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Macraes underground gold grades expected to rise further
10 June 2008, Source: OceanaGold and Lindsay Clark - Gold grades from the Frasers underground mine at OceanaGold’s Macraes mine in east Otago has improved and grades are expected to increase further this year, OceanaGold says.
Steve Orr, chief executive officer of OceanaGold, said exploration drilling at Frasers has focussed on identifying further high grade material that could be converted into reserves.
OceanaGold’s first quarter report said the panel 1 part of the mine was successfully commissioned in January 2008.
Development of the higher grade panel 1B has been accelerated and is expected to be brought into production ahead of schedule. Development of panel 2 is progressing and mining is expected there in the December quarter.
OceanaGold’s total gold production from its Macraes openpit, underground and Reefton mines totalled 62,835 oz for the first quarter of 2008, a 73% increase over the same period in 2007.
Frasers is expected to produce approximately 900,000 tons of ore for this year and is OceanaGold’s third operating mine in New Zealand.
Production from the Macraes goldfield for the March quarter was 44,631 gold ounces, a 23% increase over the same period in 2007. The increase was attributed to production from the new underground mine and higher grades from the open pit compared to 2007.
Total material moved in the pit was 11.95 million tonnes compared to 12.32 million tonnes for the same period in 2007. A new haul road built across the west side of Frasers 3 pit is expected to decrease haul times by 15% in 2008.
Mill feed grade at the Macraes plant for the quarter averaged 1.40 g/t Au a 43% increase compared to 0.98 g/t Au for the same period in 2007.
All gold was sold into the spot market and an average price of US$919 an oz was realized. The cash operating margin for the quarter was US$423 an oz which was a 100% increase over the same period in 2007.
Total combined cash operating costs were US$496 an oz for the quarter. (OceanaGold has adopted the US dollar as the currency for its financial documents).