Morning Star Gold

FAQ

Where is the Morning Star mine located?

The Morning Star mine is located at the township of Woods Point which is around 3 hrs drive from Melbourne in the Upper Yarra ranges. Some refer to the area as the lower 'Alpine’ Victoria as it's not far as the crow flies from Mount Buller. Woods Point is a small town on the main road between Marysville and Mansfield. Woods Point has about 40 residents, a homely country pub, a small general store, a manned police station... and Morning Star Gold.

When was the Morning Star mine last mined?

The Morning Star was last mined for gold in 1962/3. The Morning Star mine and hill operated pretty much continuously since gold was discovered in the Victorian High Country in 1861/2. In fact when Gold Mines of Australia (WMC Ltd) decided to down tools and head to W.A. to mine nickel due to the low gold price & high power costs, it was actually late 1959. At the time, they were mining at 19L and looking at re-developing the 9L of the mine underground but targeting 18 grams a tonne or better to cover costs. Various local groups tried in vain to keep the Morning Star open for business after WMC departed but in the end it was too big a concern for the small local operators to maintain as power costs were high and gold was set at USD35 per ounce. Access to the lower areas of the mine (19L and under) was also impossible after WMC pulled out as they dismantled a large winder on 19L which ran equipment up and down the inclined shaft from that point & deeper.

What is the size of Morning Star’s tenement holding?

MCO's granted Exploration Licences have expanded tenfold in 2008 to over 220km2. This expansion is primarily running northwest along three major geological 'shear zones' which contain numerous mafic gabbro 'dykes', which were mined historically for rich returns from predominantly shallow workings. One major fault zone is known as the 'Ross Creek Line' which famously housed both the Morning Star mine and the Long Tunnel Mine near Walhalla 60kms to the southeast. The company is based at the Morning Star mine site adjacent to Woods Point but its Licences run from Matlock (11kms to the south-east of Woods Point and the site of All Nations + Loch Fyne mines), to well up and beyond Gaffney's Creek (14kms to the north-west of Woods Point, the site of Rose of Denmark, Hunts & Dempsey mines).

What is the potential Resource Target of Morning Star’s tenement holding?

The Company is currently conducting a detailed ongoing study in order to rank its key regional ore bodies (dykes) other than the Morning Star mine. This is being conducted by Dr. Peter Jackson and is designed to ultimately determine an overall resource endowment in MCO's 220km2 tenements and to continue developing key resource targets in turn. In July 2008, Morning Star released its maiden preliminary JORC Resource of 910,000 Ounces of Gold. This was purely for the Morning Star dyke bulge. MCO is confident its Regional Exploration Program will see this resource ultimately grow. Regional mafic gabbro-dykes, which were in many cases high producers of gold from shallow workings mostly above the water table, are numerous on MCO tenements. Key primary targets include All Nations, Waverly, Rose of Denmark, Hunts, Reliance, Little Comet and Wallaby mines.

What is meant by the 'Gap Zone' of the Morning Star mine and why does the ‘Gap Zone’ exist?

The area below Whitelaw's Reef and above the rich Achilles Zone in the Morning Star was partially developed and stoped by WMC but never mined. The main reason for this was the catastrophic January 1939 ‘Black Friday’ bushfires, which destroyed the entire town of Woods Point and the outbreak of WWII that same year. There is a more detailed description on this website under this link: www.morningstargold.com.au/projects/morning_star_mine/the_gap_zone.phtml

How close are the nearest larger towns?

The nearest town of consequence to Woods Point is Mansfield, 78kms to the north along the Woods Point to Mansfield Road via Gaffney’s Creek and the A1 Mine Settlement (both famous gold mining towns in their day). Heading southwest, the pretty town of Marysville can be accessed along roughly 92kms of logging trails and highway. Marysville was of course destroyed in the Black Saturday fires in Feb 2009 but is slowly being rejuvenated to its former beauty.

How deep is the mineshaft at the Morning Star mine?

The main vertical mineshaft was historically 940 metres deep over 23 Levels. Roughly 600 metres is a vertical shaft and at the 19L an incline shaft was set up to access the lowest levels of the mine. The 4-compartment mineshaft has been totally refurbished and lifts operate down to the 10L ‘Plat’ and 10L drives, which are 306 metres underground. Several other large and deep vertical shafts (and adits) enter the Morning Star dyke, including the Hope shaft, Alps, Hope Engine, Cherry and North Morning Star.

What hours does Morning Star operate at Woods Point?

Morning Star Gold operates at the Morning Star mine 6 days a week from 7am until 5pm. There is full time security on-site at all times. Prior arrangement is needed to access the mine site.

What type of equipment is utilised at the Morning Star?

A myriad of equipment is used at the Morning Star mine. There are two Kempe underground diamond drill rigs, three Boyles surface rigs, large air compressors to drive the underground rigs, all sorts of air-leg drills and tools for extraction of rock samples and mining, GPS equipment for surveying tenements and old workings, two independently run winches which operate the main lifts underground and various pumps to keep the ground water from encroaching on operations underground. MCO also uses earthmoving equipment and several IT items to make the office run efficiently from a technological standpoint. It's a fully fledged and full time operational business employing approximately 20 staff.

When will Morning Star Gold announce a Resource?

Morning Star Gold announced its Maiden preliminary JORC Resource of 910,000 Ounces of Gold in July 2008. This relates only to the Morning Star dyke. It is seen as a preliminary or interim statement which will be added to as more information is at hand and validated with the coming mining and gold production programs. The full announcement can be accessed at this link:     JORC RESOURCE OF 910,000 OZS GOLD  

Morning Star is working towards an overall statement of gold endowment potential on its entire eastern Victorian tenements of 220km2.

When would mining likely start at Morning Star?

Morning Star announced in June 2008 a program of pilot mining concerning the Maxwell Reef zone between the 9L and 8L of the mine. This was after resource drilling indicated a series of ore targets close to the main shaft and the company decided with high gold prices that a move towards cash flow would be sensible. The Maxwell mining program is also a good opportunity to test grade factoring theories in a production scenario. Recently a new technical team has identified additional mining targets at much the same depth as Maxwell's elsewhere in the dyke in the Kenny Zone. There are 5 major zones of focus for the upcoming mining program and the company will continue to target shallower resources and mining targets whilst working towards 2010 gold production.

MCO has a five-legged planning process, which it is carefully following. The 1 st and 2nd stages have been completed with the successful refurbishment and dewatering programs in the Morning Star mine to beyond the 10L and extensive underground resource focused diamond-drilling of the upper ‘Gap Zone’ of the mine. The 3rd stage is underway with development of the 5 Zones of Focus in the Morning Star mine (Maxwell's Reef Zone, 7 Sub-Floor, Dickenson's, Perkin's and Kenny zones). The next crucial 4th leg is the purchase and construction of an onsite gravity plant targeting 80,000TPA throughput and advanced planning & feasibility on a decline shaft to enable an uplift in tonnages should the ultimate mill be able to process more ore than can be brought up the vertical shaft. The 6th stage is to find more ore in the scores of regional ore bodies which are being explored currently & developed. There will be an overall assessment of key regional dyke targets and their potential which will be ongoing over 2010-2013 to decide the overall ounces available on MCO's tenements.

What is the mine’s life likely to be?

This will very much depend on ongoing proving up of gold resources. At this stage it’s hoped that the Woods Point Gold Project will be able to operate as project with one production hub with many proximal ore sources but of course, mine life will be amenable with the resources identified in the coming years. If MCO process 80KTPA the life of resources will be more than 20 years just from the Morning Star mine.

Is there any open-cut mining at Morning Star?

Historically there was small open cut mines and sluicing in the area but not at the Morning Star. An assessment of MCO’s resources in 1998, identified an area, which would suit an open cut mine if it was developed. The area is called Morning Star Hill and basically rises above the Morning Star poppet-head along the dyke towards the northwest. There is a zone 140 metres deep, which holds a large low grade JORC compliant resource of 184,000 ozs (2.61MT at 2.2 grams per tonne).

Is there much impact on local residents and the environment?

Morning Star is very sensitive to the needs and desires of locals and of course the sustainability of the local environment. Although the mine is very isolated in terms of human habitation, many tourists still use Woods Point for a variety of purposes, especially in the warmer months. MCO considers there is zero impact on residents of Woods Point from their exploration and mining activities and as the mine is underground, any future impact is considered negligible. Morning Star has an environmental policy and considers it’s main impact to the environment probably as the discharge of ground water from the mine. The water is tested monthly and is potable at this point in time and well within WHO and EPA standards. Once milling onsite, all of the water taken from the mine will be re-used for milling purposes, radically lessening any impact discharge could have. Morning Star has at times employed many locals - nearly half the town of Woods Point in one way or another - and supports local accommodation and services supplying fuel and other consumables. The positive financial impact of the business is also felt on many businesses as far away as Jamieson, Mansfield, Healesville and Marysville.

What is the history of the Woods Point?

William Gooley discovered gold at Woods Point in 1861 , and for his trouble they named a local creek after him. In 1864 Gooley and his partner Colin McDougall carted in over many arduous months, a stamp battery to crush the rock and process the gold. This story sounds good BUT there is another account which will be brought o life in Morning Star's upcoming microsite 'The Reefers Hotel'. Other prospectors soon followed the initial trailblazers, including a storekeeper by the name of Mrs Wood who set up business on the largest point of the spur. As the town was built around it, the site became known as Woods Point. By 1865 Woods Point was thriving with the local gold rushes and had its very own Mayor called Paddy Perkins. Perkins set up several pubs and a small brewery in the area but later followed the gold, the miners and the beer to Castlemaine and Toowoomba, where he's credited with his brother Thomas, as the founder of Castlemaine Perkins Brewery and ultimately the XXXX brand.

Why was gold mostly mined in shallow workings around Woods Point apart from the Morning Star?

This was mainly due to the lack of power to operate pumps to clear mine shafts of groundwater. Many of the Woods Point dykes outcrop close to the river level. The Morning Star is a large dyke bulge and proximal alluvials and surface workings had been carried out by many individual leaseholders during its first two decades. After a hiatus, several leaseholders formed a public company in the 1890's as the 2nd gold rush came. It was called The Morning Star Mine Co. Ltd and it was set up to begin serious shaft sinking operations into the Morning Star dyke. The collective financial clout of the stakeholders enabled a more sophisticated approach to pumping out ground water at Morning Star involving steam driven pumps. This had a devastating effect on the timber in the area at the time as photos at the turn of the 19th/20th Century reveal but you would not know it now as it's well wooded. This is notwithstanding the devastation also felt to the native fauna and flora in Jan 1939 (Black Friday Fires). The area is now surrounded with forests mainly comprising the species Mountain or Alpine Ash.

What happens to the disused ground water from within the mine?

It is pumped from 10L sump (under 10L plat) to a series of underground dams and holding reservoirs at 9L and 5L. It is tested in several locations; most will be used for drilling or milling purposes once pumped to surface, Any water ever discharged into the catchment is agitated and aerated against rocks at a spillway, then into a series of settlement ponds and a holding dam where it’s tested again. The water then seeps into the catchment of Morning Star Creek, a small trout rich tributary of the Goulburn River system. Stringent water testing controlled by ALS Labs in Melbourne has proved that the water from the Morning Star is potable and not harmful to the catchment or humans. The main potential 'nasty' in the ground water has traditionally been arsenic (due to the presence of arseno-pyrites in the quartz bearing structures containing gold) but the arsenic is nearly fully diluted once the water is agitated and moved between ponds before discharge. This particularly so during the wet winter months.

What is the size of Morning Star’s workforce?

Currently, MCO retains two executives in Sydney and a number of employees + contractors at Woods Point. Morning Star has spent considerable time and resources up-skilling local staff in a series of mining and exploration roles to maintain flexibility and support the local economy. As the presence in Woods Point grows, so will the outside influence which is welcomed in the tiny town. Currently around 22 people work directly for MCO all up. An org chart is available on this company website.

Will access to the mine and local ore bodies be via decline shafts?

It’s certainly also possible depending on feasibility studies to access several proximal ore deposits via a single decline shaft like in the case of the MS mine & the Waverly or the All Nations & Loch Fyne or even the Hunts and Rose of Denmark. Again these scenarios playing out depends on the resources definition proximal to each ore body. A preliminary decline shaft has been designed and the decline portal entrance has been determined and is pictured in this website under 'Media - Photo Gallery'. A second portal entry is being assessed at present at the Morning Star Creek Adit. It's possible both portals can be used.

Are visitors welcome to the Morning Star mine?

Site visitors are always welcome provided the Company receives sufficient notice. Please contact Mott Ryan at Woods Point via email if you wish to visit the Morning Star mine site. Mott is contactable at mott@msgold.com.au

What else is there to do around Woods Point?

Woods Point is a popular stop-off place for all sorts of adventure seekers. There are loads of things to do including fishing and hunting (strictly in season and with permits), water sports, trail-bike riding, horse riding, 4WD, tours of old gold mining towns & relics, bushwalking and alpine sports in the colder months, not to mention bird watching and gold fossicking! The Commercial Hotel in Woods Point is the perfect place to stay a while and other accommodation is available at nearby Comet Flat at the Richmond Retreat or up the road at Brian & Heather Prothero's 'Gap Getaway', which is a really stunning place to stay with a very friendly ambiance on weekends..

How far is the Morning Star mine site from Melbourne?

The Morning Star is a comfortable three to three and a half hour drive from most parts of Melbourne. Best to travel via the Eastern Freeway out of Melbourne, towards the Yarra Valley (Healesville then Marysville), which is very picturesque route via the famous 'Black Spur'. Tullamarine Airport is more like a 2.5hrs drive from the mine site via the Western Ring Road then Christmas Hills and Yarra Glen. With plenty of new freeway work going on near Melbourne, please check your maps! The slightly longer route is Melbourne up to Mansfield and then to Woods Point via Jamieson.



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