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Frasers underground gold mine at Macraes intercepts ore body
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filed under:
Minerals
5 February 2007 - The Frasers underground mine development at the Macraes gold mine in east Otago has intercepted the gold ore body, OceanaGold says in its report for the quarter ended December 2006.
By the end of December three development drives were in ore with initial stope mining expected by March.
OceanaGold says the decline tunnel had so far progressed 802 m from the portal (situated in the Frasers pit) into panel 1 of Frasers underground mine.
For the year a total of 1630 metres were driven underground which slightly exceeded forecast. Development rates continue to increase now that there are multiple headings which have also improved utilisation of equipment.
In the first quarter of 2007 OceanaGold plans infill drilling of the Frasers underground panel 2 extension areas, where previous drilling has demonstrated significantly higher grade hanging wall mineralisation. The existing inferred resource is expected to be progressively elevated to indicated category. Concurrent with drilling, an orientation study using a portable infrared mineral analyzer (PIMA) device will be initiated to define alteration haloes both above and lateral to mineralised panels, thereby assisting with exploration for underground targets.
Macraes gold sales of 37,733 oz in the fourth quarter of 2006 were 20% lower than for the comparative period in 2005 of 46,953 oz. Because of higher gold prices the latest quarter revenue was approximately equal to the same quarter of 2005.
The completion of the hedge book restructure in May has enabled the company to increase its exposure to the strong gold market. During the quarter, 58% of gold sales were made at spot prices with the balance delivered into forward sales contracts. As a result, the average gold price of A$744 per oz received during the Quarter was up 13% on the A$661 per oz achieved in the 4th quarter of 2005.
The average cash cost per oz for the 4th quarter of 2006 increased by 18% due to reduced mill feed grade and elevated fuel, electricity and commodity prices. However, this was more than offset by the higher gold prices received, resulting in a cash operating margin that increased 7% to A$336 per oz.
OceanaGold says it has finalised a NZ$45 million non recourse project debt facility that will be predominately used to develop the Frasers underground mine at Macraes.
Source: OceanaGold December quarterly report.
OceanaGold says the decline tunnel had so far progressed 802 m from the portal (situated in the Frasers pit) into panel 1 of Frasers underground mine.
For the year a total of 1630 metres were driven underground which slightly exceeded forecast. Development rates continue to increase now that there are multiple headings which have also improved utilisation of equipment.
In the first quarter of 2007 OceanaGold plans infill drilling of the Frasers underground panel 2 extension areas, where previous drilling has demonstrated significantly higher grade hanging wall mineralisation. The existing inferred resource is expected to be progressively elevated to indicated category. Concurrent with drilling, an orientation study using a portable infrared mineral analyzer (PIMA) device will be initiated to define alteration haloes both above and lateral to mineralised panels, thereby assisting with exploration for underground targets.
Macraes gold sales of 37,733 oz in the fourth quarter of 2006 were 20% lower than for the comparative period in 2005 of 46,953 oz. Because of higher gold prices the latest quarter revenue was approximately equal to the same quarter of 2005.
The completion of the hedge book restructure in May has enabled the company to increase its exposure to the strong gold market. During the quarter, 58% of gold sales were made at spot prices with the balance delivered into forward sales contracts. As a result, the average gold price of A$744 per oz received during the Quarter was up 13% on the A$661 per oz achieved in the 4th quarter of 2005.
The average cash cost per oz for the 4th quarter of 2006 increased by 18% due to reduced mill feed grade and elevated fuel, electricity and commodity prices. However, this was more than offset by the higher gold prices received, resulting in a cash operating margin that increased 7% to A$336 per oz.
OceanaGold says it has finalised a NZ$45 million non recourse project debt facility that will be predominately used to develop the Frasers underground mine at Macraes.
Source: OceanaGold December quarterly report.
