Australasia Gold takes fresh look at historic Lawrence gold deposit

Trevor Ireland, managing director, says the geological setting and styles of gold mineralisation at Wetherstones are very similar to those of Gabriels Gully deposit 3km away which was the site of the first gold rush in New Zealand, in the 1860s.

In a paper to the recent Australasian Institute of Mining and Metallurgy conference in Nelson, Mr Ireland said that the gold mineralisation occurred in the Wetherstones basin which was approximately 4km long by 1.5 km wide.

Mineralisation of an elevated grade appears to be concentrated in an alluvial wedge or "gutter" a few metres thick with a width of around 100m, and an axial length of more than 500m.

The gutter near the surface was historically mined by sluicing and dredging methods. The unmined section plunges to depths of around 100m beyond which it lies open and untested.

Mr Ireland said the Wetherstones deposit has traditionally been dismissed as "low grade" or "too deep."

By contrast the records indicate a body of mineralisation which is itself potentially economic, open at depth, and accessible to open cut mining. The company is looking at the possibility of either bulk mining or a more selective mining — probably open cut but potentially underground.

No systematic exploration has been undertaken to assess the potential for additional similar gutters or shoots in the blue spur conglomerate. Potential upsides for the project would lie in pyrite-hosted gold, gold within the gravels and sands overlying the conglomerate and primary gold in the basement schist rock (gold has been obtained from a quartz rock reef between Wetherstones and Gabriels Gully).

Australasia Gold proposes to conduct a geophysical survey to outline in detail the floor of the Wetherstones Basin and drill to test the interpreted gutter and its extensions and to explore for additional gutters.

Mr Ireland said re-examination of the Gabriels Gully, Forsythe and Waitahuna basins may also reveal other areas of overlooked potential.

Australasia Gold was awarded a prospecting permit, PP 9265 in May 2004, covering 101 sq km surrounding Lawrence and its Wetherstones 40 664 exploration permit and including the Gabriels Gully area southward to Waitahuna.

The company was also awarded two Central Otago prospecting permits in mid 2004. The first, PP 39266, covering a 459 sq km area around the town of Naseby. The other is PP 39264, over a 250 sq km area around the village of St Bathans, another historic gold mining centre.