Australian gold discovery to spur further exploration

Development of Western Australia's biggest gold discovery in a decade is tipped to open up a new gold mining province in inland Australia.

The Gruyere deposit, discovered by Gold Road Resources, lies within the Yamarna gold belt on the outskirts of Australia's traditional gold country, close to its boarder with the Northern Territory, Australia's national broadcaster reported Monday night.

The deposit, which is twice as big as the Sydney Harbor Bridge in size, is larger Western Australia's last major discovery 10 years ago, Tropicana, remains largely unexplored with companies exploiting traditional areas closer to Kalgoorlie.

Gold Road Resources executive chairman Ian Murray said the company has proven skeptics wrong by showing the gold belt holds vast, untapped resources.

"The Yamarna Greenstone belt is further east than the current known and existing gold areas," Murray said. "Five years ago, people would say 'you're mad, there are no other belts in Western Australia".

The discovery was aided by an investment from the Japanese owned Sumitomo trading and investment company, its first investment into Western Australia's gold sector.

Australia's mining downturn has caused a low-point in exploratory spending with investors unwilling to chance risky exploration programs.

The discovery and development is believed to kick-start more exploration as the size and scale of the gold belt would support the development of smaller projects, Murray said.

"Your first discovery needs to be a big one, it needs to be very economic to pay for a processing plant," Murray said. "Once you have the infrastructure, the gas pipeline plus a big processing plant, the smaller, potentially uneconomic deposits become economic."

The new gold mine plans to be in production by 2017, boasting a 13-year production life.