MORNING STAR GOLD N.L. Audio Webcast

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MORNING STAR GOLD N.L. (MCO)

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MORNING STAR GOLD N.L. (MCO) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/NSW
MORNING STAR GOLD N.L. (MCO)	Tue, 11 Nov 2008 05:15PM	MCO - Woods Point Gold Project Update - Mr Nick Garling, MD
MORNING STAR GOLD N.L. (MCO) Impressive Finds & Potential at Morning Star	Fri, 29 Aug 2008 08:00AM	MCO - Jorc Resource Report - Morrie Goodz, Technical Director
MORNING STAR GOLD N.L. (MCO) Discovery of Several New Reefs	Wed, 9 Jul 2008 04:30PM	MCO - Wood Point Gold Drilling Update - Mr Nick Garling, MD
MORNING STAR GOLD N.L. (MCO) Maxwell Project to Provide Positive Cash Flow	Wed, 11 Jun 2008 12:30PM	MCO - Pilot Program Commencement - Mr Nick Garling, MD
MORNING STAR GOLD N.L. (MCO)	Thu, 2 Oct 2008	Full Year Results
MORNING STAR GOLD N.L. (MCO)	Mon, 17 Mar 2008	Interim Results
MORNING STAR GOLD N.L. (MCO)	Mon, 26 Nov 2007 11:00AM	Annual General Meeting 4th Floor, 20 Loftus Street Sydney NSW
MORNING STAR GOLD N.L. (MCO)	Wed, 14 Mar 2007	Interim Results
MORNING STAR GOLD N.L. (MCO)	Thu, 16 Mar 2006	Interim Results
MORNING STAR GOLD N.L. (MCO)	Thu, 24 Nov 2005 10:30AM	Annual General Meeting
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MORNING STAR GOLD N.L. (MCO)

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INTERVIEW WITH MORRIE GOODZ, TECHNICAL DIRECTOR OF MORNING STAR GOLD N.L. (MCO)

“JORC Resource Report”

http://www.brr.com.au/event/50452

 

FRIDAY, AUGUST 29, 2008, 8:00 AM.

 

            BRR    Good afternoon, and welcome to Boardroom Radio. Today, we are talking to Morrie Goodz, Technical Director of Morning Star Gold. Good afternoon,

10                    Morrie. Thanks for taking the time to speak with me today.

            MCO    Good day, Tom. Now, it’s good to catch up and it’s a lovely day to do it on.

 

            BRR    Morrie, you’ve recently compiled the JORC Resource Report for Morning Star Gold. Can you tell us a little bit more about your findings?

15        MCO    Well, Tom, we have over the last year greatly increased our working capacity on the Morning Star project. We’ve purchased an owner operator drilling team and we have our own drill rigs. Our owner operating drilling team has commenced drilling both on the surface and underground both at the Morning Star and at our new project site called the Waverly and that has allowed us to

20                    greatly extend our knowledge at the resources and to finally have the opportunity to release our Resource report in line with the JORC guidelines.

 

                        Now what that means, Tom, for us is that we have now got the ability to establish where our resources are and our targets and how to move forward.

25                    Now in its first announcement, we have a resource identified of 910,000 ounces and that is from approximately 40% of our mine area which we are calling the Morning Star Dyke.

 

                        Now 40%, that’s a number. If you can visualize one-third of the dyke is

30                    roughly that amount and that is where we’ve confined our testing so far. It’s been in three areas and they have been in relation to our underground development to the stope of the Gap Zone.

 

                        The Gap Zone is an exciting area that was not mined in any way by the

35                    previous operators, Gold Mines of Australia, which was the gold division of Western Mining Corporation, and that stope of the Gap Zone was located approximately 250 meters below the surface. From 250 meters below the surface to about 550 meters below the surface, GMA (Gold Mines of Australia) left that zone relatively untouched. They only put approximately six

40                    drill holes into it, virtually every hole had a gold bearing intersection, some of them quite significant. However, Western Mining decided to go to deeper level of the mine which they then developed and they never had the opportunity to come back before they shut the mine in 1963.

 

45                    We reopened the mine through a clear increased workforce capacity in 2005, and we got then to the 300-meter level so we got into the Gap Zone and we set up a series of underground drill platforms and since late 2007, we have been drilling from three platforms underground in the mine, and this has enabled us to identify the resources in the upper portion of this zone. This has been significant to us because what it allowed us to do is to combine over 7 kilometres of the drilling that we’ve done in this program with all the historic records and we’ve also been able to access all the underground stopes and old production areas, we’ve corrected a number of underground samples.

5                      We’ve got over 200 underground stopes samples of the faces…. the leading faces in the stopes that where the stope is today going forward. So it’s not looking at remnant bits that were left behind, but it’s the face of the virgin stone looking forward. These underground samples have averaged approximately 78 grams per tonne which is in total agreement with the record

10                    that GMA left.

 

                        We’ve got over 8,000 stopes face samples from the previous program and when we incorporate that with the 500 drill holes that we have in our database, this given us a very strong picture on how great assignment of our

15                    resources works and we feel very confident with this preliminary resource of 910,000 ounces.

 

            BRR    So Morrie, how is it that you’ve discovered these resources?

            MCO    Well Tom, we have developed some very new three-dimensional geological

20                    model. We’ve got a strategic alliance partner in our mining software company and integrating their knowledge with managing three-dimensional software and our records of the geology and grade in the mine. We have built a 3-D model of the mine which gave us a series of targets to aim for in our drilling program. This drilling in the first stage that we carried out this year allowed us

25                    to identify four new gold bearing quartz reefs deposits. The first two of these which has now become quite synonymous with our operation are the Kenny and Maxwell reefs.

 

                        We have seen the ability to convert what is a target, just a conceptual idea in

30                    a computer model, into a real drill hole intersection and this has been really exciting not only for us and our shareholders and the drilling teams, but to actually be able to predict that you are going to hit a course vein 30 meters into a drill hole then to actually hit it and see the course visible gold in it is exciting for all the people involved.

35

                        What this is meant for the company is that we have developed such strong conviction on the great distribution in these areas and a great assignment model that we have designed a new mining stope called Maxwell No. 1 stope. We received approval from the Mines Department with great news last Friday

40                    that we received the grant of our work plan to commence production. So Morning Star will, for the first time, in 45 years be going from a development exploration project into a production project. We have already commenced the preparation for the main land storage passes to develop this stope which we hope to be firing the first stages for this in the coming weeks.

45

                        We have met our targets to actually bring the mine into production in quarter three of 2008 and we are on target for gold bar delivery in quarter four 2008. So, this is a great time, we’re delivering on our promises and it gives us great being confident going forward.

 

            BRR    Great, and what do these findings mean to Morning Star and its outlook for the future?

            MCO    Well Tom, the future we see as being bigger and better than we’ve touched

5                      on so far. As I mentioned earlier on, we have only really tested one-third of the Morning Star Dyke, but beyond the Morning Star Dyke, in the last year, we have acquired over 220 square kilometres of land holding immediately around the mine. What that means to us is that we’ve got about 60

                        kilometres of known historical strike length of mine workings, of which we’ve

10                    only tested approximately 1 kilometre worth, so far, at the Morning Star mine.

 

                        Furthermore, a lot of the mine historically, were only work ends of the water table where it became either too difficult technically for the old timers to work below the water table or 1 cm below the level of weathering the rock became

15                    too hard for them to mine because this was all being done in the 1860s using manual methods. Today, we have the ability to extend hundreds of historical mines beyond that gap of perhaps only 50 metres below the surface where they hit the water table. So there’s a huge opportunity going forward on all these deposits, not only at the Morning Star Mine, but across our entire

20                    tenement package.

 

                        The Woods Point Gold field has produced 6 million ounces between Woods Point Wahiawa, and we see that there is no reason not to expect another 6 million ounces endowment in this field less to be found.

25

            BRR    Is there anything else you wanted to add that could help our listeners  better understand your business?

            MCO    I think that what we have shown….what we have achieved, so far, this year has been phenomenal to come out with the preliminary resource of 910,000

30                    tonnes in such an early part of our exploration program to accumulate assets through our increased tenement package and new geological models that we’ve gain confidence in understanding how great assignment works to be able to deliver to our shareholders and to the community of which we’re the biggest employer, and we are a main part of the North East Victorian

35                    economic area. We are looking forward to a very productive future, and I think you know, when you think about achievement, delivery, and the opportunity, we see a very positive future ahead of us.

 

            BRR    Morrie, thanks for taking the time to speak with me today. Listeners, that was

40                    Morrie Goodz, Technical Director of Morning Star Gold. If you have any questions to Morrie or you’d like some more information about this broadcast please e-mail brr@brr.com.au. I’m Tom McKay. Thanks for listening to Boardroom Radio.

 

INTERVIEW CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

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