Small gold explorer Heritage Gold said today it was "on track for production" at its Karangahake site north of Paeroa.
"Our faith in the long term future of the Karangahake area is now beginning to show rewards -- and we expect it to deliver substantial benefits as we execute our development strategy," Heritage chairman Pat Elliott told the company's annual meeting today in Auckland.
Heritage plans to put its Talisman Mine near Waihi into production by late 2006. It says the mine will initially produce 50,000 oz of gold a year.
The company will use the cash flow from the Talisman mine to "increase the resource base and production levels at Karangahake, as well as expand exploration programs on our other tenements".
According to a study by mining engineering consultants Tennent, Isokangas Pty Ltd, the mine will have a capital cost of $24 million and operating costs will be $379 per ounce of gold. The mine will employ 68.
Mr Elliott said gold prices remained attractive at around $600 per ounce.
"The rises in the US gold price have substantially offset the rise in the New Zealand dollar. We are confident that the gold prices will remain strong enough to make the Talisman development attractive."
Heritage shares were 1.5c higher at 10c by midday today.
- NZPA
Heritage Gold gives more detail on Talisman plans
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