Development begins at Earnscleugh

L&M Mining of Aukland, New Zealand, has accelerated development of its Earnscleugh gold project, on the west bank of the Clutha River, between Clyde and Alexandra.

Perilya Mines of Western Australia had been developing the deposit until late last year, when L&M purchased Perilya’s New Zealand interests.

The deposit is thought to contain between 200,000 and 400,000 oz. gold.

Exploration Manager David Manhire says L&M has already produced a report on the environmental effects of the proposed mine. During production, the mine will employ 40 people.

Meanwhile, L&M Mining’s new gold mine at Quinns Terrace, near Kumara on New Zealand’s west coast, began operating in November 1999 and contains 20,000 oz. in reserves. The mine will run for 15 months, unless ongoing drilling reveals an extension.

Farther south, on the coast, the company is evaluating a site at Mikonui.

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