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Gold Stocks in Victoria
Though it only represents a fraction of Australian gold output, Victoria is noteworthy for its re-emerging gold development community.
Gold is a staple in Victoria, and the Australian state has a long history with the precious metal.
Discovered mere months after the colony was created in the mid-1800s, gold has been a foundation of Victorian identity since that time. Many of the grand buildings in the capital city of Melbourne, along with the former boomtowns of the central goldfields, were funded by the vast wealth that was mined in the small Australian state.
That wealth made Melbourne one of the richest cities in the British Empire in the 1800s, while the lure of prosperity made it the second largest at the time, behind only London.
Today Victoria is third in the lineup of Australia's gold-producing states, but it's notable for a re-emerging gold development community. In fact, in mid-2022, the Minerals Council of Australia called for urgent reform to Victoria’s Mining Act to recognise mining as a priority industry for the state. This is because, according to the organisation, “Victoria stands on the cusp of a second mining rush.” In mid-2023, legislation was introduced to reform the current works approval process. This legislation would update the Mineral Resources (Sustainable Development) Act 1990 to make processes more efficient.
Putting Victoria's gold output into a national context, the Australian government's March 2023 Resources and Energy Quarterly report shows that 24 of the country's 315 tonnes of gold output came from Victoria during the 2021/2022 period. While gold reserves in Victoria are low in comparison to other Australian states, its output continues to rise.
There are not many producers in the state today, but Melbourne is home to the headquarters of some of the largest mining companies in the world, with Newcrest Mining (ASX:NCM,OTC Pink:NCMGF), BHP (ASX:BHP,LSE:BHP,NYSE:BHP) and Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) hosted in the city, pointing to a healthy industry for raising capital.
Victoria's largest gold-producing mine is Fosterville, which is owned by none other than Agnico Eagle Mines (TSX:AEM,NYSE:AEM). Read on to learn more about Fosterville, as well as Victoria's other gold-centric operations and projects.
Data for the companies below was current as of September 13, 2023.
1. Agnico Eagle Mines
Market cap: US$31.78 billion
Major miner Agnico Eagle Mines operates globally, but in Australia specifically it runs the prolific Fosterville gold mine, which is located in Central Victoria near the city of Bendigo, a former gold rush boomtown.
Fosterville produced 338,327 ounces of gold in 2022, down from its record 640,467 ounces of gold in 2020. The mine has been producing since 2005, and is the premier mine in the state, accounting for a majority of its annual gold production. The mine life projection for Fosterville indicates it will run until 2031.
2. Mandalay Resources
Market cap: C$180.06 million
Mandalay Resources (TSX:MND,OTCQB:MNDJF) has two producing assets in Australia and Sweden. Its Australian operation is the gold-producing Costerfield mine in Central Victoria, where 47,887 ounces were produced in 2022. Guidance from the company puts 2023 production between 44,000 and 49,000 ounces. The projected life of the mine is five years.
Costerfield has been in Mandalay’s hands since 2009, with the company pouring millions of dollars into expanding processing capacity and exploration. The mine is near the city of Bendigo, which as mentioned is a historic gold-mining settlement.
3. Catalyst Metals
Market cap: C$180.06 million
Gold producer Catalyst Metals (ASX:CYL) has three projects in strategic gold belts in Australia, including the exploration-stage Four Eagles gold project, which is located in Victoria's Whitelaw Gold Belt. This project is immediately north of the Bendigo goldfields and near Agnico Eagle’s Fosterville gold mine.
A June 2023 resource estimate shows Four Eagles holds 665,000 tonnes at 7.7 grams per tonne (g/t) gold for 163,000 ounces of the precious metal. This includes the newly discovered high-grade Iris zone with an estimated 70,000 ounces at 26.2 g/t gold.
4. Southern Cross Gold
Market cap: C$63.04 million
Three of Southern Cross Gold's (ASX:SXG) four exploration projects are located in Victoria: Sunday Creek, Red Castle and Whroo. The Sunday Creek epizonal-style gold project is the company's keystone asset.
Southern Cross pegs Sunday Creek as "one of the best new high grade and large exploration discoveries to come out of Australia in recent times." As of September, Southern Cross had drilled 19,626 metres in 2023 and was planning to drill another 26,000 metres by April 2024. One highlight so far is hole SDDSC077B, which intersected 404.4 metres at 5.6 g/t gold equivalent (5.1 g/t gold and 0.3 percent antimony) from 374 metres (uncut).
5. Falcon Metals
Market cap: C$28.52 million
Falcon Metals (ASX:FAL) holds the largest land package of any gold explorer in Victoria, covering an area of 7,000 square kilometres. The Pyramid Hill gold project in the prolific Bendigo Gold District accounts for the majority of its granted permits.
The company has completed more than 80,000 metres of drilling, including on the Wandoo prospect, which is 20 kilometres from the Bendigo goldfield. The work has led to several high-grade prospects and has identified two new anomalous zones in the northern potion of the project area.
This is an updated version of an article first published by the Investing News Network in 2021.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
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Melissa Pistilli has been reporting on the markets and educating investors since 2006. She has covered a wide variety of industries in the investment space including mining, cannabis, tech and pharmaceuticals. She helps to educate investors about opportunities in a variety of growth markets. Melissa holds a bachelor's degree in English education as well as a master's degree in the teaching of writing, both from Humboldt State University, California.
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Melissa Pistilli has been reporting on the markets and educating investors since 2006. She has covered a wide variety of industries in the investment space including mining, cannabis, tech and pharmaceuticals. She helps to educate investors about opportunities in a variety of growth markets. Melissa holds a bachelor's degree in English education as well as a master's degree in the teaching of writing, both from Humboldt State University, California.
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