Although auriferous beach and fore-dune sands at Five Mile Beach south of Okarito township had been intensively mined by hand and primative mechanical methods drilling of the sandspit by the Gold Development Corporation in 1929 indicated that the grade and quantity of undisturbed black and grey sand below the water table was sufficient to support a mining operation. Worked sand above the water table also contained fair prospects. The Okarito Five Mile Beach Gold Dredging Co Ltd, was formed and an hydraulically powered, bucket ladder, sluice box dredge built. In 13 years of operation (1931 - 1943) the dredge returned 556.39 kg (17 890 oz) of gold at a recovered grade of 225.4 mg/m3. A total of 42 000 was distributed as dividends on the 30 000 capital investment. Recent drill and bulk sampling at the northern end of the beach has confirmed that reworking of the historic tailings by a modern gravity recovery plant would not be economic.