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UPDATE 6.10PM: The CFA has listed the Lyal fire as contained but 150 fire fighters, 30 tankers and three aircraft will continue to work on the blaze.
The CFA has just downgraded its emergency warning for the area to advice.
The CFA reports fire crews have stopped the spread of the bushfire and fire activity has subsided.
Smoke will be visible from nearby communities and roads.
The following roads are still closed: Mangans Lane, Randall Road, Scotty Track, Bendigo-Redesdale Road and the Redesdale-Sutton Grange Road.
Fire crews will continue to work in the area overnight.
UPDATE 5.55PM: The CFA has declared the Lyal fire contained.
UPDATE 5.50PM: The CFA has issued information that they are getting the upper hand on the Lyal fire which has entered the Kimbolton State Forest.
The CFA expects to issue a revised warning soon.
UPDATE 5.10PM: TWO large fires have merged into one as the CFA and DEPI work to control the area near Lake Eppalock.
The fires originated at Lyal and have moved through the Myrtle Creek area.
Warnings have been issued for people around the Mangans Lane, Randle Road and Scotty's Track areas.
The fire has entered the Kimbolton State Forest.
Operations officer Mark Gilmore said two water bombing aircraft from Bendigo and one from Ballarat were helping 150 firefighters contain the blaze.
He said the fires started near the Lyell Road bridge and soon moved to above and below Mangans Lane.
UPDATE: 4.45pm:
One of the fires north of Mangans Lane and near Lyell Road has entered bushland and is estimated to be between 20-30 hectares in size.
The other fire, south of Mangans Lane, is about 30 hectares in size.
Twenty tankers are battling the blazes.
CFA operations officer Bruce Quarrier said the Helitack water bomber from Bendigo has been helping extinguish the blaze and that the Skycrane water bomber from Ballarat is 15 minutes from the area.
Mr Quarrier said he has not been notified of any homes that are in the fire's line.
An emergency warning has been issued for the areas of Myrtle Creek and Lyal.
For more information visit www.cfa.vic.gov.au
EARLIER
The fires have been listed as Lyell Road and Manning Road.
A witness said the fires were very visible from Mt Alexander.
An emergency warning has been given for people in the Myrtle Creek and Lyal areas.
The warning states that it is too late to leave and that residents should take shelter indoors immediately.
If you are in a car it is advised you make a U-turn and head away from the area.
For more information visit www.cfa.vic.gov.au
More to come...