New gold rush may get Nat. Dev. status

Press, 27 November 1979, Page 24

New gold rush may get Nat. Dev. status

Wellington reporter The new West Coast “gold rush" may be growing to the size where status under the proposed National Development Act could be contemplated for applicants to mine the alluvial gold deposits there. As the price of gold shows no signs of falling below $4OO an ounce, so the Mines Division of the Ministry of Energy is recognising the prospect of a ‘‘gold rush” on the West Coast. There have been several applications for mining licences, and a lot more are expected in the next few months. Most of these are expected to be from individuals and companies with no previous experience in goldmining. Alluvial gold-bearing stretches being considered embrace land beside State forests, reserves and Maori land. Because many of these would involve argument over land use, a host of potential land-use conflicts is expected.

To overcome the certain outrage of conservation interests, the use of the National Development Act may be sought to bypass protracted argument.

There is no shortage of projects being considered. One being contemplated, for example, is a new underground coalmine in the Paparoa State forest. This is outside present reserve areas, but within the area some interests want designated as a national park. Carpentaria Exploration company of Brisbane and Lime and Marble, Ltd, of Nelson have said they will consider dredging gold on the Mikonui River south of Ross, the Press Association reports.

An environmental investigation would be made during the next few months and the opportunity given for the public to comment, said a joint statement.

If the environmental studies showed the land could be restored to as good as or better condition than before mining, then a full feasibility study would be made to see if mining would be profitable.

If the studies were favourable, it was expected the public would have a chance to subscribe to the venture.

Carpenteria Exploration is a subsidiary of M.I.M.

Mount Isa which mines silver, lead, zinc, and copper in north-west Queensland.

It has a proven record of being an environmentally conscious company and evaluated the ilmenite beach sand potential on the West Coast.

Lime and Marble, Ltd, a subsidiary of the T.N.L. Group, Ltd, of Nelson, is a leading non-metaliic mineral producer in New Zealand and has been involved in mineral exploration in New Zealand for more than 40 years. The investigation into tse environmental questions would start immediately, the companies saidl and an environmental impact assessment would be prepared by Applied Geology Associates, geological and environmental consultants.

It would follow guidelines produced by the Mines Division of the Ministry of Energy and the Commission for the Environment.

The potential of the valley was recognised many years ago and a big drilling programme was done during the 19305. Check drilling was done in 1948 and then again by C.E.C. in 1973 and 1978.

Ross was the scene of much early goldmining by sluicing and tunnelling. The Mikonui alluvial ground is up to 40 metres in depth — deep by world standards — and a sophisticated dredger would be needed to dig to this depth and ensure successful restoration of the area. A previous attempt to dredge the deep ground was interrupted in 1939 by World War 11. Before this a small dredge had recovered good gold near the mouth of Redman Creek.