The new owners of Victoria’s historic A1 gold mine, Heron Resources, will spend $18 million over the next two years to have it back in production from late in 2011.
Addressing the second day in Melbourne of the Paydirt 2009 Resources Victoria Conference, Heron Resources Managing Director Mathew Longworth said the evaluation program for A1 was realistic in an area that was highly prospective and underexplored.
“We are focused on ounces not tonnages, are well cashed up and are able to undertake work through the evaluation phase for A1 without having to raise further capital,” Longworth said.
“The immediate focus is on progressing the exploration decline to access drilling locations, and undertake bulk sampling of stockworks and reefs in the historic workings.
“The decline will be eventually useful for production.”
Longworth said Heron expected to commence feasibility studies by late next year with commencement of new production in just on two years.
“The Mansfield area has been a sleeper for last number of years but we are excited by its future potential as our first cash flow,” he said.