UPDATE Sunday 7.15am
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A man's body has been recovered from the Yarrowee River after being discovered by a prospector on Saturday morning.
Ballarat Sergeant Lee Kendrick confirmed the body had been recovered on Sunday morning.
He also stated the discovery is not currently being treated as a murder investigation.
Any further details remain sparse, with the identify of the man yet to be uncovered.
Sergeant Kendrick said the body man have been in the water for over a week.
"Because of that, it makes identification very difficult," he said.
"There was nothing out of the ordinary that we could see. A bit of bruising and stuff, but it's hard to tell – that could be caused by normal decomposition, we don't know."
UPDATE Saturday 7pm
A man's body found by a prospector in Sebasotpol may have been in the water for at least a week.
Ballarat Sergeant Lee Kendrick said the body was found in the Yarrowee River on Saturday.
"About 10.30 this morning, a male person was just going down to Yarrowee River in Sebastopol to do some fossicking, as they do, and he's noticed something in the creek that looks suspicious," he said.
"He's had a look and noticed it was a body, so he's immediately called police."
The Ballarat crime investigation unit is trying to identify the man, who they believe could be aged anywhere from 25 to 50.
"It's hard to tell because we haven't got a positive identification, and we think he's possibly been in the water for a week, maybe more," Sergeant Kendrick said.
"Because of that, it makes identification very difficult.
"There was nothing out of the ordinary that we could see. A bit of bruising and stuff, but it's hard to tell – that could be caused by normal decomposition, we don't know."
UPDATE, 3.50pm
Police have given their first update since the body of a man was found near the Yarrowee River earlier this morning.
Sergeant Lee Kendrick from Ballarat Police said a prospector found the man's body about 10.30am.
"A gentleman came down to Yarrowee Creek to do some prospecting. He arrived at the creek and located what he thought was a bundle of rags in the creek, then had a further look and noticed it was possibly a body so retreated and called 000 immediately," Sgt Kendrick said.
He said the man had not yet been identified, with inquiries ongoing through the CIU, but the deceased male was possibly aged 25 to 50 though it was difficult to tell.
"The next stage is to get the crime scene unit to process the scene, then we will retrieve the body with the assistance of the SES."
The body appears to be in an area not easily accessible to homicide detectives near the sharp banks of the creek.
UPDATE, 2.40pm
Neighbours have reported hearing what they believe to be gun shots around 11pm on Friday night.
One resident said it "sounded like two quick slamming of doors" but there were no doors slamming and no other sounds of activity.
They also heard what sounded like another gun shot on Saturday morning.
The body was discovered just off the Yarrowee River walking track near the water's edge.
UPDATE, 2.15pm
Residents in Darling Street, Sebastopol, said they were shocked at the discovery of the body.
"It's completely out of the ordinary for the area," one resident said.
They said Darling Street was usually quiet and home to many elderly people.
A crime scene investigation unit has just arrived at the location.
EARLIER:
Police are appealing for information regarding the discovery of a body in Sebastopol on Saturday morning.
In a statement from Victoria Police Media, it was confirmed police are investigating the circumstances after the body of a man was located in the Yarrowee River at Sebastopol this morning.
A passer-by discovered the man in the creek on Darling Street just after 10.30am.
It was discovered near Marty Busch Reserve.
The man is yet to be identified and Homicide Squad detectives are assisting.
A Ballarat Police spokeswoman confirmed the area is still an active crime scene.
This comes less than a week after the remains of Canadian woman Tamara Farrell were found in Gippsland.
If you have any information regarding this incident, please call Crimestoppers on 1800 333 000 or Ballarat Police on 5336 6000.
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