Higher grade of ore found, Oceana

28 July 2004 | 07:53 Code : 4017 Geoscience events
visits:95
On the eve of beginning its Frasers underground mining in east Otago, Oceana Gold has signalled a find of a potentially higher grade of gold at its nearby Macraes mine which could extend the mine life.

Higher grade of ore found, Oceana

On the eve of beginning its Frasers underground mining in east Otago, Oceana Gold has signalled a find of a potentially higher grade of gold at its nearby Macraes mine which could extend the mine life.

Oceana have reported a half-year result to the end of June of an unaudited profit before tax of $A17 million and gold production 93,330 ounces at a cash production cost of A$320 per ounce.

In its second quarter report released yesterday, gold production for the quarter to the end of June was 46,972 ounces at a cash cost of $A341 per ounce.

Revenue from gold sales for the quarter to June was from sales of 47,018 ounces at $A629 per ounce. Forward sales on Oceana's book at the end of June revealed a net surplus of $A5.7 million.

The company is on schedule to produce a record 183,000 ounces for the year at a cash cost of $A340 and to deliver its prospectus' forecast of a before tax profit of $A26.2 million.

Oceana's cash in hand at June was reported at $A68 million with debt of $A30 million.

The quarterly report says four drilling rigs have completed 25 test holes around the Frasers underground are.

Results from four of those holes in the eastern margin "further support" earlier results which may indicate a larger tonnage of ore bearing a higher grade of gold - which could potentially extend the life of the mine.

"There is more gold identified in the Frasers underground resource in this particular area and this also means potentially extended mine life, depending on the rate of extraction," a spokesman said when contacted about the report and drilling results.

Blasting is on schedule to begin soon to start the 2.5km Frasers' tunnel which will provide the entry to a further 3.5km of various lateral mining tunnels, a 21-month project before ore is extracted for processing.

The opportunity of using a conveyor belt to take the raw ore to ground level from the bottom of the main tunnel for processing is being investigated, the report said.

Business improvements during the first half of this year, including increased gold recovery, staff training and increased excavator productivity, accounted for more savings of more than $A2 million.

Potential savings of about $10 million had been identified in unspecified business improvements, efficiencies and process enhancements, but are considered commercially sensitive.

Exploration at Sams Creek near Takaka increased the estimated gold resource by 6 per cent to 776,000 ounces at the end of the 2003-04 programme, which has finished with the on set of winter.

At the West Coast Globe Progress open-cut mine near Reefton, Oceana is working on final designs for the plant and infrastructure and in the process of lodging management and safety plans as required by resource consent and access agreements.

At the Blackwater underground mine near Reefton, work is scheduled to begin in early-August to clear debris and water from the shaft in preparation for more testing.

 

 

tags: QAZVIN


Your Comment :