New Zealand's largest gold producer and arguably one of the smallest commercial operators in the country have both notched up milestones this week, despite the withering global gold price pushing some competitors to the wall.
Triple listed Oceana Gold (OGC), as the country's largest producer, has just released guidance it could book a boost of more than 20% in its overall gold production this year, following on from its recent $132million purchase of the Waihi gold mine, in the North Island.
In northern Southland, privately owned Waikaia Gold Ltd's milestone has been producing more than 1 tonne of fine alluvial gold during the past 22 months from its dredging operation in the Waikaia valley.
OGC chief operating officer Michael Holmes was attending the annual conference of the New Zealand branch of the Australian Institute of Mining and Metallurgy in Dunedin yesterday, which has attracted about 260 delegates.
OGC had just upgraded its production guidance for the calendar year, saying it was increasing from 295,000oz 335,000oz to 380,000oz 410,000oz, with an additional 500 tonnes of copper boosting outside expectations to 23,500 tonnes this year.
The gold boost is on expectations of the contribution from the Waihi goldfield this year.
Mr Holmes said the open pit Reefton operation had become uneconomic, and ''was not making financial sense'' and it was being prepared to put into ''care and maintenance'', which would be completed by the end of the year.
About 120 jobs are expected to go when the mine closes.
The asset would still be held OGC, and Mr Holmes said it could be reopened, depending on the price of gold in the future.
Mr Holmes said a new combined gold tungsten operation at Macraes was moving to the feasibility study stage, but it would need a ''large investment'' in all new mill.
That project, if it went ahead, could provide eight to 10 years' work.
OGC chief executive Mick Wilkes said in a statement the inclusion of Waihi's economic benefit not only increased OGC's production but also further reduced its unit cost base.
''Waihi is a solid asset in a highly prospective gold region that will generate significant free cash flows and further insulate our business in a lower gold price environment,'' Mr Wilkes said.
Waikaia Gold's technical manger Noel Becker updated the conference on its operations, which started producing gold in October 2013, after investors ploughed about $18million into the start up operation, which included a built for purpose floating dredge.
The area had been previously mined, from 1901 23, by up to 17 dredges and early on it had been reported gold taken was worth 4million, but they only dredged to a depth of 6m.
Waikaia Gold's dredge has been positioned at about 20m below the grassline and the processed ore is used to reinstate the farmland as the dredge moves forward.
Mr Becker said the operation had delivered more than 30,000oz since October 2013, of fine alluvial gold averaging 0.3mm 0.4mm in size, and is expected to deliver 15,000oz 30,000oz per year.
He estimated remaining mine life is six to seven years, as the dredge works its way alongside the Waikaia river, near Freshford, towards the namesake township.
About 20 staff are employed, plus 15 contractors, and Mr Becker estimated the economic benefit to the local community was about $15million annually.
