A Rutherglen man's effort to find the remains of his brother under a disused mine near Avoca got a boost from the Victoria government, which offered to reimburse up to $25,000 in cost to the digging.

Police and Emergency Services Minister Peter Ryan informed the new assistance money in a letter to Daryl Floyd, who has been looking for the remains of his brother, Terry, at the Morning Star mine shaft.

"The disappearance of Terry Floyd 36 years ago has been a terribly distressing experience for the Floyd family and I respect and admire Daryl Floyd's determination in his efforts to find out what happened. The assistance is provided on the basis that it is considered by Victoria Police that excavation to a lower depth may be able to resolve whether Terry Floyd's body is located there," Ryan said in the letter to Floyd, according to Border Mail.

Floyd thanked the government for what he considers the best Christmas present saying the money will enable him to resume the digging next month.

Floyd's brother disappeared on June 28, 1975 and he believes his body is buried more than 100 metres deep the unused mine shaft.

Last year, the Victoria Police gave Floyd a grant of $50,000 to help cover the cost of excavation enabling him to dig up to 53 metres deep. The amount is on top of the $70,000 of his own money used for the digging.

The Victoria Police also has a $100,000 reward for anyone who can provide information about the fate of Terry Floyd, who was last seen along the Pyrenees Highway at Bung Bong Hill 36 years ago.

Two miners are helping Floyd in the digging. Floyd wants to dig up to 110 metres to reach the level filled with material from 1975, the year his brother went missing.

A shirt of Terry Floyd was found in the Morning Star Mine Shaft prompting his family to dig the site to find his remains.