An Australian mining company has told its investors a gold discovery in Central Otago, near Bendigo, may be the largest gold discovery in New Zealand in 40 years.

Santana Minerals, which is listed on the Australian stock exchange, estimates the resource contains 2.6 million ounces of gold, at an average concentration of 2.5g per tonne.

Named “Rise and Shine,” the discovery was one of five within 5km of strike, though was so far the only anomaly adequately drilled.

The gold found at Rise and Shine could have a value of US$5.4 billion ($8.6b) once mined.

Santana Minerals has been drilling the prospect under an exploration permit with increasingly positive results since 2021.

The Bendigo-Ophir project is Australian mining company Santana Mineral's core focus. Photo / Supplied 

It said the find made for a simple and uncomplicated mining strategy - open pit then underground.

The company’s indicative metallurgy showed free milling gold was recoverable by gravity followed by cyanide leach, which could be expected to recover up to 90 per cent of the resource.

It said they were blessed with infrastructure, being an hour’s drive from Queenstown with major hydropower nearby, major roads in place, accessible fresh water, and a “supportive new government”.

It referred to New Zealand’s “new pro-mining government”, that provided a straightforward pathway to obtaining a mining permit.

Santana Mineral said the Bendigo-Ophir Gold Project remains its core focus, while it also has projects in Sinaloa Province, Mexico, and Cambodia.

The company said it considers the Bendigo-Ophir Project to be substantially under-explored by modern exploration techniques.

The other four projects in the area include “Come In Time,” (59koz @ 1.5 g/t Au) “Shreks,” (174koz @ 1.1 g/t Au) and “Shreks-East” (11koz @ 1.3 g/t Au).

The estimated gold content across the five deposits, including “Rise and Shine,” is 2909 thousand ounces, with an average gold concentration of 2.3g per tonne of material.