The Macraes mine is producing 175 000 ounces Au/year from a mesothermal deposit with total resource of at least five million ounces. The deposit is hosted in greenschist facies Otago Schist, a widespread Mesozoic metasedimentary sequence that forms the basement of the South Island of New Zealand. Mineralisation was controlled by a late metamorphic shear zone which had both brittle and ductile structures accompanying mineralisation. The shear zone dips shallowly (about 15), subparallel to the shallow-dipping regional foliation, and mineralization occurred during southwesterly-directed thrust motion. Mineralisation occurred under greenschist facies conditions (about 350C) during uplift of the Otago Schist in the late Jurassic. No syn- or late-metamorphic igneous bodies occur within the schist belt. The hosting shear zone is up to 120 m thick, and is traceable for more than 30 km along strike. The shear zone is truncated by an underlying low angle normal fault that juxtaposes mineralised lower greenschist facies rocks on to unmineralised upper greenschist facies rocks.