- AuStar Gold (AUL) has started a comprehensive review of its operations at the Morning Star gold mine in Victoria
- AuStar’s new technical team have been reviewing the site’s mining operations and rebuilding a geological model of the area
- The company is currently mining slopes within the McNally Reef section of the mine, which have returned results up to 10 grams per tonne gold
- Following up on these results, the company is enhancing its sampling program by increasing the sample size, due to the nuggety nature of gold found in the mine
- According to AuStar, the latest modelling of the McNally Reed section suggests that the deposit can sustain a robust increase in near-term production
- AuStar Gold (AUL) closed 6.5 per cent in the green for $0.405 per share
AuStar Gold (AUL) has started a comprehensive review of its operations at the Morning Star gold mine in Victoria.
AuStar’s new technical team have been reviewing the site’s mining operations and rebuilding a geological model of the area.
The drilling and exploration at the Morning Star gold mine restarted in early July, with recent work evolving the company’s geological understanding of the project.
Due to the improvements to the site’s geological model, the company expects to implement production improvements at the mine.
The Morning Star mine is a historic gold mine that first produced in the 1880s and is now operational again, posting a positive cashflow month in July. The improved cashflow resulted from scalable gold which generated $100,000 after production costs.
Further, the company is currently mining slopes within the McNally Reef section of the mine, which have returned results up to 10 grams per tonne gold.
The latest modelling of the McNally Reed section suggests that the deposit can sustain what AuStar is calling a robust increase in near-term production.
Following up on these results, the company is enhancing its sampling program by increasing the sample size due to the nuggety nature of the gold found in the mine.
However, the Morning Star mine will still not have a maiden resource estimate in the near term as the company’s current exploration efforts do not warrant one.
AuStar Gold closed 6.5 per cent in the green for $0.405 per share.