OceanaGold Corp said results from drilling at its Frasers Underground mine in the Macraes Goldfield in Otago identified extensions to the area of gold mineralisation.
The company published results from five holes in a drilling programme. One hole showed 6.78 grams of gold per tonne in a 13m thick area.
"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.
