoing ▶ Strengthened mining supervision ▶ On-track to deliver ore for commissioning 44
Slide 45: Mining, Equipment
Mining, Equipment Mining Equipment, (Primary Production fleet) ▶ 12 x CAT 777F Haul Truck (90dst payload) ▶ 1 x Hitachi EX1900-6 Face Shovel (14yd3) ▶ 1 x CAT993 Loader (15yd3) ▶ 1 x CAT992 Loader (17yd3) ▶ 3 x CAT M06290 Production Drills. 45
Slide 46: Mining, Progress
Mining, Progress PROGRESS SUMMARY ▶ Completion of haul road network, March 2016 ▶ Groundwater audit, March 2016 ▶ Mine geotechnical review, March 2016 ▶ Blasting contractor, March 2016 ▶ Mine plan optimisation, Q4 2016 46
Slide 47: Pre-production
Pre-production Material Mined (Jun 15 – Feb Pre-Production Plan 16) PP Forecast Total dst (million) 16.3 PP Plan dst (million) 2.640 PP Forecast Ore dst (million) 0.28 Actual dst (million) 2.196 47
Slide 48: Mining, 2016 Ore Production
Mining, 2016 Ore Production ▶ Existing 2016 schedule has adequate ore tonnes for commissioning. 48
Slide 49: Mining, Life of Mine Production
Mining, Life of Mine Production ▶ As published in December, 2014 Ni-43 101 technical report 49
Slide 50: Mining Schedule, End of Pre-Production
Mining Schedule, End of Pre-Production 50
Slide 51: Mining Schedule, End of Year 1
Mining Schedule, End of Year 1 51
Slide 52: Mining Schedule, End of Year 2
Mining Schedule, End of Year 2 52
Slide 53: Mining Schedule, End of Year 3
Mining Schedule, End of Year 3 53
Slide 54: Mining Schedule, End of Year 5
Mining Schedule, End of Year 5 54
Slide 55: Mining Schedule, End of Year 10
Mining Schedule, End of Year 10 55
Slide 56: Production Schedule, End of Mine Life
Production Schedule, End of Mine Life 56
Slide 57: Opportunities
Opportunities Equipment review and Maximise grade / reduce mining dilution alternative bench height. Reduce unit haul costs, improve Redesign ramp configuration productivity Review Whittle optimisation Pit sequence optimisation and cut-back selection. Review the groundwater Review water management m
Slide 58: Underground Potential
Underground Potential Horseshoe Mustang Palomino 58
Slide 59: Processing
a) OCEANAGOLD Section Six PROCESSING GRINDING & CLASSIFICATION
Slide 60: Haile Gold Mine - Processing
Haile Gold Mine - Processing Key Metrics and Potential Expansion Metrics Capital Cost Estimate Initial Process Plant USDm 189 Capex Expansion Capex USDm 5-10 Operating Unit Cost Estimates Processing Cost USD/ton mined 10.11 Tonnage Parameters Avg. Mill Feed tons per day 7,000 Avg. Mille Feed Post to
Slide 61: Design and Operations
Design and Operations Metallurgy – Process Circuit 61
Slide 62: Mill Feed System
Mill Feed System Modified System incorporating: ▶ ROM pad to allow effective blending ▶ Decoupling mining and milling operations ▶ Maintained Reliability via emergency stockpile ▶ Reduce Dust emission profile ▶ Proven system (implemented in Didipio) 62
Slide 63: Flash Float Upgrade
Flash Float Upgrade Flash flotation upgrade will improve recovery compared to previous design and operational ability ▶ Larger unit for increased throughput ▶ Improved feedrate control and maintainability ▶ Industry proven cell design 63
Slide 64: Expected Recoveries
Expected Recoveries Excellent relationships between Grade and Recovery 64
Slide 65: Plant Ramp-up
Plant Ramp-up ▶ Throughput ramp-up profile designed to reach nameplate within 6 months ▶ Proven approach recognizes commissioning issues in first few months ▶ Similar approach to the plan for Didipio 65
Slide 66: Expansion Opportunities
Expansion Opportunities Pebble Crusher Sufficient Milling capacity Manage mass recovery Flotation Cleaner optimise fine grinding Maintain residence time and Flotation Rougher Expansion recovery 30% reduction in residence Leach Tank Expansion time needs to be assessed Some increases in pipes and Some
Slide 67: Expansion Potential
Expansion Potential ▶ Grinding Circuit ▶ Existing design allow for doubling of plant footprint ▶ Installed Mill motor have 30% excess capacity ▶ Simple, low capital pebble crusher installation possible ▶ Larger flash float installed from Day one ▶ Flotation Circuit ▶ Flash Cleaner Cell ▶ Fine flotat
Slide 68: Expansion Potential
Expansion Potential Leach Circuit ▶ Upgrade Pre-Aeration tank to oxygen or peroxide ▶ Additional leach tanks if kinetics justify ▶ Existing design allows for hydraulic flows of + 30% Plant Services ▶ Some pump motor upgrades ▶ Review tails pipe and pumping ▶ Smart control system (grinding) ▶ Power s
Slide 69: Project Status & Metrics
Section Seven PROJECT STATUS & METRICS
Slide 70: Project OGC vs Romarco
Project OGC vs Romarco February 2016 OGC (USD millions) Area of Discipline OGC Romarco Direct Costs 222 197 Owners Costs 28 18 EPCM 40 30 Mining Capital Equipment 53 46 Mining Pre-Production OPEX 33 25 Contingency 17 TOTAL 380 333 70
Slide 71: Haile Construction Schedule
Haile Construction Schedule 2016 Q1 Q2 Q3 Q4 Process Plant Civil works Structural, Mechanical, Piping Electrical, Instrumentation, Controls Tailings Storage Facility Not to scale Estimates only Mining infrastructure KEY MILESTONES (expected timing) First Ore Through the Mill Commercial Production En
Slide 72: Project Execution
Section Eight PROJECT EXECUTION
Slide 73: OGC Construction and Development Model
OGC Construction and Development Model ▶ Acquisition timing was such that some changes to the design of the process plant could be afforded ▶ OGC moved to it’s tried and tested Construction and Development Model (Didipio) ▶ Engineering and Procurement managed by M3 with oversight from OGC ▶ Construc
Slide 74: Structure
Self Managed Organisation Structure 74
Slide 75: Design & Procurement
Design & Procurement Design & Procurement Status Description Statistic Commentary Design Complete 98% Remaining minor EIC and punchlist items. Design Close out March Target for all design activities to be complete. Procurement 83% Of forecast total purchase orders for the project including minor mis
Slide 76: Construction
Construction Construction Status Description Statistic Commentary Baseline Schedule March 1st Detailed Construction and commissioning schedule issued to Revision 0 Concrete 100% Of concrete awarded for the Process Plant construction SMP Contractor March 15th Mobilising to site to begin installation
Slide 77: Project Manpower Forecast
Project Manpower Forecast Project Manpower Forecast Project Manpower 585 585 560 515 520 425 440 375 345 290 280 224 177 185 185 65 77
Slide 78: Project Concrete Forecast
Project Concrete Forecast Project Concrete Forecast Concrete (CY) 4600 4052 4146 1885 1384 1477 560 440 01/2016 02/2016 03/2016 04/2016 05/2016 06/2016 07/2016 08/2016 78
Slide 79: Local Vendor Engagement
Local Vendor Engagement Project Execution Vendor Statistics Description Statistic Commentary Construction 20 Contractors either onsite now, or have Contractors been in last 2 months. All U.S.A based. Carolina Locals 14 Based in either South or North Carolina South Carolinians 12 Based here in South
Slide 80: Project Progress
Project Progress Tailings Facility Aerial (12 th February) 80
Slide 81: Project Progress
Project Progress Process Plant Aerial 81
Slide 82: Project Progress
Project Progress Process Plant Aerial – Pond 19 82
Slide 83: Project Progress
Project Progress Mill Foundations 83
Slide 84: Project Progress
Project Progress Process Plant 84
Slide 85: Project Progress
Project Progress Process Plant Civils 85
Slide 86: Project Progress
Project Progress Pond 19 North 86
Slide 87: Project Progress
Project Progress 601 Overpass Aerial 87
Slide 88: Project Progress
Project Progress 601 Overpass 88
Slide 89: Project Progress
Project Progress PAG Cell 1A Aerial 89
Slide 90: Project Progress
Project Progress PAG Cell 1A 90
Slide 91: Project Progress
Project Progress Pond 465 Aerial 91
Slide 92: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD