New Zealand’s Endura awards mining contract

Jake Klein-chaired Endura Mining has engaged ASX-listed Macmahon Holdings to pick up development and operation of its Snowy River gold mine, near Reefton on New Zealand’s South Island, under a A$406 million, five-year contract.

Endura, then Federation Mining, started twin decline development at the site of the past-producing Blackwater mine back in 2021 and established more than 3km of tunnels including ore drives into the historically significant Birthday Reef. From underground drill positions it pushed its drilled metres past 30km and outlined 244,000 ounces at an average 6.03 grams per tonne in reserves and nearly 800,000t grading 23.1gpt of resources.

Last November Endura announced A$150 million of equity funding for project development including a plant to produce circa-60,000oz a year at A$2400/oz AISC over a 10-year-plus mine life.

Former Evolution Mining boss Klein, Endura’s executive chair, said this week Macmahon’s appointment was a key project milestone on Snowy River’s path to gold production later this year. The fully operational mine was expected to employ more than 250 people.

“Macmahon brings a strong safety culture, proven underground mining expertise and a track record of delivering complex mining projects,” Klein said.

“Together we are committed to building a safe, sustainable and productive mining operation that will deliver lasting benefits for the West Coast region and all stakeholders involved in the project.”

Blackwater was a rich West Coast gold mine said to have produced about 733,000oz between 1906 and 1951 from two shafts excavated to 800m depth. Endura says the quartz-vein Birthday Reef mined continuously over an estimated 1km strike horizon “is still considered one of the richest and most consistent gold reefs discovered anywhere in the world”.

Macmahon says it will start mine development, production and backfill operations in October. Snowy River marked its return to New Zealand after it finished up at Newmont Mining’s Waihi gold mine in 2015.

“Endura has an experienced management team, led by executive chair Jake Klein, with a clear growth strategy to build a portfolio of gold and copper assets,” Macmahon CEO Michael Finnegan said.

“The Snowy River project is a high-grade underground gold mining project currently being developed to become one of New Zealand’s largest gold operations.”