Why Waihi’s mine wants to keep digging

The owner of Waihi’s gold and silver mine believes it could extend its operation for another decade if it’s allowed to expand to a new area.

OceanaGold is mining underneath its Martha open pit and carrying out exploratory drilling under the Coromandel Forest Park nearby.

The Canadian listed company’s early research indicated 1 million ounces of gold at a high grade could be in the ore under the new area.

“We’re continuing to find good grade mineralisation that we’re optimistic about,” Alison Paul told Markets with Madison in Waihi.

“The mining phase is in the order of a decade of mining.”

Its existing permit allowed it to explore under the land that was administered by the Department of Conservation.

It was preparing to release an official pre-feasibility study on its exploration findings to investors in December.

To reach the ore body it was proposing to dig two new underground tunnels.

"And at that point it will become another producing mine that will add to the production that we’re seeing here at Martha underground, or take over."

OceanaGold's New Zealand general manager of legal affairs shows Markets with Madison the area it's exploring in the Coromandel.

There was an environmental effort against the project, given the conservation land was home to a native frog species.

“Nothing is guaranteed,” Paul said of the controversial expansion plan.

“And I think the way a business like ours has to respond to that is to listen.

“One of the things we’ve been clear on from the outset is that we wouldn’t be putting any surface mining activities in the conservation estate.”

Go underground and above Waihi’s gold and silver mine in today’s episode of Markets with Madison above.

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Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.