OceanaGold drilling supports resource growth as analysts eye January Waihi update

OceanaGold drilling supports resource growth as analysts eye January Waihi update

Jefferies said strong drilling results at OceanaGold Corporation (TSX:OGC) 's Waihi project support resource conversion, but highlighted plans to expand processing capacity as the more significant development ahead of a January 2027 technical report.

The company is evaluating an expansion of processing capacity from 0.8 million tons a year to 1.2 million tons, potentially allowing the Martha and Wharekirauponga (WKP) mines to operate concurrently.

Jefferies said this could allow WKP to supplement rather than replace Martha when WKP enters production in 2032, while potentially extending Martha Underground beyond 2033.

The broker said the January 2027 Waihi District technical report could outline a larger and longer-lived district, with potential increases in reserves, mine life and processing throughput.

Recent WKP drilling included intercepts of 6.3 metres at 97.2 grams of gold a ton and 8.5 metres at 41.5 grams a ton, supporting potential resource conversion.

Other high-grade results included 5.9 metres at 25.9 grams a ton and 4.2 metres at 32.4 grams a ton, while hanging wall drilling also identified high-grade mineralisation.

Jefferies said the results could support conversion of a substantial portion of the area from inferred to indicated resources in OceanaGold’s 2026 reserves and resources update.

Waihi North development remains on schedule, with about 350 metres of decline development completed since work began in May 2026, while construction of the first ventilation shaft is underway.

The company has expanded its drilling fleet to five rigs, balancing resource conversion with step-out drilling along the EG vein to test further growth potential.

Jefferies said the Ja...