The Supreme Deposit - Exploration Success at a Near Mine Target in the Reefton Goldfield

Oceana Gold (New Zealand) Limited (OceanaGold) has commenced mining operations at the Globe-Progress mine in the Reefton Goldfield, an area that historically produced 2.1 million ounces of gold from underground quartz lode deposits. During the construction phase of the operation, advanced exploration programmes targeting near-mine prospects commenced. The focus of this ongoing exploration is the discovery of near surface, refractory gold deposits that are amenable to open-pit mining methods and treatment through the Globe-Progress process plant.   One such discovery is the Supreme deposit, located along strike approximately 3 kilometres to the south of the Globe-Progress mine. The Supreme area was tested extensively with diamond drilling in 2006, defining a deposit with similar mineralisation styles and grade to the Globe-Progress deposit. The mineralisation comprises a central core of gold-bearing quartz veins, locally containing visible gold, surrounded by a more extensive halo of refractory, disseminated gold associated with an arsenopyrite-pyrite sulphide mineral assemblage. Three subparallel mineralised structures host the mineralisation. These structures are highly oblique to the country rock orientations, extending approximately 250 metres along a northeast-southwest strike and at least 220 metres down-dip, with an average thickness of 12 metres and moderate dip to the southeast. Records of historical workings indicate that mineralisation extends further down-dip and remains open at depth. 5175 ounces of gold were mined historically at the Supreme deposit. OceanaGold have defined an Inferred Resource for the Supreme deposit of 0.84 million tonnes at 1.46 grams per tonne for a total of 40 000 ounces (at a 0.8 grams per tonne cut-off). Higher-grade zones of mineralisation exist within the deposit and further drilling is planned to test the extent, continuity and geological controls of the mineralised structures.