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Draft:Sams Creek mining

Sams Creek in New Zealand's Golden Bay / Mohua has been subject to gold mining exploration and mining proposals since 1974 when gold was first found by CRA Exploration (now Rio Tinto). Since then, the exploration rights have been sold many times: in 1991 to Macraes Mining Company, which became GRD Macraes and was then floated by that Australian-headquartered miner as a standalone New Zealand company called OceanaGold. In 2011, OceanaGold formed a joint venture with MOD Resources, with the latter company responsible for further drilling, and by 2015, MOD Resources owned 80% of the venture. Sandfire Resources acquired MOD Resources in 2019 and sold its rights to Siren Gold in 2022. Siren Gold holds 81.9% of the exploration rights in one of the two exploration areas, with the balance still held by OceanaGold. The other exploration area is fully held by Siren Gold. Together, the exploration areas cover 4,098.8 ha (40.988 km2). In 2004, OceanaGold reported an inferred[a] gold prospect of 750,000 ozt (23,000 kg). This was increased in 2012 by MOD Resources to an inferred gold prospect of 1,024,000 ozt (31,800 kg). After a significant drop in the resource estimate in 2013, the 2023 estimate stands at 824,400 ozt (25,640 kg), with 64% of that an indicated[b] resource.

Sams Creek was originally part of North-west Nelson Forest Park. With various mining proposals in that forest park, there was public desire to achieve a higher degree of protection for the forest park. Given effect to the mining interests, the Sams Creek area was one of sixty land parcels set aside when Kahurangi National Park was formed in 1996, and the area remains part of North-west Nelson Forest Park instead; the local boundary of the national park is at the ridge line above Sams Creek.

Geography

Sams Creek and land zones: yellow is Kahurangi National Park, grey is Sams Creek conservation area, green is North-west Nelson Forest Park, uncoloured is private land; purple line is Sams Creek and blue line is Sams Creek Middle Branch

Sams Creek is located on the south side of the Lockett Range.[2][3] The lower reaches of the waterway are located on land that belongs to North-west Nelson Forest Park, with the land classed as conservation park under the Conservation Act 1987. The upper reaches are located in Sams Creek conservation area, with the land classed as "specially protected area". Sams Creek flows into the Tākaka River.[2] The area is accessed via the Cobb Dam Road that runs along the true-left of the Tākaka River; it was built in the 1940s in support of the Cobb Reservoir and Cobb Power Station projects.[4]

In 1970, eight forest parks were amalgamated to form North-west Nelson Forest Park.[5] The North-west Nelson Forest Park covered approximately 360,000 hectares (3,600 km2) of land.[6] From the 1970s, mining companies explored within the forest park and that led to public requests to give the area the higher protection of a national park.[5][7] Much of the forest park plus parts of Mount Owen and Matiri State Forests became Kahurangi National Park in 1996.[5]

Around 60 land parcels of the North-west Nelson Forest Park were excluded from Kahurangi National Park for a variety of reasons. These include hydro stations, grazing leases, sphagnum moss gathering areas, and mining operations or interests.[5] As a result, remaining areas of North-west Nelson Forest Park are highly fragmented.[8] Macraes Mining successfully applied to have the Sams Creek area excluded from the national park.[7]

Mining exploration history

CRA Exploration (1974–1991)

Gold was first found in the Sams Creek area in 1974 by CRA Exploration.[9] From 1980 to 1987, Australian mining company Conzinc Riotinto of Australia (CRA)—which is these days part of Rio Tinto—was exploring the area by drilling.[10][11] In 1985, the Native Forests Action Council expressed concern over three large mining proposals in the North-west Nelson Forest Park, covering an area of 42,000 ha (420 km2) – larger than the area of Abel Tasman National Park. Sams Creek was one of the three proposals, and 26 drill sites had been established by then. To get access, CRA had bulldozed tracks into the steep-sided native forest.[12]

In 1987, CRA put its 701 ha (7.01 km2) Sams Creek prospect for sale, expecting NZ$10 million. The reason for their desire to sell was that they only wanted to deal with large scale deposits.[13] Two years later, CRA still owned the claim and had by then been given consent for bulk sampling 8000 tons of rock by the Minister of Conservation, Philip Woollaston. The advisory committee of North-west Nelson Forest Park gave its qualified support for bulk sampling, which the Maruia Society criticised as "small-scale mining".[14] In 1991, the founder of Macraes Mining Company—Miles Kennedy—negotiated the purchase of the exploration permits and assets from CRA Exploration at Sams Creek and Reefton. [10]

Macraes Mining, GRD Macraes, and OceanaGold (1991–2011)

Macraes Mining Company changed its name to GRD Macraes in 1998. From 2002 to 2004, GRD Macraes undertook further explorative drilling. In December 2003, the Perth-based parent company launched a share issue for a new New Zealand-based company to be called Oceana Gold (later styled as OceanaGold). The aim was to raise NZ$114 million, with half the income going to GRD Macraes in exchange for the New Zealand assets.[15][16] Oceana Gold listed on both the Australian and New Zealand stock exchanges in mid-March 2004.[17]

GRD Macraes sold its remaining shareholding in OceanaGold during 2006.[18] At the end of 2016, OceanaGold delisted from the New Zealand stock exchange, but kept its listings in Australia and Canada.[19]

MOD Resources (2011–2019)

Activities at Sams Creek ceased in 2004 and were taken up again in 2011 when OceanaGold formed a joint venture with MOD Resources. The latter company was registered in August 2011, formed from the Medical Corporation Australasia—a biotech company—by James Packer, Andrew Forrest, and former Multiplex director Tim Roberts (son of John Roberts).[20][21] Kennedy was chairman of MOD Resources.[9] The arrangement was that MOD Resources would fund further exploration, and would get 80% of the benefits from the venture. At the time, the exploration permit covered an area of 3,060 ha (30.6 km2).[10] In November 2011, MOD Resources announced that they intended to buy 80% of the Sams Creek asset from OceanaGold,[20] but the joint-venture arrangement stayed in place instead. Between October 2011 and March 2012, a drilling programme costing NZ$2.4 million was carried out by MOD Resources. The exploration permit was to expire in March 2012,[22] but was extended by five years based on the results.[9][23] In a statement to the Australian Securities Exchange (ASX), MOD Resources labelled Sams Creek "New Zealand's biggest undeveloped gold project".[9] By June 2012, MOD Resources had commenced its second drilling programme.[22] Drilling stopped in July 2014 after the gold price had dropped. At that time, MOD Resources owned 60% of the Sams Creek project, with the remaining 40% held by OceanaGold. When drilling stopped, the value of MOD Resources dropped from $9.5 million to $3.1 million through impairment losses that were applied.[24] From September 2015, MOD Resources owned an 80% share of the mining rights, with OceanaGold holding the balance. MOD Resources' rights were on the market since January 2016.[25][26]

During the consultation for Tasman District Council's Outstanding Natural Landscapes and Features report, MOD Resources "strongly opposed" the inclusion of Sam's Creek in 2017, and the area was not included in the report.[27] In July 2017, MOD Resources announced that it would sell its interests to Condamine Resources for A$3.8m to become a 15% minority shareholder.[25][26] However, by 30 June 2018, Condamine Resources had cancelled the share aquisition.[28]

Sandfire Resources (2019–2022)

Sandfire Resources acquired MOD Resources in October 2019 and thus became an 80% owner of the Sams Creek project.[29] In October 2020, it was announced that Sandfire Resources had entered into a sale agreement of their Sams Creek venture to Auris Minerals (at an estimated transaction value of A$23.3 million),[29] but the purchase agreement was terminated in June 2021 by Auris Minerals.[30] Condamine Resources changed its name to Siren Gold in August 2022.[31][32] Siren Gold is the trading name of the New Zealand company Sams Creek Gold Limited,[33] which is fully owned by Siren Gold Limited based in Perth.[34]

Siren Gold (2022–present)

In June 2022, Sandfire Resources sold its entire Sams Creek interest to Siren Gold for A$0.25 million.[35] In February 2025, Siren Gold recommenced exploration drilling at Sams Creek.[36] When Siren Gold applied for a mining permit in after one of their exploration permits expired, it became known that they intend to have both an open pit mine next to the Tākaka River, and an underground mine.[37]

Community reaction

During the time that CRA Exploration was active, the Native Forests Action Council, led by Guy Salmon, expressed the most concern. That was acknowledged by Murray Hosking, the director of environmental forestry of the Forest Service.[38] The president of the New Zealand Mining and Exploration Association, Roger Adamson, spoke of the potential economic benefits from gold mining at Golden Cross, Union Hill, and the Martha Mine at Waihi, Macraes Mine in Otago, and Sams Creek in Golden Bay.[39]

During the time of MOD Resources, Forest & Bird was the organisation that most actively opposed the exploration activities.[40]

The Sams Creek mining proposals attracted public attention once more from May 2024 due to the Fast-track Approvals Bill then proposed by the Sixth National Government of New Zealand – this has since been passed into legislation as the Fast-track Approvals Act 2024. In October 2023, Te Waikoropupū Springs received protection through a water conservation order (WCO), the highest level of protection that a body of water can receive in New Zealand. A WCO receives its statutory standing through the Resource Management Act 1991 (RMA), but the Fast-track Approvals Bill overrides the RMA and thus nullifies the WCO. The community concern arose from the Wharepapa Arthur Marble Aquifer, which feeds Te Waikoropupū Springs as well as providing the drinking water supply for residents and industry in the Tākaka Valley, being located close to or underneath where tailings from mining would be stored. An estimated 3700 tons of arsenic would be contained in the tailings, which was the centre of the community concern. Siren Gold applied for their mining project to be added to the schedule of the Fast-track Approvals Bill.[41][42] Projects that get progressed under the Fast-track Approvals Bill are not subject to input from the public or environmental groups, and local councils have 10 working days to provide input. Barry Johnson, Tasman District Council's environmental manager, commented:[43]

if you have a really complex thing like a gold mine, how the hell do you provide meaningful comment in that time?

Save Our Springs, a group that was set up while the water conservation order was considered by the Environment Court, presented a petition to parliament on 30 July 2024. During the two months that the petition was open, it was signed by 24,446 people. The group's requests were to exclude the Sams Creek project from the schedule of the legislation, and to include any activity that would occur in an area protected by a water conservation order among projects that would be ineligible for fast-tracking.[44][45][46] While the Sams Creek project was not listed in the schedule of the legislation—as it was not as far advanced as other fast track projects—the legislation when passed did not make allowance for water conservation orders.[47][36]

Sams Creek Collective, a group formed in 2024 to keep the Golden Bay water unpolluted, was particularly concerned about the proposal to either pump arsenic-laden waste into underground stopes or for it to be stored in a tailings dam next to the river; this became known in early 2025 through the mining permit application submitted by Siren Gold.[48]

Mining exploration area

Areas of two minerals exploration permits (dark green) and an application for a prospecting permit (red hatching)[c]

Sams Creek is a tributary on the true left of the Tākaka River in Tasman District. There are two minerals permits in the area plus an application for a prospecting permit, and all permits cover areas on both sides of the Tākaka River:[33][49][50] These permits are administered by government's regulator New Zealand Petroleum and Minerals (NZPAM).[51]

  • Minerals Exploration Permit 40338 with an operation name "Takaka River (Sams Creek)", covering 3,046.5 ha (30.465 km2); this permit is held by Sams Creek Gold Limited (operating as Siren Gold and owning 81.9%) and Oceana Gold (New Zealand) Limited (owning 18.1%)[33] Siren Gold applied to NZPAM in March 2025 to have the permit converted to a mining licence, and in the up to 12 months that it will take the government regulator to process the application, exploration can continue.[37][48]
  • Minerals Exploration Permit 54454 with an operation name "Barrons Flat", covering 1,052.3 ha (10.523 km2); this permit is 100% held by Sams Creek Gold Limited (operating as Siren Gold)[49]
  • Permit Application 61184.01 with an opeation name "Waitui", covering 3,416 ha (34.16 km2); this permit application has been applied for by Sams Creek Gold Limited (operating as Siren Gold)[50]

The "Takaka River (Sams Creek)" permit is from March 1998 and expired in March 2025. Due to its age, it cannot be extended as an exploration permit.[33] The only option for the permit holders to retain control is to upgrade the permit to a mining permit. And whilst Siren Gold executives have stated to the Golden Bay Community Board in July 2024 that the company has no detailed mining plans as yet, they were about to apply for the mining permit.[52]

Mineral resource estimate

The way a mineral resource estimate (MRE) must be reported is prescribed by the JORC Code (defined by the Australian Joint Ore Reserves Committee).[53] Mineral resources are either inferred, indicated, or measured, and these terms reflect increasing level of geological knowledge and confidence. Inferred resources are estimated based on limited geological evidence and sampling. Indicated resources are estimated with sufficient confidence that they can be used for mine planning and economic viability calculations. A measured resource has the highest level of confidence, and the results can be used for detailed mine planning and final economic viability calculations.[54] As of 2025, all MREs have always been made up of inferred and indicated resources, with none of them reported as measured.

During 2004, OceanaGold reported an inferred gold prospect of 750,000 ozt (23,000 kg) extending over a length of 7 km (4.3 mi).[10][55] By June 2012, MOD Resources reported to the ASX an increased inferred gold prospect of 1,024,000 ozt (31,800 kg). The updated estimate was provided by the Nelson office of Golder Associates,[22] In 2013, the resource estimate had been refined and reduced, with a total of 588,000 ozt (18,300 kg) made up of 187,000 ozt (5,800 kg) inferred and 402,000 ozt (12,500 kg) indicated resource. The resource estimate was again produced by Golder Associates based on open pit mining, with large areas of low-grade mineralisation.[56] In November 2022, Siren Gold published an updated estimate of a total of 807,800 ozt (25,130 kg) made up of 512,100 ozt (15,930 kg) inferred and 295,600 ozt (9,190 kg) indicated resource; this was again prepared by Golder Associates.[56] Siren Gold then engaged Measured Group (MG) to reanalyse the existing data and in January 2023, they published an updated estimate of a total of 824,400 ozt (25,640 kg) made up of 528,800 ozt (16,450 kg) inferred and 295,600 ozt (9,190 kg) indicated resource based on the previously used cut-off for gold at 1.5 g/t.[57]

250
500
750
1,000
1,250
1,500
2004
2012
2013
2022
2023
  •   inferred
  •   indicated
  •   measured

Scientific research

Research papers

A number of scientific papers deal with the gold mining proposal at Sams Creek.

Master's theses

Two master's theses have been written about mining at Sams Creek.

See also

Footnotes

  1. ^ "Inferred" is a mineral resource classification where the estimate has a low level of confidence.[1]
  2. ^ "Indicated" is a mineral resource classification where the estimate has a sufficient level of confidence.[1]
  3. ^ Permits 56704 and 60562 are smale-scale permits held by others covering waterways

References

  1. ^ a b "CIM Definition Standards for Mineral Resources & Mineral Reserves" (PDF). Canadian Institute of Mining, Metallurgy and Petroleum. 10 May 2014. Retrieved 20 December 2024.
  2. ^ a b "Place name detail: Sams Creek". New Zealand Gazetteer. Land Information New Zealand. Retrieved 1 June 2024.
  3. ^ "Place name detail: Lockett Range". New Zealand Gazetteer. Land Information New Zealand. Retrieved 1 June 2024.
  4. ^ "Cobb Valley". Department of Conservation NZ. Retrieved 23 April 2025.
  5. ^ a b c d "Kahurangi National Park Management Plan (incorporating the 2009/2010 partial review and 2016/2017 amendment)" (PDF). Department of Conservation. June 2001. Retrieved 9 November 2024.
  6. ^ "New forest park". The Press. 17 September 1970. Archived from the original on 3 August 2022. Retrieved 3 August 2022 – via Papers Past.
  7. ^ a b Hindmarsch, Gerard (July–September 1995). "Kahurangi; Our newest National Park". New Zealand Geographic (27).
  8. ^ "Place name detail: North-west Nelson Forest Park". New Zealand Gazetteer. Land Information New Zealand. Retrieved 9 November 2024.
  9. ^ a b c d Moore, Bill (1 May 2012). "Gold promise gets more scrutiny". The Nelson Mail. Nelson, New Zealand. p. 3. ProQuest 1010399122.
  10. ^ a b c d Goodger, Karen (13 October 2011). "Companies to evaluate gold in Golden Bay; GOING FOR GOLD". The Nelson Mail. Nelson, New Zealand: Fairfax Media. p. 1. ProQuest 243439111.
  11. ^ "CRA says it will return". The Press. 12 June 1985. p. 36. Retrieved 16 November 2024.
  12. ^ "Moratorium on park drilling sought". The Press. 5 December 1985. p. 72. Retrieved 16 November 2024.
  13. ^ "$10M tag on CSR claim". The Press. 1 July 1987. p. 39. Retrieved 18 November 2024.
  14. ^ "Maruia Soc. to fight prospecting licence". The Press. 26 September 1989. p. 3. Retrieved 18 November 2024.
  15. ^ "Oceana Gold's pot at the end of the rainbow". The New Zealand Herald. 25 August 2004. Retrieved 19 December 2024.
  16. ^ Daniels, Chris (18 November 2003). "$57m to boost quest for gold". The New Zealand Herald. Retrieved 19 December 2024.
  17. ^ "Oceana Gold posts A$10.9m half year profit". The New Zealand Herald. 24 August 2004. Retrieved 19 December 2024.
  18. ^ "GRD sells out of Oceana Gold". The New Zealand Herald. 8 September 2006. Retrieved 19 December 2024.
  19. ^ Underhill, Jonathan (28 November 2016). "OceanaGold to delist from NZX to trim compliance costs". The New Zealand Herald. Retrieved 19 December 2024.
  20. ^ a b "New Zealand mine acquired by MOD Resources". Mining Engineering. 63 (11). Littleton: 17. November 2011. ProQuest 908875991.
  21. ^ Forrestal, Luke (1 July 2012). "Upgrade boon for Golden Bay gold". Sunday Star-Times. Wellington. p. D12. ProQuest 1022708083.
  22. ^ a b c Basham, Laura (26 June 2012). "Bay gold strike worth $2 billion; Multimillion ounce reserve". The Nelson Mail. Nelson, New Zealand. p. 1. ProQuest 1022185209.
  23. ^ Moore, Bill (11 June 2012). "Drilling at Sams Creek reveals greater gold resource". The Nelson Mail. Nelson, New Zealand. p. 1. ProQuest 1019779514.
  24. ^ "Miner cuts value with drilling on hold". The New Zealand Herald. 7 July 2015. Retrieved 19 December 2024.
  25. ^ a b Boot, Sophie (3 July 2017). "Sams Creek Gold owners sell major stake". NZ Newswire. ProQuest 1915230977.
  26. ^ a b Hartley, Simon (10 July 2017). "Sams Creek gold prospect sold". Otago Daily Times. Retrieved 19 December 2024.
  27. ^ Hindmarsh, Nina (6 March 2017). "Protection plan 'seems ridiculous'". The Nelson Mail. p. 1. ProQuest 1874431811.
  28. ^ "Condamine Resources Ltd cancelled the acquisition of 80% stake in Sams Creek Gold Ltd from MOD Resources Limited". MarketScreener. 29 June 2018. Retrieved 19 December 2024.
  29. ^ a b Rani, Kondapuram Sampangi Archana (5 October 2020). "Divestment of Sams Creek Gold Project in New Zealand". NS Energy. Retrieved 19 December 2024.
  30. ^ "Termination of Sams Creek Share Purchase Agreement". Auris Minerals Limited. Retrieved 19 December 2024.
  31. ^ "Reefton Goldfield, New Zealand" (PDF). Siren Gold. July 2022. Retrieved 19 December 2024.
  32. ^ "Prospectus" (PDF). Siren Gold. 31 August 2020. p. 90. Retrieved 20 April 2025.
  33. ^ a b c d "Record 40338: Minerals Exploration Permit". New Zealand Petroleum & Minerals. Retrieved 20 December 2024.
  34. ^ "Sams Creek Gold Limited (3508391) Registered". New Zealand Companies Office. Retrieved 26 December 2024.
  35. ^ "Siren Acquires Sams Creek Project". SirenGold. Retrieved 19 December 2024.
  36. ^ a b Gee, Samantha (20 February 2025). "Siren Gold mining company drilling at Sams Creek, Golden Bay". Radio New Zealand. Retrieved 20 April 2025.
  37. ^ a b Gee, Samantha (11 April 2025). "'Much, much worse than we thought' – Residents oppose Australian bid to mine in Golden Bay bushland". Radio New Zealand. Retrieved 20 April 2025.
  38. ^ "Threat of large-scale mining acknowledged". The Press. 8 January 1986. p. 23. Retrieved 18 November 2024.
  39. ^ Adamson, Roger G. (11 August 1986). "Mining and the N.Z. economy". The Press. p. 20. Retrieved 18 November 2024.
  40. ^ Young, Sarah (14 October 2011). "Battle warning in Golden Bay mining; Forest and Bird oppose planned gold exploration". The Nelson Mail. Nelson, New Zealand. p. 3. ProQuest 901235361.
  41. ^ Ridout, Amy (29 May 2024). "Fast-track gold mine plan 'huge concern' for Golden Bay". The Nelson Mail. Retrieved 19 December 2024.
  42. ^ Richards, Jo (21 June 2024). "Mine plan remains unclear". GB Weekly. pp. 1, 3. Retrieved 19 December 2024.
  43. ^ Williams, Lois (28 July 2024). "Tākaka defends its pristine spring from Aussie miners". Newsroom. Retrieved 20 December 2024.
  44. ^ "Petition of Kevin Moran on behalf of Save Our Springs: Don't fast track Te Waikoropupū". New Zealand Parliament. 31 July 2024. Retrieved 21 December 2024.
  45. ^ Williams, Lois (28 July 2024). "Tākaka defends its pristine spring from Aussie miners". Newsroom. Retrieved 21 December 2024.
  46. ^ Richards, Jo (2 August 2024). "Mine petition presented to parliament". GB Weekly. p. 3. Retrieved 26 December 2024.
  47. ^ Hubbard, Catherine (10 October 2024). "Gold mine's fast-track refusal changes nothing for opponents". The Nelson Mail. Retrieved 20 April 2025.
  48. ^ a b Richards, Jo (11 April 2025). "Siren seeks mining permit". The GB Weekly. pp. 1, 3. Retrieved 20 April 2025.
  49. ^ a b "Record 54454: Minerals Exploration Permit". New Zealand Petroleum & Minerals. Retrieved 20 December 2024.
  50. ^ a b "Record 61184.01: Application for Minerals Permit – Record Status: Under Evaluation". New Zealand Petroleum & Minerals. Retrieved 26 December 2024.
  51. ^ "Who we are and our role". New Zealand Petroleum and Minerals. Retrieved 21 April 2025.
  52. ^ Richards, Jo (13 September 2024). "Gold execs visit Bay". GB Weekly. pp. 1–2. Retrieved 26 December 2024.
  53. ^ "JORC Code Update". Joint Ore Reserves Committee. Retrieved 19 April 2025.
  54. ^ "The JORC Code: 2012 edition" (PDF). Joint Ore Reserves Committee. pp. 12–13. Retrieved 19 April 2025.
  55. ^ "Oceana expands assets". The Northern Miner. Toronto, Ontario. 3 September 2004. p. 8. ProQuest 243439111.
  56. ^ a b "Sams Creek Mineral Resource Estimate exceeds 800,000oz at higher grade" (PDF). Siren Gold. 17 November 2022. Retrieved 19 April 2025.
  57. ^ "Global Resource Reaches Key 1Moz Milestone" (PDF). Siren Gold. 30 January 2023. Retrieved 20 April 2025.