Reserves & Resources

As at 31 December 2009, OceanaGold had total Measured and Indicated Mineral Resources of 5.83Moz of gold and 0.28Mt of copper and Inferred Mineral Resources of 3.34Moz of gold and 0.06Mt of copper. This includes Mineral Reserves of 3.59Moz of gold and 0.19Mt of copper.

The tables below summarise OceanaGold's Mineral Resource and Mineral Reserve inventories as at 31 December 2009. They supersede all previous statements of OceanaGold's Mineral Resource and Mineral Reserve inventories. The Mineral Resources stated include the Mineral Reserves.

Resource Statement as at 31 December 2009

RESOURCE	RESOURCE	MEASURED			INDICATED			MEASURED & INDICATED					INFERRED RESOURCE
CUT OFF GRADE	AREA	Mt	Au g/t	Cu %	Mt	Au g/t	Cu %	Mt	Au g/t	Au Moz	Cu %	Cu Mt	Mt	Au g/t	Au Moz	Cu %	Cu Mt
0.5g/t	Coronation	.	.	.	1.23	1.18	.	1.23	1.18	0.05	.	.	2.98	1.12	0.11	.	.
0.5g/t	Deepdell	0.23	1.67	.	.	.	.	0.23	1.67	0.01	.	.	0.32	1.03	0.01	.	.
Geologically Constrained	Golden Point	.	.	.	.	.	.	.	.	.	.	.	1.48	2.55	0.12	.	.
0.4g/t	Round Hill / Southern Pit	4.06	0.98	.	20.18	0.93	.	24.24	0.94	0.73	.	.	18.38	1.22	0.72	.	.
0.5g/t	Innes Mills / Southern Pit	0.56	0.98	.	3.64	0.89	.	4.20	0.90	0.12	.	.	0.24	0.71	0.01	.	.
0.5g/t	Frasers Pit	12.14	1.53	.	28.36	0.91	.	40.50	1.10	1.43	.	.	9.41	0.70	0.21	.	.
Geologically Constrained	Frasers Underground P1 & P2	1.38	3.10	.	4.88	2.21	.	6.26	2.41	0.48	.	.	4.62	1.99	0.30	.	.
Geologically Constrained	Frasers Underground Panel 2 Deeps	.	.	.	0.35	3.56	.	0.35	3.56	0.04	.	.	0.54	3.69	0.06	.	.
0.5g/t	Golden Bar	0.09	1.56	.	1.18	1.40	.	1.27	1.42	0.06	.	.	4.96	1.36	0.22	.	.
0.5g/t	Taylors	.	.	.	0.28	1.50	.	0.28	1.50	0.01	.	.	0.41	1.05	0.01	.	.
0.5g/t	Stockpiles	5.69	0.64	.	.	.	.	5.69	0.64	0.12	.	.	.	.	.	.	.
	MACRAES TOTAL	24.15	1.30	.	60.09	1.06	.	84.25	1.13	3.05	.	.	43.34	1.27	1.77	.	.
0.7g/t	Globe Progress	1.74	3.03	.	8.08	1.85	.	9.82	2.06	0.65	.	.	1.23	1.71	0.07	.	.
0.7g/t	Empress	.	.	.	0.80	1.89	.	0.80	1.89	0.05	.	.	0.21	1.57	0.01	.	.
0.8g/t	Souvenir	.	.	.	0.18	3.04	.	0.18	3.04	0.02	.	.	0.25	1.46	0.01	.	.
0.8g/t	Supreme	.	.	.	.	.	.	.	.	.	.	.	0.84	1.46	0.04	.	.
Geologically Constrained	Blackwater	.	.	.	.	.	.	.	.	.	.	.	0.48	21.90	0.34	.	.
0.7g/t	Stockpiles	0.37	1.15	.	.	.	.	0.37	1.15	0.01	.	.	.	.	.	.	.
	REEFTON TOTAL	2.11	2.69	.	9.06	1.88	.	11.17	2.03	0.73	.	.	3.01	4.81	0.47	.	.
0.7g/t	Main Zone	.	.	.	.	.	.	.	.	.	.	.	13.50	1.78	0.77	.	.
	SAMS CREEK TOTAL	.	.	.	.	.	.	.	-	.	.	.	13.50	1.78	0.77	.	.
* 0.4g/t / 1.0g/t	Didipio Copper Gold Project	15.73	1.71	0.57	47.54	0.77	0.40	63.27	1.01	2.05	0.44	0.28	23.80	0.43	0.33	0.25	0.06
	DIDIPIO TOTAL	15.73	1.71	0.57	47.54	0.77	0.40	63.27	1.01	2.05	0.44	0.28	23.80	0.43	0.33	0.25	0.06
	TOTAL RESOURCE	42.00	1.53	.	116.69	1.01	.	158.69	1.14	5.83	.	0.28	83.66	1.24	3.34	.	0.06

 

*0.4g/t EqAu >2550mRL and 1.0g/t <2550mRL. No resource reported below 2270mRL. EqAucut-off is gold equivalent based on US$500/oz gold and US$1.90/lb copper.

 

Reserve Statement as at 31 December 2009

RESERVE	RESERVE	PROVED			PROBABLE			TOTAL RESERVE
CUT OFF GRADE	AREA	Mt	Au g/t	Cu %	Mt	Au g/t	Cu %	Mt	Au g/t	Au Moz	Cu %	Cu Mt
0.5g/t	Coronation				0.81	1.35		0.81	1.35	0.03	.	.
0.5g/t	Frasers Open Pit	10.32	1.58		14.98	1.00		25.30	1.24	1.01	.	.
0.5g/t	Southern Pit				6.46	1.25		6.46	1.25	0.26	.	.
1.9g/t	Frasers Underground P1, P2 & P2D	0.40	3.23		1.18	2.78		1.58	2.89	0.15	.	.
0.5g/t	Stockpiles	5.69	0.64					5.69	0.64	0.12	.	.
0.5g/t	MACRAES TOTAL	16.42	1.30	.	23.42	1.17	.	39.84	1.22	1.57	.	.
0.7g/t	Globe Progress	1.05	3.03		3.79	1.92	.	4.84	2.16	0.34	.	.
0.7g/t	Empress				0.10	2.44	.	0.10	2.44	0.01	.	.
0.7g/t	Souvenir				0.10	3.78	.	0.10	3.78	0.01	.	.
0.7g/t	Stockpiles	0.37	1.15					0.37	1.15	0.01	.	.
0.7g/t	REEFTON TOTAL	1.42	2.53	.	3.98	1.98	.	5.41	2.12	0.37	.	.
0.56g/t*	Didipio Copper Gold Open Pit	9.93	0.94	0.66	5.01	0.53	0.54	14.94	0.80	0.39	0.62	0.09
1.0g/t*	Didipio Copper Gold Underground	11.89	2.56	0.54	7.99	1.12	0.47	19.88	1.98	1.27	0.51	0.10
	DIDIPIO TOTAL	21.82	1.82	0.59	13.00	0.89	0.50	34.82	1.48	1.65	0.56	0.19
	TOTAL RESERVE	39.66	1.63	.	40.41	1.16	.	80.07	1.39	3.59	.	0.19

 

*Macraes and Reefton cut-off is based on US$800/oz gold. Note a 0.7g/t gold cut-off was used in the oxide zone.

*Didipio cut-off is gold equivalent based on US$500/oz gold and US$1.9/lb copper. Note a 0.7g/t gold cut-off was used in the oxide zone.

*Figures are in-situ delivered to ROM (no mill factor applied)

 

Technical Disclosure

The estimates of Mineral Reserves and Mineral Resources in this report were prepared in accordance with the standards set out in the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves – The JORC Code” (December 2004) as published by the Joint Ore Reserve Committee of the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC) and in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out by the Canadian Institute of Mining, Metallurgy and Petroleum. The JORC Code is the accepted reporting standard for the Australian Stock Exchange and New Zealand Stock Exchange. Unless otherwise stated, the scientific and technical information in this Annual Report in respect of the mineral projects of the company, updates, and is based upon the following NI 43-101 compliant technical reports (collectively, the “Technical Reports”) which have been filed and are available at www.sedar.com under the company’s name: (a)   “Technical Report for the Macraes Project located in the Province of Otago, New Zealand” dated November 9th, 2009, prepared by M. D. Cadzow and J. G. Moore, both of Oceana Gold (New Zealand) Limited;(b) “Independent Technical Report for the Reefton Project located in the Province of Westland, New Zealand” dated May 9, 2007, prepared by J. S. McIntyre, I. R. White and R. S. Frew of Behre Dolbear Australia Pty Limited, B. L. Gossage of RSG Global Pty Limited and R. R. Penter of GHD Limited; and(c) “Independent Technical Report for the Didipio Gold-Copper Project located in Luzon, Philippines” dated June 23, 2008, prepared by A van der Heyden of Hellman and Schofield Proprietary Limited, J. Wyche of Australian Mine Design and Development Proprietary Limited and J. McIntyre of Behre Dolbear Australia Pty Limited. Each of the authors of the Technical Reports is a “qualified person” for purposes of NI 43-101 and is independent of the company within the meaning of NI 43-101.

Where Mineral Reserves and Mineral Resources of the company’s mineral properties have been shown to be depleted by annual production as at December 31, 2009, such information is based on information compiled by Jonathan Moore (Exploration and New Zealand and Philippines Resources), Alex Zuhoski (Macraes Open Pit Reserves), Matthew Mengel (Macraes Underground Reserves), Adrian Winchester (Reefton Reserves), John Wyche (Philippines Reserves). Jonathan Moore, Matthew Mengel, Adrian Winchester and Alex Zuhoski are Members of the Australian Institute of Mining and Metallurgy and are full-time employees of OceanaGold. John Wyche is a member of the Australian Institute of Mining and Metallurgy and is a full-time employee of Australian Mine Design and Development Pty Ltd. Arnold van der Heyden is a member of the Australian Institute of Mining and Metallurgy and is a full-time employee of Hellman & Schofield. All such persons are “qualified persons” for purposes of NI 43-101 and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Messrs Moore, Winchester, Zuhoski, Mengel and Wyche and van der Heydon consent to inclusion in the report of the matters based on their information in the form and context in which it appears.

Comparison of 2008 and 2009 Inventories

Mineral Resources

	Measured		Indicated		Inferred
	2008	2009	2008	2009	2008	2009
	Moz	Moz	Moz	Moz	Moz	Moz
MACRAES	0.71	01.01	1.69	2.04	1.00	1.77
REEFTON	0.09	0.18	0.67	0.55	0.49	0.47
SAMS CREEK	-	-	-	-	0.77	0.77
DIDIPIO	0.91	0.86	1.21	1.18	0.31	0.33
TOTAL	1.71	2.05	3.57	3.77	2.57	3.34

Mineral Reserves

	Proved		Probable		Total
	2008	2009	2008	2009	2008	2009
	Moz	Moz	Moz	Moz	Moz	Moz
MACRAES	0.53	0.69	0.57	0.88	1.10	1.57
REEFTON	0.07	0.12	0.28	0.25	0.35	0.37
DIDIPIO	1.28	1.28	0.37	0.37	1.65	1.65
TOTAL	1.88	2.08	1.22	1.50	3.10	3.59

Mineral Resources

OceanaGold’s Measured and Indicated Mineral Resource inventory showed a net increase of 0.55Moz of gold between 31 December 2008 and 31 December 2009 due to:

Decreases resulting from:

• Mining at Frasers Underground mine, Frasers open pit at Macraes and mining at Globe Progress / General Gordon pits at Reefton.

• Removal of underground resource near Panel 1 with a transfer of the resource area to the Frasers Pit; and

• Reduction of stockpiles due to blending requirements with higher grade open pit ore.

Increases resulting from:

• Transfer of underground resource to Frasers open pit (near panel 1).

• Round Hill/Southern Pit and Innes Mills/Southern Pit reinstatement to the resource inventory. These resources were removed from the resource inventory at the completion of mining in this area in 1998 when the pits were back-filled with waste and tailings.

• The upgrading of Inferred resource for panel 2 deeps at Frasers Underground; and

• Upgrade of some Inferred material from the Coronation deposit after further drilling.

OceanaGold’s Inferred Mineral Resource inventory showed a net increase of 0.77Moz primarily as a result of conversion of;

• At Macraes, the reinstatement of Round Hill/Southern Pit and Innes Mills/Southern Pit as mentioned previously. The Inferred portion relates to deeper sections of the resource that still have unresolved issues around wet sample bias.

 

Mineral Reserves

OceanaGold’s Mineral Reserve inventory showed a net increase of 0.49Moz between 31 December 2008 and 31 December 2009 due to:

Decreases resulting from:

• Mining at Frasers Underground, Macraes open pit and stockpiles and mining of Globe Progress / General Gordon and Empress open pits at Reefton.

• Small decrease in ore quantity for Souvenir pit at Reefton following changes to resource model classifications.

• Loss of underground reserves with a corresponding transfer to Frasers Open Pit; and

• Small decrease in ore grade for Coronation following resource model revision.

Increases resulting from:

• Frasers Open pit re-optimisation on elevated gold price.

• Southern pit re-optimisation on elevated gold price and technical strategy to decommission the current alternate tailings storage facility.

• Globe Progress pit re-optimisation thru elevated gold price and life of mine cost re-optimisation and re-design; and

• Empress pit #2 re-optimisation thru elevated gold price and life of mine cost re-optimisation and re-design.

 

Looking Forward

During 2010, OceanaGold intends to increase its resource base net of mining depletion through targeted drilling campaigns on all three operating projects.

Firstly at the Macraes open pits, focus will be on the historic northern pits of Round Hill through Southern Pit to Innes Mills. Drilling campaigns have been committed and are underway at the Round Hill resource. Meanwhile at Macraes north soil sampling is defining anomalies that OGC will be ready to drill test in the course of the year.

Meanwhile at the underground, the most extensive exploration campaign since initial discovery will provide a two pronged approach (drilling from an underground dedicated drill drive and six deep surface holes with a wide separation targeting new panels down-dip) with both programs coming to a conclusion in the year.

At Reefton, extensive structural mapping has identified a multitude of targets within trucking distance of the existing operation. OGC have committed a substantial budget this year to drilling the top targets whilst upgrading other geological targets through geochemistry programs.

For Reserve growth, OGC will be re-optimising their current projects on the better elevated gold prices and will continue to pursue technical and economic solutions to convert our resource base into reserves. Many of the historical Macraes line of strike pits were mined to economic mining limits in the late 1990’s to early 2000’s. These parameters have undergone a significant change since then.