Victoria may not be the first state that comes to mind for gold mining in Australia, but the Garden State has a long history of gold production that's still going strong today.

Beginning with the gold rush of the 1850s, Victorian gold mines have produced over 2,400 tonnes – almost a third of gold mined in Australia and 2% of gold worldwide. The abundance of mines, particularly across the historic Goldfields region, means Victoria has produced more gold per square kilometre than any other Australian state.

That's not to say Victoria's golden years are behind it. Gold production is enjoying a strong resurgence – almost doubling in the last five years – as companies explore new opportunities and breathe new life into historic mines. One of the most successful refurbishments is the Morning Star Mine, located 120km east of Melbourne in the prolific Walhalla to Woods Point gold field.

Historic Production

Morning Star was one of the largest and most successful mines in Australia by the 1950s, producing in excess of 830,000 ounces at a high average grade of 26.5 g/t before being decommissioned in 1963.

Historic workings at Morning Star operated up to 815 metres below the surface, extracting gold deposits from quartz veins in a diorite dyke. This free-milling gold allows for the production of coarse free gold through the cost-effective process of gravity separation and smelting into Dore on-site.

The dyke remained open when production ended, waiting for new operators to tap its potential for high-grade gold at relatively low production cost.

Redevelopment

After laying dormant for more than 50 years, Morning Star was acquired by AuStar Gold Limited (ASX:AUL) in 2015, along with other historic mines nearby. Following extensive refurbishment with high-speed winders, power supplies, offices, worker quarters and other necessary infrastructure, the mine resumed operations in January 2019.

The establishment of a new 80,000 tonne per annum processing plant and paste backfill facility marked the start of a new, highly productive era for the historic mine, which remains the only site currently active in the Walhalla to Woods Point gold field.

Continuing Expansion

The production outlook for the Morning Star Mine is very positive, with promising sample results driving further expansion of the mine and cost-effective strategies to extend its lifespan.

AuStar Gold recently launched an 8-level diamond drilling program to test the promising McNally and Stones reefs and other regional prospects for sustainable mining conversion in the near term, with the goal of increasing productivity using existing resources when possible.

Barclay Pearce Capital client AuStar Gold Limited (ASX:AUL) is an exciting gold exploration, mining and production company with a portfolio of historical, near term development and current assets based around the Morning Star Gold mine located approximately 120 km east of Melbourne in the Walhalla to Woods Point gold field.

The company's flagship Morning Star gold mine has historically produced over 830k oz of gold. Additionally, AuStar has 670 sqkm of exploration tenements covering the Walhalla to Woods Point dyke swam with historic high-grade production totalling in excess of 6 million ounces of gold.

AuStar's vision is to become the next mid-tier gold producer in Australia.

Philip Amery, Chairman of AuStar Gold is available for an interview. Contact Donna Warner, Barclay Pearce’s Chief Marketing Officer: donna@barclaypearce.com.au

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