Sandstone Gold Mine

Gold mines in Western AustraliaSurface mines in AustraliaSandstone, Western Australia
4 min read

In 1906 the town of Sandstone held eight thousand people. Thirteen years later it held about two hundred. The gold did not run out so much as the world moved on - the First World War called the young men away, the easy reef petered out, and the desert began reclaiming what the rush had built. Yet the ore beneath the spinifex never stopped being worth digging for. Six kilometres southeast of the surviving township, the Sandstone Gold Mine is the latest chapter in a story that keeps restarting, a pit and a processing plant that have outlived the boom that named them and the dozen companies that have owned them since.

The Reef That Built a Town

It started with a New Year's Day strike. A prospector found gold about twenty kilometres south of present-day Sandstone in 1894, but the discovery that mattered came in 1903, when gold turned up within a few hundred metres of the future town centre. Word travelled fast across the goldfields. Between 1903 and 1916, miners pulled roughly 930,000 ounces of gold from the ground around Sandstone - a staggering haul for a place that had been empty desert a decade earlier. Hotels, banks, butchers and a brewery rose from the red dirt. Then the reef thinned, the war drained the workforce, and the town that gold had conjured began to evaporate almost as quickly as it had appeared.

A Mine Reborn

The modern operation traces its roots to 1990, when Herald Resources began milling at Sandstone. Troy Resources took over in 1999 and turned the dormant field into a working mine again. Production rolled out across a string of evocatively named deposits - Bulchina from 2002, then Lord Nelson and Lord Henry from 2005 - while the company upgraded the mill to process 600,000 tonnes a year. By the time Troy placed the mine into care and maintenance in September 2010, it had recovered 508,000 ounces of gold at a grade of 3.6 grams per tonne. The pit fell silent again, but only because the price and the plan, not the gold, said so.

Passed From Hand to Hand

Few mines have changed owners as often as Sandstone. Troy held it until December 2012, when Southern Cross Gold bought it - mainly hoping to dismantle the processing plant and haul it a hundred kilometres south to another project. Southern Cross merged into Black Oak Minerals, which collapsed into administration in 2015 and liquidation in 2016. Middle Island Resources rescued the asset from the receivers and spent years exploring before selling to Aurumin Limited in a deal finalised in March 2022. Today the ground itself is divided: Brightstar Resources (which absorbed Aurumin through a 2025 merger) holds the process plant and surrounding tenements, while Alto Metals has owned most of the historic mining area since 2016. The gold remains; only the names on the lease keep changing.

Care and Maintenance

"Care and maintenance" is mining's phrase for sleep. A mine in that state is neither dead nor working - pumps run, fences hold, paperwork stays current, and everyone waits for the gold price to make the next dig pay. Sandstone has slept since 2010, its pit walls weathering under the desert sun while geologists pore over drill cores and corporate boards run the numbers. It is a fitting condition for a place whose entire history is one of pause and revival. The town faded and partly returned. The reef was abandoned and reopened. The pit closed and may yet roar back to life, the way it always has.

From the Air

The Sandstone Gold Mine sits at 28.09°S, 119.25°E, roughly six kilometres southeast of Sandstone township in the arid interior between Western Australia's Murchison and Goldfields regions. From altitude the worked ground reads as pale scars and geometric pits against the red-and-green spinifex plain, with the small grid of Sandstone town visible to the northwest. The nearest airfield is Sandstone Airport (YSAN) a few kilometres away; Mount Magnet Airport (YMOG) lies about 140 km west and Leinster Airport (YLST) roughly 140 km east, both useful diversions. Visibility in this dry inland air is excellent for much of the year, though summer dust and heat shimmer can soften the horizon.