In July 1997 Macraes Mining
Company Limited deferred a 9 Mtpa expansion of the Macraes Gold Project because
of the uncertainty of the future gold price and its impact on equity markets.
Additionally delays
in the resource consenting process led to further uncertainty.

It has subsequently announced
that a study has been commissioned to recommend a staged approach to development
of its New Zealand business. The best economic development path will be
determined to maximise returns to shareholders.