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MINI NG The Didipio gold-copper mine in the Philippines has the potential to be the lowest cost gold mine in the world. Photo courtesy of OceanaGold Corp. OCEANAGOLD BUILDING ASIA-PACIFIC PRODUCTION by Ellsworth Dickson Melbourne, Australia-based OceanaGold Corp. [OGC-TSX, ASX, NZX] is a growing gold producer focused on developing and operating mining projects in the Asia-Pacific region. The company recently reported its strong Q4 2012 and year end production results. In addition to its three producing mines in New Zealand, (Macraes, Frasers and Reefton) OceanaGold is currently commissioning its Didipio gold/copper mine on northern Luzon Island in the Philippines. In total, Q4 2012 gold production was 76,844 ounces with production for the year reaching 232,909 ounces, exceeding the company���s 2012 production guidance range. Mick Wilkes, Managing Director and CEO said, ���I am pleased to report that OceanaGold finished 2012 with strong production from the New Zealand operations resulting in production and cash cost guidance for the year being met. As expected, both Macraes and Reefton delivered higher grades to the mill during the fourth quarter and thus production was up 55% on the previous quarter.��� At the Macraes Goldfield, mining operations on New Zealand���s South Island, Q4 2012 production was 58,872 ounces, an increase of 60% compared to the third quarter due primarily to higher grades and improved gold recoveries. The Macrases operation, New Zealand���s largest gold mine, comprises the Macraes open pit mine and the Frasers underground mine. The current combined proven and 40 www.resourceworld.com probable ore reserves are sufficient for an eight-year mine life. In the Q4 2012 Report, OceanaGold announced that exploration activities in the Frasers underground have confirmed mineralization extensions that remain open on both ends. These results along with further exploration, will undoubtedly increase mine life if economically viable. Macraes open pit resources are pegged at 4.6 million ounces with reserves of 1.4 million ounces. The Frasers underground resources stand at 1.2 million ounces with 0.2 million ounces of gold reserves. Macraes production is forecast at 125,000 ��� 145,000 oz/year with Frasers production expected to be in the 40,000-60,000 oz/year range. At the Reefton open pit mine, also on the South Island of New Zealand, Q4 2012 production was 17,972 ounces, an increase of 42% compared to the previous quarter. This increase was mainly attributable to the higher grades through the mill from the Souvenir pit as well as improved gold recoveries. The Reefton Mine has gold resources of 1.2 million ounces with reserves of 0.37 million ounces, sufficient for operations to continue to somewhere between 2015 and 2017 at a production rate of 55,000-75,000 oz/year. Commissioning of the Didipio highgrade, gold-copper project in Luzon, northern Philippines, commenced in Q4 2012 as planned and first copper concen- trate was produced in December 2012. The mining plan forecasts an average annual production of approximately 100,000 ounces of gold and 14,000 tonnes of copper in concentrate for an expected 16-year mine life. Using a US $3.00/lb copper price, Didipio will produce gold at negative US $79/oz over the first six years of the mine life for very favourable returns. The Didipio Project will be both an open pit and underground operation and has 2.14 million ounces of measured and indicated gold resources and 0.29 million tonnes of copper resources. Inferred resources are 0.43 million ounces of gold, plus 0.07 million tonnes of copper. Metal reserves stand at 1.66 million ounces of gold and 0.23 million tonnes of copper. As every mine has a depleting resource, OceanaGold has taken steps to build gold resources for the future. The company spent US $11 million on exploration at its New Zealand operations in 2011 with the objective of extending mine life as well as early-stage exploration at greenfield prospects. A similar amount was budgeted for exploration in New Zealand and the Philippines in 2012. One promising prospect is the pastproducing Blackwater underground mine southwest of the company���s Reefton Mine. At Blackwater, OceanaGold is testing the continuity of the very high-grade gold mineralization below the historic workings. Assays to date have been encouraging. Drill MARCH 2013