News Bureau

August 08, 2019

AuStar bags A$1,860 per ounce for gold

AuStar Gold Limited provides the update on its activities for the quarter ended 30 June 2019 & that says, total Gold produced from Dore of 1,057 ounces for the Quarter, marking a significant milestone in the history of AuStar Gold. Gross gold sales revenue of A$2.14 million was received for the quarter at an average price of A$1,860 per ounce, with further revenue accrued from production for the quarter being receivable after the reporting period.

A second, high speed centrifugal concentrator installed at Morning Star in June to allow reprocessing of stockpiled middlings and to allow additional recovery of gold in tails. Further exploration drilling results for McNally Reef indicated the projected interpretation of a south-easterly striking shoot of higher-grade gold mineralisation directly down dip from current mining operations remains valid.

Exploration drilling around the Rose of Denmark dyke bulge identified broad lengths of mineralisation containing higher grade cores within the dyke bulge. The drilling identified a parallel dyke structure to the north of the bulge. Maiden JORC compliant inferred Mineral Resource of 40,249t @ 6.00g/t for 7,763 ounces of gold defined for Rose of Denmark.

Exploration Target defined to 300m below adit for Rose of Denmark, assessment of participation within Centennial Mining Limited Deed of Company Administration (DOCA) process undertaken.

Mining at the Morning Star Gold Mine continued during the Quarter with McNally Reef being the primary source of ore during the quarter, delivering 1,936 tonnes of ore feed to the mill. Mining activities ramped up at the Rose of Denmark mine in June with 228 tonnes of ore being delivered to the mill.

Mining moved from the development phase into a more continuous mining cycle. Ongoing mining modifications continued to be trialed including split-firing of faces to maximise ore delivery grades.

Plant and equipment reliability continued to be an ongoing issue with the utilization of predominantly pneumatically operated older style mining equipment resulting in some unanticipated maintenance issues.