New West Coast gold resource discovered

Oceana Gold has announced the discovery of two new gold intersections below the current pit at the Globe Progress mine, near Greymouth.

The news comes only one week after the mining company said it was considering reopening historic gold mines at Inkerman and Crushington.

The latest discovery, close to Reefton, shows an opportunity for a significant increase in ore reserves at Globe-Progress, it said in a statement to the Australian Stock Exchange.

Before Oceana Gold began its exploration programme in September 2004, there has not been any exploration in the Reefton goldfield since 1997.

So far, activity has focused on the Globe-Progress extension drilling plan, data interpretation of the surrounding land and open pit development.

The Crushington gold mines, which originally produced 390,000 oz of gold, have not yet been drill tested by Oceana Gold.

Historical reports record that the ground between the two mines contains gold, making the area an attractive target for further exploration.

Drilling is expected to start in Crushington during spring and at Globe-Progress later this year.

The discovery of more gold intersections in the Inkerman area in 1997 is also yet to be followed up.

Oceana Gold chief executive officer Steve Orr said exploration work in the Reefton district had been successful in extending the Globe-Progress project and finding new drill targets.

"We will continue the Globe Progress exploration and begin drilling on the Crushington and Inkerman targets once access agreements for drilling are approved."

Mr Orr said the renewed exploration work in the Reefton goldfield is proving Oceana's theory that there is potential to extend ore reserves throughout the district.

"(The) cost to add additional economic reserves in Reefton will be quite low," he said.

Oceana shares closed yesterday at 59c. They have traded between 55c and $1.12 in the last 12 months.

- nzpa