With gold in its sights, albeit deep beneath Waiuta township, Federation Mining is ramping up its bid to raise more than $100 million needed to take the gold mine into production.
The Snowy River Mine is reached by a 3.3km twin tunnel as far as the Birthday Reef, a quartz gold reef under the historic township site.
Federation expects the workforce to grow to 140 when it goes into production.
It has been drilling into the reef to prove the gold resource to make it worth proceeding with full mining.
Managing director Mark Le Messurier said the company had started a process to raise money to progress the project next year.
This included money needed for the processing plant and further underground mine development.
"I will not be specific but the required amount is in excess of $100 million," he said.
The drilling to date was proving the gold was there and they were pleased with the results.
An official decision to progress with mining would be made at the end of this year.
"In the meantime though, fundraising will take months. The engagement of potential investors must start now," Mr Le Messurier said.
Earlier this year, Federation Mining said it had received an additional funding package from the Australian Super Fund to support the continued development of the Snowy River Mine.
The New Zealand government provided the initial $15m through the provincial growth fund.
Grey District Mayor Tania Gibson said the mine already employed a large local workforce.
"And more are going to be employed."
Mrs Gibson noted the company was already supporting the community, including a donation to the Life Education Trust.
"It’s that money which goes into the community."
Also hoping the mine goes into full production is West Coast Regional Council chairman Peter Haddock.
The mine also had a wide flow-on effect across the region.
Hydraulics companies and engineering workshops would all benefit if it moved into production, as well as everything from bakeries to accommodation providers, he said.
Part of Federation’s plans include processing the gold ore on the West Coast.
When OceanaGold was operating the nearby Globe Progress Mine it railed the ore to its Macraes Flat mine in Otago for processing, whereas Federation plans to do all processing itself on site. A processing plant will cost about $60m.
The company aims to recover 70,000 ounces of gold a year, for 10 years.
