Highlights:
- First development ore has been mined from the Horseshoe Underground mine and first stope production is expected in October with ramp-up to occur through the fourth quarter and first half of 2024. Grade control drilling at Horseshoe Underground has delivered results in-line with or above model expectation to date.
- Haile's third quarter 2023 gold production has been adversely impacted by lower than estimated ore grades encountered in the now-completed
Mill Zone pit. We now expect Haile's third quarter gold production to be around 23,000 ounces, and Haile's full-year production to be around 25,000 ounces below 2023 guidance ranges. With strong operating performance expected at Didipio and Macraes, expected full-year consolidated gold production for the Company remains within the lower end of the original guidance range. - Haile 2023 resource definition and exploration campaign highlights include (core length):
- 73.9m @ 13.03 g/t Au (UGD0002) – Horseshoe Underground (resource conversion)
- 7.5m @ 3.65 g/t Au (DDH1177) – Palomino (extension)
- 6.3m @ 2.89 g/t Au (DDH1173) – Palomino (extension)
Horseshoe Underground Achieves First Ore
Development of the Horseshoe Underground has progressed with approximately 2,230 metres ("m") of total development to date. Lateral development is well advanced on the 1025 and 1000 levels, and the decline has progressed down to the 975 level. Development ore equating to ~3,800 tonnes from the 1025 level (figure 1) has been mined and currently stockpiled on surface for processing.
Three stopes are planned to be mined in 2023, commencing in October. Stopes sizes range from 25,000 to 35,000 tonnes and will be initially mined on the 1000 and 975 levels, with total stope ore production expected to contribute approximately 90,000 tonnes to the mine plan in 2023 (figure 2). Underground stoping is expected to ramp-up in the fourth quarter and reach the full target mining rate by mid-2024.
Grade control drilling on a 15m by 20m spacing is progressing from underground in advance of development, with nine holes drilled to date. The holes are reconciling consistently well to the block model and provide confidence in the resource as we approach our first stopes.
As disclosed with our second quarter results, the short term mine plan at Haile was adversely impacted by negative grade reconciliation in the lower levels of the
Full-year 2023 guidance for Haile will be updated with the release of third quarter results.
As per the 2023 mining schedule, mining at
Despite poor grade reconciliation in the lower benches of
A program of resource definition and conversion drilling at Horseshoe Underground totalling ~18,400m is in progress and is scheduled to be completed by the end of 2024. To date, conversion drilling totalling 2,617m in six holes has been completed, with an additional 2,600m planned by 2023 year end. Drilling has targeted the conversion of the lower Horseshoe inferred resource with two holes to date, UGD0001 and UGD0002. UGD0001 had substantial deviation and did not return a significant result, while UGD0002 returned 73.9 m @ 13.03 g/t Au, showing better than expected grade (table 1). The lower extension of the Horseshoe resource remains open.
Resource conversion drilling continued at Palomino, located approximately 800 metres southwest of the Horseshoe Underground mine, and where future access may be gained from underground infrastructure (figure 3). Following data cut-off for the end of year 2022 Annual Resource and Reserve statement, 9,818m and 19 holes of resource conversion drilling have been completed with all but two holes intersecting mineralisation and returning results in line with expectations, including 60.4m @ 7.95g/t Au in hole DDH1164 and 40.0m @ 3.50g/t Au in hole DDH1189 (figure 3 and table 1). The Palomino resource conversion program has now been completed with a resource model update scheduled in Q1 2024 following receipt of all outstanding assays from the lab.
Twenty regional exploration holes within the mining lease have been drilled from surface in 2023 across early-stage (Horsetail, Aquarius, Ramona, Capricorn) and extensional (Palomino) targets, testing the prospective metasediment–metavolcanic contact where the contact is poorly defined or sparsely drilled (figure 4). Two significant intercepts have been returned testing the northeast extension of the Palomino deposit with hole DDH1177 intersecting 7.5m @ 3.65g/t Au from 527.7m and hole DDH1173 intersecting 6.3m @ 2.89 g/t Au from 483.5m (figure 3 and table 1). Drilling at the Ledbetter extensional target has commenced and remains in progress.
Table 1: Haile Drill Intersections. NSR = No Significant Result.
Hole ID | From (m) | To (m) | Core Length | Au g/t | Target | Drill Category |
UGD0001 | - | - | - | NSR | Horseshoe | Resource Conversion |
UGD0002 | 306.8 | 380.7 | 73.9 | 13.03 | Horseshoe | Resource Conversion |
incl. | 311.7 | 348.3 | 36.5 | 20.93 | Horseshoe | Resource Conversion |
DDH1144 | 401.6 | 464.2 | 62.6 | 2.44 | Palomino | Resource Conversion |
and | 483.9 | 488.8 | 4.9 | 7.14 | Palomino | Resource Conversion |
DDH1145 | 435.5 | 454.4 | 18.9 | 5.40 | Palomino | Resource Conversion |
and | 468.4 | 482.0 | 13.6 | 3.53 | Palomino | Resource Conversion |
and | 492.8 | 515.2 | 22.5 | 4.73 | Palomino | Resource Conversion |
DDH1152 | 331.4 | 360.2 | 28.8 | 4.15 | Palomino | Resource Conversion |
and | 369.1 | 392.0 | 22.9 | 2.50 | Palomino | Resource Conversion |
DDH1153 | - | - | - | NSR | Palomino | Resource Conversion |
DDH1156 | 416.6 | 423.9 | 7.3 | 4.44 | Palomino | Resource Conversion |
DDH1159 | 311.1 | 315.4 | 4.3 | 7.78 | Palomino | Resource Conversion |
and | 440.5 | 445.7 | 5.2 | 2.79 | Palomino | Resource Conversion |
and | 454.9 | 473.2 | 18.3 | 3.54 | Palomino | Resource Conversion |
and | 488.4 | 508.2 | 19.8 | 3.80 | Palomino | Resource Conversion |
DDH1161 | 366.5 | 373.8 | 7.3 | 1.72 | Palomino | Resource Conversion |
and | 384.5 | 407.3 | 22.9 | 3.58 | Palomino | Resource Conversion |
and | 425.7 | 451.5 | 25.8 | 1.70 | Palomino | Resource Conversion |
and | 459.1 | 474.4 | 15.3 | 5.53 | Palomino | Resource Conversion |
DDH1164 | 351.3 | 354.4 | 3.1 | 14.87 | Palomino | Resource Conversion |
and | 415.9 | 476.3 | 60.4 | 7.95 | Palomino | Resource Conversion |
and | 487.0 | 497.6 | 10.7 | 2.14 | Palomino | Resource Conversion |
DDH1165 | 384.9 | 395.1 | 10.2 | 3.55 | Palomino | Resource Conversion |
and | 407.3 | 421.1 | 13.7 | 2.88 | Palomino | Resource Conversion |
DDH1167 | 313.2 | 349.8 | 36.6 | 1.64 | Palomino | Resource Conversion |
and | 396.8 | 399.7 | 2.9 | 6.26 | Palomino | Resource Conversion |
and | 421.4 | 441.2 | 19.8 | 2.19 | Palomino | Resource Conversion |
DDH1168 | 469.7 | 475.8 | 6.1 | 4.04 | Palomino | Resource Conversion |
DDH1169 | - | - | - | NSR | Palomino | Resource Conversion |
DDH1170 | 426.2 | 442.1 | 15.9 | 1.76 | Palomino | Resource Conversion |
and | 480.8 | 500.4 | 19.6 | 3.28 | Palomino | Resource Conversion |
and | 508.0 | 517.1 | 9.1 | 2.41 | Palomino | Resource Conversion |
DDH1189 | 550.3 | 590.3 | 40.0 | 3.50 | Palomino | Resource Conversion |
DDW1192 | 542.2 | 557.4 | 15.3 | 4.93 | Palomino | Resource Conversion |
DDH1173 | 483.5 | 489.7 | 6.3 | 2.89 | Palomino | Extension |
DDH1177 | 527.7 | 535.2 | 7.5 | 3.65 | Palomino | Extension |
For further information relating to drill hole data for Haile please refer to the Company's website at https://oceanagold.com/investor-centre/tsx-asx-filings.
www.oceanagold.com | Twitter: @OceanaGold
The exploration results in this press release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101").
Information relating to the Haile exploration results in this document has been verified and is based on and fairly represents information compiled by or prepared under the supervision of Craig Feebrey, a Member of the
Since
Blanks and standards are inserted every 20th sample. Check assays are submitted to the SGS lab in
All drill hole samples are handled and transported from the drill rigs to the secured Haile Exploration warehouse by
For further information, please refer to the following NI 43-101 technical report:
a) "NI 43-101 Technical Report Haile Gold Mine
The above document has been filed with the Canadian securities regulatory authorities and is available for review electronically from the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com under the Company's profile.
Certain information contained in this public release may be deemed "forward-looking" within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect the Company's expectations regarding the generation of free cash flow, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of
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