Gold miners inch closer to some rich veins

Friday 13th July 2001

By Chris Hutching

L & M Mining has won consents for a gold mine on the Earnsclough river flats area near Alexandra in Central Otago and said yesterday work would begin next year if no appeals were received in the next 25 days.

Managing director Evan Hughes said the company expects to extract about $90 million worth of gold at current prices over the eight-year life of the mine. The company owns most of the land, bought in recent years by Perilya Mining at a cost of about $4.5 million. L & M Mining subsequently bought the project from Perilya and will employ about 40 people.

Mr Hughes said with the low dollar the company was receiving good prices for gold from its other mine near Greymouth, which is a similar size to Earnsclough. L & M Mining is also constructing a mine near Gore after recently receiving resource consent.

The company was listed on the Stock Exchange before a series of ownership changes and it is now owned by Australian-based Auriferous Mining.

Another gold mine that has resource consent but is awaiting approval from Conservation Minister Sandra Lee is the GRD mine near Reefton. It is the subject of an internal political battle between the Alliance and Greens, with Ms Lee reluctant to ratify the project and Deputy Prime Minister Jim Anderton, supported by Labour cabinet minister Jim Sutton and MP Damien O'Conner keen for it go ahead.

The mine would be on Department of Conservation land and is opposed because of its proximity to streams entering the Buller river system and the high earthquake risk in the area. GRD expects to extract 100,000oz of gold a year over the 10-15 year life of the project. GRD has a previous 1993 consent for a smaller operation.

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