New Zealand’s new government has introduced a fast-track approvals Bill for infrastructure and mining projects, significantly reducing permitting time from two years to six months. This change has sparked a revival of exploration activity in a country that once experienced a gold rush comparable to California’s.
The Impact of Regulatory Changes
Under the previous government, exploration in New Zealand was effectively halted when former Prime Minister Jacinda Ardern implemented a ‘no new mines’ policy in 2017. The new government’s shift in approach has opened the door to modern mining prospects, with Reefton Goldfield on the South Island emerging as a prime target.
RUA Gold (TSXV: RUA) is at the forefront of this resurgence, having acquired Reefton Resources, a subsidiary of Siren Gold (ASX:SNG), for A$20 million. This acquisition gives RUA control over a tenement package covering over 95% of Reefton Goldfield.
RUA Gold’s Strategic Move
RUA CEO Rob Eckford described the acquisition as a strategic play to consolidate the entire Reefton district under one company. “We’re taking over the whole Reefton district,” he said. “The land package we have was 35,000 hectares with four historic mines. We’re focused on drilling and finding gold intercepts.”
This marks the first time that so much land in Reefton has been under a single party’s control.
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Competition in the Region
Currently, there are two main players in the area: Oceana Gold (TSX: OGC), which operates the Globe Progress project on the North Island, and Federation Mining, which holds the Blackwater project with a 785 koz deposit.
Federation Mining, a privately held Australian company, emerged as a late contender in the acquisition race. They presented a rival bid just days before the Siren Gold shareholder vote in October, offering Siren a 17.5% share in the merged company and an immediate cash injection of A$4.5 million.
A Close Call for RUA
Federation Mining’s bid for Siren Gold came as a surprise, forcing RUA into a rapid response mode. The company sweetened its offer with an additional $2 million investment to secure shareholder support. Despite the increased competition, RUA’s proposal was ultimately accepted by 75% of Siren shareholders.
Eckford believes the vision and value proposition of RUA Gold resonated with shareholders. “We’ve built eight mines, and we’ve founded a number of operations,” he said. “Despite our lower number, the shareholders saw the value uplift potential.”
RUA Gold’s Vision for Reefton
RUA Gold aims to become the primary gold developer in the region now that the majority of the Reefton district is under its control. “We are the New Zealand district roll up,” Eckford stated.
The company plans an aggressive drilling program, allocating C$5 million over the next six months to explore the region. “We’re doing everything responsibly,” Eckford added. “We’re just doing things as opposed to doing nothing.”
This approach creates an opportunity to develop a world-class, scalable mining operation in an area with high-grade production that remains considerably under-explored at depth.
A New Era for New Zealand’s Mining Sector
The Reefton Goldfield, which produced over 2 million ounces of gold between 1870 and 1951, is seen as New Zealand’s next major mining jurisdiction. The gold price’s recent rally to historic highs adds further impetus to exploration efforts.
RUA Gold’s acquisition strategy has positioned it as the frontrunner in a competitive market, with Federation Mining now serving as the main rival. Both companies are vying to unlock the full potential of Reefton’s high-grade gold deposits.
Outlook for the Region
With the regulatory environment now more favorable, New Zealand’s exploration sector is poised for a resurgence. The Reefton Goldfield’s rich history and the recent changes in permitting policy have created a unique opportunity for the development of modern mining operations.
As RUA Gold and Federation Mining vie for control of this historic gold district, the region’s future as a mining hotspot seems assured. The Reefton Goldfield is likely to play a central role in New Zealand’s mining industry in the years to come.
