Corryong, in the Upper Murray, is set to become Australia's next mining boom town.
Base metals and gold exploration company Dart Mining has reported world class deposits of molybedenum, plus mineable grades of copper and silver in the region.
The company has rated the 0.07 per cent molybdenum equivalent grade as comparable with the world's largest primary deposits at Colorado's Climax mines.
After three years of exploratory drilling, Dart has announced desposits of 105 million tonnes down to a depth of 450m at Mt Unicorn.
Valued at $US32,000 a tonne, the deposits could be worth up to a billion dollars a year on export markets to China, Europe and Korea.
Molybdenum is used in steel manufacture, paints, plastics, catalysts and in solar panels.
Dart Miniing managing director Lindsay Ward said a construction phase would follow community consultation, economic scoping study and an approval process.
He said mining was expected to start in three to five years.
Mr Ward expects the open cut mine, located 30km from Corryong, to generate 200 to 250 jobs.
To be the first molybdenum mine in Australia, Mt Unicorn has surface outcrops and a low strip ratio, resulting in minimal wastage.
Mr Ward said renewable power, water, community support and an available workforce added to the mine's prospects.
The mine will be a "dry" operation to minimise water use and will have no impact on agricultural land.
"This is good news for Corryong and regional Victoria," Mr Ward said.
Worldwide demand for molybdenum stands at 220,000 tonnes and is growing at the rate of five per cent a year.
Dart Mining has exploration interests covering 2300 square kilometres of north east Victoria.