Golden Bay Gold Mine Progresses As Locals Express Concern

Golden Bay Gold Mine Progresses As Locals Express Concern

By Patrick Rose

Opposition is mounting to gold exploration at Sam’s Creek in Golden Bay as Australian mining company MOD Resources moves ahead with drilling and estimating potential reserves.

Friends of Golden Bay secretary Heather Wallace, with Department of Conservation involvement, has been seeking access to the drilling site on the conservation estate near the top of the Takaka River Valley.

While her initial request was refused for safety reasons, Darren Klink from OceanaGold (the partner of MOD Resources at Sam’s Creek) suggested that a visit to the site was a possibility.

“I understand a request has been made by the Friends of Golden Bay to visit Sam’s Creek and this request is currently being considered,” said Mr Klink.

The Golden Bay Community Board had very little knowledge of the operations at Sam’s Creek, said local community board Chairwoman Carolyn McLellan

“We have had no information whatsoever about the drilling up there,” said Ms McLellan.

“We are absolutely in the dark.”

Despite the limited communication with the community, MOD Resources features their operations at Sam’s Creek prominently in their investor material and on their website.

“The Sam’s Creek Gold Project hosts the biggest undeveloped gold resource in New Zealand and has considerable scope for increase,” it says on the MOD website. “The 770,000 oz gold resource at Sam’s Creek extends from the surface and remains open along strike and down dip. The existing resource is all contained within the Main Zone prospect at Sam’s Creek, which covers less than 10% of the known 6 km strike length.”

MOD Resources took the lead in the project in October last year when they signed a Joint Venture Partnership agreement with OceanaGold that will give them 80% of the revenues from Sam’s Creek. The current market value of 770,000 ounces of gold is over $1 billion. $1.9 million has been spent on the first stage of drilling.

The investor material provides maps of the six other areas outside the current permit zone that have potential for further mining. MOD also highlights its other mining operations in Botswana.

Aline D’Aoust, who lives near Sam’s Creek, says that she has noticed a regular stream of helicopter traffic to and from the site over the past few weeks.

The Department of Conservation recently granted another five year access permit to facilitate the continuation of the drilling and exploration work already underway.

Mr Klink confirmed the new five year timeframe that the extended permits now allow.

“Exploration work at Sam’s Creek has now moved to the second stage,” said Mr Klink. “This followed the successful completion of the initial exploration stage in March 2012, which resulted in NZ Petroleum & Minerals agreeing to extend the permit for a further five years, until March 2017.”

Ms Wallace urged the Community Board not to be seduced by the historical and romantic image of gold prospectors.

“Don’t think for a minute that they came here with their picks and shovels walking over the mountains,” she said. “They came here with their helicopters and their sonar and they answer to their overseas investors. The Community Board has got to say something because national government is not going to.”

According Mr Klink, the activity at Sam’s Creek is not a ‘mining’ operation and as is not generating revenue.

“The exploration work being conducted at Sam’s Creek is to evaluate the mineral potential,” he said. “This does not include any mining and thus, any future revenue projections.”

Ms McClellan promised to look into the consent process for mining in the Tasman District and suggested that the board remain ‘vigilant’ about activity at Sam’s Creek.

ends

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