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DUNEDIN - The Macraes' East Otago gold project has produced its one millionth ounce of gold, after 10 years of operation.
The next million ounces will be produced in six years, thanks to new technology enabling the processing of a finer quality of ore.
Pouring the millionth ounce was a major milestone for the company in more ways than one.
When it started operation, the mine's life was set at 10 years and the millionth ounce would originally have seen the project winding down.
The mine is now expected to continue for 11 more years and Australian owner Gold and Resource Developments (GRD) said this could be extended further.
"This puts us up there with major producers for a single project," GRD secretary Angus Kennedy-Perkins said from Perth.
"Our exploration guys, who are mainly local, have done a great job extending the mine life. We could have come and gone in 10 years and now we will be there for 20 years or more."
Mine manager Len Jubber said a million ounces represented 32 tonnes - or 1.7cu m - of gold.
Based on the price of gold at the 3pm fix in London last Friday, Macraes' total production would be worth $US285.5 million or $571 million.- NZPA
Otago project's golden event
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