Victoria’s Economy gets the Midas Touch

The economy of Fosterville, Victoria, categorized as Regional Australia has seen a boom. 80 million ounces of Gold wait to be unearthed from its rich undergrounds.

Australia witnessed its first gold rush in the 1800s when the world heard of its gold fields and rushed to claim a share. Immigrants from UK, US and China set up camps to this part of the country believing stories of the wealth that hid beneath layers of Fosterville’s earth. The equipment and dated technology failed them. They couldn’t dig out he real treasure. A few years ago, when deep drilling began in this area, that however changed.

Since then the price of gold has exceeded $2,000 an ounce for the first time on record, churning out more gold and more quality gold. The mine in the region has begun producing a reserve of 2.7 million ounces of high-quality gold, and others in the state are up scaling production. “The ore body really started to increase in grade at a depth of about 800 metres-plus below the surface,” said Ian Holland, vice-president of the Australian operations of Fosterville’s parent company, Kirkland Lake Gold

The mine is expected to produce between 570,000 and 610,000 ounces of gold each year for the next three years.

This has also led to a boost to the local economy, due to increased opportunities for well-paying jobs. The revival of this industry has streamlined work and settlements, redirecting employment back home. The initial capital investments for the setup, though, digs up a hole, but the returns for investors have been equally rewarding with these “exceptional grades”. The State Government’s announcement of 2.75 % gold royalty is being frowned upon by companies but statistics come with promise.