Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

OceanaGold sees more life in Macraes goldfield

OceanaGold sees more life in Macraes goldfield

By Paul McBeth

July 8 (BusinessDesk) - OceanaGold Corp, which is in the process of buying the Waihi Gold Mine, sees more life in the Macraes Goldfield in Otago as cheaper fuel and a weaker New Zealand dollar make the operation more attractive.

The Melbourne-based company discovered a new zone of gold mineralisation which could increase the potential reserves of the Macraes mine after embarking on a drilling programme in the first quarter of the year, it said in a statement. OceanaGold has been investigating ways to extend the mine's life by three to five years after signalling plans to wind down the operation by the end of 2017.

"Changes to macro-economic conditions such as lower fuel costs and a weaker New Zealand dollar have resulted in significant benefits to our New Zealand operations," chief executive Mick Wilkes said. "I am pleased to report that initial drilling has produced significant results that demonstrate the potential for increased reserves at the Macraes operations."

In April, OceanaGold entered into an agreement with Newmont Mining Corp to buy its Waihi gold mine for US$101 million, increasing its exposure to New Zealand's resources sector. Excluding Waihi, it expects between 195,000 and 215,000 ounces of gold produced at its New Zealand operations, compared to 201,207 ounces in 2014.

Wilkes said the company will keep looking for new deposits at the Macraes site.

The triple-listed shares last traded at $3.63 on the NZX, and have gained 65 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO:

Aerospace: Christchurch Plan To Be NZ's Testbed

Christchurch aims to be at the centre of New Zealand’s burgeoning aerospace sector by 2025, according to the city’s aerospace strategic plan. More>>

ALSO:

EPA: Spill Sees Abatement Notice Served For Tamarind Taranaki

The notice was issued after a “sheen” on the sea surface was reported to regulators on Thursday 21 November, approximately 400 metres from the FPSO Umuroa. A survey commissioned by Tamarind has subsequently detected damage to the flowline connecting the Umuroa to the Tui 2H well. More>>

Taskforce Report: Changes Recommended For Winter Grazing

A Taskforce has made 11 recommendations to improve animal welfare in intensive winter grazing farm systems, the Minister of Agriculture Damien O’Connor confirmed today. More>>

ALSO: