Ophir may be next gold strike

FUTURE'S IN GOLD: The test plant at Glass Earth Gold's exploration site near Ophir, which has the potential to yield more than 100,000 ounces of the precious metal.

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Ophir could be the next gold bearing site in Central Otago after mining began at the L&M Mining Earnscleugh pit.

Glass Earth, a dual-listed explorer, has a 50 per cent stake in private firm Ophir Gold to explore a 640ha prospect near Omakau.

The company announced pilot plant construction was finished and bulk testing at its Ophir prospect had started. Pilot plants are small mining plants used to test a prospect's potential gold yield ahead of major operations.

The gravity separation plant, which can sift five to seven tonnes an hour, is testing a 150 cubic metre bulk sample before more testing at a nearby prospect, the Wai-iti vein system.

After this evaluation phase a decision to mine – using a 40 tonnes an hour plant – could follow, although the firm would need mining consents. A ground survey was completed to add to geophysical data from an earlier aerial survey, to identify areas of interest.

Rock studies, mapping and geochemical soil analyses showed the "potential for several new gold bearing ... systems," the statement said.

If a decision to mine is made, the joint venture aims to extract more than 100,000 ounces. The firm is required to fund the exploration phase, plant design, installation and any resource consent applications.

Glass Earth chief executive Simon Henderson, who emailed The Southland Times from Perth, said testing must be complete before any mining recommendations were made.

It would take at least four months for permit and resource consent applications to get approval, he said.

The joint exploration site is 70km northwest of the Macraes gold deposit.

john.edens@stl.co.nz

- © Fairfax NZ News

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