Drilling underway at Edwards Hill Project

In recognition of the strategic importance of this enhanced regional exploration....

  In recognition of the strategic importance of this enhanced regional exploration strategy to the Goldstar Resources’ future, the company has committed to the budgeted expansion of its regional exploration team and allocated at least one drill rig to a full-time drill program for the foreseeable future.This team could be supplemented further assuming ongoing exploration success.The drill rig is undertaking an initial 1,250m diamond drilling program at the Edwards Hill Project, which lies on the newly named Donnelly’s Line of Structure. While not dyke-hosted, Edwards Hill is considered to be a priority target based on geophysics, historical records and an overview of the Digital Terrain Model. The Donnelly’s Line contains many known historical mines which together with thev Edwards Hill Project area produced in excess of 30,000 ounces of gold. All of these have similar production histories to Eureka and Tubal Cain in that they were worked close to the water table. Most of these historic operations were abandoned prematurely in favour of ‘easier targets’ because of the need to undertake dewatering, combined with their geographical isolation in the context of the late 19th and early 20th centuries.Goldstar’s Managing Director, Andrew King, said the company was in an excellent position to continue to add value through regional exploration following the consolidation and expansion of its ground position in the Walhalla-Woods Point Goldfield over the past 12 months and the positive recent results.“We have a long term view of the potential of the Walhalla-Woods Point gold field,” said Mr. King. “It is our intention now to capitalise on our knowledge base of the region with a target of delivering the next generation of production centres to complement what we currently envisage for Eureka and Tubal Cain.”“While it is still early days for our regional exploration strategy, with the work to date identifying at least six regional structures and over 150 high priority targets, we believe that there is considerable upside yet to be discovered and we are only just beginning to establish the potential of our broader tenement position,” he said." Importantly, we are now able to bring a strategic whole-of-field approach to exploration following the excellent results received from the work completed to date." Our initial focus is clearly on the successful development and delivery of early gold production around a southern hub, comprising the Eureka/Walhalla Proprietary and Tubal Cain projects,” Mr. King added. “Success with these will in turn reinforce the overall potential of the field and we believe provide the basis for a long term expanding, production base for a decade or more,” Mr. King said.