Gold » Waikaia Gold
The $18 million alluvial gold mine, on the Waikaia River flood plain in northern Southland started operating ahead of schedule in early October, and is now reaching full production. “Our new plant is working on deposits in previously unworked ground at between 15 and 19 metres deep.” When Batt and the March family from Christchurch secured the option over the property in 2009 it had sat dormant for a number of years. “L&M had an option over it back in the 1990’s and it was extensively explored by both L&M and the permit holders Eureka Mining from 1995 to 1999. However the gold prices were extremely low at the time and the project didn’t proceed.” Batt and operations director Sam March are two of five directors in Waikaia Gold, with Batt “coming out of retirement” to work on the project. “When the opportunity came up in 2008/09 the Global Financial Crisis was looming and I could see gold had a bit of a future.” In the last four years, Batt and the March family have raised a significant amount of private equity, something that is crucial to the operation’s success, says Sam March, who runs the day-today operations at the mine. “We are very pleased with the array of shareholders and investors in the company and extremely grateful for their support in getting this project through to production.” March says the local community has also adopted the project “pretty wholeheartedly”. “It’s a big thing for a district like this to have their economy suddenly grow by $15 to $20 million
a year. We have also employed a great team of men and women from the Southland area to work on the project and expect numbers to reach around 35 to 40 staff and contractors when we hit full production.” This is not the first mining project Batt (a geologist) and the March family (founders of longstanding Christchurch firm March Construction) have worked on together. They operated the Island Block gold dredge in Central Otago from 1993 to 1996, and carried out all the feasibility work and drilling on the Earnscleugh project (which is now operated by L&M Mining) in 1999. “We have a warm relationship that has been going for the last 20 odd years” says Batt. The operation is set to be formally opened by Minister of Finance Bill English this month. Batt says the official opening will give directors the opportunity to thank “a lot of people for a great team effort which enabled the project to get off the ground”. His words are echoed by March, who said the great start to the project was “exciting”. “We are pleased with the performance of our gold recovery plant and grateful to all our staff. “They are a great bunch of people who have got right behind the project. “So far it’s been very exciting and we certainly hope that continues.”
We are very pleased with the array of shareholders and investors in the company and extremely grateful for their support in getting this project through to production.”
BRIAN MAHON ENGINEERING Proud to support Waikaia Gold • General Engineering • Mechanical Engineering • Agricultural Engineering Waikaia Road, Riversdale | PH/FAX: 03 202 5467
E-Quip Engineering Ltd are proud to be part of the • Design, Build, Installation & Commissioning • Welding Specialists • Specialist Pipework-Coded ASME IX • Factory & Plant Maintenance /Modification
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305 Aksersten Street, Nelson 7010 Phone 03 548 3378 Email info@nre.co.nz www.relianceengineering.co.nz
Waikaia Gold Goldscreen Project. 42 Jacks Road, Greymouth, 7805. PO Box 458, Greymouth, 7840
www.e-quipengineering.co.nz Spring 2013 » Mining NZ 13