• OceanaGold (OGC) has added considerable reserves to its Haile gold mine in the US state of South Carolina
  • After collating recent exploration efforts at the site, the company has managed to add 60,000 new ounces of gold to its proven and probable reserves and around 120,000 ounces to its measured and indicated resource estimate
  • The updated mineral reserves have extended the mine’s life into 2033, and increased its pre-tax net present value to around C$1.24 billion at a conservative gold price of approximately $2,007 per ounce
  • As part of the site’s expansion, the company expects to commence optimised operations at the Horseshoe underground mine in 2021 with first production following in 2022
  • OceanaGold (OGC) is down 8.27 per cent and is trading at $2.28 per share

OceanaGold (OGC) has added considerable reserves to its Haile gold mine in the US state of South Carolina.

After collating recent exploration efforts at the site, the company has managed to add 60,000 new ounces of gold to its proven and probable reserves, and around 120,000 to its measured and indicated resource estimate.

The updated mineral reserves have extended the mine life into 2033, with current gold reserves reaching C$1.24 billion in pre-tax net present at a conservative gold price of approximately $2,007.

Michael Holmes, President and CEO of OceanaGold, was pleased with that updated estimate, saying it demonstrates the long-term value and significant organic growth opportunity at Haile.

“We are pleased with the results of the updated Haile Technical Report which demonstrate long-term value and significant organic growth opportunity for the operation. These results, coupled with the significant underground exploration upside, makes the Haile Gold Mine a top-tier asset in a great jurisdiction,” he added.

As part of the site expansion, the company expects to commence optimised operations at the Horseshoe underground mine in 2021 with first production following in 2022. Other underground deposits are also being explored at Snakeshoe and Palomino with further drill targets lined up at Aquarius and Pisces.

Michael went on to comment on the difficulties of operating the site, which has previously been flooded by region’s ever-intensifying hurricane seasons.

“We continue to adapt to the extreme weather patterns of the last few years in the Carolinas that have at times hampered mining productivity. Through our experience of operating Haile over the past few years, we have updated its mine plan to deliver over the long-term,” he said.

OceanaGold (OGC) is down 8.27 per cent and is trading at $2.28 per share at 3.14pm EDT.

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