OGC Announces Initial Drill Results Blackwater Gold Project

OGC Announces Initial Drill Results Blackwater Gold Project

19 April 2012

The Blackwater high grade gold project is located in the Reefton Goldfield in South Island, New Zealand.

Highlights
• Successfully intersected the high grade quartz reef approximately 650m down plunge below previously mined workings of the historic Blackwater mine.
• Initial results from the first hole (WA21A) of the program intersected 1.0m (estimated true width of 0.5m) of 23.3g/t Au.
• Results from Hole WA21A are consistent with historical mining records that reported widths up to 2.5m and grade ranges of 1.7g/t Au to over 100g/t Au. Average historical widths and grades were 0.7m and 22g/t Au.

These results are the first of a drill program expected to continue throughout 2012. Dependent on the outcome of the 2012 program, the Company will consider undertaking a feasibility study on the project in 2013 to evaluate the economics of a high-grade underground operation. Scoping studies already completed based on historical mining grades and widths indicated that a narrow vein high grade underground mine could produce approximately 50,000oz of gold per annum at less than US$600 per ounce.

Drill hole WA11, completed in 1996, intersected the reef at 269m down plunge below the level of the old workings and reported a similar high grade interval of 0.5m true width at 24g/t Au. Hole WA21A intersected the reef at 652m down plunge below the level of the old workings (391 vertical metres) and 421m distance from WA11 intercept (197 vertical metres).

Mick Wilkes, CEO & Managing Director commented, “Intersecting the high grade reef 652 metres down plunge of the previously mined workings is a significant achievement and a great start to the Blackwater program in 2012. The reef appears to show good depth continuity with remarkable consistency in both grade and width. We plan to drill additional holes to test the continuity at depth and are hopeful this will lead to the decision to undertake a feasibility study in 2013.”

Table A - (Table on full report HERE) Blackwater Mine Drill Intercepts

Figure 1 - (Image on full report HERE) Blackwater Mine Long Section showing gram-metres from historical workings, modelled down plunge quartz reef extension, drill intercepts and drill hole traces

Technical Disclosure
Dr. Michael Roache, (PhD) - Head of Exploration and Mr Jonathan Moore – Group Mine Geology Manager, both of OceanaGold, are responsible for the technical disclosure in this document, and are Qualified Persons under the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure of Mineral Projects (“NI 43-101”). Dr Roache is a member of both the AusIMM and Australasian Institute of Geoscientists while Mr. Moore is a member and Chartered Professional with the AusIMM. The 2012 drilling samples, collected at approximately 1m intervals from sawn diamond core, were prepared and assayed by screen fire assay (method code Au-SCR22AA) at the Townsville ALS Laboratory, Australia.

For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the Reefton Project, please refer to the NI 43-101 compliant technical report entitled “Independent Technical Report for the Reefton Project located in the province of Westland, New Zealand” dated 9 May, 2007, prepared by McIntyre, White, Frew, Gossage, and Penter and available at www.sedar.com under the Company’s name

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