CANADIAN gold miner Crocodile Gold will press ahead with the development of the Big Hill open pit project at the Stawell gold mine.
The company has started the process of winning approval from the Victorian Government.
Gold worth more than $40 million would be recovered, the company said.
It plans to process 2.3 million tonnes of ore to recover more than 108,000 ounces of gold.
The company said the project would create 80-100 jobs in Stawell.
Crocodile Gold took over the Big Hill Project after it bought the Stawell Gold Mine in May last year.
The Big Hill Project is the up-dip extension of the Stawell Magdala system, which is being mined from underground.
Chantal Lavoie, president and chief executive of Crocodile Gold said: "This project represents an excellent opportunity to maximise the value and extend the life of the Stawell Gold Mine, further contributing to the growth of the company's gold production while reducing operating costs.
"It is worth noting that this project will have access to our experienced workforce and well established business partners.''
Community opposition forced the abandonment of plans for an open cut in the same area a decade ago.