Mine may reopen

Press, 14 May 1981, Page 9

Mine may reopen

PA Dunedin A newly tormea west Otago mining company. Mant Aurum Mining, Ltd. is negotiating with an American company for a joint venture to reopen the Bullendale Reefs near Skippers in Central Otago. A partner in the company. Mr L. R. A. Brownlie, said that a San Francisco-based hardrock company, Homestake, had approached the San Francisco office of the Development and Finance Corporation. Mr Brownlie said that he and a partner had put a case to the Australian subsidiary of Homestake for a joint venture. Consequently, Homestake Exploration New Zealand, Ltd, had been established.

Mr Brownlie, formerly a garage proprietor, said that Homestake would be able to provide the technology needed to develop the mine, which was last worked in 1907.

For that reason, he said, it would have to be a joint venture because the project was beyond New Zealand’s capabilities, he said. Mr Brownlie is confident that, given the right approach, the Bullendale Reefs could show good returns. The mine had produced as much as 1600 ounces of gold a month, although its return had not been constant, he said.

“We know that the gold is there. The Bullendale Reefs were said by all the old-time miners to be the source of the gold in the Shotover River and Skippers Creek.”