5/12/2014 — General
The big Government spend on exploration will be airborne
By Simon Hartley
Most of the $8 million the Government is putting into mineral, and oil and gas geotechnical studies will be spent on aerial aeromagnetic surveys - including more over Otago.
In its Budget in May, the Government set aside $8 M to spend over four years on studies around the country, with Energy and Resources Minister Simon Bridges saying yesterday about $6.4 M was for new aeromagnetic and specific geotechnical studies.
The findings go into a data base of permitting agency New Zealand Petroleum & Minerals, which international exploration companies can access, to encourage them to apply for exploration permits.
Combined with previous aerial surveys, including the biggest which was around Otago, the new surveys would lift coverage to about 30% of New Zealand's total land area.
“The data collected will have a wide range of applications in fields such as geological mapping and geological hazard assessment, as well as potential mineral exploration,” Bridges said.
One of the most active explorers in recent years former Glass Earth Gold - now Antipodes Gold Ltd (TSX-V & NZAX: AGX) - combined with the Otago Regional Council in a $4 M aeromagnetic survey of Otago in 2007, covering 1.3 million hectares, used for broad use, not just exploration.
Glass Earth had spent more than $40 M prospecting around mainly Otago, but sold its boutique alluvial operations in Central Otago in mid-2013, switched its focus to central North Island tenements, then rebranded as Antipodes.
Following the earlier Otago survey, the Government had since surveyed Northland and the West Coast in recent years, with the next aerial programme shifting focus to Nelson-Marlborough, Southland and parts of Otago, Bridges said.
Providing comprehensive data to potential investors helped New Zealand compete on the international market for petroleum and mineral exploration and development, he said.
“Good data can tip the balance of investment decisions in our favour,” Bridges said.
The Government would spend $1.6 M on petroleum data projects and studies, including a national project to audit well outcomes and by gathering additional (offshore) frontier basin data through NIWA's research vessel, the RV Tangaroa, he said.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.
Companies mentioned in article
Antipodes Gold Ltd
New Zealand Petroleum and Minerals