Orion Gold Nl

Published : March 14th, 2008

Launches Expanded Gold Strategy

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Goldstar Resources NL (ASX: GDR)


MEDIA RELEASE                                               14 MARCH 2008





·        Proposed co-development of Tubal Cain/Eureka to deliver increased gold production.


·        Processing Plant now to be located at Southern Crown, near Tubal Cain, delivering a production hub 3 years ahead of schedule.


·        Eureka Feasibility Study supports expanded Tubal Cain strategy.


·        Combined 400,000tpa operation to underpin long-term production of +100,000oz pa at targeted cash costs of A$420-560/oz.


·        SRK Consulting confirms that diamond drilling alone can deliver JORC resources.


·        Intensive drilling underway at Tubal Cain to deliver initial JORC resource by June Quarter 2008.


Goldstar Resources NL (ASX: GDR) today announced an expanded two-mine development strategy for its 100%-owned Walhalla Gold Project in Victoria based on plans to accelerate development of the large-scale Tubal Cain Project by almost three years alongside the nearby Eureka Project.


Goldstar said today (Friday) that the new strategy would enable it to bring forward a much higher production level to take advantage of the current strength in the gold market, with indications that a co-development of Tubal Cain and Eureka would support an annual production level of over 100,000oz at a targeted cash cost level of between A$420 and A$560/ounce.


The centrepiece of the strategy is the proposed locating of the modular 200,000tpa processing facility to a new site called Southern Crown, near Tubal Cain, with production expanding rapidly to a 400,000tpa level fed by ore from Tubal Cain and Eureka, 4km to the south.


“The Eureka Feasibility Study has confirmed the technical viability of Eureka as a production opportunity, however it also provides a compelling case for the co-development of Tubal Cain – which we see as a potential company-maker for Goldstar,” said Andrew King, Goldstar’s Managing Director.


“Also, an expanded, dual development of the deposits would significantly enhance the economic viability of Eureka compared with an initial standalone development based on Eureka followed several years later by Tubal Cain, as originally envisaged,” he added.


The new development strategy is supported by a number of factors, including key outcomes from the Eureka Feasibility Study, the identification of the new plant site and the independently verified ability to deliver JORC resources in the Walhalla Field by diamond drilling alone.


“Our Independent Geological Consultant, SRK Consulting, has produced a report confirming the ability to deliver JORC resources at both Eureka and Tubal Cain from diamond drilling alone, thereby eliminating the cost and time involved in bulk sampling,” Mr King commented. “This is a very important outcome and potentially transforms our approach to the exploration and development of the dyke bulge-style deposits within the field.”


The Eureka Feasibility Study has delivered the first-ever JORC Code compliant resource for the Walhalla Field, an initial Reportable Resource of 153,000 tonnes at 10.0g/t Au for 48,000 ounces to a depth of 350 metres. This occurs within a revised Geological Model for Eureka totalling 827,000 tonnes of quartz reef to a depth of 550 metres, itself representing a 15% increase on the previously announced tonnage of 720,000 tonnes.


“Importantly, only 12% of the deposit has been covered by a detailed assessment, and the SRK Report provides the basis for the balance of these tonnages to be potentially upgraded to the Indicated category, subject to positive results from drilling,” Mr King said.


Goldstar also confirmed that it had submitted its application for a Mining Licence at Walhalla covering the Eureka, Tubal Cain and Southern Crown operating areas, with the application now in the final stage of the approval process.


“While we remain focused on moving into production as rapidly as possible, it has always been our approach to deliver sustainable gold production from the Walhalla Field,” Mr King said. “We would rather take a measured approach to achieve the maximum possible return to shareholders at an acceptable risk profile.”


- ENDS -


GOLDSTAR RESOURCES NL – Key Company Statistics


ASX Code:                             GDR                                       Cash Reserves                                   ~$7.0 million (@ 31 December 2007)

Shares on Issue:                    140.2M                                   Market Capitalisation:                      ~$30 million

Key Project:                           Walhalla Gold Project            Key Deposits:                                               Eureka, Tubal Cain



- ENDS -


Released by:

On behalf of:

Nicholas Read

Goldstar Resources NL

Read Corporate

Telephone: (+61-8) 9388-1474

Andrew King – Managing Director

Telephone: (+61-8) 9321-1577

Mobile: (0419) 929 046

Web: www.goldstarnl.com.au




Goldstar Resources NL (ASX Ticker: GDR) is an Australian gold company which is focused on building a profitable, long-term gold business in the historic and richly endowed Walhalla-Woods Point Gold Field in Victoria’s East Gippsland region.


Goldstar’s Walhalla Gold Project encompasses an extensive tenement package covering more than 700km2 and places the Company in a commanding position within the Walhalla-Woods Point Goldfield. Goldstar is drawing on its extensive knowledge base built up over the past few years regarding the overall exploration potential of the region to develop a pipeline of high-priority exploration targets which are expected to deliver future production opportunities.


In addition to unlocking the broader potential of the field, Goldstar is focused in the short term on developing a sustainable gold production hub at Southern Crown fed initially by ore from the nearby Tubal Cain deposit and the Eureka deposit, approximately 4km to the south.


Goldstar has completed a Feasibility Study and initial JORC compliant resource estimate for Eureka, confirming its “Proof of Concept” approach to the development of the dyke bulge deposits in the field. The in-situ Reportable Resource for Eureka of 153,000 tonnes at 10.0g/t (48,000oz) to 350m depth covers only small portion of the orebody. A Geological Model of 827,000 tonnes has been defined for Eureka to a depth of 550m and remains open at depth.


Tubal Cain represents a much larger, potentially company-making opportunity for Goldstar, with a defined Geological Model of over 3.6 million tonnes to a depth of 1,000 metres and intensive in-fill drilling well advanced in the upper 500 metres. The Company has announced a Conceptual Exploration Target for Tubal Cain of 900,000 ounces.


Goldstar is pursuing an expanded strategy based on the co-development of Tubal Cain and Eureka, drawing on the positives of the ability to locate the processing facility at Southern Crown, near Tubal Cain, the capacity to achieve Indicated Resources by diamond drilling alone, and the correlation of Bulk Sampling to drilling at the dyke bulge deposits.


Indications from the Eureka Feasibility Study and Tubal Cain Scoping Study are that a combined operation could support a production level of over 100,000 ounces per annum at a targeted cash cost level of A$420-560 per ounce. Intensive diamond drilling programs are underway at Tubal Cain designed to deliver an Inferred JORC compliant resource during the June 2008 Quarter and an Indicated Resource by the end of the year.


- ENDS -




Public Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au 


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Orion Gold Nl

ISIN : AU000000GDR8
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Orion Gold is a gold producing company based in Australia.

Orion Gold holds various exploration projects in Australia.

Its main exploration properties are WALHALLA and TUBAL CAIN in Australia.

Orion Gold is listed in Australia. Its market capitalisation is AU$ 14.3 millions as of today (US$ 10.3 millions, € 9.0 millions).

Its stock quote reached its highest recent level on December 24, 2010 at AU$ 1.12, and its lowest recent point on January 29, 2016 at AU$ 0.01.

Orion Gold has 792 419 968 shares outstanding.

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Nominations of Orion Gold Nl
7/23/2008Appoints Managing Director
7/14/2008New Board Appointment and Market Update
1/31/2008Key Appointments - Production Team Builds
Project news of Orion Gold Nl
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3/14/2008(Walhalla) Eureka Delivers JORC Resource - Underpins Expanded Tubal Ca...
Corporate news of Orion Gold Nl
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4/1/2016Appointment of Company Secretary (01/04/16)
2/1/2016Sale of Walhalla Project Mining Tenement (02/02/16)
1/20/2016Change in substantial holding (18/1/16)
12/29/2015Sale of Walhalla Project Mining Tenement (30/12/15)
12/3/2015Change in Director's Interests - 3Y's
12/3/2015Change in Director's Interest - 3Y
12/3/2015Appendix 3B
12/3/2015Drilling Confirms New Epithermal System at Chough Prospect (...
12/3/2015Change in Director's Interest - 3Y's
11/26/2015Results of AGM (26/11/15)
11/26/2015Breakaway Research Flash Note (26/11/15)
9/25/2015Full Year Statutory Accounts (25/09/15)
9/22/2015High grade surface samples from Veinglorious Prospect (22/09...
8/10/2015Sale of Mining Tenement at Walhalla Project (11/08/15)
8/3/2015Listed Option Expiry Notice (3/08/15)
8/3/2015Expiry of Unlisted Options (3/08/15)
7/31/2015June Quarterly Activities Report (31/07/15)
7/30/2015Funding Secured via Shareholder Loan Facilities (30/07/15)
7/13/2015Connors Arc Epithermal Potential Further Expanded (14/07/15)
4/26/2015Exploration Update - Connors Arc & Fraser Range
4/21/2015March Quarterly Activities Report
4/21/2015March Quarterly Cash Flow Report
3/22/2015Presentation - Exploration gathering momentum on two fronts
3/22/2015Breakaway Research Report
3/18/2015Connors Arc Project - Technical Briefing & Update
3/9/2015Key Exploration Programs Resume in QLD and Fraser Range
3/8/2015Half Year Accounts- December 2014
11/18/2014Ground EM Survey Commences at Pennor Nickel-Copper Prospect
11/5/2014Orion Closes in on Drill Targets at Connors Arc
11/5/2014Breakaway Issue Research Report
10/30/2014Entitlement Issue - Dispatch of Prospectus
10/28/2014Board Room Radio Webcast - Mr Errol Smart
1/4/2012ASX Announcement
12/21/2011ASX Announcement
11/25/2011ASX Announcement
9/30/2011ASX Announcement
8/24/2011ASX Announcement
5/3/2011ASX Announcement
3/20/2011ASX Announcement
4/30/2010Quarterly Report
9/10/2008announces A$6M convertible note loan facility.
8/25/2008Achieves Significant Milestone with Grant of Key Mining Lice...
7/31/2008June 2008 Quarterly Activities Report
7/29/2008 Announces Proposed Rights Issue
5/28/2008Corporate Office Relocation & Retirement of Managing Directo...
5/14/2008Goldstar Resources - Continuing Good Grades From Tubal Cain ...
4/29/2008Share Placement
4/24/2008Quarterly Activities Report - March 2008
4/7/2008Opes Prime
3/19/2008 Open Briefing. Goldstar Resources. Fast Tracking Tubal Cain
3/14/2008Launches Expanded Gold Strategy
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