Ophir Gold in float rumours

Otago-owned gold miner Ophir Gold will seek to raise up to $100 million in a public float in about six months' time, according to a National Business Review report today.

The report said the locally-owned company had found "startingly rich" intersections during two phases of drilling at the Ophir prospect in Central Otago, 20km north of Alexandra.

Intersections as high as 12.2g per tonne over a width of 5m had been encountered, the paper reported.

These compared favourably with operating mines such as Newmont Waihi's new Favona underground mine and Oceana Gold's Macraes mine, in Central Otago.

Ophir Gold's project geologist and director John Scott told NBR that drilling indicated substantial deposits of at least 100,000oz, worth $100m, but he believed the whole tenement held double that.

The area was originally mined in the 19th century gold rushes but abandoned for cheaper prospects.

Modern mining techniques and the rise in the price of gold to US$650 ($1065) an ounce had made the prospect viable.

The company was modelling the ore bodies before moving on to a feasibility study.

- NZPA