OceanaGold lifts reserves estimate, shares jump

OceanaGold increases estimates of Macraes, Reefton gold reserves

By Peter Kerr

Feb. 15 (BusinessDesk) - Macraes Flat and Reefton gold miner OceanaGold Corp. increased its measured and indicated New Zealand gold resources by 22% to 4.61 million ounces. The shares jumped almost 7%.

The company said it has maintained a steady exploration across its New Zealand operations for the past 18 months, with total proven and probable reserves now increasing to 2.15 million ounces of gold.

"Two years ago, OceanaGold had a reported average reserve life of just 3.5 years at its New Zealand operations," said chief executive Mick Wilkes. "Today the open cut operations are demonstrating 7-8 years of mine life with a respectable amount of reserves still growing at the Frasers underground operation and tremendous blue sky opportunities at Reefton."

Wilkes said this will underpin the New Zealand operational base for some years as the company pursues other growth opportunities.

OceanaGold will spend at least $9 million this year on further New Zealand exploration, and it is confident about finding more reserves, Wilkes said.

The company, which is listed on the New Zealand, Australian and Toronto stock exchanges, is in process of bringing a Philippines mine into production.

Across all its sites, OceanaGold's measured and indicated resources are 6.61 million ounces of gold and 270,000 tonnes of copper.

The price of copper has surged in the past three months, and earlier this month broke through US$10,000 per metric tonne.

OceanaGold shares rose 23 cents to $3.65 after the company made its increased reserves announcement. The shares have fallen 24% so far this year, having soared about 375% in the past two years as the price of gold climbed.

(BusinessDesk)

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