Gold exploration permit issued to Australian company

Energy and Resources Minister Simon Bridges. Photo / Glenn Taylor

A permit to explore for gold in the central North Island has been issued to an Australian exploration company, Energy and Resources Minister Simon Bridges says.

The 5-year permit, issued to Silver City NZ, is for exploration covering 33km on the volcanic plateau, south of Kawerau.

"They will be investing at least $1.25 million exploring in the central North Island ... and this project has the real potential to create jobs, and benefit the local and national economy over the longer term," Mr Bridges said.

"It is a great result to see a new entrant come into our market at a time when the price of gold and other mineral commodities is low, investors are understandably risk averse, and companies are tightening up their existing operations."

Bids on the South Island Platinum tender were being assessed and the results were expected to be announced later this year.