Emerging gold miner AuStar Gold (ASX: AUL) has posted stellar assays in excess of 100 grams per tonne gold from recent drilling activity at the Rose of Denmark gold mine in Victoria.
The exploration program included 31 drill holes totalling 813m and was designed to test the dyke 20m above and 30m below the adit level.
This is the fifth announcement of significant assays from the now completed first phase of a diamond drilling program at the Morning Star project with Rose of Denmark indicating strong potential for future gold productivity.
The most notable assays reported by AuStar were 2.7m at 18.00 g/t gold including 0.4m at 116.09 g/t gold and 0.4m at 28.72 g/t gold. Other positive intersections included 0.45m at 12.22 g/t gold and 0.50m at 11.98 g/t gold.
AuStar said that the identification of a broad zone of anomalous gold mineralisation, including several zones of higher grade gold values, indicate that the potential viability for large tonnage and that selective mechanised mining had been “significantly improved” following interpretation of its assay results.
AuStar chief executive officer Tom De Vries said: “These high gold grade results validate our geological model. The ongoing success of this drilling program also importantly provides us with increasing confidence in its ability to identify a number of high-grade gold zones from this mine.”
“The success of ROD018 in identifying broad mineralisation within the Bulge area also gives us further potential for identifying bulk minable tonnages within the current mining licence.”
“This is consistent with our broader strategy to develop multiple feed sources within our extensive tenement holdings in the Walhalla to Woods Point gold district,” said Mr De Vries.
One potentially significant discovery made by AuStar was the potential ability of Rose of Denmark to be susceptible to bulk mining following the completion of an exploratory diamond drill hole through the Rose of Denmark Dyke Bulge area.
After testing for gold mineralisation, AuStar said that the area “may be economic to bulk mine” after confirming multiple zones of anomalous gold mineralisation including several zones of higher grade gold values up to 27.54 g/t gold.
AuStar added it was likely to conduct further drilling to assess the viability of the Dyke Bulge for large tonnage mining.
Gold pour and other projects
Late last month, AuStar Gold poured its first gold at the Morning Star gold mine since 2012, achieving a new milestone for its investors and gold operations team.
AuStar Gold is focused on the return to production of its Morning Star mine, considered as an advanced high-grade gold project, with significant infrastructure including processing plant, a strategic tenement footprint, prospectivity, and well-positioned for near-term trial mining.
In addition, AuStar Gold intends to develop its adjoining tenements in the Walhalla to Jamieson gold district (particularly the prolific Woods Point Dyke Swarm) into low cost high-grade gold production projects.
Today’s golden assay results helped AuStar shares to rise almost 15% to $0.08 per share.