Alluvial Gold Deposits and Mining Opportunities on the West Coast, South Island

The West Coast contains one of the world's giant placer gold deposits with production since the 1860s totalling some six million ounces (present day value NZ$ 3.6 billion). The deposits have been worked variously by hand, ground sluicing, hydraulicking and/or elevating, blocking out, deep leading and bucketline dredging. Since the sharp gold price rise of 1979 - 1980 gold production has increased steadily (in spite of the closure of the Kaniere dredge) to some 30 000 ounces (933 kg) in 1984. Production is primarily from some 100 medium scale mining, operations treating 50 - 200 000 m3 of auriferous late Pleistocene fluvial gravels year. In spite of their economic value the deposits remain only poorly investigated and many fundamental questions relating to the origin and formation of the deposits remain unanswered. This paper attempts to describe the geology of the deposits and outline a genetic model for their formation, and then discusses some of the economic aspects and current limitations and opportunities of the growing alluvial gold mining industry of the region.