By NZPA
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Thursday 30th January 2003 |
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Despite failing to secure the $8 million bond required by its resource consent, GRD yesterday sent a drill rigger back to Reefton.
Exploration drilling started there last year, but was halted in July due to bad weather.
Chief executive Len Jubber said the return to drilling was positive.
"It's a sign of the confidence we have in the project. It shows we have not given up. Once we complete the drilling process, we can include the results in our on-going optimisation of the project, and incorporate them in our design."
The drilling programme will take up to three months. The completed Reefton mine is expected to employ 80 and boost Reefton's economy by $4.8 million a year.
GRD had planned to start siteworks four months ago. However, it failed to provide the bond in a form agreeable to the West Coast Regional Council and Buller District Council.
The councils have agreed to accept an insurance-style bond, but not a three-year rolling bond as GRD has proposed.
GRD has not yet located an acceptable bond, Mr Jubber said.
"We've looked all over the world, and we're still looking all over the world. Our efforts have been unrelenting."
Bonding and banking on the international market had become a lot more difficult since the hijacked plane attacks in the United States on September 11, 2001, he said.
At the start of this year, the company began marketing itself directly, rather than through a broker. But this had brought no joy.
"Unfortunately, we still haven't made any progress. We're waiting for parties to come back with expressions of interest, but we are at the same stage we were at last year," Mr Jubber said.
Meanwhile, site tenders for the mine are still on hold and negotiations are due to resume between the company and the councils next week.
Mr Jubber said he is looking for a compromise.
"At the end of the day, there is no doubt we will get the bonds, it's just a matter of when."
GRD also wants to vary the resource consent for the site of its waste rock and tailings dam. It is currently talking to the Department of Conservation about the proposed variations.
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