Clutha Gold Trail Trust chairman Rod Peirce said the group was progressing with its plans for the 73km cycleway and walking trail, and was optimistic about securing funding in the next round of grants from the $50 million New Zealand Cycleway Fund.
A feasibility study carried out last year found the $5.5 million project was viable, and the Central Otago and Clutha District Councils have each allocated $30,000 in start-up funding.
"Although there was no mention of Clutha Gold in the Prime Minister's announcement about funding [on Monday], we thought it was likely that projects at the top of the North Island and bottom of the South Island would be included in the first lots of cycleway funding," Mr Peirce said.
"Our plans are further along than those mentioned and we're virtually up and running. We've been led to believe that we're in line for funding in the second round."
The trust had realised a link to Queenstown and Wanaka was crucial to the Clutha Gold Trail's success so it planned to connect to trails in those areas.
It would also link into the proposed Alexandra-to-Roxburgh trail and the Otago Central Rail Trail, Mr Peirce said.
"Here in Roxburgh we're equidistant to everywhere and our trail would complement the others planned, rather than be in competition, so we've been talking about forming clusters of tracks throughout Otago and Southland, to apply for funding."
There was the potential to be part of an Otago circuit of trails and link in with a southern circuit as well.
The next stage of the trust's plans was to negotiate easements with landowners, he said.
There were 22 easements over private land to negotiate and the trust was also in discussion with five corporate bodies - the two district councils, the Department of Conservation, Contact and the New Zealand Transport Agency.
"Things are at a very preliminary stage but so far there's been nothing negative from the landowners," Mr Peirce said.
If all route easements, surveys and consents were obtained by spring next year, construction could begin and possibly be completed by summer the following year, to tie in with Lawrence's celebrations marking the 150th anniversary of Gabriel Read's discovery of gold.
