Pisces discovery spurs OceanaGold exploration budget boost at Haile

OceanaGold (TSX: OGC; US-OTC: OCANF) has boosted its 2025 exploration budget by 20% to $10 million following the discovery of the high-grade Pisces deposit at its Haile gold mine in South Carolina.

The move follows a record three months ended Dec. 31 at Haile, where the operation produced 75,200 oz. gold and generated a quarterly free cash flow of $147 million – key factors that left Oceana with $192 million in net cash and $245 million in annual free cash flow . The discovery continues to show the value OceanaGold derives via the drill bit, CEO Gerard Bond said Monday in a release.

“While still early-days at the Pisces discovery, we are excited about its size potential and it remains open in multiple directions,” Bond said. He noted Pisces is close to existing and planned underground infrastructure, which could provide benefits from a mining perspective.

Pisces sits along the corridor between the producing Horseshoe and newer Palomino deposits. Drill results include a 44.2‑metre intercept averaging 10.9 grams gold per tonne from 591 metres depth, including 9.4 metres at 44.1 grams gold. Another hit 42.7 metres at 6.1 grams gold from 560.2 metres depth. The mineralization occurs in silicified, sulphidized laminated siltstone with zones of local brecciation, just 300 metres from the Horseshoe deposit, the company said.

OceanaGold shares lost 3% Monday to close at C$3.88. Shares have ranged between C$2.08 and C$4.81 over the past 12 months. It has a market capitalization of C$2.7 billion.

Definition drilling

Additional drilling targeted a southwest extension at Horseshoe, a high-grade underground deposit that has long underpinned production at Haile.

Though the holes were drilled after the 2024 year‑end resource estimate cut‑off date, they point towards more expansion potential, OceanaGold said.

Eighteen resource definition holes totalling 5,587 metres returned high-grade intercepts. Drilling extensions in the middle zone cut 12.9 metres at 50.1 grams gold from 264.2 metres depth and 11.1 metres at 4.4 grams gold from 257.5 metres depth. Further drilling returned 31.9 metres at 11.7 grams gold from 228.6 metres depth, 21.7 metres at 7.3 grams gold from 256.6 metres depth and 19.2 metres at 6.5 grams gold 272.8 metres deep.

Eye on growth

In an interview last September, Bond told The Northern Miner that Haile will drive a 30% boost in gold output to between 620,000 and 680,000 oz. by 2026.

“The ability to find more gold at much higher grades and mine it from underground at Haile has transformed this asset,” he said.

Bond noted that an underground expansion at the company’s Macraes mine in New Zealand will support the production surge. At Haile, the company has in recent months expanded the Horseshoe underground deposit, added Palomino to reserves and sees more potential at Ledbetter 4.

OceanaGold acquired Haile in 2015 and poured its first gold in January 2017. The mine transitioned to a combined open pit and underground operation in 2023 and now employs more than 700 people.