Gold has been found in Myrtleford, deep below the historic mining levels.
E79 Resources, who own the Happy Valley Mining Centre in Myrtleford, announced the company had unearthed multiple occurrences of visible gold in two separate zones within the one drill hole.
Myrtleford and district historical society president John Taylor said gold was first found in the Myrtleford district in 1854 with the first of 100 mines beginning production in 1856.
The most important mine in the area, the Reform mine, produced 21,500 ounces of gold during its operation.
E79's Myrtleford property, the Happy Valley Mining Centre, covers the entire historic gold camp and contains 70 past-producing gold mines which the company said produced a total of 34,200 ounces of gold.
IN OTHER NEWS:
Historic mining generally stopped at the water table.
E79 president Rory Quinn said the company was now exploring the possibility of gold below the previously explored depths.
"These historic gold mines were only exploited to a shallow depth through the late 1800s and early 1900s," he said. "Many of these shallow, historic gold mines are on mineralised structures; some of which each extend for kilometres in strike, and these structures have never been tested at depth."
Mr Taylor has no doubt undiscovered gold remains in the region.
"There's still plenty of gold in North East Victoria, I'm aware there's a lot of exploration going on," he said.
"It ceased in 1888 because miners exploded rock under where the Old Butter Factory was, about 235 metres underground, and water from Happy Valley Creek flooded the workings and they fled.
"At that time, mining technology at that mine was such that there was no pumping to clear the water, so that was the end of it."
Between 1896 and 1906 mining recommenced and gold was again found but it wasn't as profitable as it was three decades before so eventually production ceased.
Mr Quinn said the discovery adds significant evidence to the company's belief gold mineralisation may continue to significant depths.
"The intersection of strong primary gold mineralisation associated with sulphides and quartz at depth; well below the standing water-table, adds to the company's belief in not only the potential of the Happy Valley target, but also the large number of historic gold mines, seven kilometres along strike at Happy Valley and elsewhere within the company's licence area," he said.