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.