Name of the Project
Haile underground gold mine project.

Location
The gold mine is located in Lancaster County, in the US state of South Carolina.

Client
OceanaGold Corporation.

Project Description
The project involves the potential construction of an underground mine at the Haile gold mine.

A preliminary economic assessment (PEA) on the underground project has shown the technical viability of an underground operation with strong economics.

The purpose of the Haile underground PEA was to determine whether an underground mining operation was viable and could be done concurrently with the existing openpit life-of-mine plan, which is based on existing mineral reserves.

The PEA is modelled on mineralisation located beneath the openpit reserves, almost all of which are included within the openpit resources.

The study envisages underground production of 80 000 oz/y to 100 000 oz/y of gold (2019 to 2025) to complement an estimated 150 000 oz/y of gold production from the openpit (2017 to 2030).

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The PEA estimates an after-tax internal rate of return improvement of about 40%, based on previous National Instrument 43-101-compliant technical report economics and incremental impact of the underground at a $1 250/oz gold price.

A payback period of three years on underground capital expenditure is forecast.

Value
Based on the PEA, the total preproduction capital expenditure required for underground development and the procurement of underground equipment is estimated at $53-million, with life-of-mine sustaining capital cost requirements of about $45-million.

Duration
The economic analysis assumes the start of the underground development in the first quarter of 2018.

This, however, is only a preliminary estimate.

Latest Developments
The PEA has demonstrated robust economics that support further investigation of an underground operation to complement the openpit. Oceana has started an optimisation study to determine an optimised plan for combined openpit and underground mines at Haile.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
OceanaGold +1 604 235 3360 and email info@oceanagold.com.