The challenges of evaluating and exploiting gold-quartz reefs in the Central Victorian Goldfield, Australia

The Central Victorian Goldfield is a world-class field located in Victoria, Australia. It is currently undergoing a revival through activities in the Bendigo, Ballarat, Tarnagulla, Maldon, Castlemaine and other fields. Sediment-hosted auriferous gold-quartz reefs that are structurally and geometrically complex dominate the region. To date, no remote methods have been developed to assist in the targeting of the discrete high-grade oreshoots that characterise the mineralisation. An understanding of the structural setting and controls, and thus likely frequency of repetition of oreshoots remains the main exploration tool. Gold within the reefs is generally characterised by both its coarse nature (>100 up to 10 000 microns) and erratic distribution; as a result, most of the Victorian deposits are classed as high- to extreme-nugget effect systems. This characteristic ensures that mineralisation is very challenging to explore, evaluate and exploit. The key issues facing the explorer and miner are related to effective sampling, and definition of geological and grade continuity, and ultimately grade and tonnage. Tonnage can often be estimated to a reasonable level of confidence, whereas the grade estimate generally carries a medium- to high-level of uncertainty. In these deposits, surface diamond drilling alone is generally only able to define an Inferred Mineral Resource, with underground development, closely spaced in-fill drilling and bulk sampling/trial mining required to define Ore Reserves. The extraction of gold from ores is relatively simple, based on the coarse nature and hence amenability to gravity recovery. Ground conditions and the need for in-stope grade control (eg mapping, sampling etc), generally point toward mechanised cut-and-fill as the primary stoping method in the region. To potential investors this style of mineralisation has been viewed as high risk, because of the associated low confidence in the grade estimate, general paucity of Ore Reserves at mining start-up and need for underground development at the Feasibility Stage.