The Two Stages: There were two forms of gold found in New Zealand. Alluvial Quartz Economic opportunities were available in both sectors of the industry.

1. Alluvial Gold Mining Primarily based in the South Island especially Otago and the West Coast.

Black Peter Was the first person to discover gold in Central Otago in There was some debate over whether or not there was enough gold in central Otago to be a viable mining option.

Gabriels Gully On 23 May 1861 Gabriel Read gained esteem and provincial government bonuses when he found gold near Lawrence in Central Otago.

An International Workforce:

Alluvial Gold Mining Methods: People with very little capital could mine because very little equipment was needed. The main tools needed included: –Picks and shovels –Pans –Sluice boxes –Cradles

As the easily accessible gold was used up more sophisticated methods of gold mining were developed. Miners were forced to join collectives and pool their resources to include: –High pressure hoses –Explosives –River dredges

2. Quartz Gold Mining This stage of the industry was based in the North island in the Coromandel region. This process was more involved than alluvial gold mining as more and bigger equipment was required.

The Process Gold is found underground Shafts are constructed and blasted to extract quartz from The ground Quartz rock is extracted and sent to a stamper battery Crushing batteries smash the rock so the ore can be extracted. The gold is then extracted from the crushed rock.

This stage of the industry was capital intensive. Miners pooled their resources and invested in stamper batteries.

Permanent Settlers Permanent settlers were also associated with this stage of the industry. These communities include Waihi, Thames and the Coromandel townships. They supplied a range of goods, services and institutions such as churches and schools.

Short term industry based on a depletable resource Gold was not a sustainable. This meant that gold mining only had a short-lived impact on people’s lives. In the 1860’s income from gold mining exceeded all other export products. The second stage of the industry was a more steady source of income but provided a smaller income.

Regional Impact of Gold Mining The biggest impact the industry had was in areas where gold was mined. Influxes of people hoping to strike it rich provided local economies with a large market for a range of goods and services. Dunedin was the largest city in New Zealand from 1861 – 85.

The raw product was exported There was no mint in New Zealand so gold was not made into coins here. It was sold in its raw form to branches of the Royal Mint in Melbourne and Sydney.

The Price of Gold was Fixed The royal Mint of England purchased the gold it was offered. The price of gold was fixed and rarely fluctuated whereas some of New Zealand’s other exports did.