Bendigo mine study reveals possible $4.4b in gold
THE company behind a mine labelled ‘‘the most significant single gold discovery in New Zealand in four decades’’ believes revenue of $NZ4.4 billion could be made in the lifespan of the mine.
Santana Minerals released a scoping study to the Australian Stock Exchange yesterday revealing key financial data and other metrics for its gold mine project at the Rise and Shine prospect near Bendigo and Tarras.
Based on the current spot gold price of $3900 per ounce, the mine’s revenue would be $4.4b.
It expected to make a net profit after tax of $2b. Total production costs would be about $1.6b.
The Australianowned company estimated it needed six months to get through the permitting phase and a year to begin construction.
The mine would operate for eight years as an opencast mine and for four years underground, recovering 1.12 million ounces of gold, the company said.
The Rise and Shine Strike is the most promising of four strikes within 5km of each other.
Drilling results have revealed thick, continuous, highgrade intercepts, traced 1.7km downplunge.
The scoping study also listed the local infrastructure advantages.
There would be no fly infly out of staff or major camps required, it said. Nearby Cromwell had a 8000strong labour pool and there was main road access from State Highway 8.
Queenstown International Airport was just a onehour drive away, Lake Dunstan provided access to fresh water and the Clyde Dam supplied clean, green energy.
Indicative metallurgy showed free milling gold, recoverable by gravity followed by cyanide leach. These methods together were expected to achieve 91% to 94% recovery of the gold resource.
The report said there was ‘‘plenty more’’ to be discovered at the site.
The report showed three of six steps in Santana’s study stream into the commercialisation of the resource had been completed.
There was ‘‘a clear case’’ to move straight into prefeasibility studies, the report said.
Two more steps would then follow — mine development and stakeholder engagement submissions and definitive feasibility studies, the scoping report said.
Santana’s study stream 2 related to more intensive exploration of the strike, including more drilling, mapping and geochemistry work.
It is not yet clear whether Santana would be able to apply for resource consent under the government’s Fast Track Approvals Bill, for which public submissions close tomorrow.
Resource minister Shane Jones would have us believe that if only we could reduce restraints on mining of all types, New Zealand would be a much better place.
With his overthetop rhetoric, he portrays increased mining as the choice between the good of growth and prosperity and the evil of a shrill environmental minority hellbent on protecting frogs and depriving people of jobs.
If only it were that simple. News this week planners recommend declining resource consent for a proposed alluvial goldmining operation in Millers Flat highlights the complexity of what may need to be taken into account.
It may go beyond consideration of landscape, biodiversity, natural hazards and the social and economic wellbeing of the community.
Planners for the Otago Regional and Central Otago District Councils largely backed a submission from Ka¯i Tahu emphasising the iwi’s cultural, spiritual and traditional relationship with the Clutha River/Mataau.
The iwi said the river had a long history as a place where local iwi collected food and there were temporary and permanent settlements.
Accordingly, there were burial sites and other tapu (sacred) locations, including battle sites, along the course of the river.
Planners were concerned the application might lead to irreversible damage to the places sacred to iwi.
Doubt was also cast on the company’s ability to identify and protect Ma¯ori archaeological sites.
Commissioners have yet to hear this case, so we do not know what weight they may place on such issues.
How the government might deal with similar questions in its fasttracking fervour is also unclear.
This week Mr Jones was beating the drum about proposed changes to coal mine consenting to give it the same rights as other types of mining.
Legislation to be introduced next month would remove additional controls for coal mining introduced by Labour, which would have ended the consenting pathway for existing thermal coal mines from the end of 2030.
There may be some sympathy for his argument about the incongruity of importing coal from Indonesia at the same time as discouraging further coal mining here.
However, Mr Jones is not suggesting any new coal mining should be confined to providing the domestic market.
Mr Jones also says we should not doubt the government’s willingness to simplify the process and incentivise investment in loweremissions alternatives such as wind and solar power.
But at best it seems like mixed messaging to big and small users of coal, who should be encouraged away from burning it as soon as possible.
The two c words, climate change, did not seem to feature in Mr Jones’ announcement. Indeed, in past statements he has been scathing about what he sees as climate change hysteria.
Forest & Bird has condemned the changes as climate vandalism, saying it will effectively allow new mining applications in natural inland wetlands and places designated ‘‘significant natural areas’’.
It already has fears plans for the Te Kuha Mine on a mountaintop near Westport, turned down in the Environmental Court a year ago, will be resurrected and put forward for the fasttrack consenting process.
The land concerned is home to a variety of threatened animals including the roroa/great spotted kiwi, South Island fernbird and geckos.
As the clock ticks down to submissions closing on the government’s FastTrack Approvals Bill tomorrow, we are still no closer to knowing what projects might be on the list.
Reasons given for the lack of transparency around this have been flimsy. This paucity of information has stifled the opportunity for anyone to give informed comment on them in their submissions on the Bill.
We have not even been told the identity of the recipients of 200 letters sent out sharing details of the fasttrack application process, although Parliament has been told more than 59 projects are being considered for inclusion in the Bill.
This smacks of the very ‘‘we know best’’ highhanded approach which the coalition partners were quick to criticise in previous governments.