/NOT FOR PUBLICATION OR DISTRIBUTION IN
Today's release highlights the upside potential we see at Didipio, including findings from the Underground Optimization work and further exploration and resource conversion success as we look to replace and add additional reserves and resources. We believe that the future at Didipio is bright and look forward to it continuing to create value for both
OGPI has filed a registration statement and draft preliminary prospectus with the
The Offering, which is subject to receipt of Philippine regulatory approvals, operating performance and market conditions, will comprise a secondary offering of common shares of OGPI, with the proceeds to be received by a wholly owned subsidiary of
To comply with Philippine regulatory requirements, the draft preliminary prospectus, which contains important information in relation to the Offering, and accompanying Philippine Mineral Reporting Code technical report with respect to the
The Underground Optimization work assessed the potential for increased underground mining rates, as well as potential resource extensions below the current reserve limit of Panel 2 (2100 mRL). Preliminary findings include:
- The potential to increase total underground material movement to approximately 2.5Mtpa (from the current 1.75Mtpa), displacing lower grade stockpile ore and thereby increasing the overall feed grade to the mill;
- The potential to increase mill throughput from the current 4.0Mtpa to the already permitted 4.3Mtpa to maximize the benefit of processing the larger volume of higher-grade underground ore;
- The potential to extend mine life and increase gold and copper production through further resource conversion drilling and extension drilling in Panels 3 and 4 and below;
- Estimated additional life-of-mine growth capital of between
US$100 million andUS$130 million for additional mine development, expansion of the mobile equipment fleet, paste fill plant upgrade, dewatering and ventilation; and - The potential to generate a strong return on this growth capital through increased gold and copper production and extended mine life.
There is no certainty, nor can
- Detailed mine planning and trade off analysis of higher underground production rates and optimal cut-off grade to support the increased underground material movement target;
- Detailed design and cost estimates for increased mobile equipment, paste plant, ventilation, and dewatering infrastructure;
- A power demand study for additional underground infrastructure, and an analysis of potential equipment electrification to meet carbon reduction commitments;
- Detailed definition of the implementation plan to deliver the projected operational availability and utilization improvements underpinning the increased production; and
- An updated Mineral Resource estimate to include the results of new drilling intended to extend and increase confidence in the Mineral Resources in Panel 3 and Panel 4 below the current reserves level (~2100 mRL).
The Proven and Probable Mineral Reserves estimates at
Total open pit stockpiles at Didipio are comprised of Proven Mineral Reserves of 12.7 Mt at 0.38 g/t Au and 0.35% Cu (mined to a 0.4 g/t AuEq cut-off) with an additional stockpile of 5.3Mt at 0.18 g/t Au and 0.15% Cu (mined to an approximate 0.27g/t AuEq cut-off).
Table 1: Didipio Mineral Reserves for Year-End 2023
RESERVES | PROVEN | PROBABLE | PROVEN & PROBABLE | |||||||||||||
Mt | Au g/t | Ag g/t | Cu % | Mt | Au g/t | Ag g/t | Cu % | Mt | Au g/t | Ag g/t | Cu % | Cu Mt | Cut-Off | |||
Open Pit Stockpiles | 18.0 | 0.32 | 2.0 | 0.29 | . | . | . | . | 18.0 | 0.32 | 2.0 | 0.29 | 0.18 | 1.2 | 0.05 | 0.40 g/t AuEq |
Underground | 14.6 | 1.56 | 1.9 | 0.43 | 5.9 | 0.95 | 1.6 | 0.36 | 20.5 | 1.38 | 1.8 | 0.41 | 0.91 | 1.2 | 0.08 | 0.76 g/t & 1.16 g/t AuEq |
DIDIPIO TOTAL | 32.6 | 0.87 | 1.9 | 0.35 | 5.9 | 0.95 | 1.6 | 0.36 | 38.6 | 0.88 | 1.9 | 0.35 | 1.10 | 2.3 | 0.14 |
- Mineral Reserves defined by mine designs based upon metal prices of
US$1,500 /oz gold,US$3.00 /lb copper andUS$17 /oz silver. - Reported estimates of contained metal are not depleted for processing losses. Cut-offs are applied to diluted grades.
- Incremental stopes proximal to development already planned to access main stoping areas are reported at a lower cut-off of 0.76g/t AuEq, where AuEq = Au g/t + 1.38 x Cu%.
The Measured, Indicated and Inferred Mineral Resources (inclusive of Mineral Reserves) estimates at
RESOURCES | MEASURED | INDICATED | MEASURED & INDICATED | |||||||||||||
Mt | Au g/t | Ag g/t | Cu % | Mt | Au g/t | Ag g/t | Cu % | Mt | Au g/t | Ag g/t | Cu % | Cu Mt | Cut-Off | |||
Open Pit Stockpiles | 18.0 | 0.32 | 2.0 | 0.29 | . | . | . | . | 18.0 | 0.32 | 2.0 | 0.29 | 0.19 | 1.2 | 0.05 | 0.40 g/t AuEq |
Underground | 15.0 | 1.70 | 2.1 | 0.46 | 14.8 | 0.92 | 1.5 | 0.34 | 29.8 | 1.31 | 1.8 | 0.40 | 1.26 | 1.7 | 0.12 | 0.67 g/t AuEq |
DIDIPIO TOTAL | 33.0 | 0.95 | 2.0 | 0.37 | 14.8 | 0.92 | 1.5 | 0.34 | 47.8 | 0.94 | 1.9 | 0.36 | 1.44 | 2.9 | 0.17 | |
INFERRED | ||||||||||||||||
Mt | Au g/t | Ag g/t | Cu % | Cu Mt | Cut-Off | |||||||||||
Underground | 12 | 0.8 | 1.3 | 0.3 | 0.30 | 0.5 | 0.03 | 0.67 g/t AuEq | ||||||||
DIDIPIO TOTAL | 12 | 0.8 | 1.3 | 0.3 | 0.30 | 0.5 | 0.03 |
- Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
- Underground Mineral Resources estimate is reported within optimised stope designs, above 1,800mRL, based upon metal prices of
US$1,700 /oz gold,US$350 /lb copper andUS$20 /oz silver. - Underground Mineral Resources are estimated at 0.67 g/t AuEq cut off, where AuEq = Au g/t + 1.39 x Cu%.
- Open pit stockpiles include 5.3 Mt of low grade at 0.27 g/t AuEq cut-off.
The Didipio alkalic Cu-Au porphyry deposit comprises a series of mineralised intrusions (monzonite, monzonite porphyry, pegmatite (Balut) dyke, feldspar porphyry, syenite porphyry) and associated quartz and monomictic breccias within a diorite stock (Figure 1).
Since the Company's news release dated
Resource extensional drilling in H2 2023 focused on: testing for the Balut Dyke on the northern side of the Syenite Porphyry (Figure 3) and following up on the success of the late-2022 drilling which discovered the mineralized Eastern Breccia and Feldspar Porphyry in the east (Figure 4).
Testing of the Balut Dyke below 1980mRL and to the north of the Syenite Porphyry has returned a positive result intersecting disseminated and clots of chalcopyrite and bornite in an actinolite pegmatite returning 45.4m @ 2.51g/t AuEq in RDUG500; a similar thickness and grade to previous intercepts of the Balut Dyke south of the Syenite Porphyry and at higher elevations (Figure 3). Mineralization of the newly discovered pegmatite remains open along strike and at depth while its analogue on the south remains open at depth.
Two additional mineralized intrusives to the east were discovered in 2022 (Eastern Breccia and Feldspar Porphyry) and were further tested during the H2 2023 drilling program (Figure 4). The Eastern Breccia, an intrusive breccia with monzonite and diorite clasts, contains a significant amount of Cu-Au mineralization which occurs as fine dissemination and sulphide veins within an intensely altered potassic zone. The Eastern Breccia remains unexplored below 2000mRL. Mineralization in the other mineralized intrusive, the Feldspar Porphyry Intrusion, has been extended a further 100m vertically.
Resource conversion drilling in H2 2023 focused on conversion of the Inferred Mineral Resources within the Monzonite Porphyry directly east of the Syenite Porphyry within Panel 2 (>2100mRL) and Panel 3 (< 2100mRL, Figure 5) and conversion of Inferred material within the Balut Dyke to the south of the Syenite Porphyry (Figure 4 and Figure 6).
Drilling has converted 0.27 Moz of Inferred Mineral Resources to Indicated Mineral Resources within the Monzonite Porphyry and Balut Dyke, providing improved confidence within Panel 3 between ~2100mRL and 2000mRL, and demonstrating continuity of relatively high-grade porphyry Cu-Au mineralization within the Monzonite Porphyry east of the Syenite Porphyry (Figure 5).
A 28,000 m program of resource conversion and expansion drilling is planned at Didipio underground in 2024. Resource conversion drilling will focus on infilling Panel 3 to convert existing inferred resources, while expansion drilling will test below 1930mRL (Panel 4), down-dip of existing mineralization.
Regional exploration in 2024 includes (i) advancing the Napartan target, 9km north-west of the Didipio mine with surface mapping and sampling followed by Initial drilling of a Cu-Au mineralised pegmatite target similar in nature to the Balut Dyke mined at Didipio, (ii) advancing the Cabanwingan targets on approval of the exploration tenement application, and (iii) continued regional targeting within the Company's FTAA permit.
Hole ID | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | AuEq (g/t) | Target | Category |
RDUG498 | 29.5 | 86 | 56.5 | 1.41 | 0.41 | 1.98 | S. Monzonite, S. | Conversion |
RDUG499 | 36.4 | 97.8 | 61.4 | 0.98 | 0.29 | 1.38 | S. Monzonite, S. | Conversion |
RDUG500 | 70 | 145 | 75 | 1.71 | 0.52 | 2.43 | S. Monzonite, S. | Conversion |
and | 269 | 314.4 | 45.4 | 1.95 | 0.4 | 2.51 | Extensional | |
RDUG501 | 28 | 132 | 104 | 1.81 | 0.35 | 2.3 | S. Monzonite, S. | Conversion |
RDUG502 | 32 | 85 | 53 | 1.32 | 0.35 | 1.81 | S. Monzonite, S. | Conversion |
RDUG503 | 63 | 124.6 | 61.6 | 4.48 | 0.98 | 5.85 | S. Monzonite, Balut | Conversion |
RDUG504 | 29.8 | 72 | 42.2 | 1.17 | 0.44 | 1.78 |
| Conversion |
RDUG505 | 31 | 90.95 | 59.95 | 1.23 | 0.37 | 1.75 |
| Conversion |
and | 133 | 183 | 50 | 1.18 | 0.39 | 1.72 | Syenite, N. | Conversion |
RDUG506 | 111 | 169 | 58 | 0.7 | 0.32 | 1.14 | Eastern Monzonite | Conversion |
RDUG507 | 34 | 75 | 41 | 0.75 | 0.39 | 1.29 | Eastern Monzonite | Conversion |
and | 83 | 160 | 77 | 0.76 | 0.34 | 1.23 | Eastern Monzonite | Conversion |
and | 174 | 219 | 45 | 0.76 | 0.33 | 1.22 | Eastern Monzonite | Conversion |
RDUG508 | 59 | 76 | 17 | 1.08 | 0.38 | 1.6 | Eastern Monzonite | Conversion |
RDUG612 | 29 | 52 | 23 | 0.66 | 0.41 | 1.23 | S. Monzonite | Conversion |
and | 92 | 143 | 51 | 1.4 | 0.42 | 1.99 | S. Monzonite | Conversion |
including | 133 | 143 | 10 | 2.79 | 0.55 | 3.55 | S. Monzonite | Conversion |
and | 155 | 235 | 80 | 1.08 | 0.39 | 1.62 | N. Monzonite | Conversion |
RDUG613 | 29 | 66 | 37 | 0.89 | 0.52 | 1.61 | S. Monzonite, S. | Conversion |
and | 105 | 208 | 103 | 1.48 | 0.35 | 1.96 | S. Monzonite | Conversion |
including | 164 | 176 | 12 | 3.95 | 0.57 | 4.74 | S. Monzonite | Conversion |
and | 222 | 231.4 | 9.4 | 3.64 | 0.96 | 4.97 | N. Monzonite | Conversion |
RDUG614 | 75 | 167 | 92 | 0.87 | 0.44 | 1.47 | S. Monzonite and N. | Conversion |
RDUG615 | 30 | 53 | 23 | 1.08 | 0.63 | 1.95 | S. Monzonite | Conversion |
and | 101 | 207 | 106 | 1.05 | 0.43 | 1.64 | S. Monzonite and N. | Conversion |
RDUG616 | 90 | 98 | 8 | 1 | 1.64 | 3.28 | S. Monzonite | Conversion |
and | 112 | 181 | 69 | 1.16 | 0.33 | 1.63 | S. Monzonite | Conversion |
and | 189 | 228 | 39 | 1.52 | 0.34 | 1.98 | N. Monzonite | Conversion |
RDUG617 | 139 | 178 | 39 | 0.99 | 0.18 | 1.24 | S. Monzonite | Conversion |
and | 214 | 240 | 26 | 1.68 | 0.41 | 2.25 | N. Monzonite | Conversion |
RDUG619 | 15 | 43 | 28 | 0.71 | 0.51 | 1.42 | E. Monzonite | Conversion |
RDUG620 | 18.3 | 56 | 37.7 | 0.63 | 0.37 | 1.15 | E. Monzonite | Conversion |
and | 177 | 209 | 32 | 1.39 | 0.61 | 2.24 | Feldspar Porphyry | Extensional |
RDUG621 | 23 | 90.95 | 67.95 | 0.64 | 0.42 | 1.23 | Eastern Breccia | Conversion |
and | 251 | 297 | 46 | 0.5 | 0.31 | 0.94 | Feldspar Porphyry | Extensional |
RDUG622 | 5 | 53 | 48 | 0.68 | 0.47 | 1.33 | Eastern Breccia | Conversion |
and | 179 | 207.9 | 28.9 | 0.57 | 0.4 | 1.12 | Feldspar Porphyry | Extensional |
For further information relating to drill hole data, please refer to the Company's website at https://oceanagold.com/investor-centre/tsx-asx-filings.
All Mineral Reserves and Mineral Resources for the
For further scientific and technical information supporting the disclosure in this news release (including disclosure regarding Mineral Resources and Mineral Reserves, data verification, key assumptions, parameters, methods used to estimate the Mineral Resources and Mineral Reserves, and risks and other factors), please refer to the Didipio Technical Report, which is available on SEDAR+ at www.sedarplus.com and on the Company's website.
Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
The scientific and technical information contained in this news release relating to the Underground Optimization has been reviewed and approved by
The scientific and technical information contained in this news release relating to Didipio exploration results has been reviewed and approved by Craig Feebrey, a Member of the
Exploration diamond core samples at the
Since 2013, all
Gold analysis is by Fire Assay with AAS finish. Copper analysis is either by AAS on a 3-acid digest or XRF. These methods are considered appropriate for the type of mineralisation and expected grade tenor. The quantity and quality of the lithological, geotechnical, and geochemical data collected in the exploration, surface resource delineation, underground resource delineation, and grade control drill programs are considered sufficient to support the Mineral Resources and Mineral Reserves estimation.
In addition to the internal SGS QC controls,
- Inserting duplicate samples;
- Inserting CRM blanks and coarse blanks;
- Inserting CRM standards for Au, Cu, Ag; and
- Monthly monitoring of SGS duplicate, replicate, and CRM performance.
SGS is currently certified to ISO 9001, 14001, and 45001. The ISO 17025:2017 accreditation preparation of SGS -
Certain information contained in this news release may be deemed "forward-looking" within the meaning of applicable securities laws. All statements other than statements of historical facts included in this news release constitute forward-looking statements, including but not limited to, the terms and details of the Offering, completion of the Offering, the findings of the Underground Optimization work, the preparation for an updated NI 43-101 on the
THIS DOCUMENT IS NOT AN OFFER OF SECURITIES FOR SALE IN
A REGISTRATION STATEMENT RELATING TO OGPI'S SHARES HAS BEEN FILED WITH THE PHILIPPINE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BECOME EFFECTIVE. THESE SHARES MAY NOT BE SOLD NOR OFFERS TO BUY THEM BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT IS RENDERED EFFECTIVE. THIS COMMUNICATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR BE CONSIDERED A SOLICITATION TO BUY.
SOURCE
© Canada Newswire, source