The Australian state of Victoria is seeing a resurgence of interest in its gold thanks to a trail being blazed by the Fosterville gold mine.
The mine, which is owned by Canadian company Kirkland Lake Gold (ASX:KLA,TSX:KL,NYSE:KL), is the largest gold mine in the state, producing 356,230 ounces in 2018.
Cameron Cairns, who is manager of minerals geoscience at the Geological Survey of Victoria, said, “(There is) lots of interest on the back of recent exploration and success at Fosterville.”
Speaking with the Investing News Network at the International Mining and Resources Conference (IMARC) in Melbourne, Cairns said that the state has seen “a massive uptick in exploration metres going into the ground in search of gold in the Bendigo zone, the Stawell zone and the Melbourne zone.”
Other companies operating in the space include Chalice Gold (ASX:CHN,TSX:CXN) and Stavely Minerals (ASX:SVY). Though Stavely is more focused on copper, Cairns said Victoria is showing promise in that mineral as well.
When asked whether the increase in Victoria’s gold production is a long-term trend given the state’s long history in gold production, Cairns said he thinks the trend is sustainable.
“The Victorian government released its minerals strategy in October last year and that paves the way for both the technical side of things, but also responsible minerals exploration (and) responsible development.”
Cairns also talked about the recent release of 1,500 square kilometres of exploration licences to tender in the area around the Fosterville mine.
“We’re expecting a lot of competition and healthy submissions — it’s the last portion of ground currently not under tenure in the North Bendigo zone.”
Finally, Cairns discussed the state’s strong history in gold, competition between the Australian states and the strong METS (mining, engineering, technology and services) sector in Melbourne.
Listen to the full interview with Cairns above. You can also listen to our full list of IMARC interviews on YouTube here.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.