Globe Progress Mine
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Technical Report for the REEFTON PROJECT Located in the province of Westland, NEW ZEALAND Prepared by OceanaGold Corporation Level 5, 250 Collins Street, Melbourne, Victoria AUSTRALIA 24 May 2013 For personal use only K. Madambi, Technical Services Manager, Oceana Gold (New Zealand) Limited J. Moore, Chief Geologist, Oceanagold Gold (New Zealand) Limited TABLE OF CONTENTS 1 SUMMARY .............................................................................................................................................. 11 1.1 DESCRIPTION OF PROPERTY .............................................................................................................. 11 1.2 LOCATION ......................................................................................................................................... 11 1.3 OWNERSHIP ..................................................................................................................................... 12 1.4 GEOLOGY AND MINERALIZATION ......................................................................................................... 12 1.5 EXPLORATION CONCEPT .................................................................................................................... 13 1.6 STATUS OF EXPLORATION AND RESOURCES ........................................................................................ 13 1.7 OPERATIONS .................................................................................................................................... 14 1.8 CONCLUSIONS AND RECOMMENDATIONS ............................................................................................. 14 1.8.1 Geology and Resources ........................................................................................................ 14 1.8.2 Mining .................................................................................................................................... 15 1.8.3 Processing ............................................................................................................................. 15 1.8.4 Infrastructure, Environment and Tenement Status ............................................................... 16 1.8.5 Production ............................................................................................................................. 16 1.8.6 Management ......................................................................................................................... 17 1.8.7 Capital and Operating Costs ................................................................................................. 17 2 INTRODUCTION ..................................................................................................................................... 18 2.1 REPORT PREPARATION ...................................................................................................................... 18 2.1.1 Purpose of the Report ........................................................................................................... 18 2.1.2 Reporting Standards ............................................................................................................. 18 2.1.3 Currency ................................................................................................................................ 18 2.2 AUTHORS OF THE REPORT ................................................................................................................. 18 2.3 QUALIFICATIONS AND EXPERIENCE OF THE QUALIFIED PERSONS ........................................................... 19 2.3.1 Mr Madambi .......................................................................................................................... 19 2.3.2 Mr Moore ............................................................................................................................... 19 2.4 SOURCES OF INFORMATION ............................................................................................................... 19 3 PROPERTY DESCRIPTION AND LOCATION ....................................................................................... 20 For personal use only 3.1 AREA OF PROPERTY .......................................................................................................................... 20 3.2 LOCATION IN TERMS OF LATITUDE AND LONGITUDE .............................................................................. 20 3.3 TENURE ........................................................................................................................................... 20 3.4 NATURE AND EXTENT OF TITLE .......................................................................................................... 21 3.4.1 Mineral Rights ....................................................................................................................... 21 Page 1 of 134 © OceanaGold Corporation 2013 3.4.2 Mineral Permits ..................................................................................................................... 22 3.4.3 Land Access .......................................................................................................................... 22 3.4.4 Work Programmes ................................................................................................................ 24 3.5 PROPERTY BOUNDARIES ................................................................................................................... 24 3.6 LOCATION OF MINERAL RESOURCES ................................................................................................... 24 3.7 ROYALTIES ....................................................................................................................................... 24 3.7.1 NZ Royalty ............................................................................................................................. 24 3.7.2 Royalco Resources Ltd & Pty Ltd ......................................................................................... 25 3.8 ENVIRONMENTAL LIABILITIES .............................................................................................................. 25 3.8.1 Overview ............................................................................................................................... 25 3.8.2 Resource Consents ............................................................................................................... 25 3.8.3 Access Arrangements ........................................................................................................... 26 3.8.4 Crown Minerals Act 1991 ...................................................................................................... 26 3.9 WORK PERMITS ................................................................................................................................ 26 3.9.1 Resource Consents ............................................................................................................... 26 4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ..... 28 4.1 TOPOGRAPHY, ELEVATION AND VEGETATION ....................................................................................... 28 4.2 ACCESS TO THE PROPERTY ............................................................................................................... 28 4.3 PROXIMITY TO POPULATION CENTRES ................................................................................................ 28 4.4 CLIMATE AND OPERATING SEASON ..................................................................................................... 28 4.5 INFRASTRUCTURE ............................................................................................................................. 29 4.5.1 Sufficiency of Surface Rights ................................................................................................ 29 4.5.2 Site Infrastructure .................................................................................................................. 30 4.5.3 Labour ................................................................................................................................... 31 5 HISTORY ................................................................................................................................................. 32 5.1 MINING HISTORY ............................................................................................................................... 32 5.1.1 Alluvial Mining ....................................................................................................................... 32 5.1.2 Quartz Lode Mining ............................................................................................................... 32 5.1.3 Globe Progress Mine ............................................................................................................ 33 For personal use only 5.2 PRIOR OWNERSHIP ........................................................................................................................... 34 5.3 PREVIOUS WORK .............................................................................................................................. 35 5.3.1 Government Assisted Surveys (1938-1948) ......................................................................... 35 5.3.2 1951-1980 ............................................................................................................................