AuStar Gold on the verge of launching production from the historic Morning Star and Rose of Denmark mines, with ore from both operations to be processed at the Morning Star gravity processing plant.

Last year, the company moved ahead with a number of exploration, development, mining, and processing initiatives; production is expected to start modestly, but believes there is room to expand.

"We have repeatedly witnessed diamond drill core with visible gold and accompanying outstanding high-grade assay results, which gives us confidence that mining could be undertaken successfully," said AuStar Chief executive officer Tom de Vries.  "Our process plant is proven, the infrastructure is all well tested, and our exploration work gives us confidence that we have high-grade material for mining."

There's been a resurgence of gold mining in Victoria, led by Kirkland Lake Gold's Fosterville operation, which is on track to produce 570,000 ounces of annual production by 2021.