OceanaGold Corporation discovers high-grade intercepts at the US-based gold mine, Haile, during the extended drilling activities carried out in and around its footprint of the existing deposits.
In the announcement dated 28 February 2019, OceanaGold Corporation (ASX: OGC) presented an update on exploration activities at its Haile Gold Mine located in South Carolina, United States. The company reported as high as 68.3 metres intercepts of 3.57 g/t Gold at Snake expansion and 33.4 metres @ 4.33 g/t Gold at Ledbetter, as per the latest exploration update which follows the previous update provided on 16 August 2018.
Mick Wilkes, President and CEO of OceanaGold stated that “The ongoing drilling continues to reflect the potential for adding further resources in these areas and bolster reserves.”
The Group has drilled 67 holes for an aggregate 12,772 metres since August 2018. In this drilling program, OceanaGold completed 55 brownfield holes at Haile and 12 holes at the adjacent Locust greenfields target using four surface diamond drill rigs. As per the company’s information, the extensional and resource infill drilling was aimed at low-cost growth areas at Snake, Ledbetter, Red Hill, and Haile prospects.
The company believes that these positive outcomes will add ore-grade mineralisation within pit designs at marginal strip ratios. An 18-hole diamond drill program was reportedly completed outside the $1,300 per ounce reserve pit design. It was between the resource shell at the extension area of Snake West, returning favourable results. Moreover, Phase two drilling of 11 holes has also been completed recently with assay results pending.
After acquiring the permitting receipts of the broader open pits and the advancement in Horseshoe Underground, OceanaGold expects to commence construction and resume drilling deeper targets from underground utilising the same approach to that as taken at Waihi, especially particularly the mineralised corridor between Horseshoe and Palomino,” told Mick Wilkes.
Going forward, the company plans to undertake resource drilling at Ledbetter, Snake, Red Hill, and Haile in addition to testing other priority targets as there has been considerate support of infill and delineation drilling to the company’s exploration models.
Recently announced interim distribution for six-months ended 31 December 2018 remains pending for payment on 26 March 2019. The amount of US$0.010 will be paid to only those shareholders who will be present on the company’s registry as on the record date of 7 March 2019. The Ex-distribution date has been scheduled to 6 March 2019.
For Fiscal Year 2019, the company expects its gold production to range within 500-550 koz that includes the target of producing 145,000-160,000oz of gold from Haile operations.
In today’s trading session, OceanaGold’s stock price dipped by 1.327% to close at $4.460 on 28 February 2019. The stock has last traded at Price to Earnings ratio of 15.950 x with a market capitalisation of $2.79 billion. Over the past 12 months, OGC stock price has returned a modest yield of 29.14% including a favourable price change of 8.92% witnessed in the past three months.
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