PERTH (miningweekly.com) – Gold production from the historic Morning Star and Rose of Denmark gold mines, in Victoria, will start shortly, ASX-listed AuStar Gold reported on Tuesday.
Mining will start at both mines, with ore to be processed at the Morning Star gravity processing plant, AuStar told shareholders, noting that the bulk of the material for the plant feed would come from the newly-discovered McNally’s Reef and from the nearby Rose of Denmark mine, while development is completed to access Stone’s Reef.
AuStar CEO Tom de Vries noted that the decision to start production at the Victorian mines reflected the progress that has been made with recent exploration activity.
“We have repeatedly witnessed diamond drill core with visible gold and accompanying outstanding high-grade assay results, which gives us confidence that mining can be undertaken successfully,” said De Vries.
“Our process plant is proven, the infrastructure is all well tested and our exploration work gives us confidence that we have high-grade material available for mining. We have conducted extensive work internally to assess potential production rates and costs and the board and management are confident the decision to start production will generate positive results for shareholders.”
De Vries noted that while the initial throughput rates would be modest, further exploration success would enable increased production over time.