Bendigo-Ophir: The Next Big Gold Mine in Otago?

Most people associate Otago gold with history — with the 1860s rushes, the ghost towns, the fossickers working the rivers for fine colour. But there's a new chapter being written just over the hill from Cromwell, where an Australian-listed company is pushing to build what could be the region's first major new gold mine in generations.

The Bendigo-Ophir Project

The Bendigo-Ophir gold project sits in the Manuherikia Valley, roughly 10km east of Cromwell. It's classic Central Otago country — tussock hills, irrigation schemes, and stunning views of the mountains. It's also sitting on a substantial gold deposit.

Santana Minerals, the Australian company developing the project, has identified several distinct ore bodies within the tenement. The main deposits — known as Rise and Shine and Shreks — contain high-grade gold mineralisation that's caught the attention of investors.

A Pre-Feasibility Study released in late 2024 outlined plans for a long-life mining operation that could produce around 147,000 ounces of gold per year in its first three years. That's a significant operation — smaller than Macraes, but substantial by any measure.

Fast-Track Approval Process

In 2026, Santana lodged a comprehensive consent application under New Zealand\'s fast-track approvals process — nearly 9,400 pages covering environmental impact, water management, heritage concerns, and community consultation.

The fast-track regime was designed to accelerate projects considered "nationally significant." If successful, Santana could see the Bendigo-Ophir project move from discovery to full-scale operation far faster than traditional consenting would allow.

Environmental and Community Concerns

The scale of the project has generated significant debate in Central Otago. The region has transformed since the gold rush days into a premier global destination for viticulture and luxury tourism.

Economic Impact for Otago

If it proceeds, Bendigo-Ophir would be a major economic engine for the region. Santana\'s Pre-Feasibility Study estimates an initial mine life of 9.2 years, with significant returns to the local economy.

The project is expected to create hundreds of direct jobs during construction and more than 200 permanent roles during operation. Beyond direct employment, the "multiplier effect" would benefit local contractors, housing providers, and service businesses in Cromwell and Alexandra.

What History Teaches Us

The Bendigo area isn't new to mining. Gold was first discovered there in the 1860s, and the remains of old sluicing operations and water races can still be found on the surrounding hills. The Chinese miners who worked these claims in the later years of the gold rush left a lasting mark on the landscape.

What Santana has found is essentially the source rock — the gold-bearing quartz veins that erosion has been liberating into the waterways for millions of years. It's a reminder that Otago's gold story isn't just about what's in the rivers; it's about the geology that put it there.

Implications for Investors

Santana Minerals (ASX: SMI) is publicly traded on the Australian Securities Exchange. The company's share price has moved significantly with each project milestone — rising on positive drill results and feasibility updates.

As with any development-stage mining company, there are risks. Permitting could hit delays. Gold prices could fall. Construction costs could blow out. But if the project reaches production as planned, it could become a significant contributor to New Zealand's gold output.

For recreational prospectors, the project is a reminder that Otago still has untapped potential. The gold that washed into the Arrow River didn't appear from nowhere — and companies like Santana are proving that plenty remains in the hills.