Gold operation gets under way right on target

Heavy machinery is used to extract gold from L and M Mining Ltd's site at Earnscleugh this week....
Heavy machinery is used to extract gold from L and M Mining Ltd's site at Earnscleugh this week. The mine plant is processing gravel wash from 22m below ground level. Photos by Rosie Manins.
L and M Mining Ltd is on target as it moves through the first stage of its planned seven-year project to extract more than 110,000 ounces of gold, worth $170 million on today's spot price, from the Earnscleugh flats.

From September, the operation along the Fraser River is expected to increase to having 40 staff on site 24 hours a day, seven days a week.

To date about 20,000cu m of gravel wash has been processed.

The company has not been prepared to disclose how much gold had been recovered.

Mine manager Mark Coleman, of Cromwell, said the 70-tonne mine plant L and M leased at present would be replaced with a larger plant for the project's second stage.

Members of the Earnscleugh Project Liaison Committee inspect L and M Mining Ltd's operation to...
Members of the Earnscleugh Project Liaison Committee inspect L and M Mining Ltd's operation to extract more than 110,000 ounces of gold, at a site visit this week.
With the new plant in place from September, about 250cu m of wash could be processed each hour, at a depth of 22m.

Ten staff have been working on site throughout stage one, since mining began in earnest from December last year.

Operation had so far been limited to daytime hours from Monday to Friday, as well as Saturday mornings.

L and M was first granted consents to mine at Earnscleugh in 2001, but the project was put on hold pending an Environment Court appeal and because of low gold prices.

The company announced its plan to start mining almost a year ago, and to begin groundwork in June.

Initial concerns about the project had largely been placated by conditions of consent as well as mitigation volunteered by L and M.

Project manager Shirley Herridge, of Christchurch, said two complaints had been lodged with the company since mining began, although both were resolved.

They related to problems with residents' water bores, but an investigation found L and M and the mine had nothing to do with the matters of concern.

Miss Herridge said all monitoring of the mine's surrounding environment had shown "no adverse readings".

As part of consent conditions, L and M had to continuously monitor air and water quality at and around the mine pit, and present its findings to the Earnscleugh Project Liaison Committee.

The committee was established partly to deal with any issues arising from the project, and comprised 11 local residents as well as representatives from L and M, environmental monitoring and mining contractors, the Department of Conservation, and Central Otago District Council.

A quarterly meeting of the liaison committee was held in Earnscleugh this week, following the group's first site visit to the mine since gold extraction began.

Independent facilitator Karin Bowen, of Alexandra, said committee members discussed the effect wind had been having on dust from the site, as well as other environmental factors.

A monitoring report for the period December 2009 to March 2010 showed all levels were within consent requirements.

The committee's next meeting was scheduled for June 23.

- rosie.manins@odt.co.nz

 

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