Golden Victory

The Ballarat gold mine, located in Mount Clear, Victoria is currently owned and operated by Victory Minerals (ASX: VTM), which assumed control of the mine in December 2023, following the voluntary administration of the previous operator, Balmaine Gold earlier that same year.

The Acquisition & Investments

Victory Minerals focuses on high-grade underground gold production in the historic Ballarat goldfields, aiming to produce between 30,000 and 40,000oz of gold annually, utilising advanced mining techniques to maximise recovery.

Victory Minerals general manager Dale Rogers shares insights into the acquisition process and what motivated the company to take on the Ballarat gold mine.

“The business appears to have had a history of owners who caused difficulties for some years which eventually led to the voluntary administration,” he said.

“Despite that history, the new owners and shareholders of Victory recognised the incredible opportunity in Ballarat.

“Several critical fundamentals endured through those difficult years: 1) a significant gold resource with large areas of under explored and completely unexplored locations within and immediately next to the existing mine; 2) a strong, local experienced workforce with a passion for the business, and 3) business improvement opportunities that had been neglected for decades.”

Since acquiring the mine, the new owners recruited an experienced Board and management team who have a wealth of experience operating within the gold mining industry. Mr Rogers reveals the new owners adopted a long-term view of the business.

“This has been demonstrated by a willingness to invest money to address many of the problems and shortcomings from years of underinvestment by previous owners,” he says.

“An initial analysis of the infrastructure and equipment revealed the business suffered from productivity issues due to a lack of investment in critical infrastructure and equipment. This extended from the mining fleet right through to the processing facility and included every facet of the operation.

“An initial investment of around $15m has been made to replace the aged underground mining fleet and equipment; this investment was identified and made as soon as possible because it was both a significant step forward in safety and also in improving efficiencies and productivities in the underground mine.”

Planning and design for a major construction project, aimed at increasing gold recoveries from the ore being mined, was started immediately following acquisition, and Mr Rogers says the project will have a significant impact on the profitability of Ballarat.

“This project will be a further investment, in the order of $30m over the next year, to construct and install,” he said.

“Ground was broken on the project in the last quarter, which was a momentous step forward for the business.

“The company has also committed to a tripling of the exploration drilling budget underground to explore and identify additional resources in and around the underground mine. This drilling program is designed to target discoveries close to the existing underground workings that could add over a decade to the mine life at Ballarat.”

Instilling confidence

Victory Minerals is a company that firmly believes actions and results speak volumes toward developing increased confidence with its stakeholders, and it recently negotiated and agreed a new Enterprise Agreement with its workforce that is aimed at rewarding their efforts.

“Open and transparent communication with the government regulators, the community via the Environmental Review Committee, development of an online presence and responding to issues raised quickly by community members, have all contributed to increased confidence,” Mr Rogers said.

Sustainability & environmental management

The business has consistently met all environmental and sustainability requirements set by regulators, maintaining open and transparent communication with the broader community.

One notable advancement in sustainability and environmental management is the significant investment in plant, equipment, and testing, focused on returning tailings from the processing facility back to the underground areas they originated from.

Wherever possible, Victory adopts modern mitigation techniques to minimise environmental impacts. For example, the targeted application of polymers is used where necessary to significantly reduce dust lift-off, helping to maintain air quality both on site and in the surrounding community.

Underground operations have also seen major advancements. Victory has implemented the latest blasting technologies designed to enhance efficiency while minimising environmental disturbance. In addition, sustainable mining practices are continually being refined, with improved backfilling techniques now in place to ensure the responsible management of underground voids and support long-term ground stability.

Showcasing the business

In early December 2024, an open day was held to showcase the business in a positive light as well as educate the community on the opportunities that exist within the mining industry.

A strong historical theme was presented, highlighting the technological advances in gold mining from the ‘old timers’ through to the mechanised methods employed currently. Mr Rogers says the Ballarat Historical Society were present on the day to showcase the conduit from past to present.

“Victory recognises that it has an important role in maintaining the strong gold mining heritage which is the foundation of the wealth and prosperity that the Ballarat Community enjoy today,” he said.

“Victory currently employs about 250 people directly who, in turn, support several thousands of people including their families in the district. Gold mining has developed Ballarat, and has helped it become one of the richest and most diverse regional cities in Australia.”

Market outlook & future growth

Victory expects current gold prices to remain stable for the foreseeable future. Ongoing global tensions, combined with a persistently inflationary environment, are likely to sustain strong investor interest in gold and related industries, and Mr Rogers says the new owners and shareholders of Victory have adopted a long-term view of the potential at Ballarat.

“This support and their Strategic Vision, at a time when gold prices have increased, presents the opportunity to invest, improve and strengthen the Mine for a long and successful future,” he said.

“Since the recent change in ownership, the company has invested significant time, effort and resources in improving the safety performance at the operation. This focus and effort is a fundamental core value for the company — there will be continued focus on investment in safety, people, plant and equipment.

“There will also be intensive focused investment on exploration drilling campaigns and underground capital development to further secure the business future.

“The first significant milestone is occurring now, as Victory is commissioning recently purchased plant and equipment to return some of the tailings from the processing facility back to the underground areas it was mined from.

“Looking ahead, the most significant milestone is scheduled towards the end of the year when the construction of the improved milling and processing facility will be completed.”

Continuing strong heritage

Victory Minerals recognises the vital role it plays in preserving and continuing the rich gold mining heritage that has contributed to the wealth and prosperity of the Ballarat district for nearly 175 years, and is equally committed to strengthening its social license to operate by striving to be a ‘good neighbour’ within the community, focused on meeting modern social expectations and acknowledging the significant responsibility that comes with operating a gold mine in close proximity to Ballarat.

“Victory firmly believes we are on the right path to fulfilling our social and environmental obligations along with ensuring solid returns for shareholders, stable employment for the workforce and the benefits that this economic prosperity provides for the wider Ballarat community,” Mr Rogers said.