Phase 1 Resource Drill-Out Completed - Further High Grade Mineralisation Identified Including Bonanza InterceptsAustar Gold Limited (
- Drill-out below Rose of Denmark Adit completed with all results received.
Better results include:
o 7.30m @ 153.57 g/t au - including
-- 1.00m @ 1,110.01 g/t Au
o 1.50m @ 51.46 g/t Au.
o 6.75m @ 17.69 g/t Au - including
-- 0.25m @ 266.91 g/t Au
-- 0.15m @ 201.60 g/t au
o 1.80m @ 15.14 g/t Au
o 6.20m @ 12.90 g/t Au
- Modeling and resource calculations commenced.
- Resource definition completion and maiden resource statement targeted for start of June.
Initial drilling has been restricted to a nominal depth of 30 metres below the level of the main adit, conceptually sufficient for the development of two 15m high sub-levels. A maiden JORC compliant Mineral Resource is anticipated to be completed by the end of the May 2019.
3. New Drilling Results:
Thirteen (13) additional diamond drill-holes have been completed for a total of 468 metres along the length of the main Rose of Denmark adit. Drilling was undertaken from the dyke bulge area, south towards the portal. These holes were designed and were, as much as possible, drilled to run down the length of the dyke sheet in order to test areas of multiple quartz veining which predominately make up the mineralised packages with in the dyke.
The overall potential of the Rose of Denmark mine continues to be enhanced not only by the identification of broad lengths of mineralisation, containing higher grade intersections within the central dyke bulge, but also by the potential for stacked quartz veining style mineralisation within the dyke below the level of the main adit.
5. Follow-up Activities:
Geological modeling and analysis will now be undertaken on all the drilling completed to date and a maiden resource is anticipated in early June.
6. Management Commentary:
AuStar Gold CEO, Tom de Vries said
"The preliminary resource drill-out phase below the level of the main Rose of Denmark Adit has continued to show that mineralisation within the dyke extends at depth and has not been closed off.
The spectacular results obtain from the drilling shows that coarse gold continues to occur, which when coupled with the trial mining and processing successfully undertaken in 2018 will lead to a confident economic justification to increase production from this strategic asset."
7. Near Term Developments:
Limited mining continues within a gold bearing structure above the Rose of Denmark adit after being placed on hold for several weeks, to allow uninterrupted diamond drilling to be undertaken.
A formal discharge permit has been submitted and advertised in the local papers as required, which will then allow dewatering below the adit level to occur. Further studies and tests are being undertaken to allow the company to apply for a formal Mine Work plan for unlimited mining, via a conventional decline.
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About Austar Gold Ltd
AuStar Gold (ASX:AUL) is focused on building a valuable minerals inventory to generate sustainable economic production from its portfolio of advanced high-grade gold projects - with significant infrastructure including processing plant, a strategic tenement footprint, and prospectively-well positioned for near-term 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.
ContactTom de Vries
Chief Executive Officer
AuStar Gold Limited