Gold finds at Martha Hill

Press, 4 February 1982, Page 18

Gold finds at Martha Hill

Wellington

Diamond drilling at Martha Hill, by Amax Exploration (N.Z.), Ltd, on behalf of the Waihi joint venture, was continuing to disclose significant gold and silver presence, said the chairman of Mineral Resources (N.Z.), Ltd, Mr J. S. Watt in a statement.

The interpretation of tonnage and grade was complicated by the presence of mine openings and filled openings. But the results of a computer study and estimate of the potential mineral reserves were expected shortly. This would be followed by further studies to establish a mining reserve tonnage, he said. Based on the preliminary studies and other investigations in progress, it was hoped to complete a mining feasibility study and environmental impact report early in 1983.

A significant recent development at Martha Hill was the decision taken by Mineral Resources to begin again contributions to exploration expenditure in re-

turn for a larger interest. •' Under this arrangement, Mineral Resources would contribute $4 million of the next S6M expended at Martha Hill and would thereafter hold a 30 per cent interest (instead of 10 per cent) in any development. The necessary funds would be secured by the recent rights issue to shareholders and other methods. Amax would continue to manage the Martha programme. referring to the company's Waihi Mining and Development project in joint venture with Green and McCahill Mining, Ltd, Mr Watt said the company removed and stockpiled about 40 tonnes of low grade lode material from the Amaranth adit during the period. The mining engineering consultant to this venture has examined results of work to date and has evaluated the likely costs of carrying out further mining at Amaranth and commencing milling operations at the company’s Waihi Gold Mill.

These studies were now being considered by the directors, Mr Watt said.