AuStar Gold Limited (AuStar) has provided an update on definition drilling which aims to further expand and define the extent of the McNally’s Reef, and has released high-grade assays results of visible gold seen within drill core from the recent program.
McNally’s Reef is a high-grade mineralised system which was discovered at the historic underground gold mine, Morning Star, in September 2018.
Morning Star is located approximately 120 kilometres east of Melbourne in the Walhalla to Woods Point goldfield.
In the late 1950’s Morning Star was one of Australia’s largest gold mines having reportedly produced in excess of 800,000 ounces at an average grade of 26.5 grams per tonne (g/t) of gold (Au) over its lifetime.
According to AuStar, the material results of drilling received to date include:
- L9016 20 metres (m) at 2,540.11 g/t Au uphole (visible gold observed in core) (McNally’s Reef), interpreted as 0.65m at 782.2 g/t Au.
- L9017 41m at 71.55 g/t uphole (McNally’s Reef) including 0.16m at 152.43 g/t Au (visible gold observed in core).
- L9011 30m at 6.36 g/t Au uphole (McNally’s Reef).
The intersections from L9016 and L9017 are all located approximately 10 metres away from an earlier drill-hole L9006 (0.28m at 20.47 g/t Au).
AuStar is continuing infill drilling to target the western and eastern down-dip extensions of the McNally’s Reef in a favourable dyke – sediment overhang position.
Drilling has identified a high-grade pod of mineralisation that remains open to the south-east extending from the western side of the dyke.
AuStar is expected to commence further work to test the strength of mineralisation to the south-east.
According to AuStar Gold CEO, Tom de Vries, the results of these new high-grade drill-holes into the McNally’s Reef down-dip of their current production area continue to highlight the ability of this deposit to produce new and exciting results.
“The latest intersection of 2,540 grams is extremely encouraging and although narrow, in this style of mineralisation, grade is always king. The next couple of holes will tell us more about the mining potential of this new area.”
“Austar Gold’s talented geological team continues to make timely discoveries with the aim of a confident reportable resource in the future,” he added.