Exploration works to look for more gold deposits

After a lapse of 20 years, the operators of the Vatukoula Gold Mine will carry out the first exploration works in the area to search for new gold deposits this year.

In a statement, Vatukoula Gold Mines said 2010 had been a year of consolidation where production rose to 59,658 ounces of the precious metal from 33,757, thanks largely to the investment it made in plant and machinery.

It said revenues for the year to December 31st, more than doubled to $103 million from $48 million, giving profit of $11.5 million compared with a loss of $24 million 12 months earlier.

Chief Executive David Paxton said looking forward, 2011 will see the first exploration programme that the mine has seen in almost twenty years.

He said given that historically, the best place to look for gold is close to existing gold mining operations and as large parts of the Tavua caldera remain largely unexplored, they are hopeful of finding new resources.

In the period under review the group released an upgraded 43 101 reserves and resource statement for the Vatukoula mine, which gave a measured, indicated and inferred resource of 3.96 million ounces grading 10.6 grams per tonne.

Paxton also gave an upbeat assessment for the long term gold price, based on forecasts published by the World Gold Council that suggest the price will probably rise again B and this time above US$1,500 an ounce.


Story by: Roneel Lal