One of two small miners seeking a partial permit surrender by Glass Earth Gold is working through legal complexities with the explorer to gain access to two Central Otago tenements.
Glass Earth has 15,400sq km of Otago pegged for gold exploration through government permit agency Crown Minerals, with an application to extend that permit until November 2010.
Aside from $7 million of exploration to date, the company now intends to become a producer, with tenements in the Ida Valley it wants to begin mining this year, and in the following year it plans "boutique operations" for alluvial and hard-rock gold, targeting 9000oz to boost its exploration cash-flow.
Several smaller mining operators say the "blanket permit" impedes their opportunities to explore.
However, Glass Earth has rejected any criticism, saying it had halved its permit from 30,000sq km to 15,400sq km and had assisted several small miners on to its properties. Company director of Mokihinui Gold Ltd, Darryl Sycamore, contacted the Otago Daily Times and identified himself as one of two small miners in negotiations with Glass Earth.
Mr Sycamore said he had experience mining in Central Otago and on the West Coast and was interested in two Central Otago tenements for a three-person suction dredge operation, likely to cost less than $20,000 for equipment and permits.
Negotiations with Glass Earth had not been difficult, but there was "some legal complexity" such as the potential to create adverse effects on adjoining permits, which could have the effect of sterilising operations on adjoining permits.
His company had "no intention to compromise Glass Earth's operations" and he hoped for a decision by early next month.
Then Mokihinui could apply for permits, and resource consents if required.
Of the two Central Otago areas in question, Mr Sycamore said "information confirms a sufficient [gold] resource exists for our operation".
