Stawell Gold Mines Pty Ltd operates two underground decline mines within the township of Stawell. An active exploration program and commitment by owners to improving the ore reserves has led to an improved mine life and reduced operating costs since the purchase of the operation by Mining Project Investors and Pittston Mineral Ventures in late-1992. Over the past six years of operation a cumulative 1 150 000 ounces of gold have been added to the mineral inventory. An improved geological understanding of the orebody has evolved over time increasing the ore reserves and allowing the development of long-term plans for the mines future. This has enabled important capital decisions to be made providing the impetus for improved productivity and thereby reduced operating costs. Co-operative mine planning and mine geology utilising best practice geological systems have enabled the effective extraction of a structurally complex and mineralogically varied deposit within a rural Victorian township. Detailed metallurgical research has improved the function of an aged and poorly designed circuit to boost the mill capacity whilst also improving the metallurgical recovery. The combination of metallurgical expertise and an understanding of the geological setting enable an effective control of metallurgical recovery.