14 Aug 2014

New search for gold under ghost town

12:19 pm on 14 August 2014

Approval has been given for a new gold mine beneath a West Coast town abandoned for decades.

Trans-Tasman mining company Oceana Gold has been granted consent to mine a rich seam of gold deep beneath the ghost town of Waiuta.

The town was abandoned 63 years ago after a mine collapse.

Buller mayor Garry Howard hopes the new mine will open within five years.

"It is good news for the West Coast that people are planning and doing the exploratory work and getting approvals to move forward.

"The exact timing of when they actually start mining will much depend on the markets and the New Zealand dollar."

The new venture comes as the company makes plans to mothball the nearby Reefton Mine, though Mr Howard says the new gold mine would probably open too late for some of the miners being made redundant.

He said it was not yet confirmed how many of the 240 jobs at Reefton will go as the mine winds down operations.

"It has a large flow-on effect throughout the communities but it is an awakening that we can't rely on just one sector, mining, and that we've got to actually have a bigger broader look at activities that can happen on the Coast."

Other promising sectors for development on the West Coast include horticulture, technology and education, he said.