OceanaGold boosts reserves

OceanaGold has added a further 259,000 ounces of gold to the mineral reserve inventory at the Macraes mine in Otago.

The latest addition follows an announcement last month of an increase in reserves of 495,000oz.

Chief executive Paul Bibby said yesterday that during the past few months, OceanaGold had added three years to the life of the mine, extending the operation out to at least 2016.

In the December reserves update for the Macraes and Reefton mines, the company said the increased mineral reserves reflected an increase to the gold price assumptions used to calculate reserves from US$500 an ounce to US$800. The latest rise in reserves was done using a gold price assumption of US$800 an ounce.

Bibby said the additional reserves were a further reflection of the potential that existed within the Macraes goldfield to convert resources to reserves.

Further positive results were expected in coming months.

The company said the extra mineral reserves followed a comprehensive geologic interpretation and economic analysis for the Southern Pit deposit at Macraes.

OceanaGold's share price closed up 4c on $2.39.

- NZPA