Walhalla Proprietary upgraded as key southern target for Goldstar

A recently completed program of ground-based geophysics and site mapping....

  A recently completed program of ground-based geophysics and site mapping, together with a review of the historic workings, has significantly upgraded the potential of Goldstar Resources’ Walhalla Proprietary Dyke Bulge.With a northern edge only 200m south of the Eureka Project, Goldstar has re-rated Walhalla Proprietary as a priority exploration target.Walhalla Proprietary is the southernmost dyke bulge identified to date within the Ross Creek Line (RCL) of mineralisation. The RCL already hosts the Eureka and Tubal Cain projects, as well as numerous other historic workings and exploration targets.Work carried out by Goldstar over the past six months in the Walhalla Proprietary area has confirmed the results of exploration drilling undertaken in 2006. It has expanded the potential size of the Walhalla Proprietary dyke bulge with a significant northern extension to bring it to within 200m of Eureka.Because of its close proximity to Eureka, where Goldstar is currently completing a major bulk sampling program and pre-feasibility study, the company said it regards Walhalla Proprietary as a strategically important near-term exploration target. Any underground mining infrastructure developed at Eureka could potentially be extended to provide exploration, bulk sampling and future production access for Walhalla Proprietary.Goldstar completed three diamond drill holes during 2006, targeting the southern portion of the original Walhalla Proprietary structure. Assay results, while not high-grade, confirmed a sequence of four quartz reef structures. The holes also indicated the size of the dyke bulge to be 260m long, 120m wide and 300m deep at that point in time. Goldstar said it had, over the last 12 months, undertaken a considerable amount of geophysical work utilising techniques refined from trials over Eureka and Tubal Cain. This work has resulted in a major northerly expansion of the Walhalla Proprietary dyke bulge to a size of 600m long by 150m wide, which is considerably larger than the Eureka Dyke Bulge.In light of these encouraging results, Goldstar has committed to an initial program of three surface diamond holes totalling 1,000m, which is planned to commence in late August/early September. Goldstar Managing Director, Andrew King said the company had previously emphasised the importance of the dyke bulge structures within the Ross Creek Line of mineralisation, which has been confirmed by the work at Eureka and Tubal Cain. “While our focus remains on moving both of those projects into production in the short-term, we are also stepping up our regional exploration to develop a long-term production and growth strategy,” Mr King said.“Walhalla Proprietary has been an area of considerable interest to us for some time because of the initial success of the 2006 chip sampling and drilling program together with its close proximity to Eureka,” Mr King said.