Resource World Magazine

www.resourceworld.com 39 F E B R U A R Y / M A R C H 2 0 1 4 Contact: Dean Linden, Corporate Development E: dlinden@falcopacific.com T: 604.638.1429 www.falcopacific.com TSX.V: FPC Rediscovering The Past Through Modern Eyes Horne 5 Deposit - 80 Years In The Making falco p39.indd 1 1/27/2014 7:24 PM program activities, OceanaGold played an important role in providing relief operations to 1,200 families in Didipio and neighbour- ing communities when Typhoon Labuyo hit northern Luzon. In the Batanes province, OceanaGold worked with Pusong Minero and the Philippines Mine Safety Environment Association (PMSEA) in providing medicine and support to local communities devastated by Typhoon Odette. OceanaGold's assets also encompass New Zealand's largest gold mining operation at the Macraes goldfield in Otago which is made up of the Macraes open pit and the Frasers underground mines. Additionally, on the west coast of the South Island, the company operates the Reefton open pit mine. The Macraes open pit mine has pro - duced over 3 million ounces of gold since it began operations in 1990. The Frasers underground mine was developed to target the extensions of the Macraes ore body and was commissioned in 2008. The open pit and underground operations have current proven and probable reserves containing 1.65 million oz gold averaging 1.12 g/t gold. These reserves can support an approximate eight-year mine life at Macraes. Measured and indicated resources tally to 3.9 million ounces averaging 1.2 g/t gold. The Reefton Mine was commissioned in 2007 and consists of a series of open pits developed along a major regional shear struc - ture. Total proven and probable reserves weigh in at 300,000 ounces averaging 1.57 g/t gold. Measured and indicated resources tally to 710,000 ounces averaging 1.56 g/t gold. During 2014, OceanaGold expects to pro - duce a total of 275,000 to 305,000 ounces of gold from its four operating mines at all-in sustaining costs of US $750 to US $850 per oz net of by-product credits. The Didipio Mine is expected to produce 85,000 to 95,000 ounces of gold and 21,000 to 24,000 tonnes of copper at all in sustaining costs of negative US $240 to US $210, mak - ing it arguably the lowest cost gold-copper mine in the world. (This assumes copper by- product credits at US $3.20/lb and a NZD/ USD exchange rate of $0.80). In New Zealand, the company expects to produce 190,000 to 210,000 ounces gold from its three mines all in sustaining costs of US $1,170 to US $1,290 per oz. Total capital expenditures in 2014 are forecast to be $80 to $100 million. Additionally, OceanaGold intends to spend between $5 and $10 million on exploration in the Philippines and costs to maintain the newly acquired assets in El Salvador. As a result of lower gold prices, OceanaGold has entered into a zero cost collar hedging program for 208,000 ounces which will partially cover production at the Macraes open pit and Frasers underground over the next two years. A total of 115,650 ounces of gold production was similarly hedged at the Reefton Mine. The hedging program ensures at minimum that the operation is forecast to remain cash positive including all remaining capital expenditures and rehabilitation costs over the next two years. OceanaGold currently has a market capi - talization of about $480 million with 300 million shares outstanding. Its shareholder base is split between North America (46%), Australia and New Zealand (32%) and Europe (20%). n

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