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AuStar Gold intersects further high-grade gold in Morning Star drilling

Results indicate the mineralised reefs drilled are potentially amenable to low-cost, near-term mining.

Morning Star is 120 kilometres east of Melbourne

AuStar Gold Ltd (ASX:AUL) has intersected high-grade gold in diamond drilling at its Morning Star Gold Mine in Victoria.

The results indicate extended mineralised gold zones across both McNally’s and Stone’s Reefs, with both having a higher-grade core of gold mineralisation.

With ongoing positive results from the drilling program, AuStar has increasing confidence in the identification of a minerals inventory to begin mining the two reefs.

Sludge hole drilling results from McNally’s include: 2.4 metres at 18.8 g/t gold from 2.4 metres (uphole), including 1.2 metres at 30 g/t from 2.4 metres; and 1.2 metres at 41.4 g/t from 2.4 metres.

Results from diamond drilling include: 2.4 metres at 3.5 g/t from 61.3 metres, including 0.8 metres at 6.5 g/t within McNally’s; and 1.2 metre at 4.2 g/t from 44 metres within Stone’s Reef.

READ: AuStar Gold raises $5.5 million for development of Victorian gold operations

AuStar chief executive officer Tom de Vries said: “The latest phase of exploration drilling from 6 level at the Morning Star Gold Mine has now been completed and the results continue to be very encouraging.

“All assays have been returned from drilling on 6 level and the diamond drill rig is now drilling from 9 level.

“The first of the holes from 9 level has shown that the Stone’s Reef extends well to the south of our previous interpretation and still carries gold mineralisation.

“Several holes are to be drilled up from 9 level through Stone’s Reef and up to the McNally’s Reef to test both reefs to the south of previous drilling.

Sufficient material to warrant mining

“Probe drilling (also known as sludge drilling) into the roof of the 7 level drive using hand-held rock drills has returned very encouraging results.

“[These indicate] that in parts of 7 level, McNally’s Reef passes close to the old drives, increasing the extent of the mineralised zones and possibly improving accessibility.

“The consistently high-grade nature of McNally’s Reef along with that of the Stone’s Reef gives us increasing confidence that we will have sufficient material to warrant the mining of these gold-bearing reefs in the very near future.”

Portfolio of advanced high-grade gold projects

AuStar is focused on building a gold-bearing minerals inventory to generate sustainable economic production from its portfolio of advanced high-grade gold projects.

The Woods Point Project, which contains the historic Morning Star Gold Mine, has significant, fully-operational infrastructure including a mine shaft and processing plant and is position for near-term mining.

AuStar also intends to explore and develop its adjoining tenements in the Walhalla to Jamieson gold district into low-cost, high-grade gold production projects.

Quick facts: Austar Gold Ltd

Price: 0.3 AUD

Market: ASX
Market Cap: $10.17 m

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