4 April 2025

Siren Gold issued an ASX announcement (www.sirengold.com.au/site/showdownloaddoc.aspx) yesterday advising that on 21 March 2025, it lodged its Sams Creek Mining Permit Application with New Zealand Petroleum & Minerals (NZPAM). Sams Creek Collective is responding to this announcement and several of its key points.

Siren’s application is based on a Scoping Study on the known mineral resource of Sams Creek and if granted, the Mining Permit will replace the exploration Permit EP40338. Whilst the mining permit application is being considered by NZPAM, Siren plans to continue exploring in the hope that further drilling will increase the amount of gold they can claim is indicated. 

Siren Managing Director and CEO, Victor Rajasooriar, commented: “The findings from the Scoping Study at Sams Creek drive home the regional significance of the project and provide additional confidence that both an open pit and an underground operation are potentially financially viable. 

Siren has set out that it is studying two mining options at Sams Creek, for the first time stating that both of which include open pit mining in this beautiful area next to conservation land:

• Option A: A small open pit at the SE Traverse and a large open pit at Main Zone, followed by an underground mine. The underground mine would be accessed through a portal to be constructed near the base of the Main Zone pit. Underground stopes would be backfilled with cemented aggregate.
• Option B: A small open pit, followed by a larger underground mine. The underground mine would be accessed through a portal to be constructed near the base of the SE Traverse pit and would mine out the Main Zone. With the portal being located close to the processing plant, paste filling of the underground stopes could be considered, thereby reducing the size of the tailings storage facility.

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Sams Creek Collective was aware that the application was to be lodged in late March.  It’s very disappointing that Siren effectively obtains an extension to their exploration permit by applying for a mining permit, allowing them to continue drilling while their application is considered. It is a significant extension, as mining permits often take 12 months to process.

We are dismayed that both mining options feature open pit mines, and the location of operations is deeply disturbing.  Both the SE Traverse and Main Zone are under very steep land, and the siting of an open pit “at the base of the SE Traverse” would position it just beside the Tākaka River. This would also see the processing plant located beside the river.

With the processing plant now proposed for a location next to the Tākaka River, traffic on Cobb Dam Road would increase significantly. This road is unsuitable for higher traffic flows or for truck traffic; it is mostly single-lane and has numerous blind corners. In the first 1500 m from Sams Creek towards Upper Tākaka, there are 23 blind corners.

Despite Siren having given repeated assurances in its communications with us and with TDC that no tailings will be stored near the marble aquifer, the mention of paste filling/backfilling of underground stopes indicates their intention to do exactly that – it refers to rendering the arsenic-laden waste product into a paste which can be pumped into the underground tunnels.  

Both the Main Zone and the SE Traverse are not only well within the marble aquifer catchment area but are adjacent to the Tākaka River.  Flooding could see this toxic sludge washed into the river and on into the aquifer. In addition, it is directly in the path of the Cobb Dam deluge path, should the dam fail (for example, in the anticipated AF8 alpine fault earthquake).

To extract thousands of tonnes of arsenic rock, powder it, and put it near a river and a marble aquifer and hope that engineering will keep it safe for all time is simply put, taking a gamble with our water.

We are dismayed that the open pit/s, tunnel entrances and processing plant will be on land controlled by DOC, in an area known for its high conservation values. We call on DOC to deny access to Siren Gold to protect this taonga.

We note that the ‘indicated’ gold resource is currently very small at just 295,000 ounces, while most of the gold is merely ‘inferred’.  These are JORC code (the Australasian code for reporting of exploration results, mineral resources and ore reserves) terms describing the level of confidence about a resource. ‘Measured’ means one can be confident the gold is there.  None of the Sams Creek gold is measured. ‘Indicated’ means there is sufficient data to estimate the amount of gold.   ‘Inferred’ is regarded as completely speculative, and the code spells out that investors should not rely on ‘inferred’ data. If people want to invest in gold, there are much better options elsewhere.

How has it been possible for Siren to provide the required proof to NZPAM that they have an economically extractable resource given such a low level of confidence as to the size of the resource? Siren themselves admit that they are “not able to release forecast production and financial information” exactly because of this lack of certainty.

To embark on a mining operation under these circumstances is exactly the scenario where companies go bust part way through operations and leave a mess that tax and ratepayers must clean up. 

We are disappointed to note that the announcement makes no mention of community engagement.  Despite telling the people of Golden Bay that they would bring the community along with them, Siren has to date denied knowing what they would do or where they might do it.  Suddenly it now seems they know very well what they intend to do.

As mentioned in our 7 March 2025 radio interview on Fresh FM, this is just the latest in a series of failures to keep the community informed – communicating solely via ASX announcements (which are for investors, not the general public) and failing to respond to requests for information (including our recent request for a copy of the Mining Permit Application and the Scoping Study).

Gold, despite the pronouncements of Shane Jones, is not a critical mineral. There is enough gold locked up in bank vaults around the world to cater both for unhindered speculation and industrial uses.  The amount of gold Sams Creek might yield is insignificant in comparison. This mine is purely for the financial benefit of Siren Gold.

We will continue to oppose a gold mining operation which would see toxic chemicals stored at the head of our waterways, which are the lifeblood of our beautiful region, community, and pristine Te Waikoropupū Springs.  Golden Bay does not want to be known as ‘regionally significant’ in future decades for water and environmental pollution caused by the very real risk of mining waste accidents.

www.samscreek.nz
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