The Augusta underground mine at Costerfield in Central Victoria has been in operation since mid 2006; however, AGD Operations Pty Ltd have explored and undertaken open pit operations in the area for over 20 years._x000D_
The high-grade, narrow gold-antimony orebody is being mined using both mechanised and hand-held methods, to produce up to 70 000 tonnes per annum at ten grams per tonne gold and six per cent stibnite. AGD Operations Pty Ltd processes the ore on site using gravity and flotation to produce two products; a concentrate which is sold to Chinese smelters and a gravity concentrate which is refined off-site. The circuit achieves up to 30 per cent recovery of gold from gravity methods. There are many challenges in the underground mine, including an orebody with an average width of 300 mm, very poor rock mass conditions in the host rock and variable dips in the ore along strike, between 45 and 90. The upper levels of the mine have been developed ready for stoping; however, their depths range from 20 m to 70 m below surface in both oxide and transitional material. A major fault structure consisting of mud has been encountered underground and is associated with the orebody causing very poor ground conditions, water inflow and requiring additional reinforcement. The northern limit of the mine is defined by the proximity of historical workings in the South Costerfield mine, which is being continuously dewatered.