commissions ore haulage system at eureka

Goldstar commissions ore haulage system at Eureka
10:21, Wednesday, 10 January 2007

Sydney - Wednesday - Jan 10: (RWE Australian Business News) -
Goldstar Resources NL (ASX: GDR) reports the Skipway haulage system at
the Eureka project, 2km east of Walhalla in Victoria, has been
successfully commissioned, to meet the first ore haulage requirements of
the Eureka Bulk Sampling Program (EBSP).
Following the bushfire crisis in the East Gippsland region over
the Christmas period, Goldstar personnel regained access to both the
Eureka and Tubal Cain sites on December 27.
When unrestricted access was re-established, site personnel
returned all relocatable equipment to site, confirmed all cables were
electrically intact and re-powered the site on December 28.
Construction and commissioning work on the Skipway continued
with the installation of the winder in the first week of the New Year.
Final commissioning of the Skipway system was completed
yesterday. All aspects of the Skipway haulage system are now operating
according to design specification and ready to accommodate the full ore
haulage requirements of the EBSP.
The underground mining crew resumed operations at Eureka on
December 29, initially on day-shift only, before resuming full two-shift
operations on January 2.

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Stripping and widening of the old Western Adit to establish
mining access as part of the EBSP has to date progressed 96 metres.
To recover some of the time lost due to the fires and improve
ore accessibility, the decision has been taken to cross-cut to ore at an
earlier position along the Western Adit.
The mining face is currently estimated to be 50 metres from the
first of the potentially high-grade reefs of the Eureka Dyke Bulge.
Upon intersection of the reefs strike driving will commence to
collect samples for grade continuity and metallurgical assessment.
Based on the current rate of advance, Goldstar expects to
intersect the first quartz reefs and commence extraction of initial bulk
samples of high-grade quartz reef material during January.
As part of the EBSP, Goldstar is aiming to access between four
and six of the total package of nine high-grade quartz reefs identified
within the Eureka Dyke Bulge.