OCTAGONAL Resources will establish a new open-pit gold mine in central Victoria.
The resources company expects to start work at the Pearl Croydon gold mine in Amherst, south of Maryborough, next month.
The site is estimated to have 53,000 ounces of gold, with a mine value of up to $20 million.
Octagonal Resources received statutory endorsement approval from the Department of Environment and Primary Industries for a mine work plan in September 2013.
Central Goldfields Shire has granted a planning permit for the mine.
Octagonal managing director Anthony Gray said the new mine was a major
milestone for the company.
''We have a good working relationship with the community in Maldon where we have our underground mine and mill, but now that we are branching our activities more broadly we welcome the support and constructive feedback that we have received during the planning permit process from the Amherst community, the Central Goldfields Shire Council, and key stakeholders in the Pearl Croydon Mining Operation,” he said.
“We expect that ore delivered from the Pearl Croydon Mining Operation will
supplement underground mining at the Alliance South Shoot in Maldon and
provide an ongoing feed to the Porcupine Flat gold processing plant for at
least the next 12 to 18 months”.
Octagonal Resources has also applied for an expanded exploration licence over the western area of the Maldon goldfield.
The licence application centres on the historic North British Mine workings whic produced 242,000 ounces of gold between 1856 and 1926.
Mr Gray said the application secured exploration access to the only area of the Maldon Goldfield not previously held by Octagonal Resources.
''Given that the Maldon Goldfield has produced over 1.7 million ounces of
reef hosted gold, it is surprising how little modern exploration it has
received,” he said.
“The North British Mine produced over 242,000 ounces of gold, closed in
1926, and has been tested by only 14 drill holes in the modern era.
''I would be very surprised if there aren’t extensions to this gold, and with our mill only six kilometres down the road we are best placed to take advantage of any
The Maldon Goldfield is the third largest historic primary gold producer in Central Victoria after Bendigo and Ballarat, having produced over 1.7 million ounces of reef hosted gold at an average grade of 28 g/t Au.
Octagonal Resources spokesman Jason Mills said mining was becoming more attractive in Victoria.
''I think the big thing is the government has streamlined some of their processes,'' he said.
''They have said they are open for business.''
with The Age