construction

OCEANAGOLD ANNOUNCES FULL YEAR 2011 RESULT

MEDIA RELEASE

OCEANAGOLD ANNOUNCES FULL YEAR 2011 RESULT
(All References in US Dollars)

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) has delivered a 17% increase in EBITDA (earnings before interest, taxes, depreciation and amortisation) to $163.9 million on the previous year.
In its Full Year 2011 Results released today, the Company reported record full year revenue of $395.6 million from an average gold price received of $1,587 per ounce, a 29% increase on FY2010 revenue of $305.6 million. Revenue for fourth quarter 2011 of $106.6 million also exceeded the same quarter last year by 14%.
FY2011 gold sales were 249,261 ounces at an average cash cost of $875 per ounce.
The Company’s cash operating margin for the year expanded by 25% to $712 per ounce compared to the 2010 result of $570 per ounce.
Fourth quarter gold production of 65,750 ounces was an 11% increase on the previous quarter and brought FY2011 gold production to 252,499 ounces. This was slightly below our expectations for the quarter and the year.
Fourth quarter net earnings increased 31% on the previous quarter to $14.3 million resulting in a FY2011 result of $44.2 million which was comparable to FY2010.
Exploration expenditure for the year was $10.7 million with a focus on New Zealand. The Company announced an expanded resource and likely mine life extension to at least 2017 at Frasers Underground in the fourth quarter.
The Company’s Didipio Project in the Philippines also continued to make strong progress throughout the year meeting key construction milestones including commencement of concrete pouring, near completion of the construction accommodation camp, mobilisation by the mining contractor to site and the arrival of the first shipment of structural steel. All major construction contracts for the project have now been awarded or are in the process of being tendered.
OceanaGold CEO, Mick Wilkes, said “Our New Zealand operations posted relatively stable earnings in 2011 and continue to generate positive free cash flows. With the construction of the Didipio Project progressing according to plan and scheduled to commission in fourth quarter 2012 combined with exploration opportunities in New Zealand and the Philippines, the Company is on the right track to achieve its strategic targets.”
Other highlights from the OceanaGold Full Year 2011 Results include:
• Exited the year with a strong cash balance of $170.0 million, a 4% increase on the third quarter.
• Increased metallurgical recovery rate for the fourth consecutive year to 82.9% (versus 81.6% in FY2010).
• Mill throughput improved by 7% to 7.6Mt compared to the previous year
Conference Call / Webcast
The Company will host a conference call / webcast to discuss the FY2011 Financial Results. The call will take place at 8.30 am on Friday, 17 February (Melbourne, Australia time) / 4.30pm on Thursday 16 February (Toronto, Canada time). Details are available on the OceanaGold website at http://www.oceanagold.com.

- ENDS -
For further information please contact:
Ms Nova Young
Investor Relations Officer
info@oceanagold.com
Tel: +61(3) 9656 5300
About OceanaGold
OceanaGold Corporation is a significant Asia Pacific gold producer with projects located on the South Island of New Zealand and in the Philippines. The Company’s assets 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. OceanaGold produces approximately 230,000 – 250,000 ounces of gold per annum from the New Zealand operations. The Company also owns the Didipio Project in northern Luzon, Philippines which is in construction and expected to commission in Q4 2012. Currently, Didipio is expected to produce 100,000 ounces of gold and 14,000 tonnes of copper per year over an estimated 16 year mine life.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.

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OceanaGold works full blast to prepare Nueva Vizcaya mine

MANILA, Philippines - Construction workers are working full-blast at the gold-copper mine site facilities of OceanaGold Mining (Philippines), Inc. in Didipio, Nueva Vizcaya.Over a hundred workers directly hired by contractors of OceanaGold are undertaking the construction of infrastructure facilities including the upgrading of the project’s access roads.

“We are targeting to start commercial production in the first quarter of 2013,” said Chito Gozar, OceanaGold vice president for communications and external affairs.

Community leaders in Didipio and neighboring communities have expressed optimism that the firm’s mining operation “will stir up economic activities in the province.

“We are fully supporting the operation of OceanaGold which will have a far-reaching impact in our community,” said Ferdeliza Linaga, an official of the Dipidio Community Development Association, Inc. (DCDAI), a community-based group composed of the different sectors of Barangay Didipio.

Gozar said OceanaGold has hired additional construction workers for civil works, giving priority to residents in the community and neighboring areas who had been trained in masonry, plumbing and carpentry under its social development management program (SDMP).

“Their trainings at the TESDA (Technical Education and Skills Development Authority) in Tuguegarao, Cagayan, and at the Northern Isabela School of Arts and Trades, were funded by our firm,” Gozar said.

He said OceanaGold’s operation will benefit people not only in the community where its mining site is located but even people from far-flung areas. This, he said, will be through direct jobs during construction and indirect jobs during commercial operation.

Even before it starts operation, OceanaGold has already been implementing various projects for the community including reforestation and other environmental programs which are all in line with its goal of sustainable growth and development.

Barangay Alloy wants trees in ore-rich town

Barangay Alloy wants trees in ore-rich town

by Kay Brenda Jocson Gaudia

KASIBU, Nueva Vizcaya—-Mayor Albert Bomulo Jr. led tree-planting recently at Alloy village, aptly named in ore-rich Kasibu, which hosts the mining camp of OceanaGold Philippines Inc.

Last March, he signed an agreement with Oceana vice president Bradley Dean Norman and Environment officer Marcelo Bumidang to undertake reforestation under the National Greening Program of President Benigno Aquino III.

“I want my people to plant trees and have quality jobs by being educated,” he told ManilaStandard, underscoring the partnership with a company that recognizes its social responsibility.

Lucita Exconde, Oceana sustainability senior manager, said the welfare of the townsfolk and business interest are entwined.“As the company flourishes Oceana also likes the community to benefit that is why we are very strong on education,” she said, describing the firm’s commitment as dominant locator in Didipio village near Mt. Dinkidi.

“We sponsored scholars, hired teachers, built daycare centers, upgraded Didipio’s school buildings.”

Exconde, who oversaw the Mt. Pulag conservation program in neighboring Benguet in the ‘90s, noted the need to boost livelihood at the Didipio Community Development Association since the mining pit preparations began.

Bomulo has vowed to ensure that townmates get employment opportunities which in turn will enable them to nurture the environment..“If they have jobs, quality of living improves then they will preserve the mountains,” he said.

Exconde said the greening campaign covered the villages of Binogawab, Papaya, Pudi, Wangal, Tadji, Capisaan and Bellet, including downstream communities.

In updates on the Internet, Oceana is working up its Didipio copper-gold site in time for next year’s commissioning schedule, rushing the road to Port Irene in Sta. Ana, Cagayan where ores will be shipped to buyers abroad.

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Oceana Gold upgrades Didipio water systems

http://www.tribuneonline.org/business/20110627bus6.html

06/27/2011

As part of its continuing community development program, OceanaGold Mining Philippines has recently upgraded the water systems at its mine site in Barangay Didipio in Kasibu, Nueva Vizcaya, which it has funded through the Didipio Community Development Association Inc. (DCDAI).

Lucita Exconde, sustainability senior manager of OceanaGold, said there are several domestic water systems within Didipio which her firm has funded through the DCDAI, a community-based group composed of the tribal council, educators, cooperatives, people’s organizations and religious and professionals of Barangay Didipio.

She said the water system that had recently been upgraded was the Pimmadek 2 which involved the replacement of pipe networks and installation of water meters.

According to her, the 34 household beneficiaries of the water works project will become actively involved in the maintenance and management of their own water system.

Earlier, OceanaGold had conducted a Community Based Participatory Planning workshop among the residents in the said barangay to identify priority projects that will benefit the community, such as the improvement of its water facilities.

“Improving its water facilities is the top priority in our list of other important projects for the community which we hope will be very beneficial to all and will have a far-reaching impact in the area,” said Chito Gozar, OceanaGold vice president for communications and external affairs

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OceanaGold upgrades water systems in mine site

http://www.philstar.com/Article.aspx?articleId=699813&publicationSubCategoryId=77

By: Sanny Galvez (The Philippine Star) June 26,2011

MANILA, Philippines – As part of its continuing community development program, OceanaGold Mining (Phils.) has recently upgraded the water systems at its mine site in Barangay Didipio in Kasibu, Nueva Vizcaya, which it has funded through the Didipio Community Development Inc. (DCDAI).

Lucita Exconde, sustainability senior manager of OceanaGold, said there are several domestic water systems within Didipio which her firm has funded through the DCDAI, a community-based group composed of the tribal council, educators, cooperatives, people’s organizations and religious and professionals of Barangay Didipio.

She said the water system that had recently been upgraded was the Pimmadek 2 which involved the replacement of pipe networks and installation of water meters.

“The metering system introduced in the Pemmadek 2 water system is part of the sustainability plans for the water project,” Exconde said.

According to her, the 34 household beneficiaries of the water works project will become actively involved in the maintenance and management of their own water system.

Earlier, OceanaGold conducted a Community Based Participatory Planning (CBPP) workshop among the residents in the said barangay to identify priority projects that will benefit the community, such as the improvement of its water facilities.

“Improving its water facilities is the top priority in our list of other important projects for the community which we hope will be very beneficial to all  and will have a far-reaching impact in the area,” said Chito Gozar, OceanaGold vice president for communications and external affairs.

He said as part of its objective of sustainable development, it will continue to carry out its livelihood, reforestation, environment, health and education and other community programs that will benefit not only the residents in Didipio but also those in the neighboring communities.


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OCEANAGOLD ANNOUNCES COMMENCEMENT OF CONSTRUCTION

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (“the Company”) is pleased to announce construction activities have commenced and will progressively ramp up in the coming weeks on the Didipio Project located in northern Luzon, Philippines. Further pre-development studies have identified opportunities to maximise project returns. The Project shows strong economics with cash costs for the first 6 years averaging negative $79/oz (net of bi product credits using US$3.00/lb Cu). Gold and copper reserves have increased significantly along with average annual gold production which is now 100,000 ounces per annum. The Board has formally approved the remaining capital expenditure to complete development of the Didipio Project.

 In line with Canadian regulatory requirements, the Company will file an updated NI 43-101 compliant technical report relating to the Didipio Project

Highlights of the Didipio Project :

  • Annual production of 100,000 oz Au (+45%) and 14,000 t Cu (+69%) on average over the Life of Mine
  • Increased gold reserves by 19% 1.68M oz
  • Increased copper reserves by 35% to 229Mt
  •  Larger open pit with sustained higher ore supply rates
  • Increased plant throughput rates from 2.5Mtpa ramping up to 3.5Mtpa by end of 2014 to end of mine life
  • Internal Rate of Return (IRR) of 48% at current spot prices (US$1530/oz Au & US$4.05/lb Cu)
  • Payback period of 2.2 years from January 1, 2013
  • Average operating cash flow of $150 million/year over first 3 years (using current spot metals prices) 

                                       Didipio Project Mine Design

Mick Wilkes, Managing Director and CEO commented, “We are very pleased to have commenced construction that will see commissioning on schedule in the fourth quarter 2012. Over the past six months we have been working hard to unlock significant value through adjustments to the design of the mine, process plant and infrastructure which has seen average annual gold production increase by 45% and average annual copper production increase by 69% over the life of the mine.

This robust project will be transformational for OceanaGold and give us a significant platform to expand further into the Philippines and throughout Asia Pacific.”

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More Job Vacancies at OceanaGold Philippines, Inc.!

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1. Infrastructure Supervisor
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2. Earthworks Supervisor
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3. Geologists
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4. Document Controller
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More Jobs Available Soon! Watch out!…More Jobs, More Progress!


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OCEANAGOLD DIDIPIO PROJECT UPDATE

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (“the Company”) is pleased to provide a development update for the Didipio Project in the Philippines.

Development activities have commenced at Didipio with some key milestones having been achieved in the first quarter of 2011.


ENGINEERING DESIGN & PROCUREMENT

Ausenco has been awarded the contract to complete the engineering design and procurement. This work is being undertaken at Ausenco‟s Australian office and is well underway. Members of the OceanaGold construction and project management team are working alongside the Ausenco team in Australia to oversee the project.

Much of the key equipment has already been purchased with most long lead time items completed and in storage. These items include:

  • SAG and Ball mill shells, liners, gears and motors
  • Floatation cells, blowers and agitators
  • Gravity Concentrators
  • Trash Screens and Compressors
  • Various critical pumps and motor drives

The jaw crusher is the next key item to be procured with the order to be placed in Q2. The crusher is expected to have a 26 week lead time. Tenders are also underway with suppliers for apron feeders, cyclone feed pumps, cyclones, the concentrate belt filter and milliner handler. Notwithstanding the power plant equipment, the procurement of these items in Q2 combined, will result in approximately 80% of the process plant equipment by value being either in possession or under contract.

Contracts for the detailed plant site earthworks are well advanced with concrete supply and the construction and operations camp being the next contracts to be tendered. An assessment of local contractor capacities for construction and tendering is also well advanced.

Figure A – Ball mill shells completed and in storage in Singapore

Figure B – Ring gear completed and in storage in Australia

The Tailings Storage Facility (TSF) conceptual design is now complete and detailed design has commenced, with recent adjustments being made to de-risk the construction schedule by reducing the dependency on the dry season for construction. Concept designs for the waste rock dumps have also been completed.

The mine plan is being reviewed to identify options for plant expansion post commencement of production.

OceanaGold Chief Executive Officer, Mick Wilkes, said “Preparations on the Didipio site are progressing well and we are on track to commence construction activities mid-year.”


PROJECT MANAGEMENT – HUMAN RESOURCES

The project currently has 13 project personnel recruited in all major areas for managing the project design and construction work. This includes a Design Manager, Construction Manager, Controls Manager and Site Project Engineering Manager and several key site area managers to initially manage the infrastructure construction.

Project Director, Martyn Creaney, stated “I am very pleased with the quality of the team we have assembled to construct the Didipio Project. I have worked with many of them on major projects during the past 25 years in Australia, Papua New Guinea, North and South America and South Africa and I am confident we have a first-class team to deliver the project.”

In addition, the Company‟s New Zealand technical services team has allocated six personnel to work on „Life of Mine‟ planning, costing the process plant conceptual design, reviewing the operations infrastructure requirements and providing overall environmental guidance.

Most recently, Brennan Lang has been appointed as General Manager – Didipio Operations. Brennan is a mining engineer with over 23 years of diversified engineering, operations and management experience at open pit and underground mines throughout North and South America, Asia and Australia. Brennan commences June 1st and will report directly to the Chief Operating Officer.

COMMUNITY AND GOVERNMENT RELATIONS

Management welcomes a speech by the Philippines Secretary of the Department of Environment and Natural Resources (DENR), Mr Ramon J.P. Paje, at the recent Asia Mining Congress in Singapore, where the Secretary stated that the Government would protect mining investments and remove unnecessary interferences.

In addition to many regular community, social and humanitarian programs in the local communities, OceanaGold recently signed a new Memorandum of Agreement (MOA) to establish an initial 50 hectare re-forestation project within the Municipality of Kasibu in cooperation with the DENR and local communities. This re-forestation project is a direct response to the recent “National Greening Program” that was launched across the country and is consistent with OceanaGold‟s commitment to re-forestation and sustainable mining, as demonstrated through previous environmental awards as well as the ongoing maintenance of the Didipio tree nursery.

As a part of OceanaGold‟s commitment to sustainable agriculture, the Company recently partnered with Nueva Vizcaya State University (NVSU) and the Didipio Community Development Association Inc (DCDAI) to plant 4000 tissue cultured lakatan banana plantlets. This pilot project aims to provide high-yield and disease resistant banana crops for the local communities which much like many other parts of northern Luzon, have seen their banana crop yields and fruit quality severely affected by disease.

- ENDS –


For further information please contact:

Mr Darren Klinck

Vice President, Corporate and Investor Relations

Tel: +61(3) 9656 5300

About OceanaGold

OceanaGold Corporation is a significant Pacific Rim gold producer with projects located on the South Island of New Zealand and in the Philippines. The Company‟s assets 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. OceanaGold produces approximately 270,000 ounces of gold per annum from the New Zealand operations. The Company also owns the Didipio Project in northern Luzon, Philippines where pre-construction activities are now underway.

OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.


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Ausenco wins Didipio Engineering Contract

15 February 2011

ASX Media Release

____________________________________________________________

Ausenco wins Didipio Engineering Contract

Ausenco Limited (ASX : AAX ) today announced the award of a Create phase contract for OceanaGold Corporation’s Didipio Project in the Philippines.

Ausenco CEO Zimi Meka said he was pleased to be given the opportunity to continue working with the Oceanagold team to deliver this project.

“Our Minerals & Metals business was involved in the Didipio Project before it was put on care and maintenance, so we are glad to be able to continue working with the team once again on this exciting project”,he said.

“This award builds on the momentum of new Create phase projects we enjoyed in the second half of 2010 and is an encouraging and positive win for the beginning of 2011″

OceanaGold has announced it has in place funding for the expected US$140 million capital to complete the project and has recently commenced pre-construction activities and obtained permits and licenses to achieve commercial production in the first quarter of 2013.

The Didipio Project is located approximately 270 kilometers north of Manila in Northern Luzon, Philippines

Further information contact:

Zimi Meka
Chief Executive Officer
Ausenco Limited
T: ( 07) 3169 7000

About Ausenco

Ausenco sets high global standards for leading edge engineering and project management services in the and resources and energy sectors. We’re growing company with big ambitions that thrives on reaching into markets.Across 32 offices in 20 countries, our people seek ingenious solutions for our clients in the Energy, Environment and Sustainability, Minerals & Metals, Process Infrastructure and Program Management sectors. We’re inspired to make a genuine positive impact on the world around us and in the communities in which we operate.

Australian firm to begin mining in Nueva Vizcaya

Australian firm to begin mining in Nueva Vizcaya

by Francis C. Hidalgo Jr.

Monday, January 24, 2011

BAYOMBONG, Nueva Vizcaya: Despite being recently found by the Commission of Human Rights (CHR) to have allegedly committed human rights violations, an Australian mining company is set to conduct large-scale commercial operations in Nueva Vizcaya province by 2013.

OceanaGold Philippines Inc. has opposed the CHR’s findings—which affirmed the complaints of the residents of Didipio village in the province’s Kasibu town, where the firm’s multibillion-peso mining venture is based—saying that they are committed to uphold the human rights of the community and comply with all the laws.

Mick Wilkes, chief executive officer of the Melbourne-based Ocean Gold Corp. (OGC)—OGPI’s parent company—said that they continue “to operate [in the province] in accordance with the Philippine Mining Act in partnership with the national government and [other] stakeholders.”

According to the mining executive, OGPI “is fully committed to the development of the Didipio project. The company continues to maintain its obligations under the FTAA [Financial and Technical Assistance Agreement].”

“With . . . the processing plant now underway . . . the project is [now] fully financed [and has the] necessary permits to achieve commercial production [by] 2013,” he said.

OceanaGold, through the FTAA made during the administration of former President Fidel Ramos, was contracted by the national government to undertake the $320-million Didipio gold-copper project.

The venture was the first large-scale mining project approved in the country under the revitalized Mining Act of 1995.

The project’s development into full commercial operations was one of the flagship projects of the Ramos government in its efforts to revive the country’s moribund mining industry.

Former President and now Rep. Gloria Arroyo of the Second District of Pampanga, who authored the 1995 Mining Act as a senator, affirmed OGPI’s agreement with the national government for the full-scale development of the Didipio project, provided that it adheres to the government’s thrust of sustainable mining.

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