Oceana Gold

Crucial gold production costs for East Otago-based Oceana Gold have almost doubled in the past year as plant maintenance costs and the high New Zealand dollar take their respective tolls.

Oceana Gold's copper and gold mine development in the Philippines is on target for commissioning by the end of 2012 and at present has a construction workforce of more than 1000 on-site.

An Environment Court decision will allow Oceana Gold to begin work on its plans to expand its mine at Macraes.

Three staff exposed to unsafe levels of naturally occurring mercury vapour at Oceana Gold's processing plant at Macraes in East Otago prompted a $500,000 upgrade of its gold smelting room.

Oceana Gold, the operator of the Macraes gold operation in East Otago, has reported another strong earnings result in the year ended December 31.

East-Otago based Oceana Gold's production for calendar year 2011 was down almost 6%, but was in line with guidance and also the crucial cash cost of production per ounce.

Oceana Gold is expecting increased productivity from its Reefton opencast mine on the West Coast after gold grades at Reefton did not meet earlier expectations.

Shares in East Otago-based Oceana Gold received a welcome new year boost yesterday, rising during the trading session with a 9% gain to reach $3 per share; albeit on low trading volumes.

Shares in Oceana Gold have plunged 13% in recent days, reflecting an unusual downturn in the spot prices of gold globally during the past week.

Oceana Gold's mine-life extension received another boost yesterday with exploration results adding up to three years to its Frasers underground operation at its Macraes site in East Otago.