Friday, 20th October 2006 (2441 views)

An Australian mine which had been written off as not containing any more gold may be brought back to life, according to new reports.

The Long Tunnel gold mine was a hit during the Victorian gold industry era but now only 20 people live in the tiny village of Walhalla in eastern Victoria.

There used to 5,000 inhabitants who drilled and dynamited away at the mine until its closure in 1911.

Now that technologies for gold mining have changed somewhat the mine may be re-opening, according to some firms. Rather than in days of yore, when gold prospectors searched for visible nuggets of the precious metal, these days gold exploration is about sourcing high-grade if separated accumulations.

Firms are waking up to this with the likes of Perseverance and Lihir Gold both interested in bidding for the Victoria mine.

Peter McCarthy, chairman of Bendigo Mining which also works in the area, said: "An incorrect calculation of a reserve from drilling doesn't change the results of 100 years of mining or the known status of Bendigo as a large, productive, high-grade goldfield."

Australia's gold production has increased in recent years and so to has the production from Victoria.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.