ASX RELEASE 30 July 2008910,000 OZS GOLD JORC RESOURCE♦ JORC...

ASX RELEASE 30 July 2008
910,000 OZS GOLD JORC RESOURCE
♦ JORC Compliant Total Mineral Resource of 910,000ozs
Gold at Morning Star mine.
♦ Underground JORC Resource component of 726,000
Ounces Gold (2.0 Million Tonnes at 11.2g/t).
♦ Large near surface JORC Resource component of
184,000 Ounces Gold (2.6 Million Tonnes at 2.2g/t).
♦ Total Mineral Resources fall into Measured, Indicated
and Inferred Categories.
♦ Comprehensive Grade Factoring study adds impact to
production upside.
Background
Morning Star Gold NL is pleased to announce its maiden JORC Resource Report. This compilation relates solely to mineral resources within its 100% owned and operated Morning Star Gold Mine at the companyʼs ʻWoods
Point Gold Projectʼ, 120km ENE of Melbourne in the heart of the rich eastern Victorian goldfields.
Morning Starʼs ʻTotal Mineral Resourcesʼ or ʻTotal Consolidated Resourcesʼ as they may also be known, have been compiled via a combination of surface and underground diamond drilling by the company, digitisation of archival exploration and production records relating to the Morning Star mine and cross-referencing all previously reported resources (pre-JORC 2004), including the comprehensive
1998 Resources Report by Mr. Morrie Goodz, MCOʼs consulting Technical Director.
Morrie Goodz has compiled this report with assistance from other qualified persons on a contractual basis for the Directors of Morning Star Gold. Mr. Goodz has a very significant degree of experience relating to the Morning Star mine and surrounding dykes, having worked there since 1985 as a geologist and mine manager. The Directors wish to thank Morrie and his team for the huge amount of
effort involved in compilation of this preliminary JORC Resource Report.
Morning Starʼs Directors see this JORC Resource Report as a starting point. Itʼs intended to present a current snapshot of underground and near surface gold resources allowing for the information reviewed as at this point in time. A continued, concerted effort will be made to grow knowledge relating to the mineral resources within this mine, and to MCOʼs overall 220km2 tenements in eastern
Victoria.
Morning Star is yet to examine many thousands of pages of archival microfiche relating to all aspects of the Morning Star mine, which represent fastidious records kept by Gold Mines of Australia (WMC) over 25 years of operation of the
mine from 1934-1959. These were prodigious years of production at the Morning Star and digitisation of microfiche to date has lent great weight to this report. We
fully expect this process to continue as we aim for JORC Resource updates in following periods. Over 45,000 pages of archival records were accessed. The company estimates that less than half of the available records have been
interpreted to date.
Comments by MCOʼs Managing Director Morning Starʼs MD Nick Garling said today; “Weʼre really pleased with where we
are at resource wise in a relatively short space of time. Although the mine refurbishment project has been going since 1993 at Woods Point, in some form or other, itʼs only been recently, that weʼve turned our sights to JORC Resource Reporting.”
“The challenge for every gold explorer is to prove resources expeditiously, efficiently and as a consequence inexpensively. We feel we are on the right track.
The current drilling in the upper areas of the Gap Zone gives us strong confidence in a potential series of high-grade zones within the Morning Star mine. The grade
results at newly discovered reef zones (Kenny, Sydney, Maxwell & Whitelaw extension), stack up very well compared with prodigious historic areas of highgrade production within the Morning Star.” “For instance at the Achilles floor, Morning Starʼs most prolific reef zone historically. When pitted against factual historical assay and production data in the Achilles Reef zone, new discoveries in the upper Gap Zone hold exciting potential. The Achilles Reef zone averaged drill assays of just 2.19 grams per tonne, however production from the area was over 100,000ozs (Over 3 Tonnes of Gold) from 130,000 tonnes of ore, at an average recovered grade of at least 26.5 grams per tonne. Given Maxwell Reef has drill assays averaging 10.0 grams per tonne at present and is open in all directions, we have high hopes, that further exploration and development for mining will be rewarding”
“The other pleasing area of this JORC Resource Report is the aggregate of measured and indicated resources within the mine that gives us confidence of further converting a good amount of resource into the measured category and
ultimately into reserves.”