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MELBOURNE - Shares in BHP Billiton have surged after a news report that the company is sitting on one of the world's largest gold resources at its Olympic Dam project in South Australia.
The world's largest mining company is due to release an updated resources and reserves statement with its annual report tomorrow.
A BHP Billiton representative declined to comment on the speculation.
Shares in BHP Billiton jumped A$1.85, or 4.51 per cent, to A$42.85 by 3.43pm New Zealand time yesterday.
Last month, incoming BHP Billiton chief executive Marius Kloppers noted Olympic Dam was facing a "significant" increase in the mine's resource base.
BHP Billiton picked up the massive Olympic Dam copper-uranium mine in 2005 after it acquired WMC Resources for A$9.2 billion.
The operation is the largest underground mine in Australia, housing the largest uranium deposit in the world.
Olympic Dam is primarily a copper-uranium operation, producing gold and silver as byproducts.
The mine produced about 204,000 tonnes of copper, 3936 tonnes of uranium oxide and 107,500 ounces of gold during fiscal year 2006.
BHP Billiton is conducting a feasibility study into a planned expansion of the mine.
-AAP
