Canada’s gold company OceanaGold to invest $1 billion in Waihi

Listed company Oceanagold,which owns the Waihī gold and silver mine, says it is prepared to invest $1 billion to extend it, despite high regulatory costs domestically and controversy over the conservation land it has applied to mine. The price of gold recently reached a record of US$3000, above OceanaGold’s most bullish earnings estimate for its mine extension project.

So, this is a fabulous time for a gold mining company, a fabulous time for investors in the gold mining industry, given the high gold price. Its pre-feasibility study indicated 1.21 million ounces of gold likely existed in the ore body.

However, its plans had caused discontent among environmental groups, such as Coromandel Watchdog, which protested in Waihī in January, stating the area was too precious to mine.