Big increase in reserves at Frasers Underground mine

Monday 5th December 2011

OceanaGold Corp’s Frasers Underground mine in Otago will be open for at least another three years, until 2017, based on a substantial increase in gold reserves following further exploration.

The company reported a 25 percent increase in the measured and indicated resources for the main area of mining attention, known as the main Hangingwall Shear mineralisation at Panel 2.

Measured and indicated resources increased to 7.9 Metric tons at 2.36 grams per ton of gold for 602,000 ounces.

“Net of mining depletion in 2011, this represents an addition of 118,000 oz since 31 December 2010, a 25 percent increase,” the company said in a statement.

Meanwhile, diamond drilling in a smaller, nearby deposit, called the Lower Zone, had expanded by 77,000 ounces, with measured and indicated resources to 1.0Mt @ 2.51 g/t Au for 77,000oz.

“This expansion has replaced mining depletion in this zone for 2011” and will expand mine lift to at 2017, with both inferred resource areas extending down-dip, and remaining open to the northeast,” with “the potential to add further years to the mine life at Frasers Underground,” said MD and CEO Mick Wilkes.

Total measured and indicated resources for Frasers Underground, including Panel 1, now stands at 10.2Mt @ 2.26g/t Au for 745,000 oz.

BusinessDesk.co.nz

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