Record for OceanaGold

OceanaGold, which operates mines in Otago and the West Coast, reported fourth quarter gold sales of 72,140oz, lifting its total for the 2009 financial year 14 per cent from 2008 to a record 300,044oz.

For the three months to the end of December operational expenditure was US$35 million ($49.3 million), while exploration spending was US$1.9 million, the Melbourne-based company said.

By the end of the quarter, six drill rigs were operating at the Macraes goldfield in Otago, with one at the company's Reefton mine.

That programme was part of a commitment to replace and expand the resource base of the company's operations in this country, it said.

Field sampling was also carried out on six exploration permits at the company's Didipio project in the Philippines, with assay results expected in the first quarter of 2010.

Production guidance for the 2010 year had been set at 270,000 to 290,000oz of gold at cash costs of US$455 to US$495 an oz.

Earlier this month and in December, OceanaGold announced an increase in reserves of 754,000oz of gold at Macraes and 122,000oz at Reefton. The company said three years had been added to the life of the Macraes mine, extending the operation out to at least 2016. Its gold reserves in this country now totalled 1.94m oz.

- NZPA