AuStar takes ownership of Rose of Denmark

13th June 2018 By: Esmarie Swanepoel - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Gold junior AuStar Gold has taken full ownership of the Rose of Denmark gold project, in Victoria.

The company told shareholders that it had acquired the remaining 51% interest of the mining licence that holds the project, from Shandong Tianye Real Estate Development Group for A$225 000 in shares and 45-million unlisted options.

The transaction also included the other nearby gold projects located on the same mining licence, including the Hunts and Dempsey projects.

“Consolidation of ownership of this valuable mining licence is a significant achievement and a major step forward in our strategy to efficiently develop our projects in the prolific gold district from Walhalla to Woods Point in Victoria,” said AuStar CEO Tom de Vries.

“This cost effective acquisition provides us with far greater operational and financial control over development, mining and investment decisions.”

With the Rose of Denmark project now under full ownership, the company is now considering development options for the project.

“The transaction will result in streamlined decision-making and greater operational efficiency for AuStar Gold, regarding the near-term development of the Rose of Denmark gold mine. With the project now under full control and ownership, prioritizing and/or co-development of the mine is currently being considered by our board and management,” De Vries said.

The mine historically produced 37 000 oz of gold at an average grade of 12.5 g/t sourced from within the surface adits and from a deeper production shaft. AuStar restarted exploration activities at the project in late 2016.