"Behind every great fortune, there is a crime." Honoré de Balzac.

Introduction

A significant gold mining project is set to begin in Cromwell. The Bendigo-Ophir Gold Project promises to have a substantial impact on our community. In this article, we'll answer key questions about the most significant gold discovery in New Zealand in decades.

This post is the first of a 3-part series related to the Bendigo mining project in Otago.

Where in Central Otago is the bendigo Gold mining project located?

The Bendigo mining project is located in Bendigo, just a 15-minute drive from Cromwell, in the Dunstan Mountains. The entire project, known as the Bendigo-Ophir Gold Project (BOP), is divided into four sub-projects based on different gold locations. In some of these locations, drilling has already started on a small scale.

If you find yourself reading the news and getting confused with all the acronyms and names of the Bendigo gold mining sites, here is the list:

BOP includes:

RAS (Rise and Shine)
CIT (Come in Time)
SHR (Shreks)
SRE (Shrek East)

And here is the map of the Bendigo-Ophir Gold Project sub-sections.

ASX announcements. Santana Minerals Ltd.

Why is the Bendigo gold mining project, RAS, so relevant?

As you can see in the map, the most valuable section of this gold mining project in Central Otago is RAS. Here is a brief explanation of the numbers:

2,217koz: This stands for 2,217 thousand ounces (or 2.217 million ounces) of gold. "koz" is a common abbreviation in mining for "thousand ounces."
@ 2.3g/t Au: The average gold grade is 2.3 grams per tonne of ore. "g/t Au" stands for grams of gold per tonne of ore.
Incl Indicated of 1,445koz: This specifies that within the total 2,217 thousand ounces of gold, 1,445 thousand ounces are classified as "Indicated." In mining, resources are often classified into categories such as Measured, Indicated, and Inferred, based on the level of confidence in the geological information.
@ 2.4g/t Au: The Indicated resources have an average gold grade of 2.4 grams per tonne of ore, which is slightly higher than the overall average grade.

How much money will this single gold region, RAS, generate?

The mine is expected to operate for 10 years, obtaining 110,000 ounces of gold per year. The cost to produce each ounce of gold is NZ$1,392. After accounting for all expenses and taxes, the project is projected to yield a net profit of NZ$2.0 billion over the 10-year period.

Who is behind this recent Otago gold mine discovery?

The company behind the Bendigo mining project discovery and exploitation is Santana Minerals Limited, an Australian listed company. Santana Minerals specialises in the exploration of gold, silver, and base metals, aiming to identify and exploit mineral deposits.

The board consists of eight members, including CEO Damian Spring, Non-Executive Director and owner (6.6%) Frederick Kim Bunting, along with a study management team: Rod Redden, Hamish McLauchlan, and Mary Askey.

As the Environment Manager, Mary Askey plays a crucial role in the project, overseeing environmental management and permitting processes.

When is this large-scale Bendigo mining project happening?

Gold mining in fast-track approval times.

The Bendigo RAS gold project aims to have their consent submitted by the end of 2024. At the moment, their studies haven't been published, but they should be released by the end of the year.

Santana Minerals has been actively promoting and framing this project under the Fast-Track Approval Bill introduced by the National Party.

The Fast-Track Approval Bill aims to accelerate the consenting process for major projects. It grants three ministers - Chris Bishop, Shane Jones, and Simeon Brown - the authority to make final decisions on projects, even if their decisions contradict the advice of expert panels.

In this case, Shane Jones, Minister for Regional Development, has already expressed his support for the mining industry.

The bill would bypass not only the Resource Management Act but also other acts such as the Wildlife Act, the Conservation Act, the Reserves Act, the Heritage Act, coastal permits under the Fisheries Act, the Crown Minerals Act, and the Public Works Act.

Here is the legislation text.

“How fast-track approval process will work

The EP (Expert Panel) will assess the projects and make a recommendation (back to the joint Ministers) on whether the projects approvals should be granted or declined, and what conditions should be required.

(…)

Once an EP has provided a recommendation to the joint Ministers, the Ministers must consider the recommendations by the panel and decide whether to grant or decline the approvals. They may also direct an EP to reconsider conditions if new information is made available or direct the applicant to reapply.”

If you want to learn about the potential environmental effects this large-scale gold mining project could have on the region, read our next post.

The Bendigo Rise and Shine (RAS) Gold Mining Project in Central Otago. Part I