A gold pavilion attached to Sovereign Hill will be built under phase two of the outdoor museum's multi-million dollar 20-year master plan.
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Sovereign Hill Museums Association chief executive officer Sara Quon said she was hopeful phase two would begin in the next few years.
"Our passion for getting more collection objects on display in more places is a real cornerstone of our master plan we released last November, just over a year ago, so the next phase of our master plan is to build a gold pavilion across the road attached to the outdoor museum," Ms Quon said.
"That will have a new phenomenal exhibition space that will allow us to take the public face of what was in the gold museum across the road so that more of our visitors that come to our outdoor museum are able to engage with that collection."
In 2020, Sovereign Hill received a $10.1 million federal government grant, of which $3.5 million is being used to redevelop the gold museum under phase one of the master plan.
Work is currently under way on the 42-year-old building which is being transformed into two new deep learning centres.
The Gold Museum into the Centre for Rare Arts (CRAFT) and Forgotten Trades, and the Australian Centre for Gold Rush Collection are a major piece of the first stage of Sovereign Hill's 20-year upgrade.
Sovereign Hill Museums Association president Craig Fletcher said on Wednesday Ballarat builder Stuart Menhennet would be conducting the works at the former gold museum building.
"We are appointing a Ballarat builder to carry out $3.5 million worth of works associated with this fantastic transformation," Mr Fletcher said.
"This project will not only help us deliver on deep and immersive centres for learning but it will also create up to 60 jobs during the project."
- Craig Fletcher
My Fletcher said appointing a Ballarat builder was another example of the connection Sovereign Hill had with the Ballarat community.
He said the redevelopment was on track for the reopening in September 2022.
The former gold museum will be transformed into five hands-on workshops for artisans to teach rare trades to people from across Australia.
A wall will separate the CRAFT centre from the Australian Centre for Gold Rush Collection, which will display items from a 150,000 collection that Sovereign Hill protects on behalf of the Ballarat community.
Ms Quon said the two new deep learning centre reinforced Ballarat's position as the city of art.
"We're really, really optimistic about Ballarat as the home of makers across Australia so this is an Australian centre, it's the place where so many rich trades come together in the one place and Ballarat is the fitting location for that," she said.
Sovereign Hill expects visitation numbers to grow up to 1.4 million visitors a year and hopes at the end of the masterplan, to add another $260 million on top of the existing $200 million that Sovereign Hill contributes to the Victorian economy.
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