? MINING IN BURNS, STONES AND TILLS REEF AT MORNING STAR MINE
? HIGH VARIABILITY OF FACE GRADES BETWEEN 0.29 G/T TO 105.4 G/T AU
? DONALSON REEF ACCESS WILL BE VIA 2 LEVEL TOWARDS THE ENRICHED EASTERN END OF THE REEF STRUCTURE
? GEMINI TABLE INSTALLED TO IMPROVE GRADE CONSISTENCY OF CONCENTRATES
DETAILS
Ore production at the Morning Star Goldmine since the end of
March has been sourced
from Stone's, and Till's Reefs off the 8 level and Burn's
Reef accessed off the 6 level.
Mining in Maxwell's Reef at 8 sub-level is now limited to ore
in pillars that will be mined on retreat. Mining at
Dickenson's Reef (3-sub level) has been discontinued due to
face grades dropping to un-economic levels. Production in
Till's Reef was not previously included in the mining plan
and resulted from a decision to develop from the 8 level to
investigate a 95 g/t drill intersection.
Face sample grades in all reefs for the mined width have
varied substantially due to the nuggetty nature of the ore.
Face sample grades reported vary from 0.47 to 27.5 g/t in
Burn's Reef, 0.37 to 105.4 g/t in Maxwell's / Stones Reef and
0.29 to 16.9 g/t in Till's Reef, near where the 95g/t Au
drill assay was recorded.
In Burns Reef a recent grab sample selected for thin
sectioning returned a grade of over
40 ounces of gold to the tonne (1,341 g/t Au) highlighting
the high degree of variability in grade encountered to date.
Another Burns Reef face sample has recently returned an
assay of 5,408 g/t in an area we are yet to seriously assess
for production. Burns is a highly
laminated reef but very thin in parts and splits into two
reefs in other areas providing challenges in terms of mining
with minimal dilution. These extremely high grade assays
and
the variability in assays in production sampling serve to
reinforce the variable nature of the
grade at Morning Star.
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MAXWELLS/ STONES/TILLS REEFS
Mining Areas Morning Star Goldmine
Development of Donaldson Reef (off 3 sub level) from the
western contact has enabled in-fill diamond drilling and
these recent drill results have been successful in
determining the presence and continuation of the large
mineralised reef structure. Mining access to the Donaldson
structure will be from 2 level towards the enriched eastern
contact. Infill diamond drilling is in progress to more
clearly define this enriched eastern end of the
structure.
Importantly, this recent drilling in the Donaldson zone has
identified a previously unknown structure - a fault jog on
the eastern contact - where dyke overhangs sediments. This is
significant as it is these fault jog structures along the
eastern contact that have held the highest grades
historically.
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Since the end of March and estimated 483 tonnes of ore has
been produced and 426 tonnes of previously stockpiled ore has
been processed. All concentrates from ore processing are
being stockpiled at site for re-tabling immediately the new
Gemini table is commissioned, which is expected in the next
week. Following recent metallurgical test work done by Gekko
and others, samples from the processing plant are now being
assayed using the BLEG technique. As noted above, the Gemini
table is being implemented to improve consistency in the
grade of the concentrate products produced.
Ore production is expected to significantly increase once the
Kenny Reef (9 level north) and Donaldson Reef (2 level east)
are accessed in coming weeks and months. A drilling update
for Morning Star and for Rose of Denmark and Hunts (MIN 5299)
will be released within 2 weeks.
Mike Botting, CEO, Morning Star Gold NL
About Morning Star Gold
Morning Star Gold
1959). The Morning Star Goldmine also carries a JORC inferred resource of 910,000ozs (U/G resource portion is 2MT @ 11.2g/t). Much of this resource is currently under the water table and MCO intends
using diamond drilling over 2012-14 to verify the resource and increase confidence in it.
Production has recommenced at the Morning Star Goldmine for the first time in nearly 50 years. The rate of production is budgeted to increase over 2012-13 and MCO infrastructure allows for up to
80KTPA throughput at its onsite gravity processing plant (GPP) via its new high-speed hoist set-up.
Other gold production mines on MCO's tenements were generally constrained in relatively shallow workings in the near surface or 'weathered zone' and above the water table. Key current targets for new exploration and development include the Wallaby, Loch Fyne, Rose of Denmark, Hunts, Waverly, Little Comet, El Dorado, Reliance & All Nations mines. These mines historically produced
~500,000 ounces of gold at grades ranging 8g/t to 40g/t Au.
MCO has a current JV with the Shandong Tianye Group of China - a well-capitalised publicly listed conglomerate who agreed to spend $4.5M over 2011-12 to farm-in to 51% of two of MCO's regional licences (MINs 5299 & 5241). The Morning Star Goldmine (MIN 5009) and various other priority production targets such as Wallaby (MIN 5560) are 100% owned by MCO, separate to the JV. MCO also has minority positions in two JVs on gold prospects in the Central West of NSW.
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Forward Looking Statements
This report may include statements and information pertaining to Morning Star Gold's expectations and beliefs concerning future events. Forward risks, uncertainties and other factors, many of which are outside the control of Morning Star Gold can cause actual results to differ materially from such statements. All envisaged mining & exploration works herein are subject to appropriate regulatory approvals. Morning Star Gold makes no undertaking to subsequently update or revise such statements but has made every endeavour to ensure that they are wholly accurate at the time of publication.
Competent Persons Statement
The information contained in this report was compiled Dr Peter Jackson BSc (Geology) PhD MAIG who has over twenty years of relevant experience in relation to the mineralisation being reported on, to qualify as a Competent Person as defined in
the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Jackson works as a consultant to Morning Star Gold NL and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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