OCEANAGOLD, a recent spin-off of the mining assets of GRD NL, has awarded the contract for the development of the Frasers underground operation at its predominantly open cut Macraes mine in New Zealand to Henry Walker Eltin.
The initial contract, for the pre-development of a six-kilometre decline at Macraes, is worth an initial $NZ17 million. But OceanaGold managing director Patrick O’Connor said that, depending on the finalisation of a current round of drilling in New Zealand, the contract’s value could increase. He said the contract was a significant milestone in the company’s plan to double production by 2006-07.
The necessary environmental consents have been obtained.
The Frasers operation will lift gold production to about 220,000 ounces a year during 2006-07.
