Slide 1: Didipio Operations Site Visit Day 1
Didipio Operations Site Visit Day 1 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: Didipio Overview
Didipio Overview 3 OceanaGold Corporation Innovation Performance Growth
Slide 4: Didipio Mine
Didipio Mine First FTAA signed and in production Island of Luzon Nominal Production Far Southeast Gold: 100 koz Copper: 14 kt San Fernando (Port) DIDIPIO P&P Reserves1 Manila Gold: 1.77 Moz Copper: 216.5 kt Masbate M&I Resources1 Paco Gold: 2.08 Moz Copper: 250.2 kt Municipality Tampakan OGC operati
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 access road to site Routes: • Manila to Didipio corresponds to 402 km • Didipio to Kasibu – Bambang is 62 km • Didipio to Poro Point is 355
Slide 6: Didipio Overview
Didipio Overview Didipio • Didipio is located in a Type III – no pronounced maximum rainfall period • Average annual rainfall at Didipio is 3,051 mm 6 • Operations planned based on expected rainfall OceanaGold Corporation Innovation Performance Growth
Slide 7: 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 8: Site Overview
Site Overview Utilized Mine area = 285.7 hectares 8 OceanaGold Corporation Innovation Performance Growth
Slide 9: Employee Information & Demographics
Employee Information & Demographics • OGPI Didipio Operations – 533 • Managers – 9 • Others – 524 • Expatriates – 29 • Contractors – 1,233 • Delta Mining/Construction – 839 • DiCorp – 289 • Others – 105 9 OceanaGold Corporation Innovation Performance Growth
Slide 10: Site Services
Site Services Site Services Department comprises of four main areas/teams Camp Administration Site Maintenance Concentrate Logistics Mobile Maintenance • Travel • Site facilities (e.g. • Handles safe & • Maintenance to all • Catering plumbing) efficient transport of light vehicles • Events • Road fa
Slide 11: Camp Management
Camp Management Boulevard Camp with 39,815 Sqm • General Manager Quarter- 2 Rooms • Seniors Quarters – 80 Rooms Capacity • Juniors Quarters – 156 Rooms with 249 Pax Capacity including shared Rooms • Rank & File Quarters – 504 beds Capacity • Total Capacity – 835 Pax • Average Daily Onsite – 551 peop
Slide 12: Camp Management
Camp Management CCO CAMP With 6,345 Sqm • Seniors Quarters – Zero (0) • Juniors Quarters – 10 Rooms with 20 Pax Capacity all Shared Rooms. • Rank & File Quarters – 320 beds Capacity • Total Capacity – 340 Pax • Average Daily Onsite – 175 People based Feb 2015 12 OceanaGold Corporation Innovation Per
Slide 13: Didipio 2015 Guidance
Didipio 2015 Guidance Gold Production 100,000 to 120,000 ounces In 2015, 25% of operating costs are associated with Copper Production diesel consumption 21,000 to 23,000 tonnes 10¢ / pound change in copper price AISC margin Cash Costs1 changes by $40/oz ($240) to ($190) per ounce 10¢ / litre change
Slide 14: Average Unit Cost Overview
Average Unit Cost Overview Amount Open pit mining costs including capitalized per tonne mined $2.40 - $2.50 mining Processing costs per tonne milled $9 - $10 Site G&A costs per tonne milled $8 - $10 per dry metric Concentrate port, freight & smelting costs tonne shipped $300 - $325 14 OceanaGold Cor
Slide 15: 2015 Capex
2015 Capex Amount Sustaining Capital $5m to $10m Pre-stripping $20m to $25m Underground Mine Development $20m to $25m Power grid connection $10m Total 2015 Capex Budget $55m to $65m 15 OceanaGold Corporation Innovation Performance Growth
Slide 16: Didipio Health & Safety
Didipio Health & Safety 16 OceanaGold Corporation Innovation Performance Growth
Slide 17: Health & Safety Highlights
Safety Performance 12 Month Mov. Avg TRIFR Health & Safety Highlights 2.5 2.0 No Lost time incidents since December 1.5 16, 2014 1.0 12 month moving average TRIFR=2.9 0.5 1,157,518 man hours/74 days LTI-Free 0.0 ending February 2015 Mar-14 Apr-14 May-14 Feb-14 Jul-14 Oct-14 Aug-14 Sep-14 Nov-14 Dec-
Slide 18: Safety Recognition
Safety Recognition • 2014 Platinum Achievement Award for Surface Mining Category • 2014 Safest Mining Operation Award Metallic Category • 2014 Safest Surface Operation Award 18 OceanaGold Corporation Innovation Performance Growth
Slide 19: Asset Protection Department Activities
Asset Protection Department Activities • Certified OGPI Fire Brigade Volunteer in Region 2 • 1st National Fire Olympics representing Region 2 • Community Social Programs for Didipio Out of School Youths 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: Mining Operations
Mining Operations 20 OceanaGold Corporation Innovation Performance Growth
Slide 21: Mining Operations
Mining Operations • Mining is carried out by Delta Earthmoving • Contractor performing well and steady production achieved • Explosives manufactured and supplied to hole by Orica • Some staff seconded to Delta to improve safety, training and maintenance performance • Monthly ore and waste movement 2
Slide 22: Mining Fleet
Mining Fleet • Fleet consists of: • 3 x PC2000 (200-tonne excavators) • 3 x 120-tonne excavators • 20 x 100-tonne trucks (777D & 785) • 9 x dozers (D9 and D8) plus other ancillary equipment • This year there will be an additional 1 x PC2000 in the fleet and an additional 6 x 785 trucks (100-tonne) •
Slide 23: Didipio Operating Statistics
Didipio Operating Statistics Year Year Q4 2014 Q3 2014 Q2 2014 Q1 2014 2014 2013* Lost time injuries 1 0 1 0 2 0 Gold production oz 34,783 26,207 14,786 30,480 106,256 66,277 Copper production t 6,747 7,078 4,706 6,479 25,010 23,059 Total ore mined Mt 2.52 2.79 1.40 1.67 8.38 8.79 Total waste mined
Slide 24: 2014 Production Profile
2014 Production Profile Monthly Gold Production 14,000 12,000 10,000 Ounces 8,000 6,000 4,000 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Copper Production 3,000 2,500 2,000 Tonnes 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 24 OceanaGold Corporation Innovat
Slide 25: ROM Ore Mined
ROM Ore Mined 2014 – Total ROM Tonnage 700,000 3,500,000 600,000 3,000,000 500,000 2,500,000 Cumulative Tonnes Monthly Tonnes 400,000 2,000,000 300,000 1,500,000 200,000 1,000,000 100,000 500,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual (t) Cumulative Budget Cumulative Actual 25 Oc
Slide 26: 2014 Mining Cost Actuals
2014 Mining Cost Actuals Mining Cost (including pre-strip) 3.50 3.00 2.50 $/tonne mined 2.00 1.50 1.00 0.50 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 26 OceanaGold Corporation Innovation Performance Growth
Slide 27: Current Mining Operations
Current Mining Operations Actively mining stages 3, 4/5, 6. Gold Copper Remaining tonnes Design Strip Ratio Completion Date (ounces) (tonnes) (Mt) Stage 3 0.26 95,801 11,792 2.2 July 2015 Stage 4/5 2.62 248,035 41,137 29.7 September 2016 Stage 6 3.04 332,052 45,758 46.8 December 2017 27 OceanaGold C
Slide 28: Tailings Storage Facility
Tailings Storage Facility Building up TSF wall to ultimate capacity • Current height: RL2780 • Ultimate level: RL2820 est. end of 2018 • Current capacity: 3,108,186 m3, ultimate capacity: 4,861,850 m3 Robust design: • The ability to construct a clay and filter core dam in an extremely high rainfall
Slide 29: TSF Flow Through
TSF Flow Through Successful Design & Build 29 OceanaGold Corporation Innovation Performance Growth
Slide 30: Didipio Optimisation Study Highlights
Didipio Optimisation Study Highlights • Underground development to commence 1 year earlier; now in Q1 2015 • Access to high grade material in late 2017; brought forward by 2 years • Crown pillar moved higher by 80 m, underground extension to 2010mRL two mining domains established. Larger Undergrou
Slide 31: Optimised Design
Optimised Design • Open pit redesigned to fit Limit of geological orientation of the Oxidation ore body, improve ramp and lift crown pillar New Stage 5 & 6 Pit Designs • Open pit mining completed at the end of 2017 Previous Stage 5/6 Pit Design • Improved production profile Underground Mine through
Slide 32: Enhanced Economics
Enhanced Economics Original Open Pit Design Optimised Open Pit Design • Earlier access to high grade underground feed + deferred mining costs enhanced cash flow profile • Smaller open pit $215 million in cost savings between 2018 and 2020 • Larger underground and higher mining rates lower unit
Slide 33: Underground Development
Underground Development • 650 m of geotechnical drilling complete • Decline designed and services installed • Equipment and operators on site • Bacbacan pit wall supported • Portal constructed • Decline mining to commence Portal and Decline Bacbacan Ramp Earthworks Design Pit Wall Supporting and Por
Slide 34: Mining Operations Enhancements
Mining Operations Enhancements • Optimized fragmentation and reduced wall damage; • Resulting in safer & stable walls • Increased crusher & mill throughput • Increased the bench excavation heights; • Optimized digging fleet and bucket capacity • Increased excavation production • Cost Optimisation; •
Slide 35: Mining Operations – Looking forward
Mining Operations – Looking forward • Significant reduction in open pit strip ratio (4.5:1) to 2.7:1) • Operational optimisation and design improvements ongoing • Underground commenced in Q1 2015 • Further optimisation of underground development ongoing 35 OceanaGold Corporation Innovation Performan
Slide 36: Environment Management
Environment Management 36 OceanaGold Corporation Innovation Performance Growth
Slide 37: Environment Management Overview
Environment Management Overview Environment Management Initiatives Didipio Mine EMS ISO 14001:2004 Certified Environmental leadership & capacity building Water management International RiverFoundation partnership Noise and dust abatement Sound management of Tailings Storage Facility Progressive reha
Slide 38: Cyanide Free Operation
Cyanide Free Operation 38 OceanaGold Corporation Innovation Performance Growth
Slide 39: Environmental Management System (EMS)
Environmental Management System (EMS) • The Didipio Mine EMS is ISO 14001:2004 certified • The EMS focuses on the following: 1. Prevention of pollution 2. Compliance with applicable laws and regulations 3. Continual improvement 39 OceanaGold Corporation Innovation Performance Growth
Slide 40: Water Management
Water Management Process Plant 100% Discharge to TSF 76% Recycled/Re-used Tailings Storage Facility 40 OceanaGold Corporation Innovation Performance Growth
Slide 41: 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 42: Guppy fish at TSF and Water Treatment Plant
Guppy fish at TSF and Water Treatment Plant 42 OceanaGold Corporation Innovation Performance Growth
Slide 43: Fish Pond Project
Fish Pond Project Pilot testing of Tilapia fish fingerlings, using WTP effluent discharge. (Photo: 29 October 2014) Other fish species being tested are Koi and Catfish 43 OceanaGold Corporation Innovation Performance Growth
Slide 44: Open Pit Water Management
Open Pit Water Management • Dewatering boreholes at pit perimeter are used as clean-water supply for camp and processing plant • Water used for dust suppression • Regular water quality analysis • Treatment of non- compliant water at Water Treatment Facility or pumped to TSF 44 OceanaGold Corporation
Slide 45: Erosion Control & Slope Stabilisation
Erosion Control & Slope Stabilisation Before After Coco coirs/mats and vetiver grass Before After 45 OceanaGold Corporation Innovation Performance Growth
Slide 46: Progressive Re-vegetation
Progressive Re-vegetation Before After Before After 46 OceanaGold Corporation Innovation Performance Growth
Slide 47: Sewage Treatment Plants For Domestic Wastewater
Sewage Treatment Plants For Domestic Wastewater - 5 units operational - Daily TSS , weekly BOD, 3x a week Chlorine, and weekly coliform tests, - Flowrate monitored on-line 47 OceanaGold Corporation Innovation Performance Growth
Slide 48: Effective Waste Management
Effective Waste Management Waste segregation at source In partnership with community 48 OceanaGold Corporation Innovation Performance Growth
Slide 49: Regular Dust Suppression
Regular Dust Suppression 49 OceanaGold Corporation Innovation Performance Growth
Slide 50: Air Quality Monitoring
Air Quality Monitoring 50 OceanaGold Corporation Innovation Performance Growth
Slide 51: Noise Mitigation
Noise Mitigation 51 OceanaGold Corporation Innovation Performance Growth
Slide 52: Noise and Vibration Monitoring
Noise and Vibration Monitoring 52 OceanaGold Corporation Innovation Performance Growth
Slide 53: Employee Environment Stewardship
Employee Environment Stewardship E-HERO PROGRAM 53 OceanaGold Corporation Innovation Performance Growth
Slide 54: Small Scale Mining Operations
Small Scale Mining Operations Small Scale Mining: A Legacy Community Environmental Issue 54 OceanaGold Corporation Innovation Performance Growth
Slide 55: Didipio Site SSM
Didipio Site SSM SSM 55 OceanaGold Corporation Innovation Performance Growth
Slide 56: SSM Silted/Turbid
SSM SSM Silted/Turbid SSM Clear Water 56 OceanaGold Corporation Innovation Performance Growth
Slide 57: OceanaGold Corporation Innovation Performance Growth
57 OceanaGold Corporation Innovation Performance Growth
Slide 58: OceanaGold Corporation Innovation Performance Growth
58 OceanaGold Corporation Innovation Performance Growth
Slide 59: Biodiversity Monitoring
Biodiversity Monitoring 59 OceanaGold Corporation Innovation Performance Growth
Slide 60: Environmental Management
Environmental Management July 2013 - Oceana Gold partnered with the International River Foundation, a Brisbane based environmental NGO that works in partnerships around the world to fund and promote the sustainable restoration and management of river basins. The IRF promotes long term relationships
Slide 61: Awards and Recognitions
Awards and Recognitions 2014 • Presidential Mineral Industry Environmental Award (PMEIA)- Platinum Achievement Award (Surface Mining Category) • EMB R2 - Plaque of Recognition as National Entry to the 2013 Philippine Environmental Partnership Program (PEPP) 2013 • EMB R2 - Environmental Compliant fo
Slide 62: oceanagold.com
oceanagold.com Innovation Performance Growth