Many resource-rich regions around the world are dotted with historical mines, remnants of a time when gold fever gripped the hearts of thousands. While some of these old mines have become tourist attractions, others hold untapped potential that could be harnessed once again. Revitalizing a historic mine can yield numerous benefits, from proven resources to existing infrastructure, making the transition to a working mine more feasible. One such promising location is Hill End in New South Wales, a town with a rich mining history that is now poised for a resurgence.
Hill End’s Story
The tale of Hill End begins in 1851 when gold was discovered in Central-Western New South Wales. At that time, the area was sparsely populated, with only a hotel and two stores to its name. However, the discovery of gold transformed Hill End into a bustling alluvial gold-mining precinct, particularly at a site known as Tambaroora. Tens of thousands of miners, including many Europeans and Chinese, flocked to the area, eager to stake their claim in the gold rush.
Estimates suggest that the alluvial deposits yielded around 800,000 ounces of fine gold. The excitement reached a fever pitch in October 1872 when the Star of Hope Gold Mining Company unearthed the Holtermann’s nugget, the largest specimen of reef gold ever found. Weighing an astonishing 286 kilograms and measuring 150 centimeters by 66 centimeters, this quartz specimen infused with gold veins became a symbol of the region’s wealth.
At its peak, Hill End was home to around 30,000 people, making it one of the largest inland towns in New South Wales. However, the boom was short-lived; by 1874, the gold rush had subsided, and the population dwindled to just a few hundred over the following decades. Despite a brief resurgence in the 1920s, Hill End’s mining activities largely ceased, leaving behind a legacy of gold and a landscape rich with potential.
A Return to Hill End
Fast forward to the present day, and Hill End is once again capturing the attention of mining companies. Vertex Minerals (ASX:VTX) is leading the charge to resurrect operations at the Reward gold mine, part of its broader Hill End project. With production slated to commence in 2025, Vertex estimates that the site holds a resource of approximately 485,000 ounces of gold. The company has secured tenure over 155 square kilometers of land, including seven granted exploration licenses, one gold lease, and ten mining leases.
Vertex’s Hill End project encompasses three key assets: Reward, Red Hill, and Hargraves, boasting a combined mineral resource of 4.21 million tonnes of gold. The Reward mine alone has an indicated resource of 141,000 tonnes at 15.5 grams per tonne gold, translating to 71,000 ounces of contained gold, alongside an inferred resource of 278,000 tonnes at 17.3 grams per tonne gold for 155,000 ounces.
Roger Jackson, executive chairperson of Vertex, emphasizes the advantages of reviving a well-established historical mining site. The Reward mine benefits from significant underground development, with approximately $25 million already invested in an air intake shaft, a one-kilometer adit, and access to high-grade gold stopes. Additionally, the site features a gravity gold-processing plant capable of recovering an impressive 92 percent of gold through simple gravity methods. Vertex is currently upgrading this plant and incorporating an ore sorter into the processing flow, which is expected to yield exceptional results.
“All the environmental footprint has already been stamped on the location. We understand the geology, we understand the metallurgy,” Jackson notes, highlighting the advantages of working with a site that has a rich historical context.
A Modern Approach
Vertex’s plans for the Reward mine extend beyond mere revitalization. The company aims to reinstall a refurbished 110,000-tonne-per-year Gekko gravity gold plant and commence gold production from existing stockpiles. Furthermore, Vertex intends to enhance Hill End’s high-grade resource through ongoing exploration and drilling efforts. To facilitate this, the company has acquired its own drill rig, ensuring a focused and consistent long-term drilling program to bolster its high-grade gold inventory.
Modern mining techniques also allow for a more environmentally conscious approach compared to historical methods. The use of gravity separation for ore processing at the Reward mine minimizes the reliance on harsh chemicals, making it a more sustainable option. Gravity technology leverages the natural force of gravity to separate valuable minerals from waste material, resulting in a low-cost, eco-friendly extraction process that is particularly effective for unique gold ore like that found at the Reward site.
Investor Takeaway
Revitalizing historic mining facilities presents a wealth of benefits for companies and their investors. These former producers often come with existing resources and infrastructure, making the development process more straightforward and cost-effective. Moreover, the potential for near-mine resource expansion through exploration can lead to significant returns.
As Hill End emerges as a focal point for renewed mining activity, Vertex Minerals is at the forefront of this exciting opportunity. With a rich history and promising future, Hill End stands as a testament to the enduring allure of gold mining and the potential that lies within revitalizing historic sites.
This article is sponsored by Vertex Minerals (ASX:VTX) and aims to provide insights into the company’s endeavors in Hill End. As always, potential investors are encouraged to conduct thorough research and consult with qualified advisors before making any investment decisions.
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