OceanaGold Corporation (TSX: OGC) (ASX: OGC) has drilled multiple intersections of high-grade gold and silver mineralisation during resource conversion drilling at the company’s Wharekirauponga (WKP) prospect in New Zealand.
The drill results are from the company’s 2021 drill programme, in which 10 drill holes were completed for a total of 4,940 metres along the East Graben vein zone, in addition to 1,003 metres on other targets.
Highlights from the 2021 drill programme include (estimated true width):
- 39.1 g/t Au and 73.4 g/t Ag over 10.3 metres from 377.0 metres, EG HWS, (WKP101)
- 26.5 g/t Au and 41.4 g/t Ag over 10.2 metres from 393 metres, EG, (WKP101)
- 29.2 g/t Au and 61.0 g/t Ag over 6.8 metres from 426.7 metres, EG FW, (WKP101)
- 23.7 g/t Au and 28.3 g/t Ag over 9.1 metres from 398.7 metres, EG HW, (WKP106)
- 19.7 g/t Au and 29.0 g/t Ag over 4.5 metres from 412.0 metres, EG HWS (WKP106)
- 21.5 g/t Au and 26.9 g/t Ag over 15.7 metres from 419.0 metres, EG (WKP106)
Since the February 2020 mineral resource update, 8,916 metres have been drilled at WKP, predominantly on resource conversion drilling of the East Graben (EG) Vein in addition to a further 2,518 metres supporting geohydrological studies and geotechnical studies.
Acting President and CEO, Scott Sullivan, said the results are in line with expectation and are anticipated to increase confidence in the geological and grade continuity of the prospect.
A full geological and resource model update to incorporate 2020 and 2021 drilling is in progress for inclusion in the company’s annual Reserve and Resource statement, which will be released March 31, 2022.
“The drill results at WKP continue to demonstrate the significance of this discovery for OceanaGold. Step-out exploration drilling in 2021 confirmed that the East Graben vein remains well developed a further 200 metres along strike to the south, is mineralised and remains open in multiple directions,” Mr Sullivan said.
“This year’s drill campaign is already underway with two rigs, and we are continuing to focus on resource conversion drilling of the East Graben vein zone. Our next Mineral Resource update for WKP is expected at the end of the first quarter of this year.
“The company has allocated US$10 million for exploration efforts, a significant increase to the budget, as we seek to expand the potential of WKP and to further demonstrate the significance of this discovery.”
“Meanwhile the company continues to advance the permitting process and expects to lodge the permit applications with the Regional and District Councils in the first half of 2022. The critical path to success remains the consenting process however, while the process is ongoing, we continue to advance our technical studies. As mentioned last year, we have expanded the scope of the Waihi North Project given the potential scale we see, and the need to complete additional technical works to allow for optimal mine plans and designs.”
The company commenced exploration on the WKP underground target in August 2017 and to date has drilled 37.2 kilometres in 83 holes. In February 2020, the company reported an updated Indicated Resource of 1.0 million tonnes grading 13.4 grams per tonne gold (g/t Au) and 25.5 grams per tonne silver (g/t Ag) for 421,000 ounces of gold and 803,000 ounces of silver on the EG Vein.
Additionally, an Inferred Resource of 1.9 million tonnes at a grade of 12.0 g/t Au and 20 g/t Ag for 717,000 ounces of gold and 1,230,000 ounces of silver was reported, with more than 80% of the Inferred Resource contained within the East Graben and two high-grade footwall veins.
The remaining resource reported is from the East Graben footwall and hanging wall veins, including approximately 2% of the resource from the parallel T-Stream vein, which has yet to be further explored.
A resource conversion drill programme initiated in 2021 continues in 2022 with 16.1 kilometres planned on the EG vein system to increase the Indicated Resource in support of the Waihi North Project technical study. This resource conversion drilling continues to improve the understanding of the
In conjunction with resource and step-out drilling at WKP, a 1,028 metre programme has been executed to provide hydrogeological information for regulatory approvals and mine design purposes. Information on the groundwater system is being gathered from test work undertaken via packer tests and falling head tests to enable hydrological modelling, and to assist in predicting the effects, if any, that underground mining may have on surface and ground water.
A metallurgical test work programme is also progressing and while it is still at an early stage, results to date suggest that the process flow at the existing Waihi process plant will be suitable for WKP mill feed. Recoveries are indicated to be relatively consistent with other Waihi District underground resources.
Technical studies are progressing for the Waihi North Project regulatory approval package. The scope of the studies includes ecological impacts, visual effects, noise and vibration, dust, surface and subsurface water, traffic effects, economic benefits and impacts and potential mitigations. A community and stakeholder engagement programme continues to progress well.
For further information please visit: https://oceanagold.com/
