AuStar Gold Limited (ASX:AUL) will begin production at the historical Morning Star and Rose of Denmark gold mines in Victoria's eastern goldfields after receiving impressive exploration results.
Through gaining a requisite level of confidence in its mineral resource inventory estimation, the company has decided to start mining this quarter at the former mines, adhering to its target set out in December 2018.
Ore will be processed at the Morning Star gravity processing plant with the bulk of the material for plant feed coming from McNally’s Reef and the nearby Rose of Denmark mine.
AuStar aims to begin development this week with logistics and procurement activity underway.
The mine development plan will focus on exposing the reef at McNally’s, developing along the structure then targeting stoping on the highest-grade drill holes.
Best high intervals from recent drilling included:
- 1.1 metres at 171.84 g/t gold including 0.20 metres at 937.5 g/t
- 1.05 metres at 169.31 g/t including 0.40 metres at 103.29 g/t
Production based on “excellent exploration”
AuStar's CEO Tom de Vries said the decision to commence production reflected the excellent progress that had been achieved with recent exploration.
He said: “We have repeatedly witnessed diamond drill core with visible gold and accompanying outstanding high-grade assay results, which gives us confidence that mining can be undertaken successfully.
“Our process plant is proven, the infrastructure is all well tested and our exploration work gives us confidence that we have high-grade material available for mining.
“While initial throughput rates will be modest, further exploration success will enable increased production over time.”
Exploration activity including diamond drilling will continue at both mines to replace the material processed through the plant as well as add to the inventory.
- Jessica Cummins