Minerals West Coast
Newsletter #9 September 2007

In this edition:

West Coast Mineral Assessment
Seafield resources Phase Two

West Coast Mineral Resource Assessment

Minerals West Coast is proposing to complete a regional mineral resource assessment (MRA) of the West Coast region in association with the New Zealand Minerals Industry Association, GNS Science and the New Zealand Institute of Economic Research. The project would provide benefits for a number of Coast agencies, particularly the West Coast Regional Council, Buller, Grey and Westland District Councils and Department of Conservation. It will also be an integral input in to the Regional Economic Development Strategy currently being updated. The results would provide a substantive basis for an economic assessment of the potential value of known and undiscovered mineral resources on the West Coast.
Similar regional resource assessments have been completed in Northland and Otago. GNS Science, NZMIA and Crown Minerals (Ministry of Economic Development) have been engaging with councils in Northland and Otago with the aim of increasing the use of geoscience and related data more effectively to achieve two results – the more efficient management of minerals through the processes of the Resource Management Act, and to achieve local and national economic benefits through realising this country’s mineral potential. When funding is secured and the project goes ahead we will be seeking input from the local operators and companies to compile the report.

Assessment Potential
The four main potential benefits of such an initiative are:
  • Better recognition of the location and value of subsurface resources; for local and regional use (aggregate particularly) for:
    • More efficient management of resources
    • Minimising resource-use conflict and;
    • Holding down the cost of the raw material supplies for developing infrastructure for a growing population.
  • Creation of a database of mines, mineral occurrences and areas with mineral potential in the region that could contribute to more efficient land use management decision-making throughout the region, particularly during planning and strategic decision making by territorial and regional authorities, and the Department of Conservation.
  • Support for the discovery of high value minerals (e.g. industrial minerals and gold) that could generate significant local economic benefits and contribute to New Zealand’s exports.
  • Quantifying the actual and potential contribution that mineral resources can make to the prosperity of the region

Results
Results would be documented in a GNS Science report describing the geology and resources of the area, mineral deposit models and the results of the assessment. A CD-ROM would also be available. A compilation of mines and mineral potential would be provided for use in schools.
It is envisaged that the West Coast report would follow a similar style to the Northland report, but it would be more comprehensive, because of the additional quantity of minerals information available for the West Coast and because of the West Coast’s larger established minerals industry. It would also provide an inventory of the regions operating mines as provided by the operations themselves.
NZIER would use the results of the mineral resource assessment to quantify the potential economic impact of increasing development of the mineral resources of the West Coast region. The purpose of the analysis is to determine what additional economic benefits accrue, in terms of output, value added and employment, and GDP from a scenario of increased mineral production.

Funding
Seed funding for the project has been provided by a minerals outreach project and mineral resource assessment research project, both at GNS Science and funded by the Foundation for Research Science and Technology. However, these are insufficient to meet the full costs of the mineral resource assessment project and are not available to contribute to the economic assessment by NZIER. Therefore additional funding would be needed, the amount depending on the scope of the studies. This would be developed in consultation with West Coast agencies.

On the web
A summary of the results of the Northland study can be found on line.
www.enterprisenorthland.co.nz/downloads/northland_mineral_potential_summary2007.pdf
Comments from Regional Councillors and CEO on use of information can be found in the July NZMIA e-Newsletter www.minerals.co.nz/enews/enews0707.html
NZIER www.nzier.org.nz
GNS Science www.gns.co.nz
New Zealand Minerals Industry Association www.minerals.co.nz
Minerals West Coast www.mineralswestcoast.co.nz

Seafield Resources Phase Two Well Underway
Airborne magnetic gradiometric surveys over the inner shelf of Hokitika have been conducted as part of the second phase of Seafield’s exploration programme off the West Coast. At the same time a marine geophysical survey has been undertaken between the Grey and Karangarua Rivers and a team of scientists has completed a survey of the shoreline with handheld magnetometers. This data will now be collated to form a geophysical model and identify potential sampling areas for Phase Three of the project. Results from this phase will determine whether the company will
seek consent to proceed with exploration and/or mining.


Keith Brodie
MWCT Project Coordinator