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Tagged with: Goldstar Resources

Oct 2003 - Goldstar Resources

Goldstar Resources NL (GDR) – Reopening Victoria’s Walhalla Goldfield

  • The IPO Offer : Goldstar Resources (GDR) offered a subscription of 24m shares at 25c to raise $6m (minimum subscription $5m, sponsored by Southern Cross Equities) primarily to re-open the old Walhalla Goldfield in Eastern Victoria. GDR aims to establish an ~1moz resource at Walhalla, an up to 0.5moz resource at its Peak Hill prospect and evaluate at least three other prospects in Australia which have been previously explored but could be re-interpreted.
  • The main focus at Walhalla are the Cohen’s and Empress Reefs which lie along a 1.5km strike length of the delineated 4km long Cohen’s Line of Reef at Walhalla. The Cohen’s reef is not like the more common Victorian styles of gold mineralisation west of Melbourne, and instead is located east of Melbourne and is contained within an almost vertical shear zone.
  • Historic grades in the Cohen’s Reef were exceptionally high being up to 6oz/t or 190g/t over an average width of 45cm and strike lengths of 18m ahead of the mine closure in 1913 due to pumping and ventilation at depths >1km. Almost 1.5moz was extracted at an average grade of 1oz/t or 33g/t over the 1.5km strike length of workings.
  • Recoveries of up to 95% have been attained from gravity concentration testwork of the stockwork ore undertaken in the early 1990’s, which is in contrast to the market’s perception that Walhalla’s ore is refractory. The main Cohen reef historically attained recoveries of 85% to 90% (using stamp batteries). The misperception arose due to a pre-feasibility study of the stockwork resource in 1987 that attained low recoveries because it only considered direct cyanidation.
  • The exploration focus at Walhalla is on three styles of mineralisation, being the stockwork resource over the old Cohen’s reef workings, three possible extensions to the Empress lode system, and extensions to the Cohen’s reef that are greater than 5g/t. Extensions appear to be very possible, given that cut-off grades of up to 18g/t together with perhaps 3 to 8 g/t losses in tailings, infers that somehistorically classified “unpay” areas could be >10g/t.

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Mar 2005 - Goldstar Resources

Goldstar Resources NL (GDR) – Aiming to Start Trial Mining by April 2006

  • With four gold companies having market caps greater than A$100m in Victoria as shown in Table 1 on page 4 of this report, and all of them expecting to be in production by June 2006, Victoria has become a “hot-spot” from a share market perspective.
  • Walhalla was one of the richest of the Victorian goldfields, producing 1.5moz from 1.43mt (average of 33g/t) between 1864 and 1914, and Goldstar is aiming to start trial mining of its newly discovered Lomond Reef there by April 2006. Should the trial prove successful, Goldstar could attain a market cap of A$50m to A$100m based on production of 50,000ozpa to 100,000ozpa (especially when it is compared to other expected Victorian gold producers in Table 1).
  • GDR’s Lomond Reef lies behind and adjacent to the renowned Cohen’s Reef of Walhalla, and so far GDR has delineated about 1.1mt of mineralisation based on dimensions of 550m long on strike by 120m high by an average of 6.5m thick (it in fact varies between 2m and 12.5m thick). A mineralised 1.1mt ore block at a grade of 7g/t or 12g/t could contain 250,000oz to 450,000oz (and possibly contain higher grade shoots up to ~25g/t based on historical mining by the Royal Mint Company).
  • Current step-out drilling to the North has already extended the dimensions of the Lomond Reef by a further 100m on strike and 50m at depth (or a northern block 100m long by 170m high) for an additional 300,000t of mineralisation, and conceptually the potential resource could be extended to 2.2mt and still be open, north, south and at depth. Once the existing campaign to the north has been completed, step-out drilling to the south begins.
  • In addition to the Lomond Reef, GDR is also focusing on the second main feature of the field – namely dyke bulges with drilling results from the Black Diamond dyke bulge – fissure lodes system on the West 1 Structure (immediately west of Cohen’s) expected in the second half of 2005.

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