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Higher gold price will save Reefton - OceanaGold

7th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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KALGOORLIE (miningweekly.com) – Dual-listed gold miner OceanaGold has said that a gold price of NZ$2 000/oz would allow the company to maintain operations at its Reefton mine, in New Zealand.

OceanaGold announced in June that it would suspend operations at Reefton in mid-2015, deferring a final cutback at the Globe Progress pit and reducing the overall mine-life by two years.

“A NZ$2 000/oz gold price will give us enough cash flow to justify an investment at Reefton,” MD Mick Wilkes told Mining Weekly Online on the sidelines of the Diggers and Dealers conference.

Wilkes noted that at a higher gold price, the Reefton operation could remain operational for another two years, post 2015, with inferred resources, identified under the current pit, providing the option of extending the mine life further.

Gold was currently trading at NZ$1 622 in New Zealand.

Wilkes said that the current price was enough to sustain its other New Zealand operations, including the Macreas openpit mine, which has a nominal production of between 125 000 oz and 145 000 oz, and the Frasers underground mine, which has a nominal production of between 40 000 oz and 50 000 oz.

Reefton currently has a nominal production of between 55 000 oz and 70 000 oz.

Edited by Creamer Media Reporter

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