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OceanaGold raises $30m mainly for exploration at NZ mines
10 August 2009 - OceanaGold has successfully raised A$24.2 million (approximately NZ$30.5 million mainly to carry out exploration around its Macraes and Reefton gold mines in New Zealand).
The interim chief executive officer and chief financial officer of OceanaGold, Marcus Engelbrecht, said the funds raised had the potential to materially extend the life of Macraes and Reefton.
The focussed brownfields exploration over six to 18 months would target the conversion of existing resources into reserves with a near-term objective of a 20-30% conversion of 600,000 to 900,000 oz of gold into reserves.
This would equate to an additional three years of mine life.
OceanaGold said that historically it had achieved a conversion rate of 50-60%.
Measured and indicated resources at its New Zealand mines were 3.15 million ounces with inferred resources of 1.49 million ounces.
Proven reserves at its New Zealand mines were 0.60 million ounces and probable reserves 0.85 million ounces.
There was currently a difference of 3.19 million ounces between resources and reserves.
The drill programme would include target drilling for the Frasers underground Panel 3, which is down dip of Panel 2.
An infill and step-out drill programme would also be carried out at the Panel 2 deeps discovered earlier this year, where high grade mineralisation had been located below the base of current reserves.
Other drilling would be carried out at the open pits at Macraes and at near mine targets at the Reefton mine.
Sources: OceanaGold and Lindsay Clark
