Slide 1: Haile Gold Mine Site Visit Presentation
September 16, 2016 Haile Gold Mine Site Visit Presentation
Slide 2: Introduction
a) OCEANAGOLD Section One INTRODUCTION
Slide 3: Agenda and Itinerary
Agenda and Itinerary 7:15 AM Depart Aloft 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 8:35 AM Safety Induction 8:45 AM Mine Tour / Core Shed / Construction &TSF 12:15 PM Working Lunch at Depot 12:30 PM Presentation
Slide 4: Oceana Team – Haile Operation
Oceana Team – Haile Operation 4
Slide 5: Haile Operations
HAILE OPERATIONS
Slide 6: Health, Safety and Security
Section Two HEALTH, SAFETY AND SECURITY
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 Channel 1
Slide 9: Safety Progress
Safety Progress ▶ Project TRIFR 5.7 (EoM August) ▶ Implementation of key procedures completed ▶ Mine Regulator (MSHA) training, 1050 people trained YTD ▶ Enhancing emergency response capability ▶ OGC safety leadership training, ▶ Implementing permit to work 104 HGM and contractors procedures ▶ Imple
Slide 10: Environment, Community & Government
Section Three ENVIRONMENT, COMMUNITY & GOVERNMENT
Slide 11: 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 12: Community
a) OCEANAGOLD c cy See ae <a Wt if il a ill Respect ¢ Integrity « Team e Innovation ¢ Action ¢ Accountability
Slide 13: 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 14: 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 ▶ Recently added approximately 150 a
Slide 15: Regional Land
Regional Land OceanaGold Exploration (OGE) Land Position ▶ 3,918 acres owned/controlled ▶ 1,325 acres OGE leased property ▶ 52 acres OGE other controlled (OGE property under contract) ▶ 5,295 total OGE acres ▶ 11,045 total acres for OGE and HGM Regional Land Development ▶ Priority focus on top five
Slide 16: Environmental - Permitting
Environmental - Permitting ▶ SC Department of Health and Environmental Control (SC DHEC) » Ten Site Inspections in 2016 » Good to Excellent Ratings » No actionable items or Notices of Violations (NOV) ▶ Expedited Construction Approvals » Continue Staged Approval Process • TSF • PAG Cell 1B » Approva
Slide 17: Permitting
Permitting Regulatory ▶ Federal ▶ Corps of Engineers 404 (Wetlands) ▶ Environmental Protection Agency (EPA) ▶ State ▶ Mine Operating Permit ▶ State 401 Water Quality Certification ▶ Air Permit ▶ Tailing Storage Facility Dam Permit ▶ Storm Water 17
Slide 18: Optimization - Permitting
Optimization - Permitting Production Completed in 2016 In-Process Permit Releases • Water Treatment Plant • Tailing Storage Facility (TSF) • PAG Cell 1A • TSF Dam • 465 Pond • PAG Cell 1B • 19 Pond • Run-of-Mine Pad Redesign • Mill Zone Pit Redesign • Closure of Outfall 002 • Removal of Sulfate Bio-
Slide 19: Employment
Employment ▶ Total Haile Gold Mine Employees 286 » Haile Gold Mine 242 » OceanaGold Exploration 44 ▶ Recruiting: On time and on budget ▶ 2016 year end total is projected to be approximately 300 employees 19
Slide 20: Geology and Exploration
Section Four GEOLOGY AND EXPLORATION
Slide 21: Southeastern US Geology
Southeastern US Geology q OCEANAGOLD Virginia {Tennessee ¢ Histonc and Recent Significant Gold Producers Coastal Plan Seciment tac ous to Recent Major Faults - Late Proterozotc to Cenozokc Mesazoc Basins North Carolina Late P Sramtes Nearest to Haile Kings Mountain terrane na terrane (Otner undivide
Slide 22: Haile Resources & Reserves
Haile Resources & Reserves HAILE MINERAL RESOURCES Mt Grade g/t Moz Measured and 71 1.75 4.0 Indicated Inferred 20 1.23 0.8 MII 91 1.64 4.8 Note: Open pit & underground resource $1,200/oz Au price, Cutoff grades: Open pit 0.41 g/t Au, UG 2.74 g/t Au HAILE MINERAL RESERVES Au Grade Oz’s Mt g/t (000’s
Slide 23: Haile Block Model and Deposits
Haile Block Model and Deposits Ledbetter Mustang Block model Champion Horseshoe based on 2,102 holes and 418.3km of drilling Small Section line Block grades g/t Au >0.0 >0.2 >0.4 >0.9 Snake >1.7 >2.7 >4.3 >17.1 Mill Zone Palomino 601 600 meters 23
Slide 24: Haile Long Section, Looking North
Haile Long Section, Looking North Infill drilling completed in 66 Haile optimization Infill & step-out Ongoing regional holes at Horseshoe deposit in study, mid-2017 drilling planned exploration driven Q3 2016 at Palomino and by new geophysical • focus on drilling upper Mustang deposits data portion
Slide 25: Horseshoe Drilling
Horseshoe Drilling ®) OCEANAGOLD Horseshoe drillhole grades g/t Au i | >0.0 drilling & 8 ap ‘ « | >04 grade shell {few . plan view I] 717 Ce | >27 i m3 a >17.1 re __| Tim @ 224g 12.3th @ 22.ig/t Au grade shell >2.74 g/t Respect ¢ Integrity Innovation ¢ Actio
Slide 26: Horseshoe Drill Results
Horseshoe Drill Results From To Length Au Grade Drill Hole ID (metres) (metres) (metres) (g/t) DDH0538 169.6 215.0 45.4 5.1 DDH0539 210.0 231.2 21.2 1.3 DDH0540 239.3 252.0 12.8 3.6 DDH0541 167.7 218.3 50.6 6.8 DDH0542 230.4 241.7 11.2 35.0 237.7 254.5 16.8 11.9 DDH0543 329.3 341.4 12.1 22.4 DDH0544
Slide 27: Exploration Program Ahead
Exploration Program Ahead Champion Small Mill Zone Haile Chase Ledbetter Snake Mill Zone $950/oz O/P reserve shell Deeps $1,200/oz O/P resource shell Mustang Palomino Horseshoe ▶ Drilling of Phase 1 & 2 at Horseshoe completed ▶ Currently drilling Palomino underground target ▶ Further analysis of rec
Slide 28: Mining
a) OCEANAGOLD Section Five MINING
Slide 29: Mine Layout
Mine Layout ocean eon oa, ‘ie
Slide 30: Mining, Progress
Mining, Progress Excellent environmental and safety performance with regulators. ▶ Excellent safety and environmental record with MSHA and DHEC. ▶ Mining of legacy 188 dump and historical tailings now complete. ▶ Single pit with large working areas. ▶ Long haul for ROM pad construction due to comple
Slide 31: Pit Designs
Pit Designs Mill Zone Pit Design Modifications NI43-101 Pit Design May 16 Pit Design Three key differences included in the May16 design: ▶ design honours the Haile Gold Mine creek diversion. ▶ addition of south ramp to Ramona’s and the north east ramp to mill and JPAG. ▶ omission of oxide ore in the
Slide 32: Mining Fleet
Mining Fleet 43-101 Revised Equipment list Comments Fleet Fleet Drills: 6 ½" blast hole drills (CAT MD6290) 3 2 One drill traded in. 4½" blast hole drills (CAT MD5150C) 0 2 Delivery late September Loading units: CAT993 Loader 1 1 CAT992 Loader 1 0 Trade-in or back up Hitachi 1900 Shovel 1 1 CAT6020
Slide 33: Pre-production Mining
Pre-production Mining ▶ Pre-production waste stripping is on track. ▶ Project to date 9.7mt. ▶ Total pre-production target is 15.7mt (31 Dec 2016) ▶ Mine plan target, 60tpd. ▶ September daily production higher than target. ▶ All crews fully manned. ▶ Oxide/transitional ore mined: » Low grade 230kt @
Slide 34: Mining, Progress
Mining, Progress ▶ Currently mining transitional ore at top of main ore body. ▶ Three benches to top of main Sulphide ore body. ▶ Drop cut to the 360 bench complete. ▶ Mining focusing southern advancement of the pit. ▶ Fleet contingency available for Q4 if required. Oxide Ore ▶ RC grade control vali
Slide 35: 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 Revised Ramp Design Redesign of Mill Zone pit Ore Definition Study Full Review Geological Processe
Slide 36: NI43-101 Mine Plan, End of Pre-Production
NI43-101 Mine Plan, End of Pre-Production 36
Slide 37: Mining Schedule, End of Year 1
Mining Schedule, End of Year 1 37
Slide 38: Mining Schedule, End of Year 2
Mining Schedule, End of Year 2 38
Slide 39: Mining Schedule, End of Year 5
Mining Schedule, End of Year 5 39
Slide 40: Mining Schedule, End of Year 10
Mining Schedule, End of Year 10 40
Slide 41: Production Schedule, End of Mine Life
Production Schedule, End of Mine Life 41
Slide 42: 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 shell Mustang $1,200/oz O/P resource shell Palomino Horseshoe Est. annual U/G production 80 – 100koz 2016 exploration results excluded from study; (2019-2025
Slide 43: Haile Underground PEA
Haile Underground PEA Technical & Economically viable Mill Zone Haile Chase Ledbetter Snake Mill Zone Deeps Mustang $950/oz O/P reserve shell Palomino Horseshoe $1,200/oz O/P resource shell Mining method: open stoping with backfill UNDERGROUND OPERATING COSTS (US$/t UG Processed) Plant expansion: 7,
Slide 44: Haile Optimisation Study
Haile Optimisation Study Enhancing the NPV of the overall project Champion Small Mill Zone Haile Chase Ledbetter Snake $950/oz O/P reserve shell $1,200/oz O/P resource shell Mill Zone Deeps Mustang Palomino Horseshoe Enhance open pit design & mine plan 2016 & 2017 exploration results Establish optim
Slide 45: Ore Processing
a) OCEANAGOLD Section Six ORE PROCESSING = Fe
Slide 46: Haile Gold Mine, Processing
Haile Gold Mine, Processing Tonnage Parameters Avg. Mill Feed tons per day 7,000 Avg. Mill Feed tons per day 9,120 Post Expansion Total Recovery % 83.7 Operating Unit Cost Estimates USD/ton Processing Cost 10.11 mined Note: All figures can be found in the Haile NI43-101 dated 21 Nov 2014, re-issued
Slide 47: Design Changes Implemented
Design Changes Implemented Mill Feed System Decoupling mining and milling Ore Blending Reduced Dust Emissions Availability via Emergency Stockpile 47
Slide 48: Flash Float Upgrade
Flash Float Upgrade ▶ Larger unit for increased throughput ▶ Improved Grinding Circuit operation and maintainability ▶ Industry proven cell design 48
Slide 49: Expected Recoveries
Expected Recoveries Excellent relationships between Grade and Recovery 49
Slide 50: Operational Readiness
Operational Readiness ▶ People » Recruitment completed » Sampling Practices » Training nearing completion ▶ Processes, Industry best practices » Metal accounting system being built » Maintenance strategy » Innovation strategy underway ▶ Operations team fully integrated with commissioning 50
Slide 51: Expansion Opportunities
Expansion Opportunities Manage mass recovery Flotation Cleaner optimise fine grinding Pebble Crusher Sufficient Milling capacity 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 52: Project Execution
Section Eight PROJECT EXECUTION
Slide 53: Project Team Safety Statistics
Project Team Safety Statistics Safety & Environmental Status Description Statistic Commentary Lost Time incidents 0 >1,200,000 construction hours (and counting) expended on the project since OGC acquisition with no lost time incidents. Medical Treatment 85 Days Since the last injury of any sort requ
Slide 54: Project Overview
Project Overview General Project Status Capex of $380M for pre-production is on budget, of which circa $350M is committed via contract works to be undertaken or expended to date 1,200,000 manhours of construction activities achieved Lost Time Incident Free 1,900 tons of structural steel installed an
Slide 55: Project Highlights
Project Highlights Highlights of Project to Date Description Commentary OGC Safety Culture Rollout of OGC Safety Systems into a regional workforce; positive impact Development OGC Owners Model Successful transition of the project (during execution phase) from EPCM to fully integrated Owners Team man
Slide 56: Project Construction Status
Project Construction Status Construction Status Description Statistic Commentary Schedule Q4, 2016 On Target. Critical Path for the project through the process plant (was TSF), with Q4 construction completion and commissioning start on target; first ore through the mill before year end. Cost $380M O
Slide 57: OGC Commissioning Model
OGC Commissioning Model ▶ Proven Model for Haile to include construction, commissioning and operations personnel working side by side to ensure a seamless transition across the three areas being developed. ▶ Modelled from Didipio (utilising Owners Team Commissioning), with the additional benefit of
Slide 58: OGC Commissioning Org Chart
OGC Commissioning Org Chart ▶ Integrated Organisational structure with Process operational team being fully engaged in all processes under guidance of Commissioning Professionals. ▶ Processing Manager working side by side with Commissioning Manager to ensure safe and efficient commissioning of the p
Slide 59: Progress Photos – PAG Cells
Progress Photos – PAG Cells PAG Cells 1A and 1B June 30th 2016 September 7th 2016 59
Slide 60: Progress Photos – Tailings Facility
Progress Photos – Tailings Facility Area 620 - Tailings Storage Facility (TSF) June 30th 2016 September 7th 2016 60
Slide 61: Progress Photos – Plant Overview
Progress Photos – Plant Overview June 30th 2016 September 7th 2016 61
Slide 62: Progress Photos – Plant Site
Progress Photos – Plant Site Process Plant Site June 30th 2016 September 7th 2016 62
Slide 63: Progress Photos – Area 100
Progress Photos – Area 100 Area 100 Primary Crushing and Storage June 30th 2016 September 7th 2016 63
Slide 64: Progress Photos – Area 300
Progress Photos – Area 300 Area 300 Grinding and Classification June 30th 2016 September 7th 2016 64
Slide 65: Progress Photos – Areas 400/450
Progress Photos – Areas 400/450 Areas 400/420/450 Flotation, Concentrate Treatment and CIL June 30th 2016 September 7th 2016 65
Slide 66: Progress Photos – Area 500
Progress Photos – Area 500 Area 500 Carbon Handling and Refinery June 30th 2016 September 7th 2016 66
Slide 67: Progress Photos – Area 600
Progress Photos – Area 600 Area 600 Tailings Treatment June 30th 2016 September 7th 2016 67
Slide 68: Progress Photos – Area 700
Progress Photos – Area 700 Area 700 On-site Power Substation June 30th 2016 September 7th 2016 68
Slide 69: Progress Photos – Area 800
Progress Photos – Area 800 Area 800- Reagents June 30th 2016 September 7th 2016 69
Slide 70: Progress Photos – Area 940
Progress Photos – Area 940 Area 940 Mill Maintenance Building 70
Slide 71: OGC Delivering Success for Haile
OGC Delivering Success for Haile Management Changes for Increased Accountability ▶ Implementation of OGC Owners Team Project Management model, transitioning out EPCM model over time as it made sense to do so. ▶ Brought in proven and experienced Owners Team Design and Construction personnel across al
Slide 72: OGC Delivering Success for Haile
OGC Delivering Success for Haile Improved Controls for Better Transparency ▶ Formalised stakeholder engagement for remaining design, bringing the operator and designer together in a formal manner. Producing understanding from both groups on practicalities of design as well as driving high level of o
Slide 73: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD