Australian mining company New Age Exploration has discovered a gold deposit near Lake Mahinerangi, inland from Dunedin.
The company disclosed its preliminary results to the Australian Securities Exchange this week following drilling at the Bella prospect, part of the Lammerlaw Gold-Antimony Project where it holds an exploration permit.
Chief executive Kirby Johnson said the drilling identified shear-hosted gold mineralisation. Early readings point to a deposit that may stretch over five kilometres laterally, with the company targeting one million ounces of gold. At current prices of US$4000 per ounce, the deposit could be worth $4 billion.
Johnson drew comparisons to the Macraes deposit in Waitaki. The company favours an underground operation over open-cut mining, saying "an underground mine has a much smaller footprint on the surface and probably more suited to this environment".
If the project advances, New Age would likely seek approval through the Government's fast-track consenting process. Johnson said the company was "very supportive" of the fast-track regime, calling it "a key attraction for us to be working in New Zealand".
The site is currently farmland, and Johnson said "agriculture and mining can co-exist". A New Zealand workforce would be central to any proposal.
The company has completed only a few drill holes and is several years away from applying for a mining permit.