Perth-headquartered minerals explorer Goldstar Resources NL has significantly expanded its regional tenement position at the Walhalla Gold Project in Victoria's East Gippsland region by 45 per cent.
Perth-headquartered minerals explorer Goldstar Resources NL has significantly expanded its regional tenement position at the Walhalla Gold Project in Victoria's East Gippsland region by 45 per cent.
The company reached agreement to acquire an interest in an adjoining exploration lease containing the historic Toombon mine and numerous old workings.
The terms of the acquisition include a $100,000 cash payment to acquire a 40 per cent interest, with a funding commitment of up to $150,000 on exploration to increase to an 85 per cent interest.
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GOLDSTAR EXPANDS WALHALLA POSITION BY 45% WITH STRATEGIC TENEMENT ACQUISITION
- Agreement with CMS Australia Pty Ltd to acquire an interest in 98 sq km EL 4660, adjacent to its existing EL 3311.
- EL 4660 contains historic Toombon mine (46,500oz production) plus numerous old workings.
- Tenement considered to have potential to contain a strike extension to the Ross Creek Line.
Goldstar Resources NL (ASX: GDR) has significantly expanded its regional tenement position at the Walhalla Gold Project in Victoria's East Gippsland region after reaching agreement with private interests to acquire an interest in an adjoining exploration lease containing the historic Toombon mine (46,500oz production) and numerous old workings.
Goldstar said today it had reached agreement with CMS Australia Pty Ltd, to acquire an interest in EL 4660, a 98 sq km tenement which is considered to have potential to contain extensions to the Ross Creek Line of mineralisation, which is currently a key focus of Goldstar's exploration. The terms of the acquisition include a $100,000 cash payment to acquire a 40% interest, with a funding commitment of up to $150,000 on exploration to increase to an 85% interest.
Managing Director, Andrew King, said the acquisition would increase Goldstar's existing tenement coverage by more than 45% to 315 sq km, to potentially consolidate its control of the highly prospective and regionally significant Ross Creek Line of mineralisation.
EL 4660 is located immediately adjacent to Goldstar's existing tenement, EL 3311, and includes the historical Toombon mine, which produced 46,500 ounces from 62,000 tonnes between 1872 and 1897, yielding a head grade of 23g/t gold.
In addition, the lease contains the majority of the Donnelly Creek group of mines, including Donnelly, Lord Roberts, White Star, Edwards (grades to 4oz/tonne) and Hit or Miss.
"Importantly, there is also the potential for EL 4660 to contain a strike extension of the Ross Creek Line, which represents a further bonus for us," Mr King commented. "The potential of this structure has been a key driver of our exploration success over the past 12 months, having delivered outstanding results from the recent program of resource drilling at the Eureka Dyke Bulge."
"The acquisition of EL 4660 represents an important step in our overall exploration and growth objectives at Walhalla, adding another significant dimension to our asset base," he added. "We believe we have only just begun to unlock the broader exploration potential of this important structure".
"EL 4660 contains a number of historic workings and numerous priority exploration targets offering significant potential," he said. "We intend to integrate this new ground acquisition within our regional exploration program and develop drilling targets which can be rapidly advanced to the bulk sampling stage."
Goldstar has recently delivered a series of outstanding exploration results from the Eureka Dyke Bulge within the Ross Creek Line, and recently completed a program of resource drilling and announced a geological model. This model quantified an estimated 430,000 tonnes of potentially high-grade quartz reef material and a further 900,000 tonnes of mineralised material in the surrounding dyke and sediments.
ENDS
GOLDSTAR RESOURCSE NL - KEY COMPANY STATISTICS (AT 27/02/2006)
ASX Code: GDR Cash Reserves $3.6 million (@ 31 Dec 2005)
Shares on Issue: 85 million Market Capitalisation: ~$35 million
Key Project: Walhalla Gold Project Exploration Potential: >3.5Moz (100%)
