Mining at Blackwater was to a vertical depth of 700 metres before the mine shaft collapsed in 1951 and the mine was closed. The approach by Federation Mining referred to by Metaljuane likely weighed up the risk of diamond drilling from surface to hit the orebody at 700 metres against the cost of sinking parallel declines with follow up diamond drilling from underground and closer to the target.
Given they chose the later strategy, one can assume that Jim Askew and Mark Le Messurier were very confident in the resource previously identified by Oceana Gold. And Federation's strategy was supported by Australian Super and the New Zealand Government backed Provincial Growth Fund who jointly provided $65M of funding.
Siren Gold's drill intersections are typically < 300 metres from surface (the best result of 2.5 metres at 358.2 g/t Au was at a depth of 275 metres) so the approach by Siren is different to that of Federation.
The commitment by Australian Super and the Provincial Growth Fund shows that mining is supported at Reefton and positive results by Federation will benefit all players in the region.
Does anyone know what is happening with the Oliver Lennox King and Eric Sprott backed Reefton Goldfields who are exploring at the Capelston tenements that adjoin Siren Golds tenements? There are some very big names at Reefton. I wonder why!
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