Favona Project - Appraisal to Development

The Favona Underground Project is located approximately two kilometres east of Martha Mine Open Pit in Waihi, 150 km south east of Auckland, New Zealand.   The underground reserve of 354 koz Au contained in resources of almost 600 koz lies within 600 m of the existing process plant presenting an attractive development target in a challenging environment.   The Martha Mine Open Pit is surrounded by urban housing on the north western edge of Waihi township and the Favona Underground abuts residences on the eastern edge of town. Environmental, community and social licence aspects influence project strategies as the new underground mine extends mining in a town that is planning for closure of current open pit operations in late 2006.   The Favona Underground Project has successfully passed through a detailed feasibility study, the third stage of the five stage Newmont project appraisal system. Methodologies used in the feasibility study and parallel permitting draw on a high level of stakeholder involvement to streamline the development and permitting phases.   This paper discusses the project appraisal process and design innovation required for developing an underground mine adjacent to town.