Glass Earth chief executive Simon Henderson, however, has defended the 15,400sq km permit, saying he hoped to "come to an accommodation" with two would-be miners within a week to allow them access to Glass Earth-permitted areas.
"Everyone got excited when gold hit a record [New Zealand] price, for a day. [But] there's no way we want to stand in the way of the smaller miners," Mr Henderson said yesterday.
Glass Earth, already operating on a permit extension, is seeking a two-year extension from Crown Minerals to November 2010.
It has carried out a $4 million aerial survey and spent more than $3 million testing for hard-rock and alluvial gold.
Mr Henderson said little Otago ground had been pegged by miners during the past 20 years, while Glass Earth had spent more than $7 million in the past two years. The company had relinquished ground to between five and 10 miners in that period.
Glass Earth is meeting government permit agency Crown Minerals soon. Issues of coverage would be addressed, he said.
The original permit application was criticised in 2007, with miners predicting then that Glass Earth would "lock up" large tracts of Otago. Mr Henderson said Glass Earth had been steadily decreasing its stake, from about 30,000sq km, to 22,000sq km to the present 15,400sq km.
Crown Minerals operations manager Matt Brown said the Glass Earth permit situation posed a "conundrum" for all concerned. He had sympathy for both points of view.
"With the price of gold up, more people are starting up their screens, especially where there are marginal gold deposits."
Details of Glass Earth's latest application could not be released; it was still being processed.
Glass Earth confirmed last week it was shifting from its role as a gold explorer to that of producer, intending to begin small hard-rock and alluvial mining operations in the Ida Valley before the end of the year.
It aims to produce up to 9000oz of gold during the first year's operations. This work covers the two-year extension sought by Glass Earth for its Ida Valley activities, and encompasses its existing hard-rock exploration activities in East Otago and beyond.
Mr Brown said interest at Crown Minerals in alluvial mining in Otago had increased "dramatically" since about January this year. New permit numbers granted for each of the past two years to March were respectively 23 and 25.
The rise in interest coincided with record New Zealand gold prices, which were underpinned by the weakness in the New Zealand dollar.
Gold hit $NZ1886 an ounce in late February, and at 7pm yesterday was $US941 ($NZ1647) in Asian markets.
• Listed Australian iron-ore giant Fortescue Metal Group's application to Crown Minerals in July last year for 11 sweeping permits around New Zealand, including one covering 4000sq km on the West Coast, is coming under scrutiny from small miners.
Details of its application were unable to be released until Crown Minerals made a final decision, Mr Brown said.
However, several alluvial miners were successfully applying to Fortescue for access to prospects within its areas.
There were no permit amendment applications being processed covering any Glass Earth holdings, Mr Brown said.
