Protect Karangahake drop high court case against New Talisman

Thursday, 11 June 2015

The final legal hurdle stopping a mining company from entering Karangahake Gorge has fallen, as the company secures a major investor.

Coromandel conservation group Protect Karangahake had asked for a judicial review based on the fact a non-notified resource consent was issued to New Talisman Gold Mines by the Hauraki District Council.

The consent allowed for sample gold mining to be undertaken in Karangahake mountain's historic Talisman Gold Mine.

However the protest group learned on Wednesday it had insufficient evidence to win against the mining company and the council in the High Court at Auckland and dropped the case, just as New Talisman was securing $1.16 million in funding from investor Yang Xia. 

Protect Karangahake chairman Duncan Shearer said it was sad to be dropping the case, but new evidence had forced the group's hand.

Shearer said New Talisman and Hauraki District Council produced several affidavits which proved the council adequately assessed all aspects of the Resource Management Act. 

'We wanted to know whether we stood a chance in court, and if we didn't it was pointless to continue past this point.'

'We do have other avenues we will continue exploring, there are issues around the Department of Conservation and their access arrangement…we're going to continue fighting against this encroachment of mining in the Coromandel.

New Talisman chief executive Matthew Hill called the case withdrawal a 'milestone'.

'We have no legal hurdles in front of us whatsoever in regards to the bulk sampling project.

'We were quite confident in the process undertaken by Hauraki District Council - it's a very robust and methodological process.

'Following on from [Wednesday's investor announcement] it appears we're under significant pressure, well funded and well prepared to get on with reinvigorating this very productive mine… and we're quite pleased yet another milestone's been achieved.'

New Talisman said Xia will put up $1.16 million in funding in exchange for up to 25 per cent of the company and a seat on the board, subject to shareholder and sharemarket approval.

Another equity offer is in the pipeline, Hill said.

Hill could not confirm when sample testing would begin, but said it was basically pending approval of the company's traffic management plan and the outcome of the offer.

Shearer said he thought New Talisman still had a few more hoops to jump through before they could begin extracting ore.

'They haven't got a legal ability to take trucks up the mountain, they've still got an awful lot of work to do to make that mine safe, and WorkSafe have to tick it off all down the line.

'It's not happening soon, but we don't want it to happen at all.

'Protect Karangahake was always bigger than just a court case - we're here for the long haul,' Shearer said.

It's estimated the Talisman mine has about 205,000 ounces of gold, of which a 28,800 ounce 'reserve' is considered easily retrieved.

The mine is also thought to have about three times as much silver as gold. New Talisman, formerly Heritage Gold, has held a permit for the Talisman mine for more than 20 years.

The valid consents allow up to 20,000  cubic metres a year to be extracted from the mine but no discharge into the river system, Hill said.