Macraes gold reserves increased again

Monday 18th January 2010

OceanaGold (NZX: OCG ), the Macraes mine operator whose shares have soared as the price of gold climbed over the past 12 months, raised its reserves estimate for the third time in as many months.

The company increased its mineral reserve inventory at Macraes by 259,000 ounces of gold, it said in a statement today. The additional reserves extend the life of the Otago facility to at least 2016, it said.

The increase comes after OceanaGold raised its estimate by 495,000 ounces in December and 153,000 ounces announced in November. When Paul Bibby was appointed as chief executive in November, chairman Jim Askew said the company’s immediate objective was to “substantially” increase mine reserves as it aims to lift annual production to 300,000 ounces a year.

Spot gold traded recently at US$1,129.25 an ounce and has climbed from about US$842 12 months ago, helped by a weaker U.S. dollar, which has enhanced the appeal of the precious metal as an alternative investment.

“The additional reserves that have been added at the Macraes open pit mine are a further reflection of the potential that exists within the Macraes goldfield to convert resources to reserves,” Bibby said.

Shares of OceanaGold climbed 1.7% to $2.39 today and have soared 510% in the past 12 months.

Businesswire.co.nz

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