OceanaGold Corporation announced that it has entered into an agreement with MOD Resources on the OceanaGold 100% owned Sams Creek Project located near Takaka in the South Island of New Zealand.

The Sams Creek permit covers 30.6 km2 and contains a JORC compliant inferred resource of 13.5 million tonnes @ 1.78 g/t Au for 770,000 oz Au. Sams Creek was discovered in 1974 by CRA Exploration (now Rio Tinto), which conducted extensive exploration in the 1980s, including 46 diamond holes for 5,847 drilled metres. In 1991, CRA Exploration sold its New Zealand gold exploration assets, including Sams Creek, to an entity now owned by the Company. The last drilling program undertaken at Sams Creek was in 2004.

Under the terms of the agreement, a 100% subsidiary of MOD may earn up to 80% interest in the project by solely funding staged exploration programs. Additionally, subject to certain future outcomes and appropriate approvals, MOD will also issue either 10 or 17 million ASX listed ordinary shares of MOD to OceanaGold Corporation for nil consideration. At the October 10th closing price, this equates to script valued at A$1.6 million (on a 10 million share placement) or A$2.72 million (on a 17 million share placement).

Mick Wilkes, Managing Director and CEO commented, “We are pleased to be partnering with MOD on Sams Creek and will work with them as they advance the exploration programs. Undertaking this transaction is consistent with our strategy to unlock value within our current tenement holdings and to maintain our exploration focus on the two most significant gold districts in the South Island, Macraes and Reefton.”

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