Otago gold output up

Oceana Gold's Macraes operation in east Otago produced 6 per cent more gold last year than in 2003.

Chief executive Steve Orr said 47,500 ounces were produced during the fourth quarter, bringing the year's total to 185,175 ounces.

Gold recovery from the pressure oxidation circuit reached a record 83.1 per cent, up 1.4 per cent on the previous year.

Oceana Gold wants to more than double its annual production to about 350,000 ounces by 2007 and will spend $125 million in the South Island in the next two-and-a-half years on exploration and plants.

The company is constructing an open-cut mine, called Globe Progress, near Reefton. A planned five-year gold production cycle will start in a year.

- NZPA