After years of putting development of the Reefton Goldfields on the back-burner, Gold Resources and Development (GRD), based in Perth, Australia, has committed A$2.4 million to advancing a new gold mine at the property.
GRD will perform a feasibility study seeking to ensure a mine life of at least seven years and a decision on the future of the mine must be determined by July 2001.
“It has been on the books for a while and we see a new opportunity for dusting it off,” says company spokesman Angus Kennedy-Perkins.
Spending over the next year is forecast to show improved project economics. This comes on top of the A$29 million Macraes Mining, a subsidiary of GRD, already spent on development in previous years.
“The Reefton gold project has potential to add substantial value to GRD, representing 100,000 oz. of gold production per annum, and over A$100 million of net present value,” says Brettney Fogarty, chairman of GRD.
The project could employ 300 to 400 people during construction but that number would be reduced to 200 when production begins.
The Reefton Goldfields are on the West Coast of the South Island, in the Nelson province.
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