PICTURE: Just look at this chunk of gold AuStar sliced through at McNally’s Reef
Near-term gold producer AuStar Gold (ASX: AUL) intersected visible gold at McNally’s Reef’ during Morning Star mine development – right on schedule.
Morning Star was a historic operation in Victoria which produced over 800,000 ounces at an average grade of 26.5 grams per tonne over its life.
There’s only enough gold inventory to sustain production for 6 months, AuStar says, but this will be replaced via further exploration.
Previous drilling by the company returned some specular grades at McNally’s.
These included 0.2m grading 937.5 grams per tonne of gold, inside a larger 1.1m section grading 171.84 grams per tonne.
AuStar chief Tom de Vries says grades higher than 870 grams per tonne are equivalent to over 28 ounces per tonne; “truly high-grade by any standard”.