What Caused Shares of AuStar Gold to Surge by 12.50%

It comes as no surprise that mining companies are looking for their slice of the mining-boom pie.

AuStar Gold Limited [ASX:AUL] shows that it’s benefiting from this boom, as its shares have risen by 12.50% during the day.

This growth comes from its consistent production in its Morning Star Mine, which is located 120KM east of Melbourne in the Woods Point gold field.

The Australian metals company engages in exploration and mining of deposits both at home and in Africa.

How Morning Star Gold contributed to its share increase

The mine has seen a large turnover of gold, exceeding its expectations for the year.

During the late 50s, the mine was one of the country’s largest gold mines and its value has not decreased by much ever since.

At the time of acquiring the mine, Morning Star had been fully refurbished by AuStargold, with a large number of developments in place to further the mines operational factor.

These upgrades ensured AuStars production rate was increased to a higher standard, resulting in the company to turn over a higher rate of resources.

AuStar stated on its Morning Star Gold Description page:

‘Gold from Morning Star is traditionally free milling allowing for production of a high grade concentrate using simple and cost effective gravity separation. It is envisaged that this high grade concentrate will be trucked to a nearby leach plant for toll treating. Morning Star also has a recovery and smelting system in order to recover coarse free gold and pour Dore onsite.’

AuStar Gold turned over a huge production rate by the middle of 2017, which helped the company focus on larger aspects of the mine itself and how to fully profit from its resources.

Bulk sampling was made possible as it helped served metallurgical purposes.

The company has a market cap of $16.611 million.


Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

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