Gold Miner AuStar Gold Limited (ASX: AUL) is mounting high on Australian Securities Exchange after the company flagged its first gold sales from Rose of Denmark (RoD) gold mine. It seems to land among the top performers on ASX in today’s trade as the stock price has surged 33.33% to stand at $0.004 on 19 December 2018 (2:05 PM AEST).
In the release dated 19 December 2018, AuStar Gold announced the discovery of profitable mining zones under percussion drilling and sampling at Rose of Denmark (RoD) gold mine. The sampling assays returned high-grade intersection with some samples greater than 10.00 g/t grade.
AuStar Gold CEO, Tom de Vries stated that the technique of percussion drilling had been an effective method in determining the area rich with profitable mineable material. Mr. Vries added that production of multiple high-grade intersections from percussion drilling had provided substantial support to the company’s view that Rose of Denmark has the potential to deliver sustainable economic production.
It has been reported that under percussion drilling and sampling, 64mm diameter holes were drilled using 1.20-metre long drill rods. Miners widely consider the technique of percussion drilling for its theory that states the trends of grade appear to follow the identified quartz ladder veins because of which it is more effectively mined using handheld mining methods.
Total 477 samples were assayed in which more than 50% samples were within the grade range of 0.01 – 0.50 g/t. But 11 such samples returned greater than 10.00 g/t gold grade with the highest grade sample of 529.00 g/t. In this process, the company adopted long hole sampling method which represents a way to more effectively keep mining within the higher grade material and to identify the most effective mining method due to its broad nature of sampling, high density of samples and low cost.
AuStar's purpose of undertaking percussion drilling at RoD adit was to identify if further continuous geological trends can be determined including other unexplored areas above the adit levels, but other than the discoveries already made in the airleg rise development. While taking a review of assay results, the company realized that a short infill and extension program needs to be undertaken. It will include the additional percussion drilling of approximately 250 meters to further follow perceived assay trends, within the dyke unit available above the adit level. Therefore, the company has planned to undertake this drilling in the lead-up to Christmas.
Although AuStar Gold stock has shown a strong rebound in today’s trading session, the stock has fallen 56.25% over the past one year. Whereas, in the past three months, AUL has witnessed a negative performance change of 30.00%.
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