Highlights

  • Santana Minerals secures 30-year mining permit for Bendigo-Ophir Gold Project in New Zealand.
  • High-grade drill results at RAS North extend mineralisation beyond current mine design.
  • AUD85M cash balance maintained, supporting ongoing project development and early works.

Santana Minerals Ltd (NZX:SMI) reported progress during Q3 FY26 toward developing the Bendigo-Ophir Gold Project (BOGP) in Central Otago, New Zealand. The company aims to start construction by mid-2026, pending final Fast-track Approvals (FTA) consent.

Permitting Progress
The company’s FTA application was deemed complete and accepted by the Environmental Protection Authority (EPA) on 24 November 2025. Concurrently, New Zealand Petroleum and Minerals (NZPAM) granted a 30-year Mining Permit (MMP61326), providing full legal rights to extract and process gold from the Rise & Shine (RAS) and adjacent satellite deposits. This permit establishes the Crown royalty framework, estimated at NZD829M over the first 14 years of production at the current gold price of AUD7,300/oz.

Land Acquisition and Site Preparation
Santana completed binding agreements to acquire key freehold portions of Bendigo Station and Ardgour Station, securing land for open pits and infrastructure. Early site works progressed, including installation of 3.5km of water pipeline, road upgrades, and preparation of site access and building platforms. Procurement planning also advanced for laboratory facilities, explosives, and mining equipment.

Drilling and Resource Expansion
Resource definition drilling at RAS North delivered high-grade intercepts that extend the underground mine potential. Notable results included: MDD487 – 8.7m @ 30.6 g/t Au from 302.3m, MDD481 – 13.5m @ 8.6 g/t Au from 450.5m, and MDD490 – 38.6m @ 1.70 g/t Au from 758.5m. These intercepts indicate continuity of mineralisation up to 465m beyond the current Mineral Resource Estimate, extending the down-plunge zone to 2.15km.

Financial Overview
At the end of the quarter, Santana held AUD85M in cash and working capital, with no debt. The company spent AUD10.6M on exploration, project studies, and development. Additionally, 3.9M fully paid ordinary shares were issued upon exercise of employee share options for AUD1.193M.

Project Economics
At the current gold price of AUD7,300/oz, the BOGP’s after-tax NPV6.5 is AUD2.77B, with an internal rate of return of 107% and a projected payback period of 1.25 years. Peak production is expected at ~120,000 oz per annum, with potential to increase ounces through a mill upgrade to 1.8Mtpa.

Financing and Operational Readiness
The company appointed an Independent Technical Expert (ITE) to support lender technical due diligence. Early engagement with financiers aims to streamline project financing. Operational readiness activities include fleet modelling, cost optimisation, and infrastructure planning to support construction once FTA consent is granted.

Share Performance
SMI traded at NZD 1.23 at time of writing on 27 Jan, up 6.03% today.