Oceanagold has again extended the life of its Macraes and Reefton gold projects, this time thanks to an improved gold price making previously unprofitable deposits economic to mine.
It takes the total reserves of gold at the Macraes and Reefton projects to about 617,000 ounces.
Chief executive Paul Biddy said the increased reserves reflected an increased gold price assumption used to calculate reserves from $US500 ($NZ694) an ounce to $US800 an ounce.
Yesterday, the spot gold price was $US1121 an ounce.
Craigs Investment Partners broker Peter McIntyre said the announcement was good news for the company and the region.
He estimated the life of the mine had been extended by another two years to between 12 and 14 years by yesterday's announcement and one made last month about increased mineral reserves.
"Adding two years to a mine life is very positive . . .
"The economic benefits, through the multiplier effect, to the Otago community is significant."
Although the industry was subject to many unknown elements, such as breakdowns and fluctuating commodity prices, the announcement was positive.
However, Mr McIntyre still wanted to see action on the Didipo project, in the Philippines, which had been put into "care and maintenance".
Didipo was taken on to extend the life of the company through the extensive gold and copper deposits, he said.
Mr Biddy said the reserve increases at Macraes and Reefton were an important step towards the company's objective of extending the mine life for its New Zealand operations.
The update was "particularly pleasing" because it reflected the first reserves to be calculated for the Panel 2 Deeps deposit, announced in April.
The deposit remained open in three directions.
"The brown fields exploration programme embarked on in the September quarter has now been ramped up with seven drills currently operating at our New Zealand mines."
