Morning star woods point

Financing for the re-opening of the Morning Star-Woods Point gold mine, 120 kilometres north east of Melbourne, near the gold mining towns of Woods point and Gaffneys Creek, was withdrawn in June 2012, although the company, Morning Star Gold NL, has continued with its obligations by focusing on keeping the company solvent by maintaining a going concern valuation of assets and limited processing of ore stockpiles.

Re-financing of the Morning Star-Woods Point Mine is Required to Allow Re-development to be Completed
A number of investment discussions have been taking place regarding re- financing that would allow the company to implement its business plan that includes gold production, development and ongoing exploration activity at the Morning Star-Woods Point Mine.

Redevelopment of the Morning Star-Woods Point underground gold mine began in the 2004-05 financial year when the vertical shaft was opened up for exploration. Restructuring continued through to 2009 when a pilot mining operation took place at Maxwells Reef at the 275 metre level. Maxwells Reef was chosen as the pilot operation following favourable resource drilling close to the main shaft.

A Pilot Mining Operation Took Place at the Morning Star-Woods Point Mine in 2011/12
The gold mining and production that took place at the Morning Star- Woods Point Mine during 2011 and 2012 provided a good example of the grade of gold to be expected when the mine gets into full swing. The mine technical team has since identified additional ore deposits that are not as deep as the Maxwell Reef along with other deposits at the same depth as Maxwells. One being a new shallower reef known as Donaldson Reef and the other the Burns Reef. The company is currently focusing its attention on the shallower deposits as mining targets while it goes ahead with gold production.

Morning Star-Woods Point Mine has High Grade Potential
The Morning Star-Woods Point mine is considered to be of high potential as a gold producer, as 27,000 metres of diamond drilling, that took place in mid 2012, strengthened its exploration knowledge that will replenish gold reserves that become depleted during the mining operation once it gets underway. Exploration to date has been taking place at the nine and 10 level with a little exploration occurring at 14 level.

Morning Star NL has a Five Stage Plan to Ensure the Mine's Success
Morning Star Gold NL has a five stage plan in process which it is strictly adhering in order to facilitate the reopening of the Morning Star-Woods Point Mine. The first and second stages are now complete. These two stages involved de-watering of the mine to level 10 that is 310 metres underground as well as all necessary refurbishment. The third stage that is currently underway involves the development of the six 'Zones of Focus' which include the, Kenny, Burns, Donaldsons, Perkins, Dickensons and seven sub-floor at Maxwells Reef. The fourth stage that has recently been completed involved the building of the gravity processing plant that has a capacity to process 80,000 tonnes of ore a year. The gravity processing plant was commissioned in 2011. The backfill and paste plant that prepares tailings waste in readiness to be stored underground was commissioned in mid 2012. The fifth stage consisted of upgrading mine infrastructure that includes a new high speed winder.

Morning Star Gold NL is also looking into the feasibility of opening a near surface high tonnage open pit mine where reserves of 2.6 million tonnes of ore exist that contains gold grading at 2.2 grams a tonnes.