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Vatukoula Gold Mines plc is the owner of the largest producing gold mine in Fiji. A producing gold mine which currently contains 4.2 million ounces of Mineral Resources and 790,000 ounces of Mineral Reserves. Operating for over 75 years, the mine has produced in excess of seven million ounces of gold. Our strategy is to increase...Read more
UPDATE: Vatukoula Gold Mines hits new ore zone at its Fiji mineOctober 12 2011, 2:36pm
Adds broker comments......
Vatukoula Gold Mines (LON:VGM) announced this morning that it had discovered a new ore zone at its gold mine in Fiji.
The shares were up strongly this morning and in afternoon trade were up 7.32 per cent changing hands at 95.25 pence.
The firm said that drilling intersected three new high-grade mineralised structures at the Vatukoula Gold Mine, which form part of the new ore zone – dubbed ‘Baron d’Este’. It also pointed out that this is the first new discovery of a high-grade ore zone at Vatukoula since the discovery of the Prince William ore zone in the 1980s.
The zone has been intersected between 300 and 700 metres below the surface. Significant composite intersections include: 124.7 grams of gold per tonne over 0.46 metres; 33.6 grams per tonne over 2.86 metres; 25.46 grams per tonne over 1.07 metres; and 39 grams per tonne over 0.48 metres.
Meanwhile, the firm said that drilling is continuing to further define the extent of the new discovery.
“The discovery of the Baron d’Este ore zone is highly encouraging as it represents the first new high grade ore zone discovery at our Vatukoula site for over 20 years,” said David Paxton, Vatukoula’s chief executive officer.
“The discovery also substantiates our belief that our Fiji operation has excellent potential to expand its current resource and reserve base with high grade ore zones. Because of the ease of access of this new ore zone, we believe this discovery will assist in increasing our long-term production profile.”
Analyst Tom Elder at broker WH Ireland said the firm had a significant orebody in the global context and had many attributes that are attractive in a gold miners, namely a large high grade-resource base and plentiful near mine prospectivity.
The broker reiterated its 'buy' recommendation for the stock.