Resource World Magazine

38 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 4 With its recent merger with Pacific Rim Mining, Melbourne-based OceanaGold Corp. [OGC-TSX, ASX, NZX] has employed its corporate strategy of investing in high quality, low cost assets. The company now hopes to leverage off its social/environmental success in the Philippines to advance Pacific Rim's flagship asset, the El Dorado high- grade gold-silver mine in El Salvador. Since 2009, Pacific Rim filed an arbitration claim with the International Centre for the Settlement of Investment Disputes (ICSID) in Washington DC against the government of El Salvador with respect to its passive refusal to issue a decision on Pacific Rim's environmental and mining permits for the El Dorado Project. Notwithstanding the cur - rent arbitration, OceanaGold intends to seek a negotiated resolution to the El Dorado per- mitting impasse. OceanaGold's all-share acquisition cost of Pacific Rim was valued at $10.2 million and translates to an acquisition value of US $7 per ounce of gold equivalent in the ground at El Dorado. Pacific Rim poured over $77 million into the project to advance it to its current stage of development. The project now hosts measured and indicated resources that weigh in at 1.4 million ounces of gold equivalent averaging 10.4 grams AuEq per tonne. There is an additional inferred resource containing 282,400 ounces gold equivalent averaging 10.47 g/t AuEq. "We believe this transaction will provide OceanaGold shareholders with potential exposure to a high-grade gold-silver resource located in a very prospective region," com - mented Mick Wilkes, Managing Director and CEO of OceanaGold. "This project has the potential to be an economic engine for El Salvador much like how our recently com- missioned world-class Didipio Mine has been for northern Luzon in the Philippines. OceanaGold is a multinational gold pro- ducer with four operating gold mines and a portfolio of development and exploration assets. Its Didipio Mine in northern Luzon, Philippines commenced commercial pro- duction on April 1, 2013 and is expected to produce 100,000 ounces of gold and 14,000 tonnes of copper per year over an estimated 16-year mine life. The Didipio Mine hosts proven and prob - able open pittable reserves of 50.1 million tonnes averaging 1.05 g/t gold (1.69 million contained oz gold), and 0.47% copper (520 million lbs contained copper). The deposit also hosts significant underground poten - tial with a drill intercept that cut 124 metres averaging 14.8 g/t gold and 1.2% copper beneath the open pit. In its 2013 Sustainability Report, OceanaGold outlined the initiatives it imple - mented throughout the construction period of Didipio. Some of these initiatives include: • Reforestation of more than 170 hectares of denuded land. OceanaGold has com- mitted to planting one million trees over five years • Working with the International RiverFoundation to promote sustain- able river development and educate the public on the adverse environment impacts of small scale mining in the Didipio valley • Establishing DiCorp, the local business set up by OceanaGold, and owned by the long term residents of the Didipio community, which already has over 200 employees and major contracts support - ing the operation including catering and cleaning for the 550-person camp, main- tenance of the 22-km road, and waste collection and recycling, among others • 98% Philippine employment during construction which peaked at 1,700 employees with only 35 non-Filipino, and continuing with 98% Philippine employment in operations with only 20 non-Filipino workers in the current operations workforce of approximately 1,000 people. "I believe we have now set a new bench - mark for how mines should be built in the Philippines, and a template for how OceanaGold will develop mining projects in the future," commented Mr Wilkes in the Sustainability Report. During the third quarter of 2013, OceanaGold continued to invest in infra - structure, education, health services and enterprise development at its Philippine communities. These initiatives included concreting the main road through Didipio, improving farm-to market access roads, medical missions, financial assistance to rehabilitate local church buildings and refor - estation. The company also continued its support of social service sectors by providing salaries and subsidies for teachers and health workers. It also continued its support of enterprise development through investments in livelihood projects such as agriculture and forestry. In addition to its regular sustainability The processing plant at the Didipio Mine northern Luzon, Philippines. Photo courtesy OceanaGold Corp. Success in Philippines leads OceanaGold to El Salvador By Thomas Schuster

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