AuStar Gold Is Set To Commence Its Production At The Victorian Gold Mines

AuStar Gold Is Set To Commence Its Production At The Victorian Gold Mines

On 5 February 2019, AuStar Gold Limited (ASX: AUL), a gold exploration company from the metals and mining sector, announced that it is soon going to start production from its famous Rose of Denmark and Morning Stargold mines in Victoria eastern goldfields. It is an important milestone in the history of the AUL and is the outcome of the effective exploration program and the initiatives taken during 2018 regarding the development, mining and processing at the Victoria eastern goldfields. 

As per the ASX release on 11 December 2018, the company had targets to continue the mining till March 2019 quarter. However, the company has gained sufficient confidence based on its minerals inventory estimation and mine planning which pushed them to commence the production. The decision to start production is consistent with the strategy outlined by the Board of identifying economic ore bodies, and the company is going to use its production-ready infrastructure to generate value.

The company is soon going to commence the mining program at both its mines. The processing of the ore will be at the Morning Star gravity processing plant. The abundant material for plant feed will come from McNally’s Reef and the nearby Rose of Denmark mine (RoD) and after the development of the mines, the company will access Stone’s Reef.

Mining at the Rose of Denmark gold mine will access material recently identified using percussion drilling and diamond drilling undertaken in the adit. The recent drilling at the McNally’s Reef produced high-grade results.

Drilling of 1.10 meters led to the discovery of 171.84 g/t of gold which includes 0.20 meters of drilling which resulted in 937.5 g/t of gold.

Drilling of 1.05 meters led to the discovery of 169.31 g/t of gold which includes 0.40 meters of drilling which resulted in 169.31 g/t of gold and 0.65 meters of drilling which resulted in 209.93 g/t.

A drilling of 9.75 meters led to the discovery of 66.82g/t of gold which include 0.20 meters of drilling which resulted in 876.12g/t of gold, 0.55 meters of drilling which resulted in 734.31g/t of gold, 0.75 meters of  drilling  which resulted in 33.74g/t of gold and 0.70 meters of drilling  which resulted in 29.42g/t of gold.

Drilling of 0.78 meters led to the discovery of 150.68g/t of gold.

Drilling of 0.65 metres led to the discovery of 17.02 g/t of gold which includes 0.30 of meters drilling which resulted in 29.36 g/t of gold.

Drilling of 0.50 meters led to the discovery of 9.10 g/t of gold.

Drilling of 1.50 meters led to the discovery of 8.70 g/t of gold

Drilling of 1.80m led to the discovery of 46.09 g/t of gold which includes 0.60 meters of drilling which resulted in 34.41 g/t of gold and 0.60 meters of drilling which resulted in 102.39 g/t of gold

Drilling of 0.75 meters led to the discovery of 10.92 g/t of gold.

There will be an ongoing exploration activity at the RoD and Morning Star Gold mines. The mining inventory will replace the material processed through the plant.

The stock has generated a negative return of 20% over the last six months. The current market price of the stock is A$0.005 (with the close of market on 5 February 2019) with the market capitalization of A$13.56 million and approximately 3.39 billion outstanding shares.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report