Santana Minerals has cleared key regulatory and operational hurdles for its Bendigo-Ophir Gold Project in New Zealand, with a 30-year mining permit granted and strong drilling results boosting project prospects ahead of targeted mid-2026 construction.
- 30-year mining permit granted by New Zealand Petroleum and Minerals
- Fast-track Approvals Act application accepted by Environmental Protection Authority
- High-grade drilling extends mineral resource footprint
- AUD 85 million cash on hand with no debt
- Project economics enhanced by rising gold prices
Regulatory Milestones Achieved
Santana Minerals Ltd has made significant strides in advancing the Bendigo-Ophir Gold Project (BOGP), located in Central Otago, New Zealand. The quarter ending December 31, 2025, saw the granting of a 30-year mining permit by New Zealand Petroleum and Minerals (NZPAM), a critical legal approval that secures the company's rights to extract and process gold from the Rise & Shine deposit and surrounding satellite areas. This permit, under the Crown Minerals Act 1991, marks a major de-risking event, underpinning the project's long-term viability and enabling further progress toward construction.
Complementing this, the Environmental Protection Authority (EPA) formally accepted Santana's Fast-track Approvals Act (FTA) application in November 2025. This acceptance initiates a statutory assessment timeline, with a decision expected by mid-2026, paving the way for full mine consents. The FTA submission was notably comprehensive, comprising over 9,000 pages of environmental and technical studies, reflecting the company's commitment to regulatory compliance and environmental stewardship.
Operational and Land Acquisition Progress
Operational readiness advanced with early site works including installation of water pipelines, road upgrades, and site access preparations. These foundational activities position the project well for a smooth transition into construction once final approvals are secured.
Strategic land acquisitions further solidified Santana's control over the project footprint. The company entered binding agreements to acquire key freehold land at Bendigo Station and Ardgour Station, covering critical open pit and infrastructure areas. This move not only secures long-term operational flexibility but also improves project economics by eliminating certain royalty pre-payments and securing water infrastructure corridors.
Resource Expansion and Drilling Success
Exploration drilling delivered exceptional results, particularly at the RAS North Honeypot zone, with standout intercepts such as 8.7 metres at 30.6 grams per tonne gold from 302.3 metres depth. Subsequent step-out drilling extended the mineralised system down plunge by 465 metres, confirming a broader and thicker ore body than previously defined. These results reinforce the potential for increased underground resources and support future mine plan expansions.
Robust Project Economics Amid Rising Gold Prices
The project's economic outlook has improved markedly due to a significant rise in gold prices, reaching approximately A$7,300 per ounce at the time of reporting. Updated financial modelling indicates an after-tax net present value (NPV) of A$2.77 billion at a 6.5% discount rate, more than tripling the base-case scenario. Internal rates of return (IRR) have also surged, with payback periods shortening to just over a year, highlighting the project's strong leverage to gold price movements.
Santana ended the quarter with a healthy cash position of AUD 85 million and no debt, providing a solid financial foundation to support ongoing development and financing negotiations. The company has proactively engaged an Independent Technical Expert to facilitate lender due diligence and streamline project financing.
Looking Ahead
With key permits in hand and construction targeted for mid-2026, Santana Minerals is poised to transition the Bendigo-Ophir Gold Project from development to production. The combination of regulatory progress, resource growth, and robust economics positions the project as a cornerstone asset within New Zealand's mining sector. However, the final Fast-track Approvals Act consent remains pending, and the company continues to refine its financing strategy to support construction and operations.
Bottom Line?
Santana’s Bendigo-Ophir project is on the cusp of construction, but the timing of final approvals and financing will be critical to watch.
Questions in the middle?
- When will the Environmental Protection Authority deliver its final decision on the Fast-track Approvals Act application?
- How will Santana structure project financing and which lenders will be involved?
- What impact will ongoing drilling results have on resource estimates and mine planning?