finishing the year with a bang

Goldstar Resources

GOLDSTAR Resources is finishing off the year with a bang thanks to its ability to assert a 500,000-to-900,000-ounce "conceptual exploration target" for its Tubal Cain gold property in the Walhalla goldfield. The target is not a resource estimate under stock exchange guidelines, but it isn't hot air either. It's based on results from the last phase of drilling comprising five deep holes drilled from the surface, plus the results from the recently completed bulk sampling program at the nearby Eureka deposit - set to be Goldstar's first mine next year on the historic alpine goldfield.

More to the point, the release of the target is a legitimate alert from Goldstar to the fact that Tubal Cain could be a company maker in that it is shaping up as a much bigger development opportunity than Eureka.

Two drilling rigs are continuing to punch holes into Tubal Cain. Recently received assay results confirmed the presence of mineralisation to a depth of 1000 metres, with 35 quartz reef/breccia zones encountered.

In the conceptual estimate Goldstar is sticking to its "proof of concept" approach to returning the Walhalla goldfield to production. Eureka is a case in point. The release of a feasibility study in to its development early in 2008 (including a resource estimate) completes its travel from a geological model including a tonnage range, through definition of a grade range to estimation of a compliant resource. In the end, this is expected to confirm Walhalla's multi-million ounce gold potential. Goldstar closed on Friday at 37.5¢ a share.

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