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- AuStar Gold’s (AUL) approved the acquisition of Centennial Mining will offer the company a wealth of opportunities in the Victoria Goldfields
- Through this purchase, the company will have access to the two producing gold mines of Morning Star and the A1 Gold Mine
- AuStar will also receive the two near term targets of Union Hill and Rose of Denmark
- AuStar has entered the Christmas break a comfortable 36.4 per cent in the green with shares trading for 30 cents apiece
AuStar Gold’s (AUL) approved the acquisition of Centennial Mining will offer the company a wealth of opportunities in the Victorian Goldfields.
In early September, the company announced that it is progressing with the purchase of Centennial Mining to strengthen its position as a Victorian gold producer.
Through this purchase, AuStar will have access to the two producing gold mines of its Morning Star, and Centennial’s A1 Gold Mine.
AuStar will also obtain the two near term targets of Union Hill and Rose of Denmark.
Morning Star is a historic underground gold mine located approximately 120 kilometres east of Melbourne in the Walhalla to Woods Point goldfield.
The Walhalla to Woods Point gold field is one of the most significant in Australian history with gold production having exceeded 155 tonnes (6 million ounces).
In the late 1950s, Morning Star was one of Australia’s largest gold mines having reportedly produced more than 800,000 ounces at an average grade of 26.5g/t over its lifetime.
It has displayed the potential to deliver low-cost, high-grade gold production upon which to found major corporate expansion.
The A1 Gold Mine is the second-largest gold producer which is also located within the Walhalla to Woods Point gold field, has historically produced more than 620,000 ounces from 1861 to 1992.
It has been developed from the discovery outcrop down to greater than 700 metres in depth.
Multiple exploration targets have been identified and are expected to be the focus of near term exploration in 2020.
In 2018, AuStar moved to a 97.5 per cent ownership of Rose of Denmark buying out Shandong.
Between 1864 and 1926 the mine produced 36,248 ounces at a grade of 11.58g/t.
Previous results include 1 metre at 1110g/t gold, 1.20 metres at 529g/t gold, and 7.3 metres at 153.57g/t gold.
The Union Hill Mine has historical production of 1.47 million ounces. A significant number of drill targets have been identified, many of which are within 400 metres of existing decline development.
AuStar has entered the Christmas break a comfortable 36.4 per cent in the green with shares trading for 30 cents.
