DOC campsite could be sitting on a goldmine

Gold deposits near an historic West Coast mining town have attracted the attention of an Australian company keen to cash in on its potential.

Auzex Resources has applied for consent to drill six prospecting holes in conservation land 3 kilometres from the campsite at Lyell, between Murchison and Westport.

In the 19th century Lyell experienced a gold boom, with the most productive mine, Alpine mine, operating until the early 1900s.

Auzex is seeking an access agreement with the Department of Conservation and hopes to begin the 10 to 12-week operation by May.

"We have done quite a bit of mapping and sampling and all that type of stuff and we hope to be getting the OK from DOC very soon," said executive chairman John Lawton. The company had identified a 3km by 200m zone that held gold.

Mr Lawton estimated up to a million ounces of gold could be available and said the project could cost more than $1 million. The project is a joint venture with private company New Zealand Minerals. The work would affect 1600 square metres in an area home to native birds and regenerating red beech.

Auzex said it planned to rehabilitate the area after the work.

- © Fairfax NZ News