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MELBOURNE - Shares in BHP Billiton Ltd have surged amid speculation 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 on Wednesday.
A media report has suggested the update will reveal that BHP Billiton is potentially sitting on the largest gold resource in the world at Olympic Dam.
A BHP Billiton spokesperson declined to comment on the speculation.
Shares in BHP Billiton jumped A$1.85 or 4.51 per cent to A$42.85 by 1343 AEST (3.43pm NZT).
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 ($12.54) billion.
The operation is the largest underground mine in Australia and houses the largest uranium deposit in the world.
Olympic Dam is primarily a copper-uranium operation, producing gold and silver as by-products.
The mine produced about 204,000 tonnes of copper, 3,936 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
