KEY POINTS:
OceanaGold has officially opened the Globe Progress Mine at its Reefton Gold Project on the West Coast.
Globe comprises four open pits - Globe Progress, General Gordon, Empress and Souvenir - and a crushing, grinding and flotation plant which creates the gold concentrate sent by rail to the Macraes pressure oxidation plant for final processing into gold.
The mine was expected to produce about 50,000 ounces of gold in 2007 at a cash cost of US$406 ($525) per ounce then 82,000 ounces in 2008 at a cash cost of US$252 per ounce, OceanaGold said yesterday.
Based on current reserves, the Reefton project was expected to recover about 455,000 ounces of gold over seven years.
Exploration was continuing to convert a portion of the additional 1.1 million ounces of current resources to reserves to extend mine life.
OceanaGold said it employed 147 people now in the Reefton area; 47 directly and 100 through contracting firms.
Chief executive Stephen Orr said the commissioning of Globe Progress took OceanaGold from a single to a multi mine site producer.
With two more development projects under way and on schedule, the company's production would increase from 182,000 gold ounces in 2006 to about 500,000 gold-equivalent ounces a year in 2009.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges.
- NZPA
