Energy Fuels Inc. press release

OCEANAGOLD REPORTS MINERAL RESOURCES AND RESERVES FOR THE YEAR-ENDED 2021

2022-03-31

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Significantly Increases Wharekirauponga Resources in New Zealand

/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES./

BRISBANE , March 31, 2022 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) ("OceanaGold" or the "Company") is pleased to provide its annual Resource and Reserve ("R&R") statement for the year ended 31 December 2021 .

Highlights

Wharekirauponga ("WKP") Indicated Resource increased 53% from 1.0 million tonnes ("Mt") at 13.4 g/t gold for 0.42 million ounces ("Moz") gold including 0.8 Moz silver to 1.5 Mt at 13.5 g/t gold for 0.64 Moz gold including 1.27 Moz silver. Inferred Resources of 2.3 Mt at 9.4 g/t gold for 0.7 Moz of gold including 1.6 Moz of silver remain, presenting a significant opportunity for future resource conversion. Year-on-year increase of 0.31 Moz Measured and Indicated Resources at Waihi, New Zealand , to 13.9 Mt at 4.81 g/t gold for 2.15 Moz gold, due to the conversion of Inferred Resources at Martha and WKP underground projects. Includes first Indicated Resources for the Palomino underground deposit at Haile, U.S.A ; 2.3 Mt at 2.79 g/t gold for 0.20 Moz of gold. Inferred Resources of 3.6 Mt at 2.3 g/t gold for 0.26 Moz remain to be converted. Proven and Probable Reserves stood at 131 Mt at 1.33 g/t gold for 5.63 Moz gold, including 8.02 Moz silver and 0.15 Mt copper, a 0.43 Moz gold decrease year on year mainly due to mining depletion. Measured and Indicated Resources, inclusive of Mineral Reserves stood at 199 Mt at 1.43 g/t gold for 9.13 Moz gold, including 14.4 Moz silver and 0.17 Mt copper, a 0.92 Moz gold decrease year on year largely due to mining depletion and a reduction in the Round Hill open pit resource at Macraes, New Zealand .

Scott Sullivan , Acting President and CEO of OceanaGold said, "The recent resource conversion drill results and updated Indicated and Inferred Resources highlight WKP has the makings of a quality gold mine. The 2021 drill program at WKP saw a very high conversion rate of Inferred Resources to Indicated Resources which resulted in the significant increase in Indicated Resources from 1.0 Mt at 13.4 g/t gold for 0.42 Moz gold to 1.5 Mt at 13.5 g/t gold for 0.64 Moz gold including 1.27 Moz silver. The 2022 drill program is building on these exceptional results with a focus on delivering 1 Moz in the short-term at WKP in support of the up-coming pre-feasibility study."

"Our Reserves and Resources continue to provide a strong foundation for the Company as we steadily increase our gold production over the next three years. The underground potential at Haile is growing with the introduction of the Palomino Indicated Resource and our investment in both exploration and resource conversion drilling. Once we develop the underground infrastructure at Horseshoe we will also have further opportunity to convert resources."

RESERVES

As of 31 December 2021 , OceanaGold's Proven and Probable ("P&P") Reserves stood at 131 Mt at 1.33 g/t gold for 5.63 Moz of gold, including 8.02 Moz of silver and 0.15 Mt of copper, representing a 0.43 Moz decrease in gold Reserves year-on-year (see Table 1) largely due to mining depletion.

Table 1: Updated Mineral Reserves (as of 31 December 2021 )

[](https://mma.prnewswire.com/media/1778043/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

Mineral Reserves constrained to mine designs based upon US$1,500 /oz gold, US$3.00 /lb copper and US$17 /oz silver. New Zealand reserves use 0.71 NZD /USD exchange rate. Reported estimates of contained metal are not depleted for processing losses. For underground reserves, cut-offs applied to diluted grades. For Macraes: Frasers Underground cut-off is 1.61 g/t Au while Golden Point Underground cut-off is 1.44 g/t Au. For Waihi Underground, the cut-off for previously unmined stoping areas is 2.2 g/t Au, increasing to 2.9 g/t Au for stoping areas in close proximity to remnant workings. For Didipio: old equivalence is based upon the presented gold and copper prices as well as processing recoveries. Gold Equivalent (AuEq) = Au g/t + 1.37 x Cu%. The 22.2 Mt open pit stockpile inventory includes 5.3 Mt of low-grade stocks mined at an approximate 0.27 g/t AuEq cut-off. The UG, incremental stopes proximal to development already planned to access main stoping areas are reported to a lower cut-off of 0.76 g/t AuEq. For Haile: Open Pit, the primary cut-off grade is 0.5 g/t Au while oxide material is assigned a 0.6 g/t Au cut-off grade. Horseshoe Underground, the cut-off is 1.53 g/t Au, with adjacent lower grade stopes included in the reserves based on an incremental stope cut-off grade of 1.37 g/t Au.

Figure 1: Changes to Proven & Probable Mineral Reserves

[](https://mma.prnewswire.com/media/1778027/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

| Note: "Depletions" refer to 2021 mining depletion, "Reserve Model Updates" represent drilling-related changes to reserve changes (growth or reductions) or initial reserve declarations, "Economic Factors" relate to mining cost and cut-off grade changes, "Adjustments" relate to changes in mining method assumptions (e.g. open pit versus underground). |

RESOURCES

As of 31 December 2021 , OceanaGold's Measured and Indicated ("M&I") Resources stood at 199 Mt at 1.43 g/t gold for 9.13 Moz of gold, including 14 Moz of silver and 0.17 Mt of copper (Table 2). Mineral Resources are reported inclusive of Mineral Reserves.

Table 2: Updated Mineral Resources – Measured and Indicated (as of 31 December 2021 )

[](https://mma.prnewswire.com/media/1778045/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

Mineral Resources include Mineral Reserves. There is no certainty that Mineral Resources, not included as Mineral Reserves, will convert to Mineral Reserves. All resources based upon US$1,700 /oz gold, US$3.50 /lb copper and US$17 /oz silver and a 0.71 NZD /USD exchange rate for New Zealand resources. Open pit resources constrained to shells based upon economic assumptions above. Waihi open pit resources reported within a pit design limited by infrastructural considerations. Underground resources for Didipio, Horseshoe at Haile, and Frasers and Golden Point at Macraes, are reported within volumes guided by optimised stope designs. Underground resources for Palomino at Haile and Martha and WKP at Waihi are reported within optimised stope designs based upon economic assumptions above. For Macraes: Frasers Underground at a 1.25 g/t Au cut-off and Golden Point Underground at a 1.34 g/t Au cut-off. For Waihi: Martha Underground at a 2.15 g/t Au cut-off, WKP at a 2.5 g/t Au cut-off, Martha open pit at a 0.5 g/t Au cut-off and Gladstone open pit at a 0.56 g/t Au cut-off. Martha Underground M&I Resources 5.8 Mt at 5.93 g/t Au for 1.11 Moz. WKP M&I resources 1.5 Mt at 13.5 g/t Au for 0.64 Moz. For Didipio open pit, only stockpiles remain. These include 5.3 Mt of low grade at 0.27 g/t AuEq. Underground resources reported between the 2,460mRL and 1,980mRL with AuEq cut-off based on presented gold and copper prices. AuEq = Au g/t + 1.39 x Cu %. For Haile OP primary cut-off 0.45 g/t Au, oxide cut-off 0.55 g/t Au. Palomino Resources at a 1.39 g/t Au cut-off and Horseshoe Resources at a 1.35 g/t Au cut-off, the difference due to slightly lower metallurgical recovery at Palomino.

On a consolidated basis, OceanaGold's M&I Resources decreased by 0.92 Moz (Figure 2). Decreases were mainly due to mining depletion across the Company's operations as well as the reduction in the reportable Round Hill Open Pit Resource at Macraes following the completion of an internal prefeasibility-level study (see section on Macraes). The decreases were partially offset by gains due to resource conversion drilling-related resource updates for Palomino at Haile, WKP and Martha at Waihi, and Golden Point at Macraes.

Figure 2: Changes to Measured & Indicated Mineral Resources

[](https://mma.prnewswire.com/media/1778035/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

| Note: "Depletions" refer to 2021 mining depletion, "Resource Model Updates" represent drilling-related resource changes (growth or reductions) or initial resource declarations, "Economic Factors" relate to mining cost and cut-off grade changes, "Adjustments" relate to changes in mining method assumptions (e.g. open pit versus underground). |

As of 31 December 2021 , OceanaGold's Inferred Resources stood at 62 Mt at 1.9 g/t gold for 3.9 Moz of gold, including 7.5 Moz of silver and 0.04 Mt of copper (Table 3). Year on year this represents a 0.5 Moz decrease mainly due to the conversion of Inferred Resources at Waihi, Macraes and Haile.

Table 3 _: __Updated Mineral Resources – Inferred Resource Statement (as of 31 December 2021 ) _

[](https://mma.prnewswire.com/media/1778046/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

| See footnotes for Table 2. |

Figure 3: Changes to Inferred Resources

[](https://mma.prnewswire.com/media/1778034/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

NEW ZEALAND

Waihi

Underground P&P Reserves at Waihi stood at 4.77 Mt at 4.2 g/t gold for 0.64 Moz gold including 2.23 Moz silver with reserve growth at Martha offsetting mining depletion (Figure 4). No open pit reserves are reported.

Figure 4: Changes to Waihi Proven & Probable Mineral Reserves

[](https://mma.prnewswire.com/media/1778036/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

The Waihi underground M&I Resources stood at 7.3 Mt at 7.45 g/t gold for 1.76 Moz gold, including 4.99 Moz silver and open pit M&I Resources stood at 6.6 Mt at 1.86 g/t gold for 0.40 Moz gold, including 2.89 Moz silver (Figure 5). Combined underground and open pit M&I Resources totalled 13.9 Mt at 4.81 g/t gold for 2.15 Moz gold, including 7.87 Moz silver, representing a year-on-year increase of 0.31 Moz due to the conversion of Inferred Resources at WKP and Martha, respectively:

Martha Indicated Resources 5.8 Mt at 5.93 g/t gold for 1.11 Moz gold including 3.71 Moz silver. Martha Inferred Resources 2.9 Mt at 5.1 g/t gold for 0.47 Moz gold including 2.0 Moz silver. WKP Indicated Resources 1.5 Mt at 13.5 g/t gold for 0.64 Moz gold including 1.27 Moz silver. WKP Inferred Resources of 2.3 Mt at 9.4 g/t gold for 0.7 Moz gold including 1.6 Moz silver.

Figure 5: Changes to Waihi Measured & Indicated Mineral Resources

[](https://mma.prnewswire.com/media/1778033/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

Underground Resources at Waihi

During 2022, the Company expects to drill 21,235 metres at Martha Underground ("MUG") with a focus on resource conversion (11,875 metres) and resource extension (9,360 metres). This programme is designed to improve resource confidence and to test opportunities proximal to mine design.

WKP is located in the upper North Island of New Zealand , approximately 10 kilometers north of the Martha Underground and existing Waihi facilities. WKP is a rhyolite-hosted, low sulphidation epithermal quartz vein system. The rhyolites have undergone pervasive hydrothermal alteration, often with complete replacement by quartz and adularia with minor illite and/or smectite clay. Gold mineralisation occurs in association with quartz veining developed along two types of structurally controlled vein arrays. The principal veins occupy laterally continuous, NE trending (025-47°), moderately dipping (60-65°) district-scale graben step faults, reaching up to 10 metres in width. Subsidiary, extensional veins (1-100 centimetres wide) are developed between or adjacent to the principal fault hosted veins.

The Company expects to drill 16,775 metres at WKP primarily on resource conversion in 2022 to increase the Indicated Resources in support of the prefeasibility study scheduled for release in 2023.

The Waihi Inferred Resources stood at 1.5 Moz gold, a small decrease year on year (Figure 6). The Inferred Resources at Waihi present a significant opportunity for future conversion.

Figure 6: Changes to Waihi Inferred Resources

[](https://mma.prnewswire.com/media/1778028/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

Resource Model Performance

Table 4 summarizes the Waihi underground resource model reconciliations for 2018 to 2021. Reserve modifying factors have been applied for ore loss and dilution. The resource model to mill-adjusted mine reconciliation data from various ore sources for the four years to 2021 show variable performance from year to year with a reasonable long-term average performance; +8% for tonnes, -2% for grade and +7% for contained gold.

Table 4: _Waihi Underground __Model to Mill-Adjusted Mine Reconciliation _

| Year | Resource Model (1), (2) | Mine (Mill-Reconciled) | Reconciliation Ratios | | | | | | | | | Mt | grade | Moz | Mt | grade | Moz | Mt | grade | Moz | | | | 2021 (3) | 0.22 | 4.19 | 0.030 | 0.29 | 3.24 | 0.030 | 1.31 | 0.77 | 1.01 | | | 2020 | 0.13 | 5.80 | 0.024 | 0.13 | 5.30 | 0.022 | 1.01 | 0.91 | 0.92 | | | 2019 | 0.43 | 5.52 | 0.077 | 0.43 | 5.60 | 0.078 | 1.00 | 1.01 | 1.01 | | | 2018 | 0.40 | 6.20 | 0.08 | 0.43 | 6.80 | 0.095 | 1.07 | 1.10 | 1.18 | | | Total | 1.19 | 5.53 | 0.211 | 1.29 | 5.44 | 0.225 | 1.08 | 0.98 | 1.07 | | | | | | | | | | | | | |

| 1. | Underground models include reserve modifying factors for ore loss and dilution | | 2. | Current resource models used | | 3. | 2021 mining included Inferred Resources of 0.063 Mt at 3.23 g/t for 7 koz. These Inferred Resources are not included in the reconciliation as they are not considered to have sufficient geological confidence for detailed mine planning. |

Mining during 2018, 2019 and 2020 was largely on the Correnso vein for which reconciliation was in line with expectations. The reconciliation for 2021 largely represents mining at MUG and shows greater variance. However, the mined MUG tonnage to-date is not considered to be large or geologically representative, reflecting less than 5% of the total MUG reserve. The majority of ore mined at MUG to-date has been development ore rather than stoping ore, and with limited grade control coverage. That said, the greater variance in reconciliation performance is in areas with higher geological and grade complexity, particularly in the smaller, subsidiary veins. The modelling and classification of these veins is under review and will continue as mining progresses in 2022.

Macraes

The P&P Reserves for Macraes stood at 39.0 Mt at 0.95 g/t gold for 1.20 Moz gold with 0.98 Moz in the open pits and 0.22 Moz in the Frasers and Golden Point Underground mines. Year-on-year drilling-related underground reserve growth at Golden Point Underground and within the open pits has partially offset 2021 mining depletion for a net 0.1 Moz decrease.

Figure 7: Changes to Macraes Proven & Probable Mineral Reserves

[](https://mma.prnewswire.com/media/1778029/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

The Macraes M&I Resources stood at 84.6 Mt at 0.93 g/t gold for 2.52 Moz of gold, including 6.9 Mt at 2.53 g/t gold for 0.56 Moz of gold for the Frasers Underground and Golden Point Underground mines. The year-on-year net decrease in M&I Resources of 1.08 Moz is largely due to a 0.95 Moz reduction for the Round Hill Open Pit Resource, Macraes Open Pit and underground mining depletion as well as write-downs at Frasers Underground where development retreat has reduced the prospects of future resource extraction (see Adjustments in Figure 8).

The reduction of the Round Hill Open Pit Resource followed the completion of an internal study assessing a larger Round Hill Open Pit. Earlier, less detailed studies had provided positive outcomes for the relocation of the processing plant and Mixed Tailings Impoundment ("MTI"), both required to develop the larger Round Hill Open Pit. The financial analysis for the more recent and detailed study however, returned a negative NPV outcome due to additional capital requirements of moving the processing plant. On this basis and current assumptions, reasonable prospects of eventual economic extraction could no longer be maintained for the portion of the pit that required relocation of the plant and MTI. The Round Hill Open Pit M&I Resource decreased from 54 Mt at 0.92 g/t gold for 1.61 Moz to 21 Mt at 0.97 g/t gold for 0.66 Moz.

Figur e 8: Changes to Macraes Measured & Indicated Mineral Resources

[](https://mma.prnewswire.com/media/1778037/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

Macraes Inferred Resources stood at 24 Mt at 0.7 g/t gold for 0.6 Moz of gold, a decrease of 0.2 Moz from the previous year, due mainly to the conversion of Inferred Resources to the Indicated category and, to a lesser extent, mining depletion (Figure 9).

Figure 9: Changes to Macraes Inferred Resources

[](https://mma.prnewswire.com/media/1778030/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

Reserve Model Performance

Table 5 summarizes the combined open pit and underground resource model reconciliations for 2018 to 2021.

The reserve model to mill-adjusted mine reconciliation data for the four years to 2021 show variable performance from year to year, albeit the long-term average performance for this period has been reasonable; +9% for tonnes, -3% for grade and +6% for contained gold. While the long-term performance has been reasonable, the grade performance for 2020 and 2021 was less than 2018 and 2019, although the contained gold reconciliation has been positive. The causes for the recent grade performance have been a combination of complex mineralization styles, the realization of additional low-grade mineralization in grade control, difficulty in achieving representative drilling coverage at Gay Tan Open Pit due to limited drill rig access, and in 2021, near-surface depletion at Deepdell Open Pit. While geological complexity remains in 2022, resource model performance is expected to return to long term performance. While annual reconciliation fluctuations are expected to continue, the resource estimates are believed to provide an acceptable basis for medium to long term mine planning purposes.

Table 5: Combined Open Pit and Underground Model to Mill-Adjusted Mine Reconciliation

| Year | Reserve Model | Mill-Adjusted Mine | Reconciliation Ratios | | | | | | | | | | Mt | grade | Moz | Mt | grade | Moz | tonnes | grade | oz | | | 2021 | 4.11 | 1.06 | 0.14 | 4.78 | 0.97 | 0.15 | 1.16 | 0.91 | 1.06 | | | 2020 | 3.74 | 1.15 | 0.14 | 4.71 | 1.04 | 0.16 | 1.26 | 0.91 | 1.14 | | | 2019 | 4.34 | 1.23 | 0.17 | 4.80 | 1.18 | 0.18 | 1.11 | 0.96 | 1.07 | | | 2018 | 6.17 | 1.21 | 0.24 | 5.79 | 1.30 | 0.24 | 0.94 | 1.07 | 1.00 | | | Total | 18.4 | 1.17 | 0.69 | 20.1 | 1.13 | 0.73 | 1.09 | 0.97 | 1.06 | | | | | | | | | | | | | |

Open pit resource models implicitly include mining selectivity. Underground models include reserve modifying factors for ore loss and dilution. Current resource model used.

Blackwater

Resources for the Blackwater Project remain on the Company's inventory and are unchanged from the 31 December 2020 reported resources.

UNITED STATES OF AMERICA

Haile

P&P Reserves totalled 45.4 Mt at 1.75 g/t gold for 2.55 Moz of gold including 3.23 Moz of silver. Of the 2.55 Moz, the Haile Underground contributes 0.42 Moz. Year on year P&P Reserves have decreased 0.29 Moz due to a combination of mining depletion and increased mining costs (Figure 10).

Figure 10: Changes to Haile Proven & Probable Mineral Reserves

[](https://mma.prnewswire.com/media/1778031/OceanaGold_Corporation_OCEANAGOLD_REPORTS_MINERAL_RESOURCES_AND.html)

As announced on 9 February 2022 , OceanaGold completed an internal technical review of the Haile mine during 2021. An outcome of this technical review was an adjustment to the reserve cut-off grade in line with revised cost estimates for mining, processing, and general and administration costs. This has resulted in a reduction in P&P Reserves of approximately 0.12 Moz as shown in Figure 11.

Total Haile M&I Resources stood at 52.9 Mt at 1.79 g/t gold for 3.04 Moz of gold, including 3.61 Moz of silver. Of the 3.04 Moz of gold, the Haile underground contributes 0.73 Moz which includes the first-time reporting of Indicated Resources for the Palomino Underground deposit; 2.3 Mt at 2.79 g/t gold for 0.20 Moz of gold. Year on year M&I Resources decreased by 0.14 Moz due the combination of mining depletion and a small decrease in the resource reporting shell due to revised costs as noted above (Figure 11). Resource growth at Palomino partially offset these decreases.