Oceana Gold (New
Zealand) Limited (OceanaGold) has commenced mining operations at the
Globe-Progress mine in the Reefton Goldfield, an area that historically produced
2.1 million ounces of gold from underground quartz lode deposits. During the
construction phase of the operation, advanced exploration programmes targeting
near-mine prospects commenced. The focus of this ongoing exploration is the
discovery of near surface, refractory gold deposits that are amenable to
open-pit mining methods and treatment through the Globe-Progress process
plant.

One
such discovery is the Supreme deposit, located along strike approximately 3
kilometres to the south of the Globe-Progress mine. The Supreme area was tested
extensively with diamond drilling in 2006, defining a deposit with similar
mineralisation styles and grade to the Globe-Progress deposit. The
mineralisation comprises a central core of gold-bearing quartz veins, locally
containing visible gold, surrounded by a more extensive halo of refractory,
disseminated gold associated with an arsenopyrite-pyrite sulphide mineral
assemblage. Three subparallel mineralised structures host the mineralisation.
These structures are highly oblique to the country rock orientations, extending
approximately 250 metres along a northeast-southwest strike and at least 220
metres down-dip, with an average thickness of 12 metres and moderate dip to the
southeast. Records of historical workings indicate that mineralisation extends
further down-dip and remains open at depth. 5175 ounces of gold were mined
historically at the Supreme deposit. OceanaGold have defined an Inferred
Resource for the Supreme deposit of 0.84 million tonnes at 1.46 grams per tonne
for a total of 40 000 ounces (at a 0.8 grams per tonne cut-off). Higher-grade
zones of mineralisation exist within the deposit and further drilling is planned
to test the extent, continuity and geological controls of the mineralised
structures.