OceanaGold announces increase to exploration activities at Reefton goldfield

Tuesday, Jun 29, 2010

MELBOURNE, Australia, June 29 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is pleased to announce that the Board of Directors has approved an additional exploration program at the Reefton goldfield and surrounding areas.

Highlights

<< - The exploration budget for the Reefton goldfield has increased by US$4.4M for 2010/2011 (previous FY2010 budget for Reefton exploration was US$2.8M); - The increased exploration activities will focus on new drill programs targeting potential underground mining targets; a review of the Sam's Creek project to examine the best strategic option to progress this deposit and an increase to technical staff for the exploration department.>>

The Reefton goldfield is one of the most prolific goldfields in New Zealand, historically having produced more than two million ounces of gold from hard rock mining and an additional eight million ounces reportedly from alluvial mining making it one of the more significant goldfields in Australasia.

The expanded exploration program includes a drilling program and technical/economic assessments for a potential Reefton underground operation. Historical production and recent drilling suggests continuation of economic mineralisation below the Globe Progress pit. This will be analysed for the potential to exploit via underground methods in addition to likely expansions of the current open pit. Following the drilling campaign, a pre-feasibility study will be undertaken. The expanded program will also include drilling and technical/economic assessment of other underground targets.

An independent assessment of the Sam's Creek deposit will also be undertaken to determine the best strategic option for this project moving ahead. The Sam's Creek deposit, which is located at the northern end of the South Island, contains an inferred resource of 770,000 ounces of gold (13.5Mt @1.78 g/t Au).

Paul Bibby, CEO commented, "The decision to expand the Reefton exploration program and to undertake the economic studies represents OceanaGold's continued commitment to invest in exploration at our New Zealand projects and is a reflection of the significant prospectivity of the region."

Qualified Persons

Rod Redden, Exploration and Development Manager and Jonathan Moore, Principal Resource Geologist, both of Oceana Gold New Zealand Limited are the "qualified persons" pursuant to National Instrument 43-101 of the Canadian Securities Administrators. Both are members of the AusIMM.

The Qualified Persons, Mr Redden and Mr Moore have prepared the technical information and approved the contents of this news release.

Source: Canada Wire