assays are forthcoming...

Tubal Cain "priority" project for Goldstar


Monday, 19 February 2007

GOLDSTAR Resources has announced an 110% increase of its potentially high-grade Tubal Cain quartz reef to 2.3 million tonnes after latest drilling showed the dyke bulge expanded at depth, with in-fill drilling at the prospect also nearly doubling the number of identified quartz reefs so far uncovered at the Victorian project.

The drilling program at the Tubal Cain dyke bulge revealed 27 potentially high-grade quartz reefs, up from 15, and indicated that the quartz reef/breccia zones extend to a depth of at least 600m.

"As a result, the Tubal Cain dyke bulge has clearly been established as one of the most significant mineralised structures discovered to date in the Walhalla," Goldstar said.

The drilling program also hit a number of high-grade gold intercepts including 1.5m at 10.7 grams per tonne gold from 282m, 0.8m from 11.6gpt gold from 234m, and 0.55m at 36.8gpt gold from 319m. Assays for additional drillholes, which indicated a significant number of additional quartz reef/breccia zones that may have gold mineralisation, are forthcoming.

"The upgraded geological model – together with the latest drilling results – has provided further solid confirmation that the Tubal Cain project represents a priority development opportunity … and potentially a second (and larger) production centre alongside the Eureka project," Goldstar said.

The company also said "mining operations could be supported at Tubal Cain assuming that grade values and continuity can be confirmed".

Goldstar is continuing diamond drilling at Tubal Cain and intends to begin bulk sampling at the prospect as soon as its Eureka bulk sampling program is completed. The Tubal Cain prospect is located 5km north of Eureka at Goldstar's Walhalla field.