Hunt for gold off Otago coast

Press, 9 December 1976, Page 17

Hunt for gold off Otago coast

PA Dunedin Off shore exploration for gold off the Otago coast will begin in the next few days, now that a licence has been granted to a New Zealand and an American mining company. The exploration will cover about 4000 sq. km on the Continental Shelf south-west of Dunedin, between Cape Saunders and Owaka. The two companies involved in the exploration are Minzimp Exploration, Ltd, a small subsidiary of 1.C.1. New Zealand, Ltd, and Newmount Pty, Ltd, a large American mining company.

A ship will collect sediment in about 40 fathoms (73 metres) of water off the mouth of the Clutha River.

According to an executive director of 1.C.1., Mr J. Willimott, initial work will be concerned with collecting sediment samples to determine the proportion of gold. Trials have already been done to determine the method of collecting the samples. Exploration would take a year, and if the results were

successful, further work would be done in the most promising areas under a prospecting licence, he said..

“No decision to mine can be made until a great deal of prospecting work has been carried out, feasibility stud-, ies completed, and detailed consideration given to environmental aspects.”

Under the terms of the licence, the companies must consider several environment tai factors:

They are not entitled to, undertake exploration that could accelerate or induce: erosion.

Any excavation holes made: during exploration must be, filled in, and exploration, must not interfere with the rights of the public or commercial interests to take, stock fish or shellfish. According to a senior geologist with 1.C.1., any offshore mining operation would have to be on a large scale to justify the expense involved in setting up floating mining equipment. The exploration licence is for a year, and a report must be made to the Minister after six months.