18 | REGIONAL DEVELOPMENT Central Otago: Santana Minerals T T Hugh de Lacy There’s gold in ‘them thar hills ...’ Exploratory drilling and testing has shown ‘incredible numbers’ at the Rise and Shine gold deposit in Central Otago. The Rise and Shine gold deposit in the Bendigo-Ophir field in Central Otago has shown “incredible numbers” in a scoping study released by Australian-listed miner Santana Minerals, according to the company’s CEO, Arrowtown-based Damian Spring. “Based on only half the resource, the Rise and Shine deposit will yield 110,000 ounces of gold a year for 10 years and produce a net profit after tax of $2 billion,” Damian says. “The key metrics indicate that at a cash operating cost of $900/oz, total costs, including capital, will be $1400/oz, and with the current price of gold in New Zealand dollars at $3900/ oz, that gives us a margin of $2500/oz. “Further still, the goldmine will create at least 150 jobs during the construction phase, and over 200 high-paying jobs once it’s operating. “The mine is planned to be residential, and those future employees will likely live anywhere within an hour’s drive of the site, from Queenstown, Wanaka, Alexandra or anywhere close by.” Santana Minerals paid $8m when it bought the Bendigo-Ophir prospect from Matakanui Gold in 2020, and it has since discovered an additional two million ounces of gold. At the time that Matakanui sold, exploration had occurred in the valleys, centred round the Shreks, Rise and Shine and Come in Time deposits. But drilling and testing on a ridge above the valley found northerly extensions to Rise and Shine’s shear zone located 150m below the surface with much richer gold intercepts. In 2023 Santana completed 50,000 metres of in-fill drilling that increased its confidence in the mineral resource estimate at Rise and Shine, and resulted in the February 2024 announcement of 1.3 million ounces of indicated resources. The subsequent scoping study announced in April included mining 1.2m/oz of the overall RAS resource, 84% of which was from the higher confidence indicated resource classification. The project is located partly on the old Bendigo Station which rose to global fame 20 years ago as the home of Shrek the Sheep. The Bendigo-Ophir project exploration permit includes the Bendigo reefs deposit which produced 180,000oz of gold at grades of between one and six ounces per tonne in the late nineteenth century. The new discovery is located about 4km east of those old workings. Santana’s exploration permits cover 291km2 of the vast Central Otago goldfields, about 90km north-west of Oceana Gold’s huge Macraes mine that has produced more than 5m ounces. Santana is currently in the middle of a pre-feasibility study that will be completed in the September quarter of this year when the environmental base-line studies and the assessment of the environmental effects will also be completed. “Under the Resource Management Act (RMA) as it is at the moment we were always planning to apply for resource consent at the end of this year,” Damian says. “The government’s fast-track resource approvals presents an opportunity to apply for all our consents in one application with due regard for the environment and the community. “We’ve been developing the project along the requirements for consent under the RMA, but the fact that the new bill has popped up could speed up the process. “We’re in discussions with community, local government, government departments and with the mana whenua over the development of the project. “This involves describing the project, its 4 Chardonnay St, Cromwell | 027 245 6472 | 03 445 1139 Specialising in ... • Electric motor controls installation & repairs • Electronic Innovations • Electrical design & installations • Industrial Process & control Ph: 03 443 5326 | salesnz@vanwalt.com www.vanwalt.com | 21A Gordon Road, Wanaka Van Walt Ltd provides a complete solution from sensor to datalogger to desktop Proudly supplying Santana Minerals - Bendigo-Ophir Project with their water ow and water quality requirements. Water Level Water Flow Water Quality Soil Moisture
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