OZ Minerals Ltd has identified 605,000 ounces of gold resources at a Mondulkiri province drill site, the company reported Thursday.

The Australia-based extraction company said in a statement that it has identified inferred mineral resources of 8.1 million tonnes of ore at grades of 2.3 grams per tonne at its interests in Okvau District.

The business has drilled a total of 10,559 metres at its 100-percent owned interest since 2006. In a report, it described the resource as a “foundation asset from which to build a resource base”.

The firm will now refocus drilling efforts on targets within 3 kilometres of the Okvau site, starting in April, the statement said. OZ estimates a potential discovery of more than 2 million ounces of gold in Okvau.

“OZ Minerals remains confident of discovering further Okvau-style mineralisation and adding to the current resource inventory,” a statement said.

Earlier this month, another Australian mining firm, Southern Gold, announced “significant” gold and silver mineralisation results from its first drill of the 2009-2010 season at its Anchor prospect in Snoul District, Kratie province.

Results from a further six “eagerly anticipated” test drills at the site are due next month, said a statement by the Adelaide-based miner, which fully owns the concession.

Meanwhile, gold prices on international markets have soared in recent days. The gold spot price in Singapore was US$1,120.60 per ounce Thursday afternoon.

Concerns about widening European deficits have resurfaced, prompting investors to seek a haven for investments in the commodity, Bloomberg reported Thursday. US dollar and euro weakness was driving the price, it added.

OZ Minerals fell US$0.018 on the Australian Securities Exchange Thursday, closing at US$1.058.