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OceanaGold finds new gold deposits at Fraser mine

Monday 3rd May 2010

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OceanaGold Corp. has announced a "very promising" discovery of additional gold-bearing rock at its Frasers underground mine in Otago.  

Highlights included intercepts of 13 metres at 6.78 grams of gold per tonne and six metres at 5.08 g/t had been discovered during a surface diamond drilling programme, in a downdip extension of current underground mining operations.

OceanaGold shares were down 3.8% shortly after the announcement at $3.30, with the Melbourne-based company possibly suffering negative Australian investor sentiment following the Rudd government's imposition of a super-tax of 40% on extraordinary mining company profits.

The miner said the latest discoveries also appeared to extend beyond the Panel 2 resource boundary, which is currently being mined.

The finds were "likely to result in a development extension to the underground exploration drive for better access to these new areas for infill drilling."


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