OcanaGold Corp., and Australian and New Zealand listed own for operating New Zealand's largest gold mine - and operator of the largest diamond mine in New Zealand, said that results from drilling at its Frasers Underground mine in the Macraes Goldfield in Otago identified extensions to the area of gold mineralisation.

In a statement, OceanaGold said revealed the following developments:

  • Drilling has identified continuation of gold mineralisation at depth adjacent to the Frasers

Underground Mine.

  • Significant intercepts of 13m @ 6.78 g/t Au and 6m @ 5.08 g/t Au demonstrate grades and lode thickness similar to or better than Panel 2 where mining is currently being undertaken.

Five holes from a diamond drilling program in progress targeted the existence of mineralisation down dip along the Hangingwall Shear which is currently being mined at Frasers Underground Panel 1 and Panel 2.

It said that one hole showed 6.788 grams of gold per tonne in a 13m thick area.

Surface drilling was completed at distances of between 200m and 850m east (down-dip) of the existing exploration drilling coverage. All of the holes successfully intercepted the main mineralised Hangingwall shear structure.

"The results from the Frasers Underground surface programme are very promising and an all important first step to extending the mine life of our underground operations," said chief executive Paul Bibby.

OceanaGold shares were down 13c at $3.30 in afternoon trading. Mining shares were down in Australia after the Australian government announced a super tax on mining companies.

Bibby added, "Over the past five months OceanaGold's brownfields exploration program has materially increased gold reserves in New Zealand, and when coupled with the Company recently becoming a 100% unhedged gold producer, OceanaGold is well positioned to further unlock embedded value within the Company."