Oceana Gold has released "positive" results from its most recent drilling programme at its open-pit mine near Reefton on the West Coast, with one of its prospects tentatively tagged to add to estimated reserves by the end of the month.
Yesterday, global spot gold prices hit a new high of $US1427.45 ($NZ1871.94) after news the United States central bank, the Federal Reserve, might boost its $600 trillion economic recovery package, fuelling investor fears of a surge in inflation.
Oceana shares were up almost 3.5% at $4.50 yesterday, just 1c short of revisiting the record high hit earlier this year.
Oceana's latest Globe Deeps drill programme at Reefton, of more than 40 holes, was spread over five targets - Souvenir, a "newly discovered" Fraternal prospect, and the General Gordon West, General Gordon East and Empress prospects.
At Souvenir, a redesigning of the existing pit under way is expected to increase the estimated gold yield of the deposit.
Oceana executive chairman Jim Askew said the Reefton results were "pleasing", the company having earlier in the year identified the priority targets to follow up.
