L&M Mining has estimated the Earnscleugh flats gold resource was about 110,000oz.ĭuring the past year, it had returned on average about 750oz per month varying from 500oz to 900oz per month, depending on the gravel quality, Mr Loudon said. The dredge came from Waikaka, in Southland, where operations had been mothballed in 2002 in the face of declining gold prices.

The Earnscleugh operation, on a 150ha block, is one of the country's largest alluvial gold-mining operations, processing about 150cu m of gravel an hour. He denied a request to access the pit, as the operation was ''in lock-down'' while the ''situation was still being assessed''. With no production, there's no gold, and we want the 35 to be employed,'' Mr Loudon said. ''We're going hammer and tongs to get it refloated. He described much of the equipment on the dredge as ''indestructible'', and noted the diesel engine was not going at the time it sank, meaning water had not flooded the pistons. The deck was under about 2m of water in the pit, but access was relatively easy as most of the dredge's superstructure was above water, Mr Loudon said. The 30m by 12m dredge sat on steel pontoons. ''We don't know the cause, but most likely it was a leak,'' Mr Loudon said. It ''quickly settled'', but there was ample time to safely get off the vessel. Mr Loudon said staff noticed about dawn on Monday that the dredge was taking on water. Mr Loudon said it was still too early to estimate how long the salvage and repairs would take, and when operations could resume. L&M Mining's owner, Geoff Loudon, wants to reassure the 35 full-time staff their jobs are safe and the priority is to pump out, refloat, beach and repair the dredge, which weighs up to 850 tonnes when laden with gravel. L&M mining's Earnscleugh flats gold dredge near Alexandra has sunk and staff are working around the clock to refloat the 400-tonne vessel, which is integral to the $3 million start-up operation.

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