Regional Exploration Program

MCO believes there are also substantially under-explored areas on its current tenements including high-production old mines and dykes, many of which produced high grade gold only above the water table as historically, sub-water table level mining was hampered by lack of power to run pumps.

Running concurrently with the underground drilling at the Morning Star mine ‘Gap Zone’ project is MCO’s Regional Exploration Program. The Regional Exploration Program commenced last quarter endeavouring to establish an exploration resource target in the surrounding old mines and under-explored dykes contained within existing and recently granted Mining Licences held 100% by Morning Star Gold N.L.

MCO has systematically re-surveyed, mapped and relocated old workings and is currently sampling several proximal dykes to the Morning Star. These include several mines, which collectively produced over 400,000 ounces of gold at high grade, from shallow workings (around 100 metres deep) mainly above the water table, such as ‘The Comet’, ‘Little Comet’, ‘All Nations’, 'Waverly', 'Tingha', ‘Mountaineer’ and ‘Loch Fyne’ dyke systems. The Morning Star dyke by comparison was mined successfully at depths of over 700 metres below the water table and was open at depth with visible gold noted by WMC in drill core beneath the limit of its lowest workings at the time of its closure in 1963.

MCO’s key regional targets include aforementioned mines and dykes such as the ‘All Nations’ (132,000 ounces production), the ‘Comet’ (64,000 ounces), the 'Waverly' (~50,000 ounces) and the ‘Loch Fyne’ (109,000 ounces of Gold but also rich in Platinoids). MCO plans to test the depth of these dykes and the presence of deeper quartz reefs through deep diamond drilling over 2008. All Regional Targets are being added to the Company’s 3D modelling as they are surveyed, sampled and ultimately drilled.

The Regional Exploration Program was conceived in July 2007 endeavouring to establish a greater overall gold endowment from these surrounding unexplored dykes, which are all contained within the Company’s existing Mining Licences that adjoin the Morning Star Mining Licence.

*** RECENT IMPORTANT UPDATE - Tenements held by MCO expand tenfold from ~20km2 to ~220km2. ***

Morning Star Gold received from the D.P.I. Victoria confirmation of newly granted Mining & Exploration Licences covering over 200km2 of highly prospective Woods Point Dyke Swarm tenements. This is a huge increase (over tenfold) in Morning Star's areas. Late in Q3 2007 and early in Q4 2007, MCO was awarded priority over licences and granted licences covering the three major 'shear zones' running northwest from Woods Point. These zones run along the Ross Creek Line, the All Nations Line and the Waverly & Tingha line of dykes and workings. Many mines exist within these new Mining Licences and ELA, some of which were mined for rich returns of Gold from shallow workings historically.

Additionally Morning Star has purchased MIN5299 known as the 'Dempsey Licence'. This current Mining Licence contains the historically rich Dempsey, Hunts and Rose of Shamrock Mines which have produced ~87,000ozs Au - some recently.

MCO Mining Titles can be found in this PDF:      MCO's 100% Controlled Mining Titles - May 2008 (476.99 Kb)