Seven years after OceanaGold closed its Globe Progress mine near Reefton, a new company has taken out an exploration permit over part of the same area.
Globe Progress produced more than 610,000 ounces (17,293kg) of gold over 10 years with export receipts of over $1 billion, contributing about 20% of total gold production in New Zealand for that decade.
The mine closed in 2015, and three years ago OceanaGold surrendered the mining permit.
New Zealand Petroleum and Minerals then split the mining permit into two areas. The part containing the Globe Progress open pit, processing plant, tailings storage facility and waste rock stacks was reserved until December 2023 to enable site rehabilitation to be completed.
The remaining area was let last week to Siren Gold with a five-year exploration permit.
Inangahua Community Board chairwoman Linda Webb said yesterday things were looking promising, with a lot of interest in gold sites in the Reefton.
"It will bring more and more people to the West Coast, especially for Reefton.
"It’s great — great for businesses, great for the schools, great for everybody," she said.
She hoped there would be enough housing in the town.
Siren Gold said its new exploration area was in the centre of a 35km-long corridor containing some of the largest historic mines in the Reefton goldfield.
It also contains the Cumberland permit, which comprises the northern and southern areas of the previous Globe Progress mining permit.
The Cumberland permit joins Siren’s Big River, Golden Point and Reefton South permits and abuts the Federation Mining permit, where they are currently developing the Snowy River (Waiuta) underground mine.
"Relative to the rest of the Reefton goldfield, the Cumberland mines were under-capitalised and worked in small and limiting claims," Siren said.
