oceanagold - haile gold mine

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Page 1: OceanaGold - Haile Gold Mine

IN PARTNERSHIP WITH:

Page 2: OceanaGold - Haile Gold Mine

WHOLE LOTTA GOLD:OCEANAGOLD’S NEWEST ACQUISITION LOOKS

TO RESURRECT EAST COAST GOLD MINING INDUSTRY CEO Mick Wilkes discusses the company’s first U.S. gold mine and reveals future plans for the mine,

including its economic and environmental impact on the surrounding community.

Written by: Robert Spence Produced by: Andy Turner

Page 3: OceanaGold - Haile Gold Mine

WHOLE LOTTA GOLD:OCEANAGOLD’S NEWEST ACQUISITION LOOKS

TO RESURRECT EAST COAST GOLD MINING INDUSTRY CEO Mick Wilkes discusses the company’s first U.S. gold mine and reveals future plans for the mine,

including its economic and environmental impact on the surrounding community.

Written by: Robert Spence Produced by: Andy Turner

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T he Haile Gold Mine in Lancaster County, South Carolina is one of the first

operating gold mines in the United States. First discovered nearly half a century before the California gold rush, the Carolina slate belt hosted the nation’s first major gold discoveries. Gold mines, including the Haile Gold Mine, have been operating there on and off for roughly 200 years.

As the only new gold mine east of the Mississippi, OceanaGold’s recent purchase of the historic mine indicates the resurrection of gold mining on the east coast is imminent--and with gold prices continuing to rise, the timing couldn’t be better.

Hai le Go ld M ineThe history of Haile Gold Mine can be traced back to 1827 when first discovered by local resident Benjamin Haile. Legend has it that Franklin Roosevelt shut the mine down during World War II so that Americans could focus on warfare industries. Over the years the mine has gone through

various ownerships, and in 2007 was acquired by exploration and development company, Romarco Minerals Inc.

Located approximately 58 miles northeast of Columbia, the Haile mine is estimated to contain at least two million ounces of economic gold reserves and almost five

OCEANAGOLD CORP.

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Haile Gold Mine construction site

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milling ounce of gold resources. OceanaGold, which acquired Romarco Minerals and took ownership of the gold mine in 2015, intends to maximize that potential.

“Haile is a very robust project and we saw the opportunity because it has good grades, size and great exploration potential,” said

OceanaGold President and CEO, Mick Wilkes.

The company is investing $300 million into the construction of the mine and so far has commenced the concrete works for the Ball and SAG mill foundations, and advanced the earthworks for the plant site, waste rock pads and tailings storage facility.

M I N I N GOCEANAGOLD CORP.

Haile Gold Mine construction site

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For over 70 years, Morgan Corp. has beena leader in mining and heavy industrial site

ddevelopment. We strive to be a Value Added Partner for our clients by focusing

on the effective and efficient completion of their projects through the development of

superior project teams.

Safety. Quality. Productivity. • Mining • Commercial and Industrial • Dams • Landfills • Residential • Power and Energy •• Transportation

MARKET• Dewatering • Site Preparation • Underground Utilities • Tailings Impoundments • Heavy Highway Infrastructure • Leachate Collection Systems •• Roller Compacted Concrete • Construction Surveying • Drilling and Blasting • Concrete

CAPABILITIES

Spartanburg SC 864.433.8800

Charlotte NC 704.598.9117

Savannah GA 912.629.9439 morgan-corp.com

Groundbreaking Solutions

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For over 70 years, Morgan Corp. has beena leader in mining and heavy industrial site

ddevelopment. We strive to be a Value Added Partner for our clients by focusing

on the effective and efficient completion of their projects through the development of

superior project teams.

Safety. Quality. Productivity. • Mining • Commercial and Industrial • Dams • Landfills • Residential • Power and Energy •• Transportation

MARKET• Dewatering • Site Preparation • Underground Utilities • Tailings Impoundments • Heavy Highway Infrastructure • Leachate Collection Systems •• Roller Compacted Concrete • Construction Surveying • Drilling and Blasting • Concrete

CAPABILITIES

Spartanburg SC 864.433.8800

Charlotte NC 704.598.9117

Savannah GA 912.629.9439 morgan-corp.com

Groundbreaking Solutions

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SUPPLIER PROFILE

Morgan Corp is a privately held corporation whose core areas of expertise are in heavy earthwork construction, underground utilities installation and all aspects of site-preparation for the major Industrial and Power Generation markets. Incorporated in 1970 and headquartered in Spartanburg, SC, Morgan Corp is widely recognized as one of the safest, most reputable, and quality driven civil construction firms throughout the southeastern United States. Morgan is now licensed in twelve states and serves this expanded client base with estimating, surveying and site construction services from additional regional offices in Charlotte, NC and Savannah, GA.Our diverse record of work compiled over 50 years of service includes a substantial number of primary containment structures. These projects range from impoundments; lined MSW landfills; Coal Combustion residual facilities, and dams. The Owner & Client list for these projects is made up of some of the United States’ most successful Engineering & Construction firms, Energy producing utilities, and Waste Disposal companies.Notable Project: Ridgeway Gold Mine - (owned and operated by Kennecott-Ridgeway Mining Co.) Morgan Corp was contracted to perform the initial site construction for the mine including 1.5 million cubic yards of embankment construction for the lined 250 acre Tailings Impoundment.The impoundment was one of the first and largest HDPE synthetic lined facilities of its kind. As on-going operation required expansion of the facility, Morgan was again brought in to construct the additional phases, ultimately placing 10 million more cubic yards of material and increasing the area to 320 acres. At the conclusion of active mining operations in, Morgan Corp is proud to have been contracted on the project, for a third time, to perform the final reclamation of the site. The final phase encompassed 2 million cubic yards of earthwork for construction of a passive wetlands, a mile long water conveyance channel, and final contouring.Other notable work: in the Nuclear Power sector also illustrates Morgan Corp’s capabilities to perform large scale projects while operating under the most rigorous Safety standards. From 2009 to 2013 Morgan excavated and placed in excess of 30 million cubic yards of material while under contract at two of the three active new nuclear reactor construction sites in the U.S. . During the course of this work Morgan surpassed the milestone of 2 million safe man hours without a lost time incident. At Morgan, we believe the greatest testament to our many years of dedication to the principles of Safety, Quality and Integrity is our substantial history of projects completed for repeat owners.These long standing relationships are forged from our customers’ confidence in the reliability and value that Morgan Corp’s service provides.

Management: David Johnson - CEO; Tim Halligan - President

Website: www.organ-corp.com

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For the gold recovery, OceanaGold will be utilizing a fine grinding method that consists of grinding down the ore to very small particles. Once ground to a sand-like material, the sulphide minerals containing the gold are concentrated using flotation. Gold is then leached from the concentrate using a solution of sodium cyanide – allowing the company to recover nearly 84 percent of the gold. According to Wilkes, the method of grinding the ore very finely to allow

the gold to be recovered wasn’t cost-effective until very recently.

“Before the technology we have now, extracting gold required an expensive process that was not economic at the grades we are looking at here at Haile,” said Wilkes. “The technology we are using allows us to unlock unoxidised gold ore at new depths, making it economic to recover gold in the sedimentary rock.”

OceanaGold is on track to start the ore processing facilities at the

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M I N I N G

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SUPPLIER PROFILE

Blanchard Machinery Company has been supplying South Carolina customers with Caterpillar equipment since 1982. The family owned company has established retail and rental stores throughout the state which offer a wide range of Cat and non-Cat brands of equipment. We are committed to providing our customers the best products and services available.

As the Cat mining dealer in South Carolina, we’re proud to partner with OceanaGold at the Haile Gold Mine. We understand the mining industry and the needs of today’s mine operators by offering Caterpillar’s industry leading product line. Blanchard Machinery is committed to the success of our customers operations with mining equipment ranging from mass excavators to articulated trucks, hydraulic shovels and off-highway mining trucks to track type tractors, wheel loaders and conveyor belt systems, as well as power generation.

Whether it’s new or used equipment, rentals, parts or service, Blanchard Machinery has been a Dependable Partner for South Carolina’s mining industry for over 30 years.

Website: www.BlanchardMachinery.com

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end of 2016 with a commercial production start date for early 2017. Over the life of the mine as currently designed, the company will produce 150,000 ounces of gold per annum, with a mine life of 15 years.

Communa l benef i t sThe Haile Gold Mine will have a significant economic impact on Lancaster County to the tune of

$70 million annually in direct and indirect revenue. In addition, the construction of the mine will employ roughly 500 local employees, and upwards of 500 additional jobs during operations.

“Mining is a great injection of value into any economy and business, and has proven to have a real multiplier effect on economies,” said Wilkes. “If mining is done

M I N I N G

Haile Gold Mine construction site

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www.centurycontractors.comInquiries: [email protected]

Corporate Office5100 Smith Farm Rd.Matthews, NC 28104704.821.8050

Greenville200 N. Main St., Suite 300Greenville, SC 29601864.286.0500

Mt. Pleasant1156 Bowman Rd., Suite 216, Mt. Pleasant, SC 29464843.352.7001

Century Contractors, Inc. is proud to be a key contractor for the Haile Gold Mine Project. Celebrating 40 years in the business, our company is built on customer

commitment, safety, and quality of work.

Our capability to self-perform critical project activities allows us to provide outstanding services to clients that support their business objectives. Because we do

it right the first time, we consistently execute projects on time and on budget.

CONGRATULATIONS OCEANA GOLD

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M I N I N G

right and responsible, and in the most modern way, it can be very beneficial to the area.”

As the company’s first gold mine in the United States, Haile will set the standard of how OceanaGold operates in new locations – putting the company’s standard for community engagement and responsible mining on show.

Before any mining operations begin, the company will conduct environmental practices that go beyond standard regulatory requirements. The company, which intends to preserve and restore

wetlands, will also invest millions of dollars to create new wetlands and streams as well as reestablish those temporarily affected by the mine.

Similar to its operations in New Zealand and the Philippines, OceanaGold is striving to minimize both the impact from the mine during operation and long after the mine has closed. OceanaGold is already making plans for the mine after operations are over. The company is expected to spend more than $90 million on mitigation, restoration and reclamation that will incorporate re-vegetation and

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Employees: 300-400Established: 1975Industry: Industrial self-performing contractor specializing in Biofuels, Minerals, Mining, Petro Chemical, Pharmaceuticals, Paint, Resins and other process markets.Services: General Contractor, Subcontractor self-performing Site Utilities, Concrete Foundations/Slabs, Structural Steel Erection, Equipment Rigging & Alignment, Pipe Fabrication & Installation, Plumbing, and Mechanical Installation.Ongoing Projects: Projects throughout the Southeast for a variety of processing and manufacturing customers.Website: www.centurycontractors.com

SUPPLIER PROFILECENTURY CONTRACTORS, INC.

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We offer complete services in the following areas:• Pond and lake construction• Road construction • Erosion control• Reclamation and mitigation • Land maintenance • Wetland restoration • Wetland restoration • Natural resource conservation

4632 Mt. Pisgah Rd, Kershaw, SC 29067803 475 4598www.csikershaw.com

Mining | Construction | Environmental Management

Helping You Build Your Future

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M I N I N G

installing pit lakes and recreational areas for the public to enjoy.

“We will be reclaiming Haile during the entire mining process, from start to finish,” said Wilkes.

In addition to spending nearly $3 million per month in the region through labor and the purchase of local goods and services, the company through its predecessor Romarco recently purchased the $20-million Goodwill Plantation in Columbia and donated it to the state. “The purchase of this historic plantation and its donation to the State of South Carolina is a true

demonstration of the benefits that mining brings to society,” said Wikes.

“This area has historically been a gold mining community and we intend to continue that tradition with the Haile mine,” said Wilkes. “And we intend to do so in the most responsible manner possible bringing long lasting benefits for the broader community from the bounty of our efforts.”

I n fo r t he long hau lWhile the Haile Gold Mine will in fact be an open pit operating, Wilkes

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Employees: 60Established: 2001Industry: Mining, Construction, Environmental Management (No More than 25 words)Services: Erosion Control, Water Management, Site Preparation and General Services (No More than 25 words)Ongoing Projects: OceanaGold: Haile Gold Mine Operation (No More than 25 words) Management: Charles R. Braswell - Operations Manager; Marc Braswell - Operations Superintendent; Sara Sims - Field SuperintendentWebsite: www.csikershaw.com

SUPPLIER PROFILE CONTRACTOR SERVICES INCORPORATED

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Contour Mining & Construction is a full service contracting firm with a focus on contract mining, reclamation, impoundments and greenfield site development. Anchored in experience

with a strategic focus on engineering value through increased metrics.

SAFELY, ALL DAY.

CONSULTING

MINING

SITE PREPARATIONP.O. Box 443 Columbia, SC 29202

2805 Millwood Ave. Columbia, SC 29202www.contourmc.com

Main Office: (803) 661-8449Haile Project Office: (803) 475-9155Fax: (803) 753-0886

As recognized international design leaders in mineral

processing and astronomical facilities, these fields are

representative of the broad scope of industries M3 has been entrusted with for the

past 30 years.

Locations in Arizona and North Carolina, USA

Sonora, MEXICOARGENTINA • PERU • CANADA

www.m3eng.com 520.293.1488

A full-service international firm offering

Architecture • Engineering • Procurement and

Construction Management Services

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M I N I N G

confirmed the company was optimistic about the potential opportunities that exist at the Haile project to further define additional resources and reserves. “Our objective is to construct an open pit mining operation with a 13 year mine life but in conjunction with the development and operations, we will invest in exploration to expand the resources and reserves.”,” said Wilkes. “Done right, we believe we can extend the reserves from two million ounces to over three million and more.”

The company has allocated an exploration budget of $25 to $30 million and will utilize roughly $10 to $15 million at Haile in 2016.

Key Personnel

Michael WilkesPresident and Chief Executive Officer

Mark ChamberlainExecutive Vice President and Chief Financial Officer

Mark CadzowExecutive Vice President and Chief Development Officer

Michael HolmesExecutive Vice President and Chief Operating Officer

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Coincidentally, the Haile Gold Mine is located between two former gold mines: the Ridgeway Mine and the Brewer Mine. Although the areas were mined by gold producers in the 1980s, the potential to be explored today—or in the future – is a safe

bet.“We will continue to advance the

development of the Haile Gold Mine to commercial production in early 2017. We have developed our most ambitious exploration program in the company’s 25-year history to

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OCEANAGOLD CORP.

Haile Gold Mine construction site

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M I N I N G

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identify additional resources and extend mine life across our operations. We will remain steadfast in our environmental and social commitments and will continue to work very closely with our valued stakeholders.”

Wilkes concluded, “We envision being here for a very long time.”

Company Information

I N D U S T RY

Mining and Metals

H E A D Q U A RT E R S

Melbourne, Victoria Australia

F O U N D E D

1990

A B O U T

OceanaGold Corporation is a significant multinational gold producer with assets located in New Zealand, including one of the largest gold mines in the country, and in the northern Philippines. OceanaGold has built a strong business, operating three mines in New Zealand – Macraes Open Pit, the Reefton Open Pit and the Waihi mines – and the Didipio mine in the Philippines

OCEANAGOLD CORP.

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[email protected] | WWW.OCEANAGOLD.COM

357 Collins Street, Level 14, MelbourneVictoria, Australia - 3000

Tel. +61 -3-9656-5300