OceanaGold Corporation (TSX: OGC) (ASX: OGC) continues to have success with its ongoing exploration and resource conversion drilling at the company’s Haile Gold Mine in South Carolina, USA.
The company continues to intercept high-grade mineralisation at multiple underground drill targets with significant drill intersections.
At the Horseshoe Extension, of the 13 drill holes completed from the 2021 programme, highlights include:
o DDH1096: 7.45 g/t gold over 43.4 metres from 338.6 metres
o DDH1101: 4.09 g/t gold over 24.7 metres from 284.4 metres o DDH1102: 5.49 g/t gold over 13.4 metres from 404.0 metres.
Infill drilling at Palomino continues to improve confidence in grade distribution and continuity of mineralisation. Of the 16 drill holes completed from the 2021 programme, highlights include:
o DDH115: 7.77 g/t gold over 101.3 metres from 399.2 metres
o DDH1108: 5.91 g/t gold over 67.1 metres from 328.1 metres
o DDH1103: 6.39 g/t gold over 51.5 metres from 263.3 metres
“We have always seen the underground potential at Haile, and these drill results highlight the future opportunities that exist for the operation,” Scott Sullivan, Acting President and CEO of OceanaGold said.
“The Horseshoe deposit will be mined first, with the Palomino deposit being the next target for advancement. We have significant potential at both deposits as reflected by the drill results we are reporting today.
“We look forward to going underground to not only mine higher-grade ore from Horseshoe, but drill test the multiple targets we have identified.”
The company commenced underground exploration in 2016, shortly after acquiring the asset. Since then, the Ccmpany has defined a pipeline of opportunities including Horseshoe, Palomino, Horseshoe Extension, and Pisces, all of which are now in various stages of understanding from Probable Reserves (Horseshoe), Inferred Resources (Palomino), resource definition (Horseshoe Extension), and initial drilling (Pisces).
Horseshoe Underground Mine: Horseshoe Underground is scheduled to begin development in 2022 with a Probable Mineral Reserve of 3.4 million tonnes at 3.78 gram per tonne gold (g/t Au) for 420,000 ounces released in the 2020 end of year Resource and Reserve Statement on March 31, 2021.
With an undiluted Indicated Resource of 3.3 million tonnes at 4.95 g/t Au for 530,000 ounces, inclusive of Reserves, and an Inferred Resource of 2.1 million tonnes at 4.4 g/t Au for 300,000 ounces, significant potential remains to convert the Inferred Resources through drilling from underground once the underground development is in place.
Palomino Inferred Resource conversion: Palomino is located approximately 800 metres SW of Horseshoe Reserve, 600 metres from the Horseshoe Extension target and approximately 300 metres below surface. After Horseshoe, it is the next most advanced underground target with an Inferred Resource reported on March 31, 2020 of 6.5 million tonnes at 2.8 g/t Au for 600,000 ounces. The resources are reported within a Mine Stope Optimised volume using a US$1,700/oz gold price.
This target was the focus of resource conversion drilling in 2021. Since reporting the Inferred Mineral resource on March 31, 2020, 7,046 metres in 16 drill holes has been completed, with a further 11,500 metres planned in 2022.
The 2021 drill programme focussed on defining and converting Inferred Resources in the higher grade and shallower levels of the deposit as defined by a preliminary and conceptual mine design. An updated resource estimate is expected to be released on March 31, 2022. The 2022 programme will focus on resource conversion at deeper levels.
The results for the 2021 Palomino resource conversion drilling program to date have improved confidence in grade distribution and continuity of mineralisation and returned similar grades to historic drilling however, in general, reduced downhole thickness when compared with the resource block model.
Significant downhole intersections from the 2021 infill resource conversion program include 7.77 g/t Au over 101.3 metres in hole DDH1115, 5.91 g/t Au over 67.1 metres in hole DDH1108, and 6.39 g/t Au over 51.5 metres in hole DDH1103.
The style of mineralisation at Palomino is similar to the Horseshoe deposit, with thick zones of fine-grain gold hosted by pyritic and silicified siltstone and intrusive rocks at the metamorphic volcanic and sedimentary contact.
The southeast margin of Palomino is defined by the 70-75o SSE-dipping siltstone-dacite contact. Several 1-25 metre barren sub-vertical NNW-striking post-mineral diabase dikes cut mineralisation.
Horseshoe Extension Target: Horseshoe Extension is located approximately 200 metres SW of the Horseshoe Reserve and has the potential to leverage off future underground development. To date, approximately 15,279 metres and 29 holes have been drilled on the Horseshoe Extension target and have defined a zone of mineralisation that led to resource definition drilling in 2021.
No resource estimate has been completed. A further programme of 3,500 metres is scheduled in late 2022. Significant downhole intersections from the 2021 program include 7.45 g/t Au over 43.4 metres in hole DDH1096, 4.09 g/t Au over 24.7 metres in hole DDH1101, and 5.49 g/t Au over 13.4 metres in hole DDH1102.
Mineralisation is similar to the Horseshoe and Palomino deposits, with fine-grained gold hosted in pyritic and silicified mudstones and intrusive rocks. The southeast and upper extents of mineralisation are bounded by the SSE-dipping siltstone-dacite contact. A 5- 10 metre barren sub-vertical dike NNE-striking post-mineral diabase dike cuts mineralisation.
For further information please visit: https://oceanagold.com/