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Santana Minerals (ASX:SMI) is one step away from obtaining official approval for the Bendigo-Ophir Gold Project in New Zealand after finally winning a long-running battle for land access with the Central Otago District Council.
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The Brisbane company has this week been given the ability to use council roading assets necessary to enable the project to proceed, subject to receipt of Fast-Track Approvals Act (FTA) consent from the NZ government.
In return, the company pledged to make an indexed payment of NZ$1.25 million per annum to CODC to fund infrastructure, environmental and community benefits packages six months after commencement of commercial gold production.
The project is considered New Zealand’s most significant single gold discovery of the past four decades, with an estimated total gold recovery of 1.25 million ounces and annual sold production of up to 120,000 ounces.
“This agreement is a material milestone for the Bendigo-Ophir gold project,” Santana’s chief officer, Damian Spring, said. “It reflects a pragmatic outcome with CODC that provides certainty around access, delivers a clear and transparent community benefit framework, and allows the project to progress in an orderly manner.”
Mr Spring continued: “Importantly, it reinforces that well-designed projects can align regional infrastructure, community outcomes and long-term economic value, with sustainable environmental stewardship.”
Mr Spring added that future road stopping, as defined under the Public Works Act, will be subject to the full legislative process to be undertaken by the local governing council. The same construction works will also include the provision of an alternate route, as applied for in the company’s application.
On the South Island of New Zealand, one hour east of Queenstown, the project’s tenements cover 251sqkm in the Central Otago goldfields, 90 kilometres northwest of OceanaGold’s world-class Macraes gold mine, where previous production and mineral resources total in excess of eight million ounces of gold.
SMI was selling at $1.09/sh heading into Monday morning.
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