Dow Jones newswire:DJ Heritage Gold Obtains Gold Mining Permit...

Dow Jones newswire:

DJ Heritage Gold Obtains Gold Mining Permit In NZ's Coromandel

Thu. December 03, 2009; Posted: 10:34 PM


WELLINGTON, Dec 03, 2009 (Dow Jones Commodities News via Comtex) -- HGMNF | Quote | Chart | News | PowerRating -- Heritage Gold NZ Ltd. (HG.NZ) said Friday it has been granted a gold mining permit in New Zealand's pristine Coromandel tourist destination on the North Island.
The 25-year Talisman mining permit has the potential to produce an annual 50,000 ounces of gold over three years, with a medium term objective of up to 100,000 ounces of gold annually, Heritage Gold said.

An earlier scoping study suggested geological potential ranging from 0.83 million ounces to 3.3 million ounces of gold.

The project, located on park land belonging to the Conservation Department, will also require constructing a suitable treatment plant to process the ore nearby.

The government this year has been investigating moves to open up Conservation Department land to mining activities, a plan that conservation groups vigorously oppose.

Heritage Executive Director Peter Atkinson said, however, that the ground is a mining center. The original mine dates back to 1875.

He didn't anticipate any difficulty negotiating the necessary access with the department.

"We've already got an access arrangement for prospecting and now we have to negotiate one for mining."

Atkinson said Heritage Gold, which is listed in New Zealand and Australia, is not planning on raising any additional capital to develop the site.

"We are looking for a joint venture partner. We are looking for someone to provide development capital and also underground mining expertise as this is a narrow vein underground mine," he said.

He said the company has been negotiating with Chinese groups for several months.

-By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; [email protected]

(END) Dow Jones Newswires

12-03-09 2234ET

For full details for HGMNF click here

http://www.tradingmarkets.com/.site/news/Stock%20News/2699926/