Tasman Mining has signed an Agreement with leading gold miner OceanaGold for the future development of Blackwater Gold Project, located near Ikamatua on the West Coast of the South Island of New Zealand.
OceanaGold will support the project’s establishment with seed financing for the potential future construction of a decline (tunnel) to the base of the historic workings.
Once the decline access is completed, Tasman Mining will establish underground drill chambers and undertake a drilling program with the aim of converting the majority of the current Mineral Resource to the Indicated JORC category to support a mining decision.
Under the terms of the Agreement, Tasman Mining has the exclusive right to purchase Blackwater from OceanaGold upon Tasman Mining deciding to develop the mine.
Example of gold mineralisation at the Blackwater Gold Project
Long section of the 700,000 ounce JORC Inferred Resource at Blackwater
A Preliminary Economic Assessment (PEA) completed by OceanaGold in 2014 concluded development of the project would be technically and economically viable, and produce 570,000 ounces over an initial 10-year mine life, averaging 50,000-60,000 ounces of annual production at an All-in Sustaining Cost of US$594 per ounce. The PEA estimated the Project has an Inferred Resource of 0.9 million tonnes grading 23g/t gold, for 700,000 ounces.
To date more than NZ$18 million has been invested in the exploration of the Blackwater deposit.
In the decline development and exploration drilling phase, Blackwater would support approximately 30 direct jobs on the West Coast.
If developed, the mine would support approximately 100 direct jobs (not including contractors) over a 10-year mine life on the West Coast.
The PEA estimated that, if developed, more than NZ$500 million would be invested in capital and operating costs over the 10-year life of the mine at Blackwater, generating NZ$1 billion in export revenue at current gold prices.
Tasman Mining commits to protecting conservation land and undertaking a responsible resource development in New Zealand.
OceanaGold has provided a blueprint for running safe, sustainable, environmentally responsible and highly profitable underground gold operations in New Zealand, and Tasman Mining will repeat their success at Blackwater.
We will take great care to restrict our activities and keep any habitat disruption to a minimum.
Unlike former mine workings that closed in 1951, Tasman Mining would be developing a modern and advanced mine using the latest underground mining methods.
We will undertake an environmental baseline study, an environmental management plan, and pay a bond.
We will continue to work in partnership with DOC, our local authorities and other stakeholders as we progress exploration of the Blackwater Gold Project.
We work within and under the legislation and controls set out within government Acts, Permits and Resource Consents.