Mining Permit Delay Could Stall Siren Gold’s Sams Creek Expansion Plans

Sams Creek’s Geological Promise

Siren Gold Limited (ASX, SNG) has provided a comprehensive update on its flagship Sams Creek Project, situated in New Zealand’s South Island. The project is centred on a substantial gold mineralised porphyry dyke, which extends over 7 kilometres along strike, is up to 50 metres thick, and plunges vertically for at least 1 kilometre, remaining open at depth. This geological setting underpins a current Mineral Resource Estimate (MRE) of 953,000 ounces of gold at an average grade of 2.4 grams per tonne, highlighting the project’s significant scale and grade.

The company’s recent drilling efforts have focused predominantly on the Main Zone fold, a gently northeast-plunging structure that hosts the bulk of the resource. However, new exploration success has emerged with the identification of the Doyles fold, located 500 metres west of the Main Zone. Deep drillholes intersected mineralisation in this fold at depths up to 700 metres below surface, with encouraging gold grades, suggesting that Sams Creek’s resource base could expand substantially beyond current estimates.

Advancing Towards Mining Approval

Siren Gold has lodged a mining permit application with New Zealand Petroleum & Minerals, a critical regulatory milestone that would enable the transition from exploration to development. The company anticipates a decision on this application by the end of 2025, a timeline that will be closely watched by investors. The permit would grant Siren the legal right to extract and process gold from the project area, paving the way for construction and eventual production.

Supporting the permit application is a detailed Scoping Study that outlines two mining options involving a combination of open pit and underground mining methods. The study confirms the project’s technical viability, with metallurgical testwork indicating gold recoveries of up to 90% and a nominal processing throughput of 1.25 million tonnes per annum. The design includes a centralised underground mine access, which could efficiently service multiple mineralised folds, enhancing operational scale and cost-effectiveness.

Resource Growth and Classification Upgrade Plans

Looking ahead, Siren plans to complete an extensive infill drilling campaign by mid-2026, targeting the SE Traverse, Carapace, and Main Zone areas. This drilling aims to convert a significant portion of the resource from the Inferred to the higher-confidence Indicated category under the JORC Code. Such an upgrade is essential for refining the project’s economic models and attracting development capital.

The company expects to release an updated Mineral Resource Estimate and an enhanced Scoping Study by the third quarter of 2026. These updates will incorporate new drilling data and provide a clearer picture of the project’s scale, grade continuity, and economic potential. Siren’s leadership expresses confidence that Sams Creek remains significantly underexplored, with multiple fold targets offering substantial upside beyond the current resource.

Strategic Positioning in a Tier 1 Jurisdiction

Located within New Zealand’s Northwest Nelson Conservation Park, Sams Creek benefits from a stable, mining-friendly jurisdiction with established infrastructure and a low-cost operating environment. Siren’s access agreements with the Department of Conservation and local stakeholders position the project well for responsible development with minimal environmental disturbance.

The company’s chairman and interim managing director, Brian Rodan, highlights the compelling case for scale and efficiency presented by the project’s geological setting and planned underground access. He also notes the potential for a significant re-rating of Siren Gold’s valuation upon successful permit approval and delivery of the updated studies.