Mining Global Magazine - March 2016

Upcoming Mining Events for 2016

Buyer’s Guide 2016 The latest mining equipment

March 2016

Top10 From Mine to Tourist Attraction

www.miningglobal.com

Special Reports: Mineral Deposits & Cobre Panama

DOUBLE FEATURE

EXCLUSIVE INTERVIEW

CEO Mick Wilkes discusses OceanaGold’s operations in New Zealand, Philippines, and more recently, the United States

EDITOR’S COMMENT

IN THIS ISSUE

“Let the future tell the truth, and evaluate each one according to his work and accomplishments. The present is theirs; the future, for which I have really worked, is mine” – Nikola Tesla G O L D S H O U L D S E R V E A S a reminder that mining is a

cyclical industry. The precious metal, whose appeal was almost nonexistent a few months ago, has gone on to become one of the brighter commodities in 2016 so far. For multinational gold producer, OceanaGold, the timing couldn’t be better.

The March issue of Mining Global takes a closer look at OceanaGold and their global operations in New Zealand, the Philippines and recently the United States. CEO Mick Wilkes outlines the future of the mining company and discusses key acquisitions recently completed, including the purchase of the Waihi Gold mine and Haile Gold mine.

With Mining Indaba 2016 officially in the books, the March issue highlights the recent event as well as showcases the biggest upcoming events in the mining sector. Also this month, we welcome you to our 2016 mining equipment buyers guide. Here we provide a comprehensive insight into the newest equipment and products from the four largest manufacturers in the mining industry. From hydraulic shovels and excavators to dozers and continuous miners, the 2016 Buyers Guide presents the latest in mining machinery.

Because mining reclamation projects generally receive little to no attention from media outlets, we decided to take a look at the top projects across the globe breathing new life into former mines, while creating exciting tourist attractions in the process.

Enjoy the issue!

Robert Spence Editor

robert.spence@wdmgroup.com

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CONTENTS

Features

6

MACHINERY Mining equipment: Buyers’ Guide 2016

18

EVENTS Mining Events in 2016: What, When, Where 4

March 2016

20 TOP7 From mine to tourist attraction:

Company Profiles USA 36 OceanaGold

AUSTRALIA

36

EXCLUSIVE INTERVIEW

Mick Wilkes, CEO of OceanaGold (USA)

56 OceanaGold 100 Era Resources

AFRICA 110 Mineral Deposits (GCO) 120 Cobre Panama

CANADA 134 Knight Piesold

110 134

Mineral Deposits (GCO) Knight Piesold

56

100

OceanaGold (AUS)

Era Resources

120 144

Cobre Panama Shore Gold

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M A C H I N E RY

Mining Equipment

2016

BUYER’S GUIDE 6

March 2016

Welcome to the 2016 mining equipment buyers guide. Here we provide a comprehensive insight into the newest equipment and products from the four largest manufacturers in the mining industry. From hydraulic shovels and excavators to dozers and continuous miners, the 2016 Buyer’s Guide presents the latest in mining machinery.

Writ ten by: ROBE RT SPE N C E

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M A C H I N E RY 1

6015B Hydraulic Shovel The new 6015B is equipped with a 100-ton shovel and a single Cat C27 ACERT engine, the most powerful in its class, to provide greater digging power and faster digging cycles while also lowering fuel burn and costs.

The large, 8.1-cubic-meter standard bucket, which is outfitted with a Cat C70 hammerless GET, has a payload capacity of 14.6 tons and provides a competitve advantage over leading standard-equipped shovels in its class when loading trucks of 55, 65 and 90 capacities. The Cat C27 ACERT engine provides 606 kW of rated power which equates to a 20 percent productivity advantage over existing 100-ton shovels. The 6015B is also optimized to fill a Cat 773 truck in four passes, a 775 in five passes, and a 777 in seven passes. In addition, a U.S. EPA Tier 4 Final C27 engine option meets emissions standards in highly regulated countries.

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6020B Hydraulic Shovel Keeping in line with the B Series, Caterpillar developed the 6020B Hydraulic Shovel, a brand new, clean-sheet design that delivers the simplicity and versatility miners desire, 8

March 2016

1

with valuable modern design features that set it apart from the competition.

The Cat 6020B is engineered from the ground up with ease of use in mind. The state-of-the-art cab features large floor window and expansive windshield and size windows for class-leading visibility, and includes a redundant HVAC system, camera system, and Cat MineStar system, The 6020B is also easy to assemble, easy to learn, easy to operate and easy to maintain.

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3

18M3 Motor Grader The new Cat 18M3 Motor Grader was designed to provide more power and greater coverage per pass compared to the Cat 16M3.

Based on the popular 16M3 model, the new motor grader offers additional power and a wider moldboard to support small- and medium-size mining operations that run190-ton or smaller hauling trucks. The 18M3 is powered by a Cat C13 ACERT™ engine, which uses the Caterpillar Optimized Variable Horsepower (VHP) system, designed to deliver

optimum power in each gear for the operating situation. The engine is available in three configurations to satisfy global emissions standards: • U.S. EPA Tier 4 Final / EU Stage IV / Japan 2014 (Tier 4 Final) • Tier 3 / Stage IIIA / Japan 2006 (Tier 3) equivalent • Tier 2 / Stage II / Japan 2001 (Tier 2) equivalent

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M A C H I N E RY

1 PR 776 Crawler Dozer

The world’s first hydrostatically powered crawler tractor in the 70 tons category, the new PR 776 is powered by a Liebherr 12-cylinder diesel engine developing 565 kW (768 HP / 759 HP), with a maximum operating weight of 74t and is equipped with blade capacities of 18m³ / 23.5yd³ (semi-U blade) or 10

March 2016

22m³ / 28.8yd³ (U blade).

The Liebherr PR 776, which will be unveiled at Bauma 2016, features the ECO function, allowing operators to choose between high performance and maximum efficiency. The ECO control system enables greater travel drive efficiency in light to medium operations, and also provides greater fuel savings.

BUYER’S GUIDE 2016 2 SCRFilter

Set to debut at Bauma 2016, the SCRFilter system from Liebherr comprises a DOC catalytic converter, a SCR catalytic converter and a SCRcoated particulate filter. The DOC catalytic converter is maintenancefree and the coated particulate filter has passive regeneration, making the system reliable and easy to operate. The combustion process was optimized so that only a few particles arise that have to be held back by the SCRFilter. As a result, the maintenance intervals can be stretched to more than 4,500 operating hours.

The SCRFilter is part of the Liebherr modular system for engines and is compatible with all engines in the D93, D94 and D95 series. These engines have identical performances, machine cooling system requirements and the same interfaces during installation for the emission standards IIIA/ IV and stage V. It allows the customer to use the same machine design for various emission standards.

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R 9150 Excavator The Liebherr R 9150 hydraulic mining excavator is the perfect loader for 50 up to 135 ton mining trucks and offers a wide array of uses. The advanced R 9150 is the worthy successor of the esteemed Liebherr R 984 C. Having the largest bucket capacity in its class, combined with its high digging forces and optimal cycle time, makes the R 9150 the most powerful excavator in the 100t class mining market.

The R 9150 is equipped with the same Liebherr V12 diesel engine as the R 9100, specifically designed to withstand extreme outside temperatures and fluctuations in atmospheric pressure. Integrating the latest engine management system, the R 9150 is built for intense mining and complies with USA/EPA Tier 2 emission limits.

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M A C H I N E RY

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1

1 Joy 16TD truck

The 16TD truck has a rated load capacity of 16,000 kg (35,274 lbs.). The load-sensing variable displacement hydraulics reduce heat and fuel costs, while improving the life of the hydraulic components. In addition, the optional automatic lubrication system keeps the DT-1804 working longer, harder, and more productively.

The 16TD Â truck, like all Joy trucks, 12

March 2016

is designed specifically for ease of use and maintenance, with simple operation gauges and a rugged longlife structure, providing the lowest possible total costs of operation including low capital costs.

2 MVT-II Sizers

Our new MVT-II sizers are secondary and tertiary sizers that reduce fines generation through our innovative

BUYER’S GUIDE 2016

• Adjustable roll gap to optimize productivity • Self-cleaning, timed impact teeth to optimize throughput by allowing sized material to pass through unimpeded • Welded frame construction

Matched Velocity Technology that optimizes throughput capacity. With this technology, roll speeds are set to match the speed of incoming material, reducing the excess fines created with competitors’ designs.

The MVT-II sizers come in two versions – MVT-II 600 and MVT-II 800 – and feature: • Segmented roll design so that only worn segments need to be replaced

DynaCut Technology Joy Global and CRCMining are working together to advance DynaCutTM technology by modeling performance across a range of rock properties. ODC (Oscillating Disc Cutter) technology has been licensed to Joy Global

by CRCMining since 2006.

At this time the technology was rebranded DynaCut, and equipment development since then has been carried out by Joy Global. In 2011, Joy Global engaged with CRCMining and potential technology users to improve knowledge of fundamental rock breakage. It is intended that the Joy Global development team can use this knowledge to further improve equipment performance. Joy Global has made substantial improvements to the operating performance and mechanical reliability of DynaCut technology since commissioning its test machine in 2013.

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LMEAACDHEIRNSEHRIYP

1

2 MC350 Continuous Miner

The Sandvik MC350 continuous miner, for mid-size room and pillar applications, is the latest edition in the comprehensive offering of continuous miners from Sandvik. The performance of Sandvik MC350 has been proven in extensive field tests in South Africa and, as all the continuous 14

March 2016

miners in the MC series, it offers high productivity and low cost of ownership.

The new MC350 continuous miner can also be fitted with a proximity detection system to improve safety as well as a health monitoring function to provide advance warning of potential problems. In

BUYER’S GUIDE 2016 1 MB670-1 Bolter Miner

The new Sandvik MB670-1 increases productivity, reduces total cost of ownership, and improves safety and ergonomics for operators.

This upgraded bolter miner, developed out of the proven and reliable Sandvik MB670, is purpose-built for longwall mining. The fully automatic cutting cycle results in constant and faster advances, shortening panel development times in stable ground conditions by up to 30 percent and ensuring smoother mine floor conditions.

Sandvik MB670-1 itself suffers less wear and tear. All of this increases productivity and lowers total cost of ownership.

addition, the MC350 is the ideal choice for coal and potash mining when space is limited and high cutting power is required.​​

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M A C H I N E RY

D61-24 Crawler Dozer The D61-24 crawler dozer features a 6.8 liter, 168-horsepower, SAA4D107E-3, EPA Tier 4 Final emissions certified engine with classleading power and fuel efficiency.

The Komatsu Variable Geometry Turbocharger (KVGT) creates excellent engine response and helps maintain a high level of passive regeneration to ensure fuel isn’t wasted on cleaning the exhaust filter. More than 99 percent of Komatsu Diesel Particulate Filter regeneration is performed with no action required by the operator.

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March 2016

Noteworthy features on the D61-24 crawler dozer include: • A choice between quick-shift, three-speed mode and a variable, 20-speed customizable transmission mode to suit personal preferences.

• Proprietary engine and hydrostatic transmission technology that improves machine efficiency and cuts fuel consumption.

• New auto-idle shutdown and economy modes that help reduce idle time and save fuel.

• Pioneering KOMTRAX telematics system and monitor that provides

BUYER’S GUIDE 2016

key machine metrics, including KDPF status, DEF consumption, fuel level, operating hours, location, cautions and maintenance alerts. Operator ID also makes it possible to view • KOMTRAX data by job, application or operator.

• KOMTRAX is included with the D61-24 at no charge.

• Large, multi-lingual, 7 inch, highresolution LCD monitor with Ecology Guidance that helps operators monitor machine performance for maximum fuel efficiency and follow real-time integrated diagnostics for troubleshooting without a laptop.

• Standard rear-view monitoring system that promotes increased operator awareness of potential worksite hazards.

PC55MR-5 use up to five percent less fuel than their predecessors with no loss to performance or productivity.

The new Tier 4 Final engine is not only more fuel efficient, it has an after-treatment system that requires no diesel exhaust fluid (DEF). The Komatsu diesel particulate filter (KDPF) and other after-treatment components are also specifically designed to work in harmony with the engine for added efficiency and long life.

PC45MR-5 & PC55MR-5 Hydraulic Excavators Last year, Komatsu introduced the new PC45MR-5 and PC55MR-5 hydraulic excavators, two machines with tight tail swing radii, swing booms and convex sliding doors that hug the machine to help with work in tight spaces. Featuring 2.19 liter, 38 horsepower, EPA Tier 4 final, 4D88E-7 engines, the new PC45MR-5 and 17

EVENTS

Mining Events in 2016:

What, When, Where Edited by: Robert Spence

Every year, millions of people flock to industry events around the globe to learn about the latest innovations, witness new technological advances, and hear from experts on industry topics. These events, especially in the mining sector, connect like-minded individuals together to inspire collaboration and innovation in order to achieve positive results on a global scale.

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EVENTS EVENT

Mining Indaba For 20 years, Mining Indaba has served as the pathway for foreign investments into Africa’s mining value chain. Dedicated to the capitalization and development of mining interests in Africa, the annual conference has become the world’s largest mining investment event and the largest mining event in Africa.

This year’s event, which included some of biggest names in the industry such as Rio Tinto and Anglo American, featured a comprehensive schedule of presentations, panels and breakout sessions from top global economists, industry analysts and mining management.

WHAT: Investing in African Mining Indaba WHEN: March 8-11, 2016 WHERE: Cape Town, South Africa

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March 2016

M I N I N G E V E N T S I N 2 0 1 6 : W H AT, W H E N , W H E R E

EVENT

SME Annual Conference & Expo The SME Annual Conference & Expo (ACE) is the only conference dedicated to all disciplines of mining engineering. Widely recognized as the most distinguished forum for the publication of multidisciplinary mining research, ACE 2016 is a four-day interdisciplinary educational experience including a three-day technical session program that attracts thousands of mining professionals from around the world. The conference’s expansive exhibit hall floor provides close-up views of the latest in mining technology and innovations, allowing attendees hands-on opportunities for collaborating with the industry’s best.

The Society for Mining, Metallurgy & Exploration Inc. (SME) is a professional society (nonprofit 501(c)(3) corporation) whose more than 15,000 membership represents all professionals serving the minerals industry in more than 100 countries.

WHAT: SME Annual Conference WHEN: March 21-24, 2016 WHERE: Phoenix, Arizona

& Expo 2016

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EVENTS

EVENT

PDAC Convention The Prospectors & Developers Association of Canada (PDAC) is the premier convention for people, companies and organizations in, or connected with, mineral exploration. The annual event, now in its 84th years, is comprised of the who’s who of the mining industry, bringing together investors, analysts, executives, geologists, government officials and students to Toronto. PDAC events have recently attracted between 23,000 and 30,000 attendees from more than 125 countries.

“The annual PDAC Convention attracts executives, government officials, prospectors, analysts, investors and brokers from all over the world, including the United States, Australia, Peru, Mexico, Chile and South Africa—which is more countries than the 2015 Pan and Parapan American Games and the 2010 Vancouver Olympics.”

WHAT: PDAC Convention 2016 WHEN: March 6-9, 2016 WHERE: Toronto, Canada 22

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M I N I N G E V E N T S I N 2 0 1 6 : W H AT, W H E N , W H E R E

EVENT

Mines and Money Asia With an eight year history, Mines and Money Asia is where mining and investment professionals come to do business in Asia. The leading PanAsian mining investment conference and exhibition brings together 2,000 attendees from 30 countries. Senior executives of global mining companies are connected with resource investors based not just in Hong Kong, China but from Asia and all around the world for three days of learning, networking and deal-making.

At Mines and Money 2016, attendees will have face-to-face access to the senior executives of 150 global mining companies, enabling comprehensive exploration of global mining projects across all geographies and commodity classes. In addition, leading institutional investors, mining developers (major, mid-tier and junior), M&A experts and industry experts will be present.

WHAT: Mine and Money ASIA WHEN: April 5-7, 2016 WHERE: Hong Kong, China

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EVENTS EVENT

MINExpo International MINExpo is the largest mining show on--and under--Earth. Sponsored by the National Mining Association (NMA), the event is the mining industry’s premier exhibition for mining equipment, technology and service companies specializing in every facet of mining: open pit, underground, processing and preparation, mine site development, exploration and surveying, smelting and refining, and reclamation.

Every four years, MINExpo delivers solutions with state-of-the-art products and services, innovative technologies and expert-led educational sessions. With more than 2,000 exhibitors, you’ll find products and services to improve safety, reduce production costs, manage risk and increase productivity. It’s also the place to build your network and discuss current and future company needs with industry experts in the Exhibit Halls and education sessions.

WHAT: MINExpo International 2016 WHEN: September 26-28, 2016 WHERE: Las Vegas, Nevada 24

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M I N I N G E V E N T S I N 2 0 1 6 : W H AT, W H E N , W H E R E

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TOP10

From Mine to Tour Photos of Innovative R

We take a look at the top projects across the globe brea former mines while creating exciting tourist attractions

TOP 10 Mining reclamation projects generally receive little to no attention from media outlets.

Ask any responsible miner and they’ll tell you that’s a good thing. That’s become the goal of mine reclamation is to go unnoticed, restoring the land into as good or in better shape than before. And while a company’s approach to reclamation is generally based off community input, a new and innovative trend is beginning to gain steam.

We take a look at the top projects across the globe breathing new life into former mines while creating exciting tourist attractions in the process.

rist Attraction: Reclamation Projects

athing new life into in the process.

Written by: Robert Spence 27

TOP 10

The Eden Project UK

Situated in Cornwall, England, the Eden Project is one of the largest indoor rainforests in the world. The project is comprised of a series of interconnected enclosures that replicate different global environments. First opened to the public in 2001, the former mine welcomes hundreds of thousands of visitors each year.

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March 2016

F R O M M I N E T O T O U R I S T AT T R A C T I O N

Salina Turda Romania

The Salina Turda salt mines in Transylvania, Romania are one of the first unused mines to be converted into a tourist attraction. The site -- which descends almost 400 feet into the Earth – was first opened in 1992 and has become a wonderland for visitors across the globe. The mines feature a 180-seat amphitheater and carousel at depths of 140 feet as well as access to a small lake where boats can be rented at 370 feet down. A large rotating wheel allows visitors to see the stalagmites throughout the cave.

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TOP 10

Mega Cavern USA

If exploring an abandoned underground mine wasn’t enough, the people from Louisville Mega Cavern have created the ultimate indoor bike park.

The reclaimed site is located 100 feet underground and encompasses over 320,000 square feet, including more than 45 trails for BMX, cross country and single track.

“We have a very large area to work with,” said Tom Tyler, co-owner of Mega Cavern. “You can’t duplicate it. Somebody would have to go out and dig rock for 40 years before they have what we’ve got here.”

Co-owner Jim Lowry says riders can expect more changes in the coming months, including mountain bike and helmet rentals, plush Phase Two of the park expansion.

“We are building a school area, which will include five lines (bike trails) so that riders can gradually improve their skills,” Lowry said.

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March 2016

F R O M M I N E T O T O U R I S T AT T R A C T I O N

Go Below® Ultimate Xtreme™ UK

If you’re looking for the ultimate thrill ride, Go Below® Ultimate Xtreme™ is surely for you. Formerly known as Zip Below Xtreme, this abandoned slate mine is located 1,230 feet beneath the Wales’ Snowdonia National Park and features an underground obstacle with everything from zip-lining through caverns to boating across a lake.

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TOP 10

Wieliczka Salt Mine Poland

The process of mining salt can produce some of the most majestic and tranquilizing images ever seen. These landscapes include multicolored pools of water, deep caverns, and geometric carvings. The sites are so mesmerizing, many of them have become home to museums and tour destinations.

Located in Krakow, Poland, the former Wieliczka Salt Mine draws millions of visitors every year. Built in the 13th century, it was one of the world’s oldest operating mines until its closure in 2007. Now, the underground salt mine is a dreamland cathedral for visitors.

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March 2016

F R O M M I N E T O T O U R I S T AT T R A C T I O N

Bounce Below UK

Located in a 175-year old underground slate mine, Bounce Below is a subterranean playground featuring “the world’s largest underground trampoline.” Opened in 2014, the site consists of three separate “bouncy nets” spread across a distance of 180 feet from top to bottom.

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TOP 10

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March 2016

F R O M M I N E T O T O U R I S T AT T R A C T I O N

The C-Mine Square Belgium

Situated on the grounds of a former coal mine, the C-Mine Square in the Belgian city of Genk has become a cultural center for locals and tourists alike. The site pays homage to the city’s roots in the coal mining industry, utilizing most of the old mining buildings that used to exist by renovating and turning them into theatres, restaurants and schools.

C-Mine has become an urban square with a cultural, creative, design and recreational function.

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WHOLE LOT

OCEANAGOLD’S NEWES TO RESURRECT EAST COAS

CEO Mick Wilkes discusses the company’s first U. including its economic and environmenta Written by: Robert Spence

OTTA GOLD:

ST ACQUISITION LOOKS ST GOLD MINING INDUSTRY

.S. gold mine and reveals future plans for the mine, al impact on the surrounding community.

Produced by: Andy Turner 37

O C E A N A G O L D C O R P.

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.

Haile Gold Mine The 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 38

March 2016

Haile Gold Mine construction site

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

MINING

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. w w w. o c e a n a g o l d . c o m

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Groundbreaking Sol Safety. Quality. Productivity.

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

Spartanburg SC 864.433.8800

Charlotte NC 704.598.9117

Savannah GA 912.629.9439

lutions CAPABILITIES

MARKET

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

• Mining • Commercial and Industrial • Dams • Landfills • Residential • Power and Energy • Transportation

morgan-corp.com

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 sitepreparation 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

MINING

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

w w w. o c e a n a g o l d . c o m

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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 understand the mining industry and the needs of today’s mine operators. Blanchard Machinery offers Caterpillar’s industry leading product line of 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. We are committed to the success of our customers operations..

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

MINING

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.

Communal benefits The 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 w w w. o c e a n a g o l d . c o m

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CONGRATULATIONS OCEANA GOLD 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.

Corporate Office 5100 Smith Farm Rd. Matthews, NC 28104 704.821.8050

Greenville 200 N. Main St., Suite 300 Greenville, SC 29601 864.286.0500

Inquiries: info@centurycontractors.com

Mt. Pleasant 1156 Bowman Rd., Suite 216, Mt. Pleasant, SC 29464 843.352.7001

www.centurycontractors.com

MINING

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

SUPPLIER PROFILE

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

CENTURY CONTRACTORS, INC.

Employees: 300-400 Established: 1975 Industry: 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

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Helping You Build Your Future

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

Mining | Construction | Environmental Management

4632 Mt. Pisgah Rd, Kershaw, SC 29067 803 475 4598 www.csikershaw.com

MINING

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

SUPPLIER PROFILE

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.”

In for the long haul While the Haile Gold Mine will in fact be an open pit operating,

CONTRACTOR SERVICES INCORPORATED

Employees: 60 Established: 2001 Industry: 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 Superintendent Website: www.csikershaw.com

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SAFELY, ALL DAY. 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.

CONSULTING

MINING

SITE PREPARATION P.O. Box 443 Columbia, SC 29202 2805 Millwood Ave. Columbia, SC 29202

www.contourmc.com

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

A full-service international firm offering Architecture • Engineering • Procurement and Construction Management Services Locations in Arizona and North Carolina, USA Sonora, MEXICO ARGENTINA • PERU • CANADA www.m3eng.com 520.293.1488

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.

MINING

Wilkes 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

Haile Gold Mine construction site

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.

Coincidentally, the Haile Gold

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O C E A N A G O L D C O R P.

Haile Gold Mine construction site

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.

54

March 2016

“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 identify additional resources and

MINING

Company Information INDUSTRY

Mining and Metals HEADQUARTERS

Melbourne, Victoria Australia FOUNDED

1990 ABOUT

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.”

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

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BUILDING A GLOBAL NAME

CEO Mick Wilkes outlines the future of OceanaGold and dis key acquisitions recently completed, including the purchas Waihi Gold mine and Haile Gold mine.

Written by: Robert Spence Produced by: Andy Turner

E

iscusses se of the

57

O C E A N A G O L D C O R P.

B

orn and bred in New Zealand, OceanaGold was originally founded in 1989 as Macraes Mining. Starting from a single mine, the mining company has developed into a significant multinational gold producer with a dynamic portfolio of operating, development, and exploration assets in New Zealand, the Philippines and most recently the United States.

“We’ve gone from a single asset gold mining company to a

Waihi town site & Martha Open Pit

multinational gold producer with four mines in three countries,” said Mick Wilkes, OceanaGold’s Managing Director and CEO. In recent months, the mining firm has secured a string of key additions to build upon, including the purchase of Newmont Mining’s Waihi Gold Mine in New Zealand and the Haile Gold Mine in the U.S, and under the leadership of Wilkes, OceanaGold is poised for a breakthrough year in 2016 and beyond.

MINING

Building a high quality gold mining Company Today, OceanaGold controls and operates a portfolio of mines in the three largest goldfields in New Zealand, including the Macraes operation.

As OceanaGold’s pride and joy, the Macraes operation has been operating since 1990 and has produced over four million ounces of gold to date. The site is comprised of an open pit and an underground mine (Frasers

Underground), commissioned in 2008.

“The project started out with a seven year mine life. It’s never been particularly profitable as it contains a very low grade, but through the tenacity of our workforce and their innovation, they’ve been able to keep the operation generating a positive cash flow,” said Wilkes.

According to Wilkes, Macraes has an estimated 4 million ounces of gold left in resources but it’s an “incremental process” that

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Partnering OceanaGold at Macraes Mine

RedBull team and Mobile Mixer Units loading a blast at Macraes Mine.

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OceanaGold selected RedBull as its explosives supply partner due to our ability to meet and exceed service expectations.

We provide a high quality, low cost bulk emulsion, the best possible service and are committed to an open, inclusive and co-operative relationship.

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Macraes Processing Plant

includes more exploration and a few more years. With the addition of the Frasers Underground mine, which is currently 740 meters below surface and 200 meters below sea level, including over 48 kilometers of developed tunnel drives, OceanaGold intends to continue tapping the asset—despite low gold prices.

“The vision at Macraes hasn’t changed but the strategy has. We needed to adapt to the changing economic environment, and when prices dropped in 2013, we were able to quickly adjust,” said Wilkes.

“At Frasers, we’re chasing the higher grade hanging walls where we know we can mine profitably.

It’s a very efficient design and we continue to chase higher grades and zones at new depths.”

In the Philippines, OceanaGold owns and operates the high grade gold-copper mine, Didipio, located on the island of Luzon north of Manila. The operation is home to roughly 1,800 Filipino employees, with approximately 50 percent derived from local communities in the immediate vicinity of the mine.

According to Wilkes, OceanaGold w w w. o c e a n a g o l d . c o m

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actively recruits, hires and trains locals for the operation. “Our workforce at Dipidio is 99 percent Filipinos. We’re very proud of that 99 percent,” said Wilkes. “We’re putting a lot of effort to developing the workforce here. The same thing applies to our New Zealand and Macraes workforce, and future locations.”

The mine, which commenced production in 2013, has a cost structure in the lowest quartile across the industry, with negative All-In Sustaining Costs in its first full year of commercial operations.

Martha Open Pit – Waihi Operation

“2015 was another good year, with cost in line,” said Wilkes. “Although the copper price was lower than expected last year, we do expect the copper price to come back strongly in the next couple of years.”

The Right Assets In October 2015, OceanaGold finalized the acquisition of the Waihi Gold Mine from Newmont Mining.

The mine, which achieved record gold production in 2014, producing 3.5 million tons of gold, represents a calculated move for the New Zealand company.

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A competent worker is worth their weight in gold.

Underground and Open Cut Operators are only as competent as their training environment. That’s why Site Skills Training and OceanaGold have built a real immersive environment, including 250m of underground hard-rock tunnel, for developing and up-skilling operators.

The mine was designed to decrease your operational costs, increase efficiency and meet corporate social responsibility commitments, without disrupting your operations. To discover more about our world first training mine and the 300,000sqm facility it’s housed in, visit siteskillstraining.com/mine

Site Skills Training in partnership with OceanaGold has constructed the first underground and open cut mine training environment in South-East Asia.

The 10,000sqm immersive mine training environment is available for use by all companies looking to skill project personnel for a wide range of operator training and safety courses in the region.

With training facilities and projects across Australia, the Philippines, PNG, Myanmar, Singapore, Malaysia, the Middle East and more, we build customised training facilities and programs to suit our clients wherever they are.

To discover how we can build a customised training solution for your workforce, visit siteskillstraining.com

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Our range includes (but is not limited to) acids, alkalis, biocides, carbonates, citrates, glycols, phosphates, sulphates, oxidisers, reducing agents, antifoaming agents, wetting agents, dispersants, pigment powders, coating additives, surfactants and sequestering agents.

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“The Waihi Operation represents a strong strategic fit with our existing business, and we are excited to welcome this high quality asset and its talented team into OceanaGold,” said Wilkes. “Our ambition is to be the gold producer of choice globally and our strategy to get there is invest in high quality assets.”

Waihi is comprised of two areas: the Martha Open Pit and associated underground mines, including the Correnso Underground mine, which

Waihi underground mine

is the current active operation at the site producing approximately 130,000 ounces of gold each year.

According to OceanaGold, Waihi has a combined open pit and underground Proved and Probable Reserves estimated as 1.52 Mt at 6.33 g/t Au and 24.0 g/t Ag containing 310 koz of gold and 1,173 koz of silver.

“We purchased Waihi with a three year mine life and we fully expect to extend that through exploration and

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We’ll Move The Earth For You! Delta Earthmoving, Inc., a Filipino-owned company is the leading Quarry and Mining Contractor in the Philippines. It’s on-going major contract in Metal Mine is with OceanaGold Philippines, Inc. where it covers the entire Open Pit Operations, Tailings Dam Construction, Civil Works and the continuing Mine Rehabilitation activities. On the Quarry industry, it currently undertakes a number of Limestone and Basalt unde Quarries with La Farge-Holcim, CRH-Aboitiz, Cemex and two (2) major local Cement manufacturers.

As a local company, the biggest exposure it has experienced is the acquisition of the mining contract for OceanaGold’s Didipio Copper-Gold Project which became the biggest opportunity for Delta to enhance its operating and safety standards and its socio-economic skills.

This transforms Delta into a World-Class Mining Contractor and is now well primed to take on bigger and more challenging projects and continue to lead in the industry in the Philippines.

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MINING

permitting,” said Wilkes.

Another upside of the purchase is its location. The township of Waihi is situated near the east coast of the North Island within ninety minutes’ drive of the country’s major cities and provides easy access to employment.

“We start with a culture within the organization that looks for efficiencies and we have the right processes in place to drive that,” said Wilkes. “Fundamentally it’s the people and team that make it happen.

“It comes back to values. As a company, we have specific values including respect, integrity, teamwork, action, innovation and accountability. Those values are embedded in how we work and live with local communities,” said

Waihi Underground – Waihi Operation

Wilkes. “So when we hire people, we’re looking for people that have those values.”

“We are looking forward to working with employees, contractors, and local stakeholders to add further value to this unique operation by extending the mine life and seeking out operational efficiencies,” said Wilkes.

“Our ambition is to be the gold producer of choice globally and our strategy to get there is invest in high quality assets.”

– Mick Wilkes, OceanaGold’s Managing Director and CEO w w w. o c e a n a g o l d . c o m

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Work Safe, Drill Safe, Home Safe Washingtons is a leading provider of rotary / slim-hole operations, aimed at providing excellent base data for resource interpretation. Reverse Circulation,Water Bores, Horizontal Drainage, Diamond Core, Coal Seam Gas, Geothermal, Slimhole Oil & Gas, Piling and Construction Drilling.

W ith over 51 years experience in the drilling industry, Washingtons offer an extensive range of drillings services and equipment specialising in remote access/track mounted or 8x8 machinery.

W ashingtons has a great asset in the experience of its personnel who, between them, have overseen a great variety of drilling and coring operations in localities as diverse as Antarctica, Asia, PNG, Oceania, the Subcontinent, the Middle East and West Africa.

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MINING

In late 2015, OceanaGold made a chess move to purchase Romarco Minerals Inc. for $856 million. The deal gave OceanaGold rights to the Haile Gold Mine in Lancaster County, South Carolina, providing its first U.S. gold mine site and paving the way for growth in new territories.

“The merger with Romarco allowed us to move even lower on the cost curvethough the development of the high quality Haile Gold Mine. It’s complementary

to our portfolio.” said Wilkes. “With the addition of the Haile Gold Mine and the Waihi Gold Mine to our portfolio, we look forward to integrating both assets and their its experienced workforce into our business, in the process unlocking significant value.”

Leading the Charge With Wilkes and his management team at the helm, OceanaGold has established a track record for ethical environmental management

Michael Wilkes, President and Chief Executive Officer

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MAXIMIZE YOUR POTENTIAL VALUE-ADDED SOLUTIONS THAT REDUCE RISK, ENHANCE VALUE, AND MAXIMIZE RETURNS AT EACH STEP OF YOUR VALUE CHAIN

© SGS Group Management SA – 2016 – All rights reserved - SGS is a registered trademark of SGS Group Management SA.

The services we provide range from quality and quantity inspection and testing for a vast array of commodities to advanced services, which optimise the recovery of metals in processing plants. Our customers rely on us to provide them with expert services and advice, which help them gain competitive advantage through reduced risk at all stages of the value chain.

SGS Minerals services in the Philippines include: Trade and Analytical Services for Energy Minerals (Coal, Coke, Pet Coke); Trade Services for Steel and Steel Making Raw Materials; Trade Services for Non Ferrous Metals and Minerals; Trade Services for Fertilizers and Dry Chemicals; Geochem through Onsite Laboratories; and, Analytical Services for Geochem Samples.

SGS Philippines, Inc. Minerals laboratories are accredited to ISO 17025:2005 while its Minerals Inspection operation is accredited to ISO 17020:2012. Operating its Didipio laboratory since 2012, its facilities, experience, and expertise ensures that Oceana Gold is provided with accurate results within optimum turn-around time.

SGS Minerals services of New Zealand won the NZ onsite laboratories contract at Oceana Gold’s Macraes and Reefton sites in 2011. The SGS Waihi laboratory also continues to provide analytical services and technical expertise to OGL’s Waihi Mine, purchased from Newmont Waihi Gold in mid 2015. Accredited to ISO/IEC 17025, these laboratories are

responsible for the on-going sampling, preparation and analytical requirements crucial to the daily operations each of these OGL sites.

SGS New Zealand continues to support OGL both as a strategic partner and a technical advisor.

WHY SGS? SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 85,000 employees, SGS operates a network of over 1,800 offices and laboratories around the world.

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FOR NEW ZEALAND OPERATIONS: HUGH MCMILLAN General Manager Minerals and Environment, Health and Safety SGS Minerals New Zealand Ltd. Head Office 5 Lyttelton Street Westport PO Box 240 Westport 7866 New Zealand Phone: +64 3 788 9003 Email: hugh.mcmillan@sgs.com

MINING

and community and social engagement. The company prides itself on its strong social license to operate, and rigorously works with its stakeholders to identify--and invest--in new social programs, designed to “build capacity and not dependency.”

“Wherever we work, we invest in the wellbeing of our communities by supporting programs that improve health, education, infrastructure and capacity building,” Wilkes said.

For OceanaGold as a business, the focus is how to make operations safer through technology and innovation, while increasing productivity.

“Our leadership team embraces modern technology and we use it to drive innovative ideas in everything we do. Modern technology, like wireless communication for example, has greatly advanced in recent years and it’s created a stepchange in innovative technology,” said Wilkes. “You don’t have to invest tens of millions of dollar to make a big change.”

Wilkes’ overall strategy for moving forward is simple, he said.

“As I look back on the past five years, we’ve been successful because we get people aligned with our vision,” said Wilkes. “Through our success, we have to be mindful to stay humble and just keep putting one foot in front of the other. It’s all about big vision—small steps.”

Key Personnel

Michael Wilkes

President and Chief Executive Officer

Mark Chamberlain Executive Vice President and Chief Financial Officer

Mark Cadzow

Executive Vice President and Chief Development Officer

Michael Holmes

Executive Vice President and Chief Operating Officer

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O C E A N A G O L D C O R P.

Gold

In 2015, production guidance range with 419,153 ounces produced (36 percent yearon-year increase) Didipio Open Pit

OceanaGold Beats 2 0 15 G u i d a n c e f o r Gold, Copper While 2015 was mostly a forgettable year for the mining industry, multinational gold mining company, OceanaGold, achieved record success. The company exceeded 2015 consolidated gold production 76

March 2016

guidance range with 419,153 ounces produced (36 percent year-on-year increase) and achieved copper production guidance range with 23,109 tons produced.

Operations At its Didipio operation, a high grade gold-copper mine located in the

MINING

“Through our success, we have to be mindful to stay humble and just keep putting one foot in front of the other. It’s all about big vision—small steps.”

– Mick Wilkes, OceanaGold’s Managing Director and CEO

Philippines, the company delivered record annual gold production and throughput with 127,086 ounces of gold produced along with 3.58 million tons of ore processed. The company recorded unaudited consolidated All-In Sustaining Costs (“AISC”) of $709 per ounce sold and cash costs of $458 per ounce sold,

both within the 2015 cost guidance range.

In addition, OceanaGold completed commissioning of the power grid connection at Didipio.

The operation is now operating on grid power and the Company expects lower processing costs than in previous years. Development w w w. o c e a n a g o l d . c o m

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"Our priorities are the health and safety of workers and the delivery of quality products and services on time."

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MINING

Didipio water treatment plant

of the Didipio underground mine continues to progress with a plan to begin developing exploration drifts by the second half of 2016, which will allow for drilling of the Didipio deposit at depth.

In New Zealand, Macraes and Reefton exceeded their gold production guidance with 222,093 ounces produced including 51,419 ounces produced in the fourth

quarter. The year-on-year increase in gold production was a result of higher production at Reefton where the operation will process stockpiles until the end of February 2016, at which point it will be placed on care and maintenance. “Last year was a transformational year for OceanaGold and another year of strong operational and social performance where we delivered w w w. o c e a n a g o l d . c o m

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See how we partnered with OceanaGold at

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MINING

a solid return for shareholders and made significant social investment in the communities where we operate,” said Mick Wilkes, President and CEO. “We not only exceeded our gold production guidance but did so at sector leading low costs while further improving on our environment, health and safety record.”

Acquisitions and Developments Last year also saw OceanaGold complete the acquisition of

Romarco Minerals, securing ownership of the Haile Gold Mine in South Carolina, USA, as well as completing the acquisition of the Waihi Gold Mine in New Zealand from Newmont Mining.

Waihi produced 69,973 ounces of gold in the second half of 2015, being production attributable to OceanaGold. In the fourth quarter, Waihi produced 34,987 ounces of gold which was slightly higher than in the previous quarter on the back of a higher mill feed and better recoveries. The Company completed the Waihi transaction

Mill zone starter pit - Haile Gold Mine

w w w. o c e a n a g o l d . c o m

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REVOLUTIONIZING THE MINING INDUSTRY WITH NEW TECHNOLOGIES With over 50 years of presence in Philippines, Atlas Copco offers comprehensive nationwide sales, parts and service facilities and support. To know more, visit us at

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Waihi Operation

on October 30, 2015. Subsequent to the completion, the Company focused on integrating the Waihi operation into the OceanaGold business while seeking to improve productivity and reducing costs. “In the fourth quarter, we completed both the Romarco and Waihi transactions and developed an extensive exploration program across our business. Through exploration, we have already

demonstrated additional resources at Macraes along with solid results from Waihi,� Wilkes said.

Financing Prior to the end of 2015, OceanaGold completed an agreement for a $250 million four year amortising corporate revolving credit facility being a restructure of the existing $195 million three year amortising corporate revolver, w w w. o c e a n a g o l d . c o m

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CLEVER RESOURCEFUL SOLUTIONS At Orica, we’re focused on developing long term partnerships which reduce total cost of mining, improve productivity and enhance your licence to operate.

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Reefton Operation

which was set to mature on July 1, 2018. The new facility amortises to $200 million in December 2017, $150 million in December 2018 and matures on December 31, 2019.

Compared to the previous corporate loan, the restructured facility has more relaxed commercial terms

and a substantially reduced margin.

The new facility was financed by six international financial institutions comprising the Bank of Nova Scotia, BNP Paribas, Citibank N.A., Commonwealth Bank of Australia, HSBC and Natixis. The new debt facility also replaces to the Romarco w w w. o c e a n a g o l d . c o m

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Proud partner of OceanaGold Since the 1960’s, Bridgestone has been an innovator in the field of off-the-road tyres, supplying a full range of products and providing worldwide, world class service for mining, construction, highway service and port customers.

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debt facility which was terminated in the fourth quarter.

Mr. Wilkes added, “As we close out a successful campaign in 2015, we begin a new year with a more robust business, one that is low cost and structured to continue delivering positive results even at lower commodity prices. It’s a business that has significant organic growth and self-financed to unlock this potential.” He went on to say, “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 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.”

Haile Operation

w w w. o c e a n a g o l d . c o m

87

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Outlook Moving forward, OceanaGold announced its 2016 production and guidance of 385,000 to 425,000 ounces of gold at continued low AISC of $700 to $750 per ounce.

At Haile, the company commenced infill drilling of the Horseshoe resource in the fourth quarter of 2015 and conducted initial drilling of regional targets including Cypress and Loblolly with assays pending. In 2016,

OceanaGold will continue to drill at Horseshoe, other targets at Haile and advance its portfolio of regional exploration targets.

Construction of the Haile Gold Mine continues to progress well despite inclement weather in the fourth quarter that resulted in excessive amounts of rainfall at site. In the fourth quarter, the Executive Vice President and Chief Development Officer and the Vice President, Construction and

w w w. o c e a n a g o l d . c o m

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OCEANAGOLD

Reefton Processing Plant

other key OceanaGold personnel relocated to South Carolina to oversee the construction of the project. In December, the Company commenced the concrete works for the Ball and SAG mill foundations and advanced the earthworks for 90

March 2016

the plant site, waste rock pads and tailings storage facility.

In the Philippines, drilling continued on the Morning Star prospect at Didipio and scout drilling of geophysical targets at the Paco tenements in

MINING

Company Information INDUSTRY

Mining and Metals HEADQUARTERS

Melbourne, Victoria Australia FOUNDED

1985 ABOUT

northeast Mindanao.

In 2016, the Company has allocated an exploration budget of $25 to $30 million, of which $10 to $15 million has been allocated at Haile and $5 million to $10 million at Waihi with the remaining amount to be spent at Macraes and in the Philippines.

OceanaGold Corporation is a significant multinational gold producer with assets located on the South Island of New Zealand, including one of the largest gold mines in the country, and in the northern Philippines.

OceanaGold has built a strong business in New Zealand, operating three mines – Macraes Open Pit, Frasers Underground and the Reefton Open Pit mines

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RedBull has made a name in the New Zealand mining and quarrying industries for combining the best technical capabilities with down-to-earth practical solutions and reliable, safe delivery of blasting services and explosives products.

OceanaGold selects strategic partners who are able to assist them to achieve their clear objectives of safety, lowest cost production and superior quality.

In 2012 OceanaGold selected RedBull Mining Services Ltd as their partner for the supply of explosives at Macraes, Frasers Underground and Reefton Mines. We were chosen due to our flexibility, responsiveness, superior service and competitive pricing.

The relationship has grown and strengthened over time, assisted by our open and co-operative approach combined with our day-to-day ‘can-do’ attitude and highest quality emulsions.

RedBull met and exceeded expectations when in 2012 we established, constructed and mobilised a greenfields site at Macraes Mine into full logistics, manufacturing, production and supply in just five months.

In New Zealand we supply various gold mines and provide a fully integrated ‘rock-on-ground’ drilling and blasting service to over 120 quarries. We also specialise in the technically challenging close proximity blasting on confined, urban construction sites.

RedBull Mining Services Ltd and RedBull Powder Company Ltd operate only within New Zealand. Outside New Zealand we trade through a subsidiary, Star Holdings Ltd. Employees: 50 Established: 1997 Industry: Mining, Quarrying and Construction Services: Explosives and blasting services, including fully integrated ‘rock-on-ground’ drilling and blasting services Management:

Managing Director – Peter Shapiro; Operations Director – Mike Henderson; General Manager – Chris Pilmer; Manager, Mining – Steve Butters Website: www.redbullpowder.co.nz Phone: +64 (9) 525 1181

Real Training SUPPLIER PROFILE

in World’s First Real Training Mine.

COMPANY NAME

Site Skills Training in partnership with OceanaGold has created the first fully immersive underground and open cut mine training environment in South-East Asia. Located at their 300,000sqm Clark, Philippines facility, the immersive environment is available for all companies looking to skill project personnel for a wide range of operator training and safety skills. The facility has been designed to upskill Underground and Open Cut Operators, increasing their competency levels by placing them in real world situations.

The environment has been built for competency assessment and training of Underground Mine Personnel across a range of programs designed for inexperienced persons through to experienced and specialised crews.

The training environment replicates conditions which are experienced underground, allowing the training to be more impactful with higher levels of competency retention.

Competencies include, services extensions, venting, ground support encompassing bolting, meshing and shotcreting, vehicle operations underground, CABA operations, dewartering, rigging, lifting, and health and safety skills. Experienced workers can gain competence in drilling, blasting, emergency response / rescue and firefighting. All these skills are developed according to company standard operating procedures without affecting mine production while training is occurring.

Employees: Xxxxx

The process plant environment will provide competence based operations and technical maintenance training and assessment. The plant boasts live process systems, a centralised control room, emergency protection systems and an electrical distribution centre, establishing it as a real life scenario training and assessment facility. Site boasts another similar process plant environment based in Myanmar.

Site is capable of customising, designing and developing specific training to all client’s requirements, providing tailored workforce solutions that represent the growing need for highly competent employees trained on-site or at one of our many international facilities, without affecting production, and saving time and cost.

Recently Granite Services International Inc., an affiliate of GE Power, approached Site for the continuation of training and assessment services at Site’s facility in Clark, Philippines and is designed to develop Granite’s in-region specialist workforce around maintenance of heavy duty rotating equipment in power generation and other industrial applications.

The recent signing of a joint agreement between Site, Canadian Petroleum Services Inc., and Abdul Ali AL-AJMI Company will train a national workforce of 500 operators in Saudi Arabia in the first year of the contract, increasing national employment, education and competence, along with organisational efficiency and skills.

This is just one of numerous, fully immersive Established: Xxxx training environments Site has developed to Industry: service the growing needs of mining, Sitexxxxx continues to adapt and develop solutions Xxxxxxxxxxxx xxxx xxxx xxx xxxxx. construction and oil and gas companies tailored to the needs of numerous international Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx throughout the world. clients, with xxxxx. customisable training systems, processes and immersive environments.

Ongoing Projects: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Site recently finalised Papua New Guinea’s first siteskillstraining.com safeManagement: live oil and gas processXxxxxxxxxxxx plant environment. xxxx xxxx xxx xxxxx xxxxx

Website: address goes here as the last entry

OCEANAGOLD

SUPPLIER PROFILE

INDODRILL

Indodrill was formed in Indonesia in 1993 and since then has steadily grown and expanded to become one of the foremost drilling contractors in Southeast Asia, providing a wide variety of drilling and drilling support services to customers in the region. A recent expansion to Scotland allows Indodrill to now target Europe, Middle East and Africa regions.

Mission Statement: To be recognised and respected for providing the safest, highest quality, innovative and competitive drilling service to every company we collaborate with in every industry and country we work in.

Website: www.indodrill.com

SUPPLIER PROFILE

GOUGH CAT

Gough Cat has been the New Zealand dealer for Caterpillar products since 1932. The support provided by Gough’s and Caterpillar when our mining machines go to work is what truly differentiates the full value of Cat equipment. We consider ourselves partners not just in the equipment, but in the entire productivity cycle.

So we work alongside you to help find ways to optimize your operation. We’ll evaluate your site to help you select the right equipment. We then deliver expert maintenance and repair services utilising the latest technology to deliver critical machine uptime and maximize the performance of your Cat equipment.

We explore every innovation to help you keep people safe, better manage fleets, boost efficiency, and manage the health of your machines, all so you’re better able to meet your production goals.

The result is higher productivity — and higher profitability — for your mining operation.

Website: www.goughcat.co.nz

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SUPPLIER PROFILE

INTERCHEM AGENCIES LTD

Established: 1987 Products & Services: Interchem Agencies Ltd markets a wide range of raw materials and specialty chemicals to a diverse range of industries.

We have long-standing relationships with leading manufacturers throughout the world all supported by our extensive industry knowledge, experience and commitment to customer service.

Quality systems: We actively align ourselves with suppliers that have adopted internationally accepted quality systems and operate our own continuous improvement system that ensures we provide a professional quality service to our customers.

Website: www.interchem.co.nz

SUPPLIER PROFILE

DELTA EARTHMOVING, INC.

Employees: 1,914 Established: September 25, 2003 Industry: Mining, Quarry and Construction (No More than 25 words) Services: Quarrying, Mining (development & excavation), Construction, Equipment Rental Services and Civil and Special Engineering Works (No More than 25 words) Ongoing Projects: Oceanagold Didipio Gold-Copper Mining, Limestone and Basalt Quarries with La Farge-Holcim, CRH-Aboitiz, Cemex & Eagle Cement (No More than 25 words) Management: Vicente U. Omengan Jr. - President & CEO, Jimmy U. Omengan Director, Edward G. Anyayahan, EVP-COO Website: www.deltaearthmoving.com

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SUPPLIER PROFILE

SGS MINERALS SERVICES

SGS has a proven service track record since its establishment in 1878.

SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity.

With more than 85,000 employees, SGS operates a network of over 1,800 offices and laboratories around the world.

SGS MINERALS SERVICES provides support to its clients both as a strategic partner and a technical advisor, delivering a broad spectrum of independent, quality services.

ONGOING PROJECTS IN THE PHILIPPINES AND NEW ZEALAND SGS supplies laboratory and technical services to OGL at the Macraes Flat and Waihi sites in New Zealand and the Didipio site in the Philippines.

Website: www.sgs.com

SUPPLIER PROFILE

WASHINGTONS

With 51 years experience in the drilling industry Washingtons have developed a huge client base. We offer a transparent working relationship with our clients from start to finish.

Washingtons offer an extensive range of drillings services and equipment specialising in remote access/track mounted or 8x8 machinery. Washingtons has a great asset in the experience of its personnel who, between them, have overseen a great variety of drilling and coring operations in localities as diverse as Antarctica, Asia, PNG, Oceania, the Subcontinent, the Middle East and West Africa. Through this team, and their training of personnel, and comprehensive OHSE safe operating procedures, all our operations have been conducted in a safe and successful manner.

Washingtons has permanent bases in various parts of NZ and PNG. With a extensive inventory of Rigs, mud pumps, compressors, air boosters and tooling up to 42� diameter.

Website: www.washingtons.co.nz

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SUPPLIER PROFILE

ORICA

Orica provides market-leading customer solutions to improve productivity and resource efficiency in the mining, quarrying, oil and gas and infrastructure sectors. An Australian company with a global footprint, Orica has a diverse workforce of over 12,500 people, with operations in more than 50 countries and customers in more than 100.

Orica delivers value by developing and commercialising differentiated services and products that maximise our customers’ capacity to: › Transform mineral resources into recoverable reserves › Increase mine productivity and mill throughput › Increase mineral recovery Orica’s value of No Accidents Today underpins our commitment to the safety, health and wellbeing of our people and customers, the environment, and the communities in which we operate.

Website: www.orica.com

SUPPLIER PROFILE

WEST-TRAK

West-Trak specialises in reducing downtime and improving performance of heavy machinery that simply has to work. As New Zealand’s leading wear parts provider, we import and manufacture high quality, replacement wear parts for all makes and models of excavators, loaders, bulldozers, scrapers, graders, dump trucks and crushers.

A complete wear solution provider to the Mining, Quarrying, Forestry and Civil Construction industries, there’s more to us than meets the eye. We dig deep, question wide and solve the wear challenges that mess with our customers’ machinery and bottom line.

Headquartered in Westport, New Zealand with several branch offices and a global wear part network giving us access to the largest range of wear parts on the planet, means we have your back and back-up plan. When you partner with us, productivity is never an accident. We make sure it’s a given.

Website: www.west-trak.co.nz

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SUPPLIER PROFILE

ATLAS COPCO PHILIPPINES

With over 50 years of presence in Philippines, Atlas Copco offers comprehensive nationwide sales, parts and service facilities and support.

Product Information: Air compressors, vacuum pumps, nitogen generators, blowers, construction equipment, light towers, generators, portable air compressors, rock drilling tools, underground trucks and loaders, surface and exploration drill rigs, specialty rental-air compressors, dryers and boosters.

Website: www.atlascopco.com.ph

SUPPLIER PROFILE Employees: 45

WAIKOUAITI AUTO & ENGINEERING

Established: 1988

Industry: Engineering – Industrial, Mining, Manufacturing, Transport and Construction Services: Maintenance and Diagnostics, Structural Engineering, Piping, Medium and Heavy Engineering, Fabrication and Certified Welding, Sandblasting and Painting, Scaffolding, Crane and Hiab Hire Ongoing Projects: Dunedin City Council Water Treatment Plants - Maintenance Contract, Projects and Upgrades.

Oceana Gold – Maintenance, Projects and Upgrades.

Ravensdown Fertiliser - Maintenance, Projects and Upgrades.

Management: Managing Director - Kevin Byrne Website: www. www.wae.co.nz

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VALUE CREATORS

Era Resources is committed to unlocking opportunities and creating value through diversified projects, commodities and locations. President and CEO Pieter Britz discusses the company’s current high-quality assets, including updates on its flagship Yandera copper project, as well as reveals possible opportunities moving forward.

Written by: Robert Spence | Produced by: Andy Turner

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anadian resource company Era Resources is committed to building a global base metals business focused on the discovery, exploration and development of mineral opportunities around the globe.

Undergoing a name change in late 2015 from Marengo Mining Limited, the newly invigorated Era Resources represents a revamped, broader company outlook combined with a renewed and ongoing commitment to the development of the company’s flagship Yandera copper project

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in Papua New Guinea (PNG). The addition of a new management team, along with the recent acquisition of the La Cobota copper project in Mexico, only cements Era’s ongoing commitment to delivering value through diversified projects, commodities and locations.

P O R TFO LI O O F VA LU E Known as one off the most geologically rich mining provinces in the world, Era Resources’ 100 percent owned Yandera copper project is situated in the Madang

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Province of PNG. As the copper apple of its eye, the company is wholly committed to advancing Yandera towards feasibility, having already drilled 575 drill holes resulting in 630 million tonnes of measured and indicated resource and 117 million tonnes of inferred resource..

“We’re planning to take Yandera into a scoping study — basically a preliminary economic study —

which should be done by 2016,” said Pieter Britz, President and CEO of Era Resources.

“Then we’ll plan another drill campaign to push the resource reserve to a billion tonnes and hopefully commence a feasibility study by the start of 2018, and have financing underway shortly after that. By early 2019, we’ll be ready to make a decision on moving forward.” eraresources.com

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Once up and running, Britz expects the mine to produce at least 100,000 tonnes of copper in concentrate per year. With over 624 square kilometres of exploration licenses in the prospective New Guinea Copper Belt, Era Resources is poised to create significant value for shareholders in coming years.

In September 2015, Era Resources purchased an option 104

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for the La Cobota copper project in northern Mexico—a move that will further its resource opportunities. The project, which is comprised of three contiguous mining concessions encompassing 1,800 hectares, is located in the Laramide Metallogenic Belt of southwest North America, which is home to numerous world class porphyry deposits and widespread

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occurrences of iron-oxide mineralization.

“It’s a great looking project and completely different from Yandera.

This project is an iron hosted vein, similar to a gold vein deposit,” Britz said. “It’s prospective for multiple styles of copper mineralization.”

The company commenced a drilling program in December 2015 to test the grade and continuity of

known copper-silver mineralization associated with a major iron-oxide vein at the La Cobota underground mine. The assay results from the project are anticipated to be received in the first quarter of 2016 and a final decision to exercise the option and acquire the mineral rights in the second quarter of 2016.

“This initial resource will form the basis for next year. By 2016, we eraresources.com

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plan to exercise the option for the mineralization and surface rights and move the project forward,” Britz said.

R E L AT I O N S H I P S A N D LEADERSHIP Era Resources’ foundation is built upon strong relationships with both shareholders and the local communities in which it operates, particularly in PNG. “If you operate in challenging countries like this, you really need the local people and the local insights,” said Britz.

For the past 10 years the company

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and its subsidiaries in PNG -Marengo Mining (PNG) Limited and Yandera Mining Company Limited -have worked extensively to cultivate strong relationships within the local community, building communication and transparency among local land owners, villages and tribes, as well as the provincial government and federal government.

Along with a name change, the company revamped its management team in an effort to lead the company into the next phase of its development. The company’s site-based community affairs teams continue to engage

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with local communities in PNG, and all of the company’s efforts there are supported by Sir Rabbie Namaliu.

“Namaliu is a former prime minister of Papua New Guinea and is widely regarded as among the most respected prime ministers in their history. He sits on the company’s board of directors and is very actively involved with us in our activities in Papua New Guinea,” Britz said.

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relationship management needs.”

ON THE HORIZON For Era and other mining companies that operate in remote locations, electricity remains one of the biggest challenges. “There have been a few commercialized developments lately with the government and Exxon Mobile, and we’re confident those gas resources will form the basis for cheap electricity in the near future,” Britz

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Company Information NAME

Era Resources INDUSTRY

Mining and metals HEADQUARTERS

Ontario, Canada E S TA B L I S H E D

2005 ABOUT

said.

The company plans to hold various discussions and workshops with specialist companies in coming months to discuss power generation, as well as consider alternative solutions.

Moving forward, Era openly intends to investigate other base metal opportunities in coming years, along with advancing its Yandera and La Cobota projects.

“Our approach is to acquire at an early stage, grow projects through discovery and resource definition, and then advance them through feasibility studies,” explained Britz.

Era Resources is working to further the development of the company’s flagship Yandera Project as well as the identification and assessment of projects that would complement the company’s current assets.

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EXTRACTING V Written by:Nye Longman Produced by: A. Munatswa

VALUE

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MINERALS DEPOSITS

How Mineral Deposits Limited is using its scale for good while maintaining an efficient, profitable mineral sands operation in Senegal

D

espite only being operational since the middle of 2014, Mineral Deposits’ Grand Côte Operations (GCO) in Senegal has already proved to the industry that a mining outfit can operate a profitable and productive business while making a positive impact in a developing country. In recognition of its formidable achievements thus far, GCO received an exclusive invitation to accompany the Senegalese government to last year’s COP21 conference – a well-deserved honour, as we shall explore.

Operations Listed on the Australian Stock Exchange, Mineral Deposits Limited (MDL) is specialised in mining, integrating, and transforming mineral sands. In partnership with French company Eramet, MDL owns 50 percent of the TiZir joint venture, which consists of the Grande Côte

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operation in Senegal, supported by a titanium and iron ilmenite upgrading facility (TTI) in Norway, enabling the extraction and subsequent smelting of mineral sands in a single operation.

Senegal’s Grand Cote Operations span over 445 square kilometres; the orebody present in this region is primarily made up of zircon and ilmenite, but also contains some high value co-products in the form of rutile and leucoxene. With an expected lifetime of just under 30 years (not counting some additional resources), the mine is set to be profitable for all involved if the correct strategy is adopted.

GCO CEO Daniel Marini explains: “The operation covers a very large area, however due to the nature of the deposit we need to maintain a very elevated throughput; this achievement owes a lot to operating the largest dredge in the world.”

A series of unique pumps supports this

800 Number of jobs to be supported

by Minerals Deposits

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Unearth a productivity gold mine without having to dig deep.

ABB is one of the pioneers in developing drives, motors and PLCs for a variety of mining applications from trucks, crushers, grinders, hoists, drills and excavators through to pumps, fans, compressors and conveyors. While ABB’s products and services can help mining companies meet the energy efficiency regulatory requirements, the added bonus is reduced maintenance costs, improved productivity and higher efficiencies across all mining applications.

To unearth the benefits for your mine, visit www.abb.com/mining

YOUR CAT DEALER IN WEST AFRICA Ever closer to support you ever further THE STRENGTH OF OUR NETWORK

THE EXPERTISE OF OUR TEAMS

BENIN BURKINA FASO

GUINEA GUINEA BISSAU

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CÔTE D’IVOIRE GAMBIA

LIBERIA MALI

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OUR SCOPE OF OPERATIONS · Mines & Quarries · Construction & Forestry · Power Systems · Industrial Equipment

VISIT US ON JADELMAS.COM

OUR EXPERTISE · Training · Maintenance Contracts · Technical Consulting & Support · Used & Rental Equipment · New Technologies

AFRICA

exceptional piece of equipment that moves the extracted ore to a floating wet concentrator plant which separates the mineral deposits from the surrounding sand. The resulting product is then driven to a dedicated mineral separation plant – once fully processed at the mineral sand process plant, the mineral sand travels via rail to GCO’s dedicated dock at the Port of Dakar.

Marini explains how a range of control measures certify that the minerals GCO ships are of the highest quality: “We have a laboratory operated by a technician with a Masters in Chemistry who takes hundreds of samples every single day. This ensures our product is free from pollutants and is up to international standards.”

Strategy GCO’s scientific approach goes far beyond geology, hydrogeology, and metallurgy involved in mineral grading – every aspect of its operations is calculated to deliver the most value - from shareholders to the surrounding communities. Even Marini’s appointment as CEO just over a year ago was a decision based on his broad professional experience and technical capabilities.

He says: “I earned a PhD in Geology and in Mining. I worked for the UN DP in Djibouti as a geologist and hydrogeologist. I also worked on a World Bank project in North Cameroon surveying over 400 villages for water, as well as in several executive roles ( as

The Senegalese government is keen to help those looking to develop industrial operations in the country they want to have a mining industry and are prepared to make mining into a profitable business” – Daniel Marini, CEO

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MINERALS DEPOSITS geologist, mining engineer and metallurgist) for mining companies part of Eramet Group.

Operating a successful business in Africa does not come without its challenges but, as Marini explains, the government of Senegal (which owns a 10 percent stake in GCO) has proved to be a strong asset to its operations: “The Senegalese government is keen to help to those looking to develop industrial operations in the country - they want to have a mining industry and are prepared to make mining into a profitable business.

“When we needed to speak to a government official, their doors were always open – perhaps

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more so than in other African countries. There’s a level of respect, not solely from ministers, but from the people living near our operations as well. Senegal is a country with a culture of education and has a wealth of skilled individuals.�

He adds that GCO recently hired an external auditor to examine the entirety of its supply chain operations in order to find savings and promote efficiency. While this is yet to be fully completed, it is increasingly likely that the company will be looking to simplify its logistics operations, enabling it to work with a smaller number of providers and therefore streamline many of its processes.

Like many other mining companies faced by the fall in commodity prices, GCO has engaged in a process of optimising all of these costs.

Positive impact Far from ignoring its role as a key employer in the Grande Cote region, GCO has made a

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MINERALS DEPOSITS number of commitments which will ensure its successful operations benefit both its employees – a mixture of locals and expatriates – and the communities touched by its work. Taking into account the relatively long life-span of the mine, the company has worked hard to make sure that its CSR work leaves a lasting, long-term impact.

Marini expands: “We have the potential to make a huge impact – out of the 800 people we employ, 740 of them are locals; our operations, directly and indirectly, are responsible for employing a total of 2,000 people. Alongside the training we provide on-site, we also take the brightest local people and give them top professional training across numerous European institutions.”

GCO also left a permanent mark on the area by constructing a resettlement village for the local people; where there were once temporary structures, now stand concrete buildings, supplied with running water and powered by solar panels.

With these initiatives, the company seeks to develop local economies and prove to the entire industry that ethical extraction is very much within reach. By challenging itself to do as much as it possibly can for local communities, it is not only improving living standards but also playing a major role in fostering Senegal’s local extraction talent pool. Furthermore, GCO is showing that Senegal is a country with healthy business opportunities and an environment that is investment-friendly.

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Quantum speed Written by: John O’Hanlon Produced by: Kiron Chavda

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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .

First Quantum Minerals (FQM) has been around since the 1980s since when the TSX and LSE listed miner has been steadily growing its portfolio: today it operates or is developing a dozen major projects in nine countries

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F

irst Quantum Materials Ltd. recently commissioned the Trident development in Zambia, which was featured in Mining Global last year; its focus is now the Cobre Panama Project in Panama.

FQM has adopted a self-performance model – it’s challenging, but it works for FQM. It’s unique to the company in that under one hard hat, it can manage geology, constructability studies, engineering, construction, commissioning, and operations. All of those energies create a powerful dynamic that reduces the initial capital expenditure for these projects.

Capex for the Cobre Panama project has just been revised down by nearly half a billion dollars from $6.4 billion to $5.95 billion. The way FQM executes construction self-performance is a game changer. Cobre Panama is some 27 kilometres

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inland from a port area and power station currently under construction at Punta Rincon.

The power station, though coal-fuelled, uses excellent ‘Clean Coal’ technology. It has a single 125-metre twin-flue chimney, and the design incorporates flue gas desulphurisation (FGD), bag houses, and selective catalytic reduction (SCR) filtration to clean the flue gas.

The Punta Rincon port has been operational since the first ball mill was delivered on the 23rd of August. Its main function will be to receive coal for the power station and export copper concentrate. FQM is now working on the jetty construction which will house the conveying system to load and unload the ships.

Up at the mine things look rather different.

The topography is extremely hilly in an area and it gets a lot of rain. In 2014, 7.2 metres of

$1.3bn The cost of the the smelter at Kanshanshi, the largest copper mine in Africa

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www.imi.com.pa Tel: (507) 317-6670

Â

Intercoastal Marine, Inc. is the leading marine engineering and construction in Central America and the Caribbean. Established in Panama since the yar 1995 and carrying out a wide variety of engineering design works, new constructions, repair works, modernization and maintenance of structures and marine installations.

The permanent commitment of offering service and excellence in the work place has awarded us a professionalism and confidence without comparison in the marine construction market of the region

Our Vision The visi贸n of Intercoastal Marine is to be permanently recognized in the market as a construction and design company, leader and protagonist in the generation of integral solutions to our clients by always keeping a serious commitment with the development of the country, society and environment were the work is carried out.

Mission To become the national and international leaders in the field of design and construction of marine works; The addition of value and quality to all services provided; The goal of keeping every project as a priority; The technical quality; The technical innovation; The strict compliance with contractual periods and the withholding of our clients, providers and long term partners trust relationships; Assist our partners in generating new cooperation relationships with other professional companies that will allow the offering of competitive solutions at the benefits of our clients.

YOUR PARTNER IN CONSTRUCTION Over 20 years in the area of construction.

Experience in Mining works, Dams, Bridges and Buildings.

The partner chosen by FIRST QUANTUM for Cobre Panama Project.

Portugal Rua Raimundo de Carvalho nº238 4430-185 Vila Nova de Gaia Telf. (00351) 220 927 498 Email: comercial@nogway.com www.nogway.com

Panamá Avª Ricardo J. Alfaro, Edif. The Century Tower - Piso 19, Oficina 19 Telf. (0057)263-1510 Email: info@nogway.com www.nogway.com

Fernando Nogueira CEO – Group Nogway Portuguese, from Cinfães, age 41 Degree in civil engineering

Tel (+507) 997 4046 Fax (+507) 997 4049 Email info@bluefinrental.net Web www.Bluefinrental.net

What We Offer: - Civil Works & Engineering- Road Works & Construction - Heavy Equipment Rental

- Prefabricated Modular Systems - Prefabricated Buildings - Logistics/Transportation

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rain fell at the port where the power stations are being built and 4.2 metres at the mine site itself.

The substrate is solid rock, but in places there is 11 or 12 metres of saprolite which is a very viscous soil type. Below that are good basalt structures that provide excellent foundations for the mills, crushers, and stockpile vaults.

Construction is proceeding well, with many milestones being passed this year. In the milling area, all seven mill foundations are in place, which will provide the foundations for the first processing train. The three stockpile vaults, each fed by six feeders, will be ready by the end of this year. The conveyor pylons are also being raised. There are only four of these but they are extraordinarily robust, to carry conveyor spans of 80 metres, with a cantilevered span that goes

Power plant overview

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“FQM adopted perform mode challeng it works

M has d a selfmance el – it’s ging, but for FQM”

C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .

The secondary crusher area

out to feed the third stockpile. The pylons contain the greatest amount of reinforcing steel – 365 kilogrammes per square metre or more than double that contained in most other industrial concrete. Chip sealing the road from the port to the plant should be complete soon too.

Cobre Panama is currently scheduled to start Train 1 of the process plant by December 2017. It’s an aggressive schedule, only achievable because of a mixture of forward thinking on the part of FQM’s leadership, using the best talent in the industry to deliver the project from top to bottom, and of course the company’s self-performance philosophy.

Live Works In 1968 , COBRA introduces live working in Spain.

Currently it has more than 600 highly skilled workers and our authorized training centers and is at the forefront world in this activity.

• Scheduled Maintenance • Network Availability • Integrated Security • Cutting Edge Technology

Networks Transport • Construction of lines 110kV / 800kV Setbacks and traps • Lines • Burying of lines and MAT • fiber optic cable • Increased Transportation Capacity • Change slings and mooring • Turnkey projects • International Awards 12 Tel 00 507 263 8722 PANAMA | www.grupocobra.com

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‘Camp Cobre, one of five workers’ camps, houses 3,400 people. Yet all the structures are arranged at different angles and elevations with as many trees possible retained between them.’

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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .

3,400

The number of workers house in Camp Cobre

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And this is never done at the expense of responsible mine development – quite the opposite. The environmental and communities teams are very dedicated, and aim to reduce the environmental and social impacts. The intention has been to minimise clearing and retain as much natural growth as possible while developing the mine. For example, Camp Cobre, one of five workers’ camps, houses 3,400 people. Yet all

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the structures are arranged at different angles and elevations with as many trees possible retained between them. The result is very different to other mining projects, which tend to adopt a complete clearance philosophy.

Cobre Panama will employ a total of 2,800 people at the power station and the mine.

Cobre Panama has brought in a huge amount of expertise. Over its 40-year mine life, though a private project, it will generate a substantial percentage of Panama’s GDP going forward, more even than the Panama Canal.

‘Cobre Panama has brought in a huge amount of expertise’

Cranes on the construction site for the new mill

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Innovating excellence for the mining sector Knight PiĂŠsold continues to carve out a name for itself through its inventive approach to client solutions and its knack for customer relations Written by: Robert Spence Produced by: Andy Turner

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“Our competitive advantage is in our expertise and our client relationships” – Bryan Ulrich, Senior Vice President of Knight Piésold USA

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K

night Piésold was established in 1921 when Dr. Francis Edgar Kanthack set up shop in Johannesburg, South Africa as an engineering consultant. Over the years, the company has developed into a major global consulting firm for the mining, power, water, transportation and construction sectors by delivering high quality specialty services with respect to social, environmental and economic responsibilities.

Today, the employee-owned company is comprised of over 800 experienced professionals, including consulting engineers and environmental scientists, and continues to carve out a name for

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itself through its inventive approach to client solutions and its knack for customer relations. “We have a global reach, but we function like a boutique provider at heart,” explained Bryan Ulrich, Senior Vice President of Knight Piésold’s USA division.

Pillars of strength In terms of mining services, Knight Piésold specializes in the research, design and implementation of innovative solutions for waste

management, tailings disposal, heap leach pads, rock mechanics, groundwater evaluation, water supply, water management and environmental services.

“As a global company, we’re quite small compared to our competitors,” said Ulrich. “Our competitive advantage is in our expertise and our client relationships. This means that even in an industry downturn, we are managing to stay relatively busy. For example, right now we are watching after a very large tailings dam construction job at Round Mountain in Nevada. It’s possibly 2015’s largest construction project at a mine site in Nevada.”

According to Ulrich, while consulting firms and their expertise can sometimes be deemed as a commodity during rough times, the real distinction for clients is how they’re treated by their consultants.

“We’ve all had good and bad experiences with customer service.

At restaurants, for example, we’ve all had that one waiter who seems to disappear when we need the bill. For us, we put ourselves in our clients’ shoes and strive to w w w. k n i g h t p i e s o l d . c o m

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CETCO provides expertise in transforming minerals and polymers into technologies that improve productivity and performance.

From technical problem-solving to on-site supervision, CETCO consults with customers to develop long-term solutions.

OUR STANDARDS. YOUR PEACE OF MIND.

2870 Forbs Ave. Hoffman Estates, IL 60192

Ph: 847-851-1500

andrew.jung@cetco.com

www.cetco.com

Prefabricated Vertical Wick Drains Pre-Consolidation Building Foundations Levee Stabilization Highway Embankments Dewatering Mine Tailings Dredge-Fill

Earthquake Drains Liquefaction Protection Soil Cleansing Lasagna WIDE

HB Wick Drains 7989 Cherrywood Loop Kiowa, CO 80117 303-627-1100 phone

www.HBWickDrains.com

G ROUND IMPROVEMENT CONTRACTORS & ENG I N E E R S Working worldwide on a variety of projects with Knight Piesold

KNIGHT PIÉSOLD understand as much as we can about their operations and their needs,” Ulrich said.

“Because of our mentality towards customer service, we tend to get a lot of repeat business from previous clients. A lot of times when clients move on to other companies, they bring us on board at their new company. Customer service is one of our pillars of strength and it’s making a huge impact for us.”

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and creative thinkers. Our innovation comes from making site-specific solutions for each project, and it can sometimes be very challenging and rewarding” said Ulrich.

“At the Rochester mine in Nevada, there is a general absence of clay for construction of heap leach facilities, so we’ve very carefully designed those facilities to use a geosynthetic clay layer product (GCL), rather than the traditional clay layer that goes along with the geomembrane,” said Ulrich.

Innovation continues to be another pillar of strength for the company.

Sharing knowledge “Engineers are taught to be linear Knight Piésold places a huge

Knight PiÇsold USA Managment Team w w w. k n i g h t p i e s o l d . c o m

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KNIGHT PIÉSOLD emphasis on disseminating knowledge.

“Internally, we hold training forums where several of our offices get together so we can exchange experiences and expertise on several topics. We just got back from Lima where we held a forum on tailings management. This is in addition to our normal mentoring and on-the-job-training,” Ulrich said.

In addition to traditional educational channels such as publishing papers and participating in industry conferences, the company also organizes an annual event called Elko Roundtable. Since 2005, the all-day, no-cost event has been key in sharing information with clients and strategic vendors.

Past topics have included heap leaching, tailings management, mine closure, sustainability, paste and filtered tailings, co-placement of mine waste, and several other themes.

“The purpose of the Roundtable is to exchange ideas and information pertaining to broad topics revolving around the day’s selected subject,” said Ulrich. “Compared to traditional conferences and symposia, the 140

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Roundtable tends to provide a much less inhibited format for discussion — lively discussions and helpful tangential departures are encouraged.”

Mining Engineering magazine publishes Knight Piésold’s reports from the Roundtable event on several occasions. Additionally, the event has its own web page where all presentations and publications are archived for easy reference.

World-class leader The company has positioned itself as a leader in its fields, having been utilized on hundreds of projects around the world, including some of the biggest and most challenging surface and underground mining projects in the last century. One such project is the storied Yanacocha gold mine in Cajamarca, Peru.

South America’s largest gold mine — and the second largest in the world —Yanacocha stretches approximately 535 square miles and is comprised of four operations: Cerro Yanacocha, La Quinua, Carachugo and Maqui Maqui. Its heap leach pads and associated ponds include a tailings storage

Tom Kerr, President, Knight PiÇsold USA

facility, process plants, treatment plants and several other facilities.

“In terms of size and production, Yanacocha is very impressive. We’re really proud to have been a minor partner in the project,” said Ulrich.

Since 1994, Knight Piésold has actively been involved with Yanacocha providing everything from conceptual to final designs, as well as construction management, quality control/quality assurance, support during permitting processes and operational support.

The company is responsible for designing the heap leach pads and associated structures including ponds, access roads and

Bryan Ulrich, Senior Vice President, Knight PiÇsold USA

channels, as well as providing civil and geotechnical design for major infrastructures, technical support and water management technical support.

“The La Quinua tailings facility — which resides in an active heap leach facility — is one of a kind,” explained Ulrich. It functions as an innovation that was developed based on the needs of the project.

“The fluids in the two facilities don’t intermingle for obvious reasons, but it was a novel solution to a difficult problem of land constraints and minimizing our footprint. We designed a very similar facility for an operator in North w w w. k n i g h t p i e s o l d . c o m

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Knight PiÇsold USA Team Directing Field Reconnaissance

America, which had an altogether different set of project needs and challenges.”

Ulrich and his teams are currently working on an array of projects scattered across the globe, including a variety in Saudi Arabia, Latin America and the United States.

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Moving forward While the success of Knight Piésold can be told through the effective completion of the projects it undertakes, the company continues to be recognized for a wide range of achievements and accolades.

In the last few years, the company has earned several top honors for

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engineering excellence and project management as well as recognition as a Top Employer.

“We’re very appreciative of all the recognition and awards we’ve received in the past,” said Ulrich.

As a sign of things to come, the company continues to undertake some of the biggest projects in the mining industry. Upcoming and ongoing projects for Knight Piésold’s global practices include: the Fort Knox Mine in Alaska; the Kinsevere Copper Mine in the Democratic Republic of the Congo; and the Palmaerejo SilverGold project in Mexico.

“A lot of the projects that were identified a long time ago, which at the time were too difficult to tackle, are starting to come up and become attractive again. Design-wise, those have been some really interesting projects,” said Ulrich.

“Recently, there have been some very large projects with some of the world’s big gold miners like AngloGold in Colombia, Hudbay in Peru and Rosemont in Arizona. In fact, we’re currently in the advanced design stages of creating a world-class filtered tailings facility for Rosemont in Arizona.”

Moving forward, Knight Piésold will continue to focus on providing innovative solutions to its clients, while maintaining the company’s vision and values in the process.

“Our goal is to have 15-20 years of rolling sustained growth and stability,” Ulrich concluded.

Company Information INDUSTRY

Mining HEADQUARTERS

460 West Silver Street, Suite 106 Elko, Nevada United States 89801 FOUNDED

1921 PRODUCTS/ SERVICES

Mining, power, water, transportation and construction

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THE DIAMOND

FINDERS Massive Prairie diamond deposit poised for development

Written by: Robert Spence | Produced by: Andy Turner 145

SHORE GOLD INC.

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anadian exploration and development company Shore Gold Inc. is closing in on the advanced stages before development of its multi-billion dollar Star-Orion South Diamond Project, located in the Fort ĂĄ la Corne Forest of Saskatchewan. The project, which has gone through rigorous testing, sampling and environmental review, has shown tremendous potential since it was first discovered in the late 1980s, and is expected to become the first diamond mine in the province.

DIAMONDS IN SASKATCHEWAN The world-class diamond mining project will be comprised of two open pit mines that would excavate some 45,000 tons of rock per day for more than 20 years. According to Senior Vice President of Exploration and Development, George Read, the project has uncommon appeal for a variety of reasons. The economics of a diamond mine are dependent not only on tonnes and grade of the kimberlite ore but also on the average price of the diamonds. The average diamond 146

March 2016

Star - Orion South Diamond Project

price is unique for each diamond mine. In 2014 the world average rough diamond price was US$116 per carat, the Canadian average was US$173 per carat and the Star - Orion South Diamond Project had an average price of US$210 per carat. “While Star and Orion South

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have lower diamond grades (10-20 cpht), they are very large kimberlites and much large than those in the Northwest Territories. People also fail to understand the importance of the coarse size frequency distributions of their diamond populations. There is a significant opportunity for the recovery of plus

100 carat stones from the future production of these mines. During evaluation, 49 and 45 carat stones were recovered from Star and Orion South, respectively,� said Read.

So far, the company’s underground bulk sampling has recovered 10,966 carats of plus 1.0 millimetre commercial goods from w w w. s h o r e g o l d . c o m

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SHORE GOLD INC.

Regional Figure Technical Report

Star and 2,346 carats from Orion South. The most valuable stone recovered to date from Star was an 11.96-ct Type IIA worth US$12,500 per carat, and from Orion South a 10.53 carat fancy yellow valued at US$8,000 per carat.

“When the 11.96 carat stone is cut and polished it will probably be a D color,” said Read. “They are the most perfect crystal white color.”

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Despite the global financial crisis of 2008, the project advanced to the point of a feasibility study, completed in July 2011. The feasibility study estimated probable reserves of 279 million tons (diluted) with an average grade of 12.30 cpht, containing 34.4 million carats of diamonds that could be economically extracted over the 20 year lifetime of the mine.

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Drill pipes at Orion South

FORT Ă LA CORNE Shore Gold commenced its diamond exploration activities in the Fort ĂĄ la Corne Forest in 1996 with the discovery of the Star Kimberlite on claims that are held 100 percent by Shore Gold.

After initial exploration of Star with core and limited large diameter drilling (LDD), Shore Gold elected to sink a shaft in order to collect

an underground bulk sample for diamond valuation purposes. In February 2005, the publication of the initial results of a 3,050 carats from the underground bulk sample at US135 drew significant attention to the project. Shortly after this diamond price announcement, Newmont Mining participated in a major financing round and acquired a 9.9 percent equity position in w w w. s h o r e g o l d . c o m

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Shore Gold. Shore Gold’s claims containing the Star Kimberlite were adjacent to an extensive group of claims, containing more than 60 kimberlites, known as the Fort å la Corne Joint Venture: De Beers (42.245%), Kensington Resources (42.245%) and Cameco (15.51%) with De Beers as the operator. With 150

March 2016

assistance from Newmont, Shore initially merged with Kensington Resources in 2005. Subsequently in 2006, Shore and Newmont acquired all the claims of the FALCJV from De Beers and Cameco.

Shore currently holds a 68 percent ownership position in the FALCJV. While Newmont Canada FN

SECTOR

Holdings ULC holds 32 percent.

ADVERSITY Lao Tzu said it best: “A journey of a thousand miles starts with a single step.”

In early December 2014 Shore Gold received a positive decision from the Federal Minister of

Environment on the Environmental Impact Statement (EIS) for the project. While all technical information for the EIS was provided to the Province of Saskatchewan in late 2014, the final decision on the EIS is still awaited from the Ministry of Environment of Saskatchewan.

“We received a positive federal w w w. s h o r e g o l d . c o m

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SHORE GOLD INC.

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decision on the EIS but we’re still waiting on the provincial decision,” said Read.

The evaluation of Orion South, including underground bulk sampling, LDD and core drilling was curtailed by the world financial crisis in early 2009. While there was sufficient information for a mineral resource estimate on Orion South, a significant proportion of the resources fell in the inferred category. Subsequent to the publication of the feasibility study in 2011, Shore technical staff saw an opportunity to significantly increase the mineral resource estimate for the Orion South Kimberlite using a relatively low cost LDD and core drilling program. Shore successfully raised the capital to fund this drilling in late 2014 and the drilling was completed by July 2015.

Shore considered it very important to ensure that they enlist the most qualified person it knew to lead the resource estimation process: Peter Ravenscroft.

“He has an extensive background in mineral resource with multi commodities and has worked on more than 10 major diamond deposits, including Canadian diamond mines Diavik and Ekati.

Late last year, the company announced the Revised Mineral Resource Estimate for the Star - Orion South Diamond Project.

The report, which will now be incorporated

Key Personnel

Ken MacNeill President and CEO

George Read Senior Vice President, Exploration and Development

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SHORE GOLD INC.

WWW International Diamond Consultants - the world’s leading independent diamond valuation and advisory company.

Orion South Core Warehouse & Lo

into a re-optimized open pit mine plan for the Project, includes a re-evaluation of mineral reserves and an economic assessment. It is expected to be completed during 2016 and will result in an Updated Feasibility Study including a revised statement of Mineral Reserves for the Project.

THE NEXT STEP While a feasibility study was completed in 2011 for the Star154

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Orion South Diamond Project, it will need to be updated to reflect the significant increase in indicated carats of the revised mineral resource.

“Today is a very different world than it was five years ago,” said Read. “We’ve found new opportunities to reduce costs significantly for the project through the use of new technology, both for the more efficient removal of the overburden above the kimberlite

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Company Information NAME

Shore Gold Inc. INDUSTRY

Mining and metals HEADQUARTERS

Saskatchewan, Canada FOUNDED

1985 ABOUT

ogging

and for more cost effective diamond recovery from the processing plant.”

Shore Gold continues to do everything needed to bring the project to production, but the answer may simply be more time.

The many strengths of the project, including the magnitude of the diamond resource, high value stones, close proximity to infrastructure and stable political jurisdiction, will ensure that it continues to develop.

“Diamond projects take a lot of money and a long time,” said Read. “But I’m confident there will be a diamond mine in Saskatchewan.”

Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties.

Shares of the Company trade on the TSX Exchange under the trading symbol “SGF.” Shore’s principal focus is the Star-Orion South Diamond Project, which is located in central Saskatchewan some 60 kilometers east of the city of Prince Albert.

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