NI 43-101 Technical Report Haile Gold Mine
Lancaster County, South Carolina
Effective Date: December 31, 2021
Report Date: March 30, 2022
Report Prepared for
OceanaGold Corporation
Report Prepared by
SRK Consulting (U.S.), Inc.
1125 Seventeenth Street, Suite 600 Denver, CO 80202
SRK Project Number: 392900.310
Signed by Qualified Persons:
David Carr, BEng Metallurgical (Hons), MAusIMM (CP) (OceanaGold Chief Metallurgist) Michael Kirby, PE, MEng Civil (OceanaGold Environmental Superintendent)
David Londono, BSC, MEng, MSc Earth and Systems Engineering, MBA, SME-RM (OceanaGold Executive General Manager)
Gregory Hollett, BEng Mining Engineering, P.Eng (EGBC) (OceanaGold Group Mining Engineer) Jonathan Moore, BSc Geology (Hons), MAusIMM (CP) (OceanaGold Chief Geologist)
Brianna Drury, BEng Mining, SME-RM (OceanaGold Underground Project Manager)
Larry Standridge, PE, MSE Geotechnical (Call & Nicholas Principal Engineer, Geotechnical Engineer) Jay Newton Janney-Moore, PE (NewFields Project Manager I)
William Lucas Kingston, P.G. Hydrogeology and Groundwater Management (NewFields Senior Hydrogeologist) Joanna Poeck, BEng Mining, SME-RM, MMSAQP (SRK Principal Consultant, Mining Engineer)
Matt Sullivan, BEng, RM-SME (SRK Principal Consultant, Mineral Economics)
David Bird, MSc., PG, RM-SME (SRK Principal Consultant, Geochemistry) John Tinucci, PhD, PE (SRK Principal Consultant, Geotechnical Engineer) Brian S. Prosser, PE (SRK Principal Consultant)
Reviewed by:
Berkley Tracy, MSc Geology, PG, CPG, PGeo (Principal Consultant, Resource Geologist)
Page ii
Table of Contents
1 Summary ..................................................................................................................... 17
1.1 Property Description and Ownership ................................................................................................ 17
1.2 Geology and Mineralization .............................................................................................................. 17
1.3 Status of Exploration; Development and Operations ........................................................................ 17
1.4 Mineral Processing and Metallurgical Testing .................................................................................. 18
1.5 Mineral Resource Estimate ............................................................................................................... 18
Open Pit Mineral Resource Estimate .................................................................................... 18
Underground Mineral Resource Estimate ............................................................................. 19
Combined Open Pit and Underground Resource Estimate .................................................. 21
1.6 Mineral Reserve Estimate ................................................................................................................. 22
Open Pit Mineral Reserves Estimate .................................................................................... 22
Underground Mineral Reserves Estimate ............................................................................. 23
Combined Open Pit and Underground Reserves Estimate .................................................. 25
1.7 Mining Methods ................................................................................................................................. 25
Open Pit Mining Methods ...................................................................................................... 25
Underground Mining Methods ............................................................................................... 28
Combined OP and UG Production Schedule ........................................................................ 30
1.8 Recovery Methods ............................................................................................................................ 33
1.9 Project Infrastructure ......................................................................................................................... 33
1.10 Environmental Studies and Permitting .............................................................................................. 33
1.11 Capital and Operating Costs ............................................................................................................. 34
1.12 Economic Analysis ............................................................................................................................ 35
1.13 Conclusions and Recommendations ................................................................................................ 36
Geology and Mineral Resources ........................................................................................... 36
Status of Exploration; Development and Operations ............................................................ 37
Mining and Reserves ............................................................................................................. 37
Mineral Processing and Metallurgical Testing ....................................................................... 38
Recovery Methods ................................................................................................................ 38
Project Infrastructure ............................................................................................................. 38
Environmental Studies and Permitting .................................................................................. 39
Economic Analysis ................................................................................................................ 39
2 Introduction ................................................................................................................ 40
2.1 Terms of Reference and Purpose of the Report ............................................................................... 40
2.2 Qualifications of Consultants ............................................................................................................ 40
2.3 Details of Inspection .......................................................................................................................... 42
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2.4 Sources of Information ...................................................................................................................... 43
2.5 Effective Date .................................................................................................................................... 43
2.6 Units of Measure ............................................................................................................................... 43
3 Reliance on Other Experts ........................................................................................ 44
4 Property Description and Location .......................................................................... 45
4.1 Property Location .............................................................................................................................. 45
4.2 Ownership ......................................................................................................................................... 47
5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ........ 49
5.1 Accessibility ....................................................................................................................................... 49
5.2 Climate .............................................................................................................................................. 49
5.3 Local Resources and Infrastructure .................................................................................................. 49
5.4 Physiography .................................................................................................................................... 49
5.5 Infrastructure Availability and Sources .............................................................................................. 49
6 History ......................................................................................................................... 50
7 Geological Setting and Mineralization ..................................................................... 52
7.1 Regional Geology .............................................................................................................................. 52
7.2 Local Geology ................................................................................................................................... 55
Lithology ................................................................................................................................ 55
Structure ................................................................................................................................ 62
Mineralization and Alteration ................................................................................................. 64
8 Deposit Type .............................................................................................................. 67
8.1 Haile Genetic Model .......................................................................................................................... 67
8.2 Haile Geological Model ..................................................................................................................... 68
9 Exploration ................................................................................................................. 69
9.1 Pre-Romarco ..................................................................................................................................... 69
9.2 Romarco ............................................................................................................................................ 69
9.3 OceanaGold Exploration ................................................................................................................... 69
Geologic Mapping and Surface Sampling ............................................................................. 69
Geophysics ............................................................................................................................ 70
10 Drilling ......................................................................................................................... 71
10.1 Type and Extent ................................................................................................................................ 71
10.2 Sample Collection ............................................................................................................................. 72
10.3 Collar Locations and Downhole Surveys .......................................................................................... 73
10.4 Significant Results and Interpretation ............................................................................................... 73
11 Sample Preparation, Analysis and Security ............................................................ 75
11.1 Sample Preparation for Analysis ....................................................................................................... 75
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Off-Site Sample Preparation ................................................................................................. 76
11.2 Sample Analysis ................................................................................................................................ 77
11.3 Check Assays ................................................................................................................................... 79
11.4 Quality Assurance/Quality Control Procedures ................................................................................ 79
Standards .............................................................................................................................. 79
Blanks .................................................................................................................................... 79
Duplicates .............................................................................................................................. 79
Actions and Results ............................................................................................................... 79
11.5 Opinion on Adequacy (Security, Sample Preparation, Analysis) ...................................................... 80
12 Data Verification ......................................................................................................... 81
12.1 Data Validation of Pre-Romarco Holes ............................................................................................. 81
12.2 Verification of Romarco and OceanaGold Data ................................................................................ 81
12.3 Romarco Data Verification ................................................................................................................ 82
12.4 Horseshoe Data Verification 2016 .................................................................................................... 83
12.5 Haile QA/QC ALS July 2017-January 2022 ...................................................................................... 85
July 2017- January 2022 CRM Performance ........................................................................ 85
Contamination Monitoring ..................................................................................................... 89
Statement of Data Adequacy ................................................................................................ 90
13 Mineral Processing and Metallurgical Testing ........................................................ 91
13.1 Testing and Procedures .................................................................................................................... 92
Comminution ......................................................................................................................... 92
Throughput Estimate Assumptions ....................................................................................... 95
Flotation and Cyanidation ...................................................................................................... 95
Sample Representativeness ............................................................................................... 106
13.2 Recovery Estimate Assumptions .................................................................................................... 107
14 Mineral Resource Estimate ..................................................................................... 111
14.1 Open Pit Mineral Resources Estimate ............................................................................................ 111
Drillhole Database ............................................................................................................... 112
Geologic Model Concepts ................................................................................................... 112
Lithology .............................................................................................................................. 112
Silicification .......................................................................................................................... 113
Pyrite ................................................................................................................................... 113
Grade Domain Construction ................................................................................................ 113
Compositing ........................................................................................................................ 114
Assay Cap Values ............................................................................................................... 114
Multiple Indicator Gold Class Thresholds and Means ......................................................... 115
Variogram Analysis and Modeling .................................................................................. 115
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Block Model ..................................................................................................................... 115
Estimation Methodology Gold, Sulfur and Carbon .......................................................... 115
Estimation Methodology Silver ........................................................................................ 116
Bulk Density .................................................................................................................... 117
Resource Classification .................................................................................................. 118
Model Validation ............................................................................................................. 119
Resource Model Reconciliation ...................................................................................... 122
Mineral Resource Statement .......................................................................................... 123
14.2 Underground Mineral Resource Estimate ....................................................................................... 123
Horseshoe Mineral Resource Estimate ............................................................................... 123
Palomino Mineral Resource Estimate ................................................................................. 134
14.3 Open Pit, Stockpile and Underground Combined Mineral Resource Statement ............................ 148
14.4 Relevant Factors ............................................................................................................................. 149
15 Mineral Reserve Estimate ........................................................................................ 150
15.1 Open Pit Mineral Reserve Estimate ................................................................................................ 150
Introduction .......................................................................................................................... 150
Conversion Assumptions, Parameters and Methods .......................................................... 151
Reserve Estimate ................................................................................................................ 153
15.2 Underground Mineral Reserve Estimate ......................................................................................... 154
Introduction .......................................................................................................................... 154
Conversion Assumptions, Parameters and Methods .......................................................... 154
Reserve Estimate ................................................................................................................ 157
15.3 Open Pit and Underground Combined Reserves Statement .......................................................... 157
16 Mining Methods ........................................................................................................ 159
16.1 Open Pit Mining Methods ................................................................................................................ 159
Current or Proposed Mining Methods ................................................................................. 160
Parameters Relevant to Mine or Pit Designs and Plans ..................................................... 160
Optimization ........................................................................................................................ 167
Mine Design ........................................................................................................................ 170
Overburden/Geochemical ................................................................................................... 172
Mine Production Schedule .................................................................................................. 177
Mining Fleet and Requirements .......................................................................................... 184
Labor ................................................................................................................................... 185
Mine Dewatering ................................................................................................................. 186
16.2 Underground Mining Methods ......................................................................................................... 187
Cut-off Grade Calculations .................................................................................................. 188
Geotechnical ....................................................................................................................... 190
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OceanaGold Corporation published this content on 31 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2022 23:28:08 UTC.