OceanaGold begins development ore mining at Haile’s Horseshoe Underground expansion

OceanaGold Corporation says that its first development ore has been mined from the Horseshoe Underground mine, an underground expansion of its Haile surface operation, with first stope production expected in October 2023 with ramp-up to occur through the fourth quarter and first half of 2024.

In the wider operation, Haile’s third quarter 2023 gold production has been adversely impacted by lower than estimated ore grades encountered in the now-completed Mill Zone pit. OceanaGold now expects Haile’s third quarter gold production to be around 23,000 ounces, and Haile’s full-year production to be around 25,000 ounces below 2023 guidance ranges which were 170,000-185,000 ounces.

Gerard Bond, President & CEO of OceanaGold, said: “We are pleased to have mined first development ore from the Horseshoe Underground. The team has done a tremendous job in planning and safely executing the work to deliver this important growth project. We remain on track to have first stoping ore in October and will then ramp up to full target mining rates through the first half of 2024. The future of Haile continues to be exciting and with the release of today’s drilling results, including a high grade resource conversion result in the Horseshoe inferred resource, it is clear that there continues to be considerable upside to our current plan.”

David Londono, Chief Operating Officer Americas, said: “Although mining from Mill Zone in 2023 has been disappointing through the second and third quarter, the reconciliation challenges encountered are in a localised area within Mill Zone pit where mining is now complete, and mining has now shifted to Ledbetter Phase II. Previous phases of the Ledbetter pit have reconciled well versus our resource model, and we remain confident in our long-term production profile for the mine, particularly with Horseshoe Underground becoming a meaningful contributor in 2024 and beyond.”

Development of the Horseshoe Underground has progressed with approximately 2,230 m of total development to date. Lateral development is well advanced on the 1025 and 1000 levels, and the decline has progressed down to the 975 level. Development ore equating to ~3,800 t from the 1025 level has been mined and currently stockpiled on surface for processing.

Three stopes are planned to be mined in 2023, commencing in October. Stopes sizes range from 25,000 to 35,000 t and will be initially mined on the 1000 and 975 levels, with total stope ore production expected to contribute approximately 90,000 t to the mine plan in 2023. Underground stoping is expected to ramp-up in the fourth quarter and reach the full target mining rate by mid-2024.

Grade control drilling on a 15m by 20m spacing is progressing from underground in advance of development, with nine holes drilled to date. The holes are reconciling consistently well to the block model and provide confidence in the resource as we approach our first stopes.

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