IN PARTNERSHIP WITH:
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 3
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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 4
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
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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
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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
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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’re proud to partner with OceanaGold at the Haile Gold Mine. We understand the mining industry and the needs of today’s mine operators by offering Caterpillar’s industry leading product line. Blanchard Machinery is committed to the success of our customers operations with 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. 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
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Haile Gold Mine construction site
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, Wilkes
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.
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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 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.
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.
Haile Gold Mine construction site
Coincidentally, the Haile Gold 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 20
bet. “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
MINING
Company Information INDUSTRY
Mining and Metals HEADQUARTERS
Melbourne, Victoria Australia FOUNDED
1990 ABOUT
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.” 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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INFO@OCEANAGOLD.COM
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WWW.OCEANAGOLD.COM
357 Collins Street, Level 14, Melbourne Victoria, Australia - 3000 Tel. +61 -3-9656-5300