Goldstar
Resources NL (ASX: GDR)
MEDIA
RELEASE 14
MARCH 2008
GOLDSTAR
LAUNCHES EXPANDED GOLD STRATEGY
·
Proposed co-development of Tubal
Cain/Eureka to deliver increased gold production.
·
Processing Plant now to be located
at Southern Crown, near Tubal Cain, delivering a production hub 3 years ahead
of schedule.
·
Eureka Feasibility Study supports
expanded Tubal Cain strategy.
·
Combined 400,000tpa operation to
underpin long-term production of +100,000oz pa at targeted cash costs of
A$420-560/oz.
·
SRK Consulting confirms that
diamond drilling alone can deliver JORC resources.
·
Intensive drilling underway at
Tubal Cain to deliver initial JORC resource by June Quarter 2008.
Goldstar
Resources NL (ASX: GDR) today
announced an expanded two-mine development strategy for its 100%-owned Walhalla
Gold Project in Victoria based on plans to accelerate development of the
large-scale Tubal Cain Project by
almost three years alongside the nearby Eureka
Project.
Goldstar
said today (Friday) that the new
strategy would enable it to bring forward a much higher production level to
take advantage of the current strength in the gold market, with indications
that a co-development of Tubal Cain and Eureka would support an annual
production level of over 100,000oz at a targeted cash cost level of between
A$420 and A$560/ounce.
The
centrepiece of the strategy is the proposed locating of the modular 200,000tpa
processing facility to a new site called Southern Crown, near Tubal Cain, with production
expanding rapidly to a 400,000tpa level fed by ore from Tubal Cain and Eureka, 4km to the south.
“The
Eureka Feasibility Study has confirmed the technical viability of Eureka as a production
opportunity, however it also provides a compelling case for the co-development
of Tubal Cain – which we see as a potential company-maker for
Goldstar,” said Andrew King, Goldstar’s Managing Director.
“Also,
an expanded, dual development of the deposits would significantly enhance the
economic viability of Eureka compared with an initial standalone development
based on Eureka followed several years later by Tubal Cain, as originally
envisaged,” he added.
The new
development strategy is supported by a number of factors, including key
outcomes from the Eureka Feasibility Study, the identification of the new plant
site and the independently verified ability to deliver JORC resources in the
Walhalla Field by diamond drilling alone.
“Our
Independent Geological Consultant, SRK Consulting, has produced a report confirming
the ability to deliver JORC resources at both Eureka and Tubal Cain from diamond drilling
alone, thereby eliminating the cost and time involved in bulk sampling,”
Mr King commented. “This is a very important outcome and potentially
transforms our approach to the exploration and development of the dyke
bulge-style deposits within the field.”
The
Eureka Feasibility Study has delivered the first-ever JORC Code compliant
resource for the Walhalla Field, an initial Reportable Resource of 153,000
tonnes at 10.0g/t Au for 48,000 ounces to a depth of 350 metres. This occurs
within a revised Geological Model for Eureka
totalling 827,000 tonnes of quartz reef to a depth of 550 metres, itself
representing a 15% increase on the previously announced tonnage of 720,000
tonnes.
“Importantly,
only 12% of the deposit has been covered by a detailed assessment, and the SRK
Report provides the basis for the balance of these tonnages to be potentially
upgraded to the Indicated category, subject to positive results from
drilling,” Mr King said.
Goldstar
also confirmed that it had submitted its application for a Mining Licence at
Walhalla covering the Eureka,
Tubal Cain and Southern Crown operating areas, with the application now in the
final stage of the approval process.
“While
we remain focused on moving into production as rapidly as possible, it has
always been our approach to deliver sustainable gold production from the
Walhalla Field,” Mr King said. “We would rather take a measured
approach to achieve the maximum possible return to shareholders at an
acceptable risk profile.”
- ENDS -
GOLDSTAR RESOURCES NL – Key Company Statistics
ASX Code:
GDR
Cash
Reserves
~$7.0
million (@ 31 December 2007)
Shares on
Issue:
140.2M
Market
Capitalisation:
~$30 million
Key
Project:
Walhalla
Gold Project Key
Deposits: Eureka, Tubal Cain
(100%)
- ENDS -
Released by:
|
On
behalf of:
|
Nicholas Read
|
Goldstar
Resources NL
|
Read Corporate
Telephone: (+61-8)
9388-1474
|
Andrew King
– Managing Director
Telephone: (+61-8) 9321-1577
|
Mobile: (0419) 929 046
|
Web:
www.goldstarnl.com.au
|
BACKGROUND – GOLDSTAR RESOURCES NL
Goldstar
Resources NL (ASX Ticker: GDR) is an Australian gold company which is focused
on building a profitable, long-term gold business in the historic and richly
endowed Walhalla-Woods Point Gold Field in Victoria’s East Gippsland
region.
Goldstar’s
Walhalla Gold Project encompasses an extensive tenement package covering more
than 700km2 and places the Company in a commanding position within
the Walhalla-Woods Point Goldfield. Goldstar is drawing on its extensive
knowledge base built up over the past few years regarding the overall
exploration potential of the region to develop a pipeline of high-priority
exploration targets which are expected to deliver future production
opportunities.
In
addition to unlocking the broader potential of the field, Goldstar is focused
in the short term on developing a sustainable gold production hub at Southern
Crown fed initially by ore from the nearby Tubal Cain deposit and the Eureka deposit,
approximately 4km to the south.
Goldstar
has completed a Feasibility Study and initial JORC compliant resource estimate
for Eureka,
confirming its “Proof of Concept” approach to the development of
the dyke bulge deposits in the field. The in-situ Reportable Resource for Eureka of 153,000 tonnes
at 10.0g/t (48,000oz) to 350m depth covers only small portion of the orebody. A
Geological Model of 827,000 tonnes has been defined for Eureka to a depth of 550m and remains open at
depth.
Tubal
Cain represents a much larger, potentially company-making opportunity for
Goldstar, with a defined Geological Model of over 3.6 million tonnes to a depth
of 1,000 metres and intensive in-fill drilling well advanced in the upper 500
metres. The Company has announced a Conceptual Exploration Target for Tubal
Cain of 900,000 ounces.
Goldstar
is pursuing an expanded strategy based on the co-development of Tubal Cain and Eureka, drawing on the
positives of the ability to locate the processing facility at Southern Crown,
near Tubal Cain, the capacity to achieve Indicated Resources by diamond
drilling alone, and the correlation of Bulk Sampling to drilling at the dyke
bulge deposits.
Indications
from the Eureka Feasibility Study and Tubal Cain Scoping Study are that a
combined operation could support a production level of over 100,000 ounces per
annum at a targeted cash cost level of A$420-560 per ounce. Intensive diamond
drilling programs are underway at Tubal Cain designed to deliver an Inferred
JORC compliant resource during the June 2008 Quarter and an Indicated Resource
by the end of the year.
- ENDS -
READ CORPORATE
Public
Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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