Resources Minister Shane Jones said yesterday the government was looking at easing the way for people with black sand beach claims, and suction dredges.
Those small gold claims were often used to supplement incomes or pensions, he said.
However, hobby miners faced the same regulatory burden as a medium-sized opencast mine.
The government was considering creating a new tier of minerals permitting that would make it easier for hobby miners to prospect for gold.
"Our gold deposits, particularly in regions such as Otago and the West Coast, have always attracted fortune hunters. It’s no surprise that this is still a recreational pastime for many Kiwis," Mr Jones said.
"Sadly though, the hoops they have to jump through to obtain a permit is a significant barrier."
The proposed tier 3 permits would allow the Ministry of Business, Innovation and Employment to streamline the process.
At present under the Crown Minerals Act, the same regulatory requirement for a medium-sized opencast mine is applied to a hobbyist who wants to use a small suction dredge to look for gold in a river.
Mr Jones said that was a prime example of where the time, effort of regulators and applicants vastly exceeded the risks and value of the activity.
"This government wants to get that balance right so that regulators can focus their attention on the applications that actually need it."
Non-commercial goldmining, also referred to as hobby or recreational mining, differs from gold fossicking, which can be done by anyone in designated areas using only hand tools.
At present there are about 200 permits for small-scale non-commercial goldmining, generally producing about $10,000 worth of gold a year in total. These permits often supplement incomes and, on occasion, can unearth more significant gold finds.
"I want to see more New Zealanders have the opportunity to undertake and benefit from small-scale gold mining, without having to demonstrate things like a mineable resource in their applications or provide the annual reporting that a larger-scale operation would face," Mr Jones said.
Greymouth hobby miner Evan Grooby welcomed the proposal, which he thought would lead to more people giving it a go.
In the past, people could supplement their income by collecting ponga, moss and pounamu, but these had all been jumped on.
"I would welcome any further [gold permit] streamlining."
A beach claim now costs about $5000, plus an annual fee of $1200. It is not clear if streamlining would reduce the cost.
