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OceanaGold launches PFS on Blackwater project

12th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Dual-listed OceanaGold was set to start a prefeasibility study (PFS) on its Blackwater gold project, in New Zealand, after positive results from a recent deep drilling programme.

The ASX- and TSX-listed miner said that it had successfully intersected the Birthday Reef around 250 m vertically below the lowest mined level of the historic Blackwater Mine during the first quarter of the year.

The drilling also resulted in an update of the resource estimate, with the inferred resource now estimated at 0.9-million tons a year, grading 21 g/t gold, for some 600 000 oz of gold. This was up some 250 000 oz on the previous estimate.

OceanaGold said on Friday that the PFS would expand on the previous conceptual mining scenarios and would include options targeting a production rate of some 50 000 oz/y to 60 000 oz/y.

“We are very pleased with the continued success of the drilling programme at Blackwater,” said MD and CEO Mick Wilkes.

“To date, we have uncovered remarkable continuity in the Birthday Reef, which gives us strong confidence of the continuation of the orebody below previously mined workings and ability to announce the updated Blackwater resources.”

Wilkes said that the company’s development team would now start work on the PFS, which was due for completion later this year.

Edited by Creamer Media Reporter

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