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OceanaGold lifts spending on Reefton exploration and looks again at Sams Creek
3 July 2010 - Melbourne-based gold miner OceanaGold Corporation has announced a large increase in exploration spending to investigate underground mining at the Reefton goldfield and carry out further work on its Sams Creek prospect in the Nelson area.
Sources: OceanaGold and Lindsay Clark
OceanaGold said the exploration budget for Reefton is being increased by US$4.4 million (approximately NZ$6.3 million) for 2010/2011.
The previous financial year 2010 budget for Reefton exploration was US$2.8million (about NZ$4 million).
OceanaGold said the increased exploration activities will focus on new drill programmes targeting potential underground mining targets.
There would also be an increase in technical staff for the exploration department.
The expanded exploration programme includes a drilling programme and technical/economic assessments for a potential Reefton underground operation.
Historical production and recent drilling suggests continuation of economic mineralisation below the Globe Progress pit.
“This will be analysed for the potential to exploit via underground methods in addition to likely expansions of the current open pit,” OceanaGold said.
Following the drilling campaign, a pre-feasibility study will be undertaken. The expanded programme will also include drilling and technical/economic assessment of other underground targets.
The company said it will also review the Sam’s Creek project in Golden Bay at the northern end of the South Island, to examine the best strategic option to progress this deposit.
An independent assessment of the Sam’s Creek deposit will be undertaken. The Sam’s Creek deposit contains an inferred resource of 770,000 ounces of gold (13.5Mt @1.78 g/t Au).
Paul Bibby, chief executive officer of OceanaGold said: “The decision to expand the Reefton exploration programme and to undertake the economic studies represents OceanaGold’s continued commitment to invest in exploration at our New Zealand projects and is a reflection of the significant prospectivity of the region.”
Related links
Online technical databse - National core store - Gold productions statistics
