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New Reefton gold exploration planned as mine construction begins
4 November 2004 - OceanaGold has approved a NZ$6.6 million budget for more exploration in the Reefton Goldfield on the South Island West Coast, the company said in its September quarter report.
A "sustained and extensive" exploration programme will begin in 2005 to target extensions to the current approximate 500,000 ounce reserve at its Globe Progress project.
OceanaGold said it has control of the tenements along the mineralised trend where little modern exploration has been conducted.
The company also spelled out the schedule for its Reefton project developments which are now beginning construction.
The EPCM contract for the Reefton concentration plant and the Globe-Progress mine infrastructure development is expected to be awarded early in the fourth quarter of 2004.
At the projected Globe Progress open cut mine the requisite approvals to access the project area and commence construction are expected in late 2004.
The first phase of the mine's development entails the construction of the road infrastructure and silt ponds prior to constructing the embankments.
Construction of the processing plant is expected to commence in the first quarter of 2005 followed by prestripping of the Globe Progress stage 1 pit.
Gold production should commence during the fourth quarter 2005.
At the Blackwater underground mine OceanaGold is refurbishing the Prohibition shaft in order to conduct close-spaced infill drilling. By the end of September rehabilitation of the shaft had extended to 30 metres but progress is expected to improve once rehabilitation reaches the more competent greywacke material at approximately 60 metres below the shaft collar.
Dewatering is expected to commence at a depth of 250 - 300 metres. Shaft restoration should be completed and underground drilling will be started after the second quarter of 2005.
A decision on the start of a decline access planned for the Blackwater Mine will be made in the third quarter of 2005, pending results from the underground infill drilling. Geotechnical investigations have commenced along the decline access route.
The Blackwater mine is scheduled to begin producing 110,000 tonnes a year at 13.7 g/t in the last quarter of 2006.
OceanaGold said its Sams Creek exploration project in Golden Bay will conduct a thorough compilation and interpretation of all data in the fourth quarter of 2004. This will enable the development of further drill targets along the 7.5 km mineralised trend.
An extensive exploration programme is then planned to start in the fourth quarter of 2005. The Sams Creek exploration project currently has a resource of 776,000 ounces of gold.
