OceanaGold increases mining rate at NZ mines

Thursday 23rd December 2010

Gold miner OceanaGold is increasing the mining rate at both its Macraes and Reefton open cut mines in New Zealand.

The increased activity is to remove overburden to maintain access to the ore being mined.

A new excavator and two new trucks will be commissioned at the Macraes mine in North Otago to assist increasing total mining. Reefton on the West Coast will also receive additional equipment.

The company will provide an update on the resource reserves at the mines in February.

The increased movements will increase costs at the mines in the 2011 financial year.

"While costs are expected to increase this year with the increased movements, this can also be attributed to some creeping of input costs such as diesel and labour, in addition to the strengthening New Zealand dollar against the US dollar," executive chairman Jim Askew said.

In spite of this, strong gold prices continued to drive expanding margins.

"The decision to increase the mining rates at both the Macraes and Reefton open cut mines is important to ensure a stable operating platform over a longer mine life in New Zealand," Askew said.

The Macraes open cut mine has an estimated mine life until 2016, and Reefton until 2013, according to a presentation by the company this year.

NZPA

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