A Queenstown couple are proposing a "boutique quarrying operation" in the Gibbston Valley, targeting coloured schist and overlying gravel - as well as any gold found.
The resource consent application was lodged by Green and Gold Resources Ltd, of Hokitika, on behalf of long-time Queenstowners Mark and India Van Der Wilt.
They hold a five-year mining permit for a 21.29ha Victoria Flats block, which is bounded by the Kawarau River to the north and east.
"It has been in the back of my mind for a long time," Mr Van Der Wilt said.
"It's only a small process and in the process of screening the gravel, hopefully we get some gold."
The Van Der Wilts propose to expose and quarry outcrops of grey-black schist, green schist and brown schist on the property to supply the Queenstown building market. Gravels cloaking the outcrops would be excavated, washed and used as aggregate for roads and construction in the district.
The application said screening and washing of the gravels would provide an opportunity "to collect any minor quantities of gold that may be present in the gravels as an accessory mineral".
During exploration of the area in the early 1990s, gold was discovered, but not at a grade sufficient to support mining. It is hoped the three excavation sites would provide a total of 4000 tonnes of schist a year, "with quality more important than quantity".
"The fact that outcrops of green schist, grey-black schist and brown schist exist together on the property is exciting and provides unusual potential for the applicant to serve three separate markets," the application said.
Although the property was next to the Gibbston Highway, the difference in elevation between it and the lower terrace meant the activities could not be seen from the road.
When approached by the applicants for expert opinion, Peregrine Wines marketing director Greg Hay said the Victoria Flats area was unsuitable for growing grapes.
AJ Hackett Bungy, which operates nearby, has given affected party approval, as has the Wakatipu Trails Trust, which was offered 800m of public access parallel to the highway.
Similar activities occur at two sites in the Gibbston Valley, at the Gibbston and Millbrook quarries.