# MCO - Morning Star Gold



## moses (3 December 2006)

Here is a beaut little gold mine picked up by Tech/A in another thread which I can't find. The chart speaks for itself...


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## Enoch (25 July 2007)

Moses,

Are you really Moses?

I Picked up some of this compony recently at about 22 cents although its speculative.

It is quite speculative but the historical grades from the website look good and the rock sampling is very good.

One must remember however any body can go toa ny old mine and chisel some good grades out.

I believe they now own a drill and if not currently drilling will be doing so shortly. If my analysis from the reports is correct one of the directors owns a significant % of the company so he must be confident.

"Its the honour of kings to seach out a matter."

Best Regards
Enoch


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## saltyjones (6 September 2007)

3 drill rigs (owned outright by the co. !!!!!!!! ) working as we speak. plenty of results coming in the months ahead.


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## Enoch (20 October 2007)

Between SBM and MCO I don't know which stock has performed better.

Looking forward to the drill results.


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## saltyjones (30 October 2007)

the co. now owns 4 drill rigs. quite remarkable that a co. that has the best website on the ASX for a small cap - so that anyone can research in-depth: owns 4 drill rigs so as to drill the blimey out of their  gold tenements targeting 5 million ounces: & lo & behold, noone knows of them! (going by the lack of commentary on any stock chatroom).  just think : 4 drill rigs working 365 days a year for the one co.!  have you looked at the website?


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## lazyfish (8 November 2007)

Moses tends to give very good leads. I hardly buy anything that goes up this much already, but I think even at the current SP it is still a bargain. Apologies again if I got anything wrong, and criticisms are welcome! :

======

MCO is led by a father and son team (chairman father, MD son). MCO’s major project is the Morning Star Mine, which produced almost 1 million ounces at 27 grams per ton, operating between 1861 & 1963 (around 10,000 ounces a year). The grade is so good that the tailing (waste product) contains 2g/t – 6g/t and can be economically recycled today. Mining activities was severely disrupted due to forest fire and lack of man power during World War II, and the mine was subsequently closed due to low gold price. A large portion of the mine, called the gap zone, was never developed for the above reasons, and is currently being drilled. A 2005 geological depth/strike model proposed targets of greater than 4Moz below the 200m level. The rehabilitation of the main shaft in addition to sampling extensions to the known mineralized systems will create underground diamond drilling platforms to test the gap zone. The target of the ‘gap zone’ is around 1.5-2Moz of high grade gold.

*Valuation*

MCO has also done significant metallurgy work, and they will most likely go with gravity separation after leaching. There is only a single metal and no need for complicated froth flotation etc. The recovery using this method will be 88-98%, depending on the duration of leaching. Using this method, MCO only need to crush the ore to a very coarse 250 microns. Gravity method is the oldest and most cost effective recovery method, and will save MCO lots of CAPEX and OPEX. 

Assuming that MCO continues production at historical rates of 10,000 ounces (slightly over 10,000 tons) per year, at current gold price and an extremely pessimistic OPEX of $190 AUD per ton of ore, they can easily generate around 6 million dollars of profit. The fully diluted market cap today is 59M (at least 10M cash will come from oppie conversions in 2008). That gives an absolute worst case PER of 10 when MCO starts production, and production can last for a few centuries at this absurd production rate. There are plenty of exploration opportunities in surrounding areas. To take advantage of that MCO has purchased 4 diamond drills to carry out surface and underground drilling. 

Since the conversion of oppies will happen in 2008, I do not expect any significant placement to take place anytime soon.

*Snap Shot*

106M shares
54M options (@25c strike, Dec 2008) (conversion = $13.3M)
Sp = $0.37
Market cap (fully diluted) = $59 Million
Cash = $2.2M
Directors own 30.5%, very modest director fees of 92k for 4 people.

Interesting readings
http://www.ferret.com.au/articles/z1/view.asp?id=97788


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## saltyjones (10 December 2007)

MCO now own outright 5 diamond drill rigs. 2 are in operation as we speak working 12 hour shifts 7 days a week. one underground biting into the "gap zone" & the second on surface.  another rig  is about to be commissioned to start drilling on surface. co. target is 4 - 5 million high grade ounces of gold. there is a non-jorc resource of 430000 ounces on the hill above the mine. initial assay results hopefully out just prior to xmas. visible gold in all the drill core sent to lab. prospects are very real.


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## saltyjones (12 January 2008)

the cap. raising is out @ 30c issue price (with free options). trading on friday at 27c. assay results pending. 

surface results could be good as a new reef was discovered in 1995 at 50 metres depth & has been intersected at 75m depth in recent drilling. also intersected  Whitelaws reef on 4 / 5 level from the south - which produced in the past at 40g/t.

u/g drilling is targeting the 7 sub level area around Whitelaws reef (which dips to the north). multiple reefs hit. 

check out the morning star website.


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## So_Cynical (12 January 2008)

The 0.25c options are a bit of a slap in the face for long term holders i would think.

How far are they from production..how many share issues to come?


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## Spaghetti (13 January 2008)

Some negativity (well lots) in the market toward using historical records and quartz vein deposits and reality will be that per ounce it may be valued on the low side.

However ---- drill results will excite traders so maybe a good stock to trade in and out of IF volumes start increasing...pretty sick atm.

They are targeting 1.5-2Moz and m/c per ounce for Citigold is $15/oz and for Bendigo mining it is $19/oz. So really if MCO do find 1.5Moz there is not much upside from todays m/c if the market holds on to fears of not trusting deposits that cannot be jorc defined by nature.

So do have caution but also know that high grades can excite an uniformed market when low market caps companies so it may do better than the big boys...to a degree.

Do keep an eye on CTO and Bendigo as if they get re-rated MCO will be seen on a more positive note by the market.

I am keeping eye on this one but volume turns me away from taking a dive ....yet.


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## saltyjones (14 January 2008)

spagetti.......you seem to miss the fact that they are drilling the 7 sub-level jorc compliant. 

also, i assume you know about Grade Factoring? now grade factoring has always played a major role in the past. check it out. 

 the average production grades in the past were 2 fold to 5 fold higher than the average assay grades (on different levels of the mine).  this is a totally different story to the bendigo story by a long shot. 

assay grades versus mill production from the years 1934 - 39 for the burns, whitelaw & campbells stopes were as follows : the average sample assay range was from 6.09g/t - 12.4g/t Au. 
yet the average mill recovered grade for 1934 - 39 was 22.1g/t - 67.7g/t Au. this disparity or Grade Correction Factor is 350% t0 540%.

also, sp moved to to 29c today. the story is gathering momentum.


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## Spaghetti (14 January 2008)

saltyjones

No real dispute from me, just vein drill results are usually great and I think it will move the s/p but long term investors do shy away from this type of deposit. Not my opinion, more my observation and the s/p today went up on a feather. The price people are prepared to pay now is .27 so that is the value.

Just my feeling is this type of deposit never reaches it's full potential, whether rightly or wrongly. How can they do jorc definition on such a deposit? See bendigo got drill results for like 4000 g/t and never budged in s/p. This sort of result will seduce day traders by the million but longer term investors know it is due to the nugget effect you get in such systems.

So I see a bumpy ride if volume ever increases. The day traders will love any results with grades factor as they are blind to any other context so just wanted people to be aware of the fact this deposit may not be as great as it seems on drill results. If they show some continuity the story maybe very different but you do not know this yet, nobody does so it is a wait and see. So be cautious and informed.

Could be the stock of the year but so could many others, It is unknown at this stage.

I will buy some for the ride but unless you understand where you are going on the journey you may not know when to get off the train.


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## So_Cynical (14 January 2008)

Have to somewhat agree with above...gold in Victoria in general has some problems, u just have 
to look at all the Victorian producers, theres like 2 i think?

Lots of historical gold in Vic but almost no modern industry...still with POG now above 1000 AUD 
and 910 USD the nugget argument become less and less valid.


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## saltyjones (15 January 2008)

if you go thru all the past announcements from 1995 thru to today some very obvious points stand out. 

the above remarks about nuggety gold misses the point (in understanding the MCO story) cause when you read all the past announcements you learn that Grade Factoring is very important. 

production records are 2 fold to 5 fold HIGHER than assay results. not the other way around as has been inferred. 

with assay results pending look for the underground drilling results. smack bang into the 7 sub-level area.  if you read up on past announcements about this area maybe the reader will attain a greater insight into the co's prospects.


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## trtkjd1 (2 February 2008)

Have recently topped up on mco at bargain (hopefully) prices. I keep going thru their website and reading any information I can find on this company. I keep coming to the same conclusion that with a few more oustanding drill results like they are getting, the share price could easily go up 5 fold. But then so could bdg.
cto, exm to name a few. Just wish if they are confident of tonnes and grade they could fast track production.  Has been a disappointing few weeks for junior gold companies with share prices following the sheep mentality on the markets.


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## travwj (5 February 2008)

According to the ASX web site today MCO had no trades at all? How often does this happen, not just to MCO but other companies on the Stock market aswell.


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## So_Cynical (5 February 2008)

travwj said:


> today MCO had no trades at all? How often does this happen, not just to MCO but other companies on the Stock market aswell.



Its commonish for the small caps and more common for small caps with
small amounts of shares on issue and even more common if a company has
few share holders, not many shares and with a small Market cap.


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## saltyjones (8 February 2008)

great website put up by the MCO boys..........did you notice that they are looking at an underground gravity plant.........also, did you notice that a decline portal site has been selected & the the portal development starts Q2...........did you notice that the operations manager, dennis clark, was recently involved with allegiance resources shaft & decline development i.e. in dennis we have the experience on hand for decline development........did you notice that morrie goodz 1998 resource report is now referred to as "close to 500,000 ounces"........did you notice the mine map, that appeared a couple of days back, that  shows the burns reef, campbells reef, whitelaws reef & the exciting & rich 7 sub-level........another exciting development is that 7 sub-level drilling. how, what could be fabulously rich gold grades, are located where the dyke interlaces with the surrounding sedimentary rock. this drilling is extending the dyke boundary further north by an extra 80 metre so far. and the question remains : ''how deep does  the reef keep extending along strike into the surrounding sedimentary rock ? "..............i suspect that the mid-year resource statement is going to be huge & catch everyone by surprise. the very few sellers of stock really have no idea, i presume, of all the progress going on. i contend that the mine is further on in development than the market has any idea of. and one of the reasons is because they dont bother to study the co. even with such a bountiful resource like the informative MCO website.  high grade all the way with MCO.


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## saltyjones (18 March 2008)

wow! 1000g/t Au. Big increase in the mineralised area of the mine to 10%. This is BIG news. I would say everyone missed yesterdays report. Just have a read. Wow!


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## martha (14 May 2008)

Hi There

Just wondering what everyones thoughts are on where this stock is going?

Seems to have been sitting in a narrow range for a while now.


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## saltyjones (14 May 2008)

martha

this stock is consolidating now around 25c with the silly sellers having dumped their options too low also. i reckon we have some big announcements in the coming weeks to look forward to. reading between the lines in the quarterly, & checking out the website on the employment section (u/g mining personal required!!!!!!!!), then i would say we are mining shortly, if not already. 

also, the july Jorc will include  1. present u/g drilling results
                                         2. 2006/7 channel sampling
                                         3. 1995 - 7 + 2002 & 2005 drilling results 
                                         4. 70% of the 45,000 pages of the old WMC archival records have been digitised & entered into the computer resource model. to get an idea of some of that work just check out the website EXPLORATION POTENTIAL & look at the V-line deposit on level 20/21. heaps of gold there averaging 118g/t Au. 
                                        5. the rejigging of the 1998 resource report by morrie goodz that came to 430,000 ounces for the surface & level2 - 10.
                                        6. the 1993 resource report from level 11 - 25 of 50,000 ounces.
                                        7. grade factoring which historically came in at 2fold - 5 fold. 

 so, MCO is about to move beautifully back into the 30's - 40's - 50's in my mind.   cheers


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## saltyjones (17 May 2008)

This research paper describes my expectations and confidence in Morning Star's upcoming JORC resource statement, due in July, which only includes the morning star dyke located at woods point in victoria. I would also like to point out that the top 20 holders hold 54% of the issued shares as of May 2008 demonstrating that there are many strong holders who have confidence in the company. Furthermore, on the morning star gold MCO website under the page EXPLORATION POTENTIAL you can verify most of what I have written. If the company holds to the range of the initial JORC as stated on the website, which I assume they will in order to strengthen the share price, the JORC would include:


1. *The 2007-2008 underground drilling campaign results from the 7 sub-level and the level 9 south area*

Many of the drill cores contain visible gold with one assay measuring 1392 g/t Au over 0.38 metres. Up until 7/5/08 (the day the website was updated with fresh info) a total of 43 underground drillholes have been completed in the renewed drilling campaign using company owned diamond drill rigs.

2. *The 2006-2007 channel sampling of burns reef, whitelaws reef, campbells reef, tills reef and other reefs from levels 4 - 9 & more recently to level 10. channel sampling usually involves 2 - >5kg individual rock samples.*

The average grade was 68 g/t from more than 200 samples to date

3. *The 1995-1997 and the 2002-2005 surface trenching and drilling campaigns by MCO*

The announcement of 29/7/1999 regarding the AAA-S2 vein system says "... 140,000t @ 5g/t to 11g/t gold inferred resource ...from recent company drilling". I believe that the AAA-S2 reef is close to level 1. This is just one example of known mineralisation in the upper levels of the morning star dyke from the drilling campaigns of the 1990's. However, while this particular reef may not fit the JORC model due to insufficient drillholes perhaps (?), it never-the-less does indicate the potential in the upper levels above level 4. furthermore, the AAA -2 reef was not included in the 1998 resource report.

4. *WMC archival records which include over 40 years of meticulous weekly production records and drilling results*

About 70% of the 45,000 pages of archival records have now been digitised into a computer resource model. Most weeks the company has 2 people working full time digitising records into a Gemcom model. The archival records include over 600 drillholes that were drilled pre-1961 by the previous owner GME (WMC). The stopes and drillhole assays range from nil to 17608 g/t. In the case of the 17608 g/t sample over a 1.5cm quartz vein (kenny's reef), the diluted grade was approximately 130 g/t over a 2 metre mining width. The archival records would include production and assay results etc. from surface to  level 25. WMC drilled to level 32 (equivalent) where drilling finished at a depth of about 1100 metres, still within the mineralised dyke.

5. *The original Morrie Goodz report from the surface to level 10*

MCO has a 1998 non-JORC resource that measures 430,000 ounces. This report, written by Morrie Goodz, utilized data from the WMC archival records for the underground part, and for the surface assessment Morrie Goodz called on the substantial trenching program of 1995 to 1997. The underground part of the report only included the 13 lodes of the Main Shaft workings from level 2 to level 10 (announcement of 22 july 1998). In other words any lodes NOT associated with the Main Shaft workings were left out of the report.

I have no idea how many more lodes are outlined in the archival records from levels 2 to 10. The company concluded the 1998 (non-JORC) report on the resource of 430,000 ounces with the added note that due to grade factoring "it is not unreasonable that the potential recovered grades may be twice those outlined in the reports" (page 10).

6. *LEVELS 11 to 25*

While there is not much archival data for levels 11 to 14,  the zone below, from levels 15 to 25, has very precise archival records; as WMC were looking at production there in the early 1960's before abandoning the mine due to a low gold price.

In the 4th quarter report of 1999 (29/7/1999) the company mentions that "from level 11 to 25 there has been no change to the 1993 estimate of about 300,000 tonnes at between 3.6 g/t and 14.2g/t Au ... although significant alterations would be likely if computer modelling were to extend to these depths".

In 2008 we now know that computer modelling encompasses the dyke from surface to level 25 (approx.). On the MCO website  under "V-floor" you can see some of the progress being made on digitising the archival records data. Alas, that 1993 figure suggests a 50,000 to 60,000 ounce resource from levels 11 to 25, on top of the 1998 non-JORC resource of 430,000 ounces from surface to level 10.

7. *Grade Factoring*

MCO is a nuggety quartz reef system which means when core is assayed, if the drill missed a nugget by centimetres, then the average grade might be for argument sake 6 g/t Au, but when in production the same reef may average 28 g/t. This discrepancy between the average grade from the drill assays versus the average grade of gold poured at the mill is called "grade factoring". Historically, based on 5 years of production reports against assay reports, this leads to expectations of grade factors of 2 fold to 5 fold. the mention of Grade Factoring can be found on page 9 in the 1998 resource report by morrie goodz.

Note: the JORC due in July will encompass only the morning star dyke. Presently the company is about to begin drilling waverly dyke about 1 km away, which the company regards as having excellent potential for future mining.


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## dorevans (17 May 2008)

salty,

excellent material you have produced for further study

so the JORC compliance document due in July looks like being something like 1 million ounces of reserves and resources from what you have written - any other readers here like to make some other estimate?

and from the average of all the channel sampling it looks like the milling grade will be something like 68 g/t - that's a rather spectacular grade to be milling and I cannot judge how much of that material there is but since these channel samples were taken fron numerous places I guess there's plenty of it

and looking at the material you describe in the "upper levels" I assume grade factoring will be applied to them leading to a very substantial resource there as well

"Many of the drill cores contain visible gold" which adds further to the belief that there's plenty of high grade ore around

and grade factoring will lead to 2 to 5 fold increases from drilling results converted to actually produced gold

so the JORC looks like it will be something special and part of some sort of grand strategy:

1. JORC in July

2. feasibility study about October

3. cash raised via the MCOOA options expiring in December

4. full scale mining begins early 2009

what do you reckon?


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## saltyjones (18 May 2008)

dorevans

the surface resource of about 130,000 ounces @ 2+g/t Au would be an open cut operation that would attract an environmental hurdle i suspect. hopefully they still include the morning star hill resource in the jorc in-any-case.
the levels 1 - 4 i may not be as rich in grade as all the levels from level 4 & below. just a hunch. that area would be more  economically viable if the price of gold went to A$1500 no doubt. just that the halo effect around the old mine workings would become payable dirt then. so the upper levels above level 4 may be the last areas mined possibly. not that i know. just a hypothetical thought.
levels 5 - 6 would be a whopper of a grade no doubt. burns reef channel sampling, from the northern aspect, came in at an average grade of 356g/t Au (announcement of 27/2/2007). a pretty good  average grade when compared to some of the w.a. mines that average 2 - 4 g/t Au.

all in all it is looking swell to say the least. must have some more assay results coming thru soon too from the u/g/ drilling.

how would you compare MCO against some of the w.a. gold miners?


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## dorevans (18 May 2008)

salty

comparing MCO with the West Aust miners

most of the WA miners are extracting and processing at less than $80 per tonne

some of the WA miners are able to extract and process at about $30 per tonne

this lower number would be when the ore is friable, the open cut not very deep (minimal transportation), the processing plant virtually next door, and the mill totally automated and very efficient

for an underground quartz mine such as Morning Star the extra cost of extraction is the drilling and blasting

so what is the cost of drilling and blasting one tonne of typical Morning Star ore?

my DCF software says less than $20 per tonne (that's a cube measuring about 750mm by 750 by 750) 

so even allowing for the most adverse situation it appears that Morning Star could extract and process at less than $100 per tonne ($80 for the WA miners plus $20)

now for the calculations:

here's the basic formula: - the cash costs per ounce equals dollars/tonne divided by the grade in ounces/tonne

so for a bulk grade of 1 oz/tonne the cash costs equal $100 per ounce

for a bulk grade of 2 oz/tonne the cash costs equal $50 per ounce

and for a low bulk grade of 0.5 oz/tonne the cash costs equal $200 per ounce

proof IMO that Morning Star is going to be a very low cost producer compared with the WA miners


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## So_Cynical (19 May 2008)

dorevans said:


> salty
> 
> comparing MCO with the West Aust miners
> 
> ...




dorevans...perhaps im missing something or don't quite understand what your saying...but theres 
no miners with Aussie operations, mining at $200 per ounce, in fact i know of no producer with 
Aussie operations with per ounce costs under $500 or so (Quessestimate)

So i doubt very very much MCO will be able to produce at under $500 per ounce.


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## dorevans (19 May 2008)

SC

I have checked my numbers and my calculations several times and cannot find any error

perhaps you can show me where I have made an error in my calculations

I have been told that in-house costing models demonstrate that $200 per ounce is feasible

MCO will be selectively extracting and processing very high grade ore


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## So_Cynical (19 May 2008)

dorevans said:


> SC
> 
> I have checked my numbers and my calculations several times and cannot find any error
> 
> ...




As u can see from the comprehensive Aust listed Producers chart below...$500 per once 
is the lowest cost at the moment...so MCO would be doing something extraordinary 
to produce for less than that.

{Quote Link Below}
The red line is the Total Cost per Ounce (TCO). As was previously explained, this is the 
EV per ounce plus the Cash Cost per ounce plus any development costs that remain in 
order to bring any feasibility study stage projects into production divided by the total 
number of resource ounces.

http://globalspeculator.com.au/documents/AustralianGoldCompanyComparison.pdf


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## dorevans (19 May 2008)

SC

total cost per ounce is quite different to cash cost of production per ounce

have a look at Dominion (DOM) to see the truth of this

my numbers are cash costs of production per ounce


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## saltyjones (27 May 2008)

guys..........these geological terms, that you see in MCO announcements, are described beneath, with input from NG & the geo's at woods point.

1. The ‘contact’ as we refer to it is purely the surface over which the iron rich gabbro dyke is in contact of the sedimentary rocks surrounding it. The dykes are mostly tabular or sheet-like bodies formed when molten rock (magma) is injected into steeply dipping fractures. Erosion commonly exposes the dykes as surface outcrops . Some are in fact cylindrical like ‘Tubal Cain’ in which case the term stock is more appropriate rather than dyke. There is often good Au grade at the contact as the dykes are generally fault bounded. The faulted contact provides a conduit for upwelling hydrothermal fluids that react with the dyke rock to precipitate gold.. The fluids also pass along low angle ‘reverse faults’ infilling them with quartz, carbonate, sulphides and gold. Much of the gold mineralisation occurs is these so-called ladder veins and associated footwall and hangingwall stockworks.


2. Dyke extension refers mainly to lateral extension of known dyke occurrences. In some cases, the lateral extent of the dykes may not have been previously recognised.

3. Fault Displacement results in stepped displacement of the dyke contact due to off-setting resulting from fault movement. These offsets mean that there is the dyke overlying sedimentary rocks or vice versa where offsets occur. This happens at many loci along the dyke/sediment contact . Often the magnitude of lineal/horizontal sense of these ‘displacements’ is a good indicator of the size of reef running through the centre of the dyke. (This statement is not strictly correct. It is possible to have a large offset with a relatively thin reef along the fault). It can shear off and cause offshoots and even other dykes (No! Other dykes can only form through separate intrusions). There are a large number of parallel dykes intruded along faults throughout the Walhalla synclinorium they are not restricted to 3 shear zones.

4. My small understanding of ‘Cohen’s Shoot’ which was part of the series of reefs I believe that were mined in the famous Long Tunnel Mine is that yes there was a lot of gold along the contact with the sediments but they were in fact mining similar reefs to what you might see around Woods Point. Yes, however, Cohen's reef is associated with a major sub-vertical shear.

5. The Waverly dyke of which there is very little knowledge of other than it outcrops persistently over around 5km and was worked to a shallow depth for some good grades. The geology is again similar to the Morning Star in our preliminary assessment but drilling will tell us more.


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## saltyjones (1 June 2008)

does anyone have any thoughts on this remark in the 2005 annual report (page 6) :

"twelve intersections of quartz veins & pug zones within the sedimentary country rocks with significant gold values, suggesting a Cohen's reef - Walhalla style of mineralisation, the presence & proximity of a previously unknown dyke or a new gold-bearing mineralisation".

my only thought at the moment is that the co., back in 2005, had recognised that something special (as outlined in the previous thread header) was happening at the CONTACT. i can only assume it is to do with the northern 7 sub-level area (east face) as that was the initial zone that u/g drilling focused on.

just a few bits of info for anyone interested in a comparison between the historically rich Cohens reef & the quote in the previous post about CONTACT/sendimentary hosted "significant gold values" at the Morning star dyke.

"Cohen’s Reef, historically the most productive gold deposit in the Walhalla-Woods Point Goldfield, is a predominantly sediment-hosted, shear zone-associated, laminated to massive auriferous quartz vein system, in close proximity to a thin (< 1.7 metres) hornblende-diorite dyke. The reef was mined to a depth of over one kilometre, and produced 46 tonnes of gold (Ramsay and Willman 1988).

Cohen’s Reef is sediment-hosted but dyke-associated...

The known extent of Cohen’s Reef is approximately 1500 metres long and 1134 metres deep, along the valley of the township of Walhalla. The extensive and continuous reef is predominantly a laminated quartz-carbonate vein with some associated stockwork veins, and in places incorporates sheared dyke and meta-sedimentary rocks.

The ten highest-yielding gold deposits within the Walhalla-Wood’s Point Goldfield are either dyke-hosted or dyke-associated/ sediment hosted".

((material source : Nature of gold mineralisation in the Walhalla Goldfield, eastern Victoria, Australia ))

also, i have been posting this stuff (for the fun of it) as it is obvious that the morning star dyke has a very interesting CONTACT/sedimentary-hosted mineralisation at the east face (maybe also the west) that is turning up big Au grades; & has been known about by the co. for several years.

and secondly, Cohen's reef gives us an historic precedent that reflects what the co. is looking for at waverley i.e. looking for predominently sediment-hosted GOLD.


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## martha (11 June 2008)

Hi All

Did you guys see the announcement y'day regarding the maxwell project?

http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=MCO


Should be some more movement on the upside coming our way...


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## saltyjones (18 June 2008)

martha

seems that MCO is starting to awaken from its hibernation. bought my last lot yesterday & just in time it seems. 

cashflow positive this year from the Maxwell project & Waverley dyke drilling just needs visible gold in the drillcore & we will be away. also, i suppose only 4 weeks away from the jorc. i suspect we will be drinking champers in the months of july thru to december, when the 2nd jorc will be released. 

also, did you see the Aegis report on the website under 'press clippings' ? stuff we already know, though thru Aegis more people are becoming savvy of the co's potential.


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## saltyjones (30 July 2008)

the Jorc is out. 910,000 ounces  @ 6.12g/t Au................big news. the market will notice MCO now!


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## So_Cynical (30 July 2008)

saltyjones said:


> the Jorc is out. 910,000 ounces  @ 6.12g/t Au................big news. the market will notice MCO now!




Ann released after market close....good luck to the holders.

http://www.morningstargold.com.au/images/mornstar---eapui.pdf

♦ Underground JORC Resource component of 726,000
Ounces Gold (2.0 Million Tonnes at 11.2g/t).

♦ Large near surface JORC Resource component of
184,000 Ounces Gold (2.6 Million Tonnes at 2.2g/t).

lets keep in mind that some of this Gold is very deep.


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## grace (30 July 2008)

Shares and options on issue 161 mill @ 21.5c = MC $34.6 mill

910 000 oz (grade 6.12g/t) = $38/oz on todays share price.

I did own this one for a while last year, and have been following the story for some time.  It certainly has been years unfolding, but holders must be more than a little excited to finally have it formally confirmed what they probably already knew for some time.

Should be a good day tomorrow I would think.


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## dorevans (30 July 2008)

grace

or playing with the numbers in another way:

161 million shares for $874 million worth of gold

each one share equals $5.43 worth of gold


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## martha (31 July 2008)

Thought we might have seen a bit more on the upside today? Maybe because of the gold price coming off a bit.......


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## So_Cynical (31 July 2008)

martha said:


> Thought we might have seen a bit more on the upside today? Maybe because of the gold price coming off a bit.......




Current market sentiment towards juniors and POG, remind me of 
that TV commercial from the Advanced Medical Institute.


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## saltyjones (1 August 2008)

martha.........i reckon we will see some sp movement north when the markets stabilise. also, the first gold pour in a couple of months approx. will put the cat amongst the pigeons. after that remarkable Jorc report followed by the quarterly (littered with new info) it is easy to see a MASSIVE high grade gold story brewing here. 

also, the reams of info on the Grade Factoring in the jorc clearly establishes that drillhole assay grades underestimate production grade  by up to 11 times (Burns reef on level 4 - 5- 6 in this instance). if the Maxwell project comes in with a grade factor of 2fold on the 12+g/t the co. conservatively estimates for this ore body then we are well in the money.


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## Paladin (24 September 2008)

With a pour coming up, a TV spot being filmed tomorrow, and the pesky seller down from 4 mil shares to <500k, I'd say this one is just about ready for blast off soon. Have been accumulating at sub .20.


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## saltyjones (13 October 2008)

today there are new photos of the mine & also rocks on the website; including blast-rock being bought to surface.

check out : photo gallery : then get a close-up on "ore with headframe" photo.

do you notice the quartz & also the yellow stuff. well the yellow stuff is one indicator for high grade gold at MS mine apparently. also note the sparkling silver flinty stuff. that is pyrite (woods point fool's gold !!!). again, a very good indicator mineral that the MCO geo's look for.

now check out the Waverley pic "waverley core 2008". note the green stuff in the drillcore. that is fuchrite. again, a key mineral indicator for MCO. at the lower end of the core, above the fuchrite, you can see one small circle of visible gold. that is spelt : GOLD : in my book on rocks. all the flinty sparkly silver stuff is pyrite i.e.fools gold - an indicator.


in the past the co. has mentioned 3 'key mineral indicators' as being chrome-mica, ankerite & sulphide distribution (2005 annual report : page 7 under significant discoveries...)....out of interest....it goes on to say "several laminated quartz stockworks & breccia zones carrying key indicator minerals & galena...".

also, in the jorc report (30 july 2008 : page 6) it says....Many of these have all the key mineralogical and structural indicators of the historical major production zones, and therefore present significant exploration targets...........(then on page 10) : This work has substantiated the use of diamond drilling as an integral tool for identifying vein orientation and key indicator minerals.
(page 11) : These zones carry the key mineralogical indicator sulphide-carbonate-sericite assemblage, which has been observed in the main production reefs.......

so there you have it folks. the key mineral indicators are present in both the Maxwell reef & the waverley dyke rocks. and the key mineral indicators historically means commercial grade deposits.


(disclaimer : i aint no geo so we will have to rely upon others for further input)


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## saltyjones (9 November 2008)

big report coming out tomorrow - monday morning. read it & find out more about this undervalued, HIGHLY rated gold co. that has a jorc resource of 910,000 ounces (700,000+ ounces at 11.2g/t) & where grade factoring of 2 fold - 5 fold really means a resource 2 - 5 times bigger. morning star mine is located 2 & a half hours from melbourne. 

if you done now anything abou this co. this will be your opportunity to read up on it.


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## saltyjones (14 November 2008)

Close examination of old maps/plans/sections of mines suggest some mines had several dykes. All Nations had 3, A1 had 5, Shamrock where MCO have done recent  mapping & sampling, appears on Whitelaw’s plans to have between 5 – 10 dykes depending on the interpretation.

incidently, Whitelaw was a geologist who did a lot of geo work around the old workings & dykes of the woods point area back in the 1890's. the famous Morning Star mine has a rich & prominent reef named after him. this reef , Whitelaws reef, was mined at a production grade of 40g/t. there remains more ore intact then was ever extracted.


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## So_Cynical (15 November 2008)

All good news from MCO but the SP just keeps falling like everything else.

Probably one of the better emerging Aussie producers.


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## saltyjones (12 December 2008)

if gold remains bullish in 2009 then small cap. gold miners come into play. the big boys have had some remarkable sp moves over the past few weeks. our turn will come no doubt.

MCO is for those who can read the dynamics at play over the coming months & years.

any co. with a resource to talk of, where grade & tonnage are jorc'd, with upside to resource potential, will cut the mustard. MCO will be paying dividends for decades to come when the operation is going full bore. some other gold mining companies, where grade dilution will hinder production & profitability, will make money for a number of consecutive quarters, then go down the gurgler without ever paying a dividend. for a long term investment these companies do not cut it with me.

MCO has an Underground JORC Resource component of 726,000
Ounces Gold (2.0 Million Tonnes at 11.2g/t).

there is a large near surface JORC Resource of
184,000 Ounces Gold, yet i am not particularly concerned with that part atm.

so, fundamentally, an u/g jorc resource is so far defined with plenty of upside thru more drilling & interpretation of the GMA/WMC archival records (55% not yet included in the jorc).

this is old news obviously, yet to reiterate :

726,000 ounces & using the minimum grade factor of 2.5fold = 1,815,000 ounces.

now 1,815,000 ounces at a conservative $1100 aussie dollars equals = $2b. of gold in ground.

market cap. today for MCO is approx. $14m.

does that make MCO a glaring buy for a hold for at least 6 - 9 months, in which time everything will come together for the company i.e. a decline & an u/g plant installed?

i used a grade factor of 2.5fold to calculate the resource using the 21 october, 2008 paper on narrow vein mining (page 1) :

Significant variation exists between the grade of drill core intersections and that observed in face sampling and subsequent production reconciliation (250 - 650 per cent).


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## Mickyd (17 March 2009)

Well it appears the 'trial mining' was a little too expensive for MCO. I didn't think MCO's tiny budget could accommodate that. Now they are going down of the path of 'pre-feasibility studies'. Surprise, surprise. 

MCO is a long, long way from production if it ever happens at all. Pre-feasibility studies, feasibility studies, bulk sampling, permitting, funding, mine and plant development. The list goes on. Production would be years away at best. 

Not very exciting. The announcement will be in the order of something like this:

Treatment rate (Ktpa) - 150,000t
Grade range - 10-12g/t
Estimated total recovery - 90-95%
Estimated capital cost
Mine - $15m
Plant - $15m
Estimated operational cost
- A$/tonnes - $130- 160
- A$/Oz - $500-600

However there is one small problem - funding. With their $2 million current budget and only a $14m market cap, it seems like wishful thinking at best. One thing will have to happen in order for any of these dreams to be realised. Gold has to explode and gold juniors will need to increase about 400% from current levels. Very unlikely IMO but not out of the question. 

The amount of lies and rubbish spoken on other forum sites is quite incredible. In fact I'd go as far to say it's painful. I'm just glad they're not investing my money.


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## Enoch (14 May 2009)

Well Micky,

Seems someone is interested in this GEM big time.

Been accumulating since 2006.

Probably been down the mine and seen its potential first hand.


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## So_Cynical (14 May 2009)

Enoch said:


> Well Micky,
> 
> Seems someone is interested in this GEM big time.
> 
> ...




The SP's been going sideways @ 12 > 13 cents since Christmas...prob one of the worst 
performing emerging goldies there is....hang on, at least there SP is doin better than CTO,s

What is it with Victorian gold mines :dunno:


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## Enoch (14 May 2009)

Yea been trading sideways.

Mr Market wants to see some production.

Reading the quarterley new mine plan is being implemented as we speak.

Production in 2009.

Should imagine that if they can prove the historical grades during production and that it can be mined on the cheap its off to the races.

Just look at SLR for an idea of what could happen.


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## So_Cynical (15 May 2009)

Enoch said:


> Yea been trading sideways.
> 
> Mr Market wants to see some production.
> 
> ...




With respect, SLR is producing in WA like most of the successful producers in Australia...MCO 
is mining in Victoria where very few successful modern producers are...LGL even downgraded 
there Ballarat operation, and that was the best of the Victorian bunch.

Anyway...GL to the holders.


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## saltyjones (10 October 2009)

no news & it has doubled in shareprice in the last quarter - july - sept. i reckon someone is accumulating this rare little goldie. stockpiling ore on the pad.....a processing plant on-site in the coming months......maybe toll-treat some ore initially????.....drilling to start on all the regional dykes i.e. Waverley dyke which could be a remarkably high grade gold deposit along the likes of the Walhalla long tunnel/cohens reef........personally, i reckon the sp is going to go nuts in the coming months when all the pieces are finally in place.

disclaimer : dont buy the stock until a good days worth of study convinces you otherwise


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## andy. (28 June 2010)

I'm surprised there seems to be no interest in this stock considering the proximity to production and the current POG!

I have been accumulating, and production startuop should renew the interst here IMO.

GLTA


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## rensionurne (3 July 2010)

*MCO Morning Star Gold*

Gold is swimming upstream in a down market. I think the proof in the pudding will be revealed over the next week or two. Will gold continue to make new highs?

I think so because I think Harvey is right.


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## qe2infinity (5 January 2011)

andy. said:


> I'm surprised there seems to be no interest in this stock considering the proximity to production and the current POG!
> 
> I have been accumulating, and production startuop should renew the interst here IMO.
> 
> GLTA




completely agree with andy, though the share price has clearly reflected renewed interest the past couple of months, ever since the Chillee buyer bought up $15M worth of shares @ 46 cents each.

with production having started in dec 2010, there is immense upside potential for this little gold company, as no institutional investors have poured into the registry yet.

go go mco! 


disclaimer: DYOR before investing into this stock.


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## sinner (25 January 2011)

Interesting performance on MCO recently.

Nov-Dec period for most ASX gold stocks was a spike high that got sold hard. Morningstar looks a bit different.

Yesterday both the gold index (XGD) and MCO made a nice pinbar formation, however what struck me as interesting is the index made a lower low while MCO did not.

Definitely one to watch!


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## qe2infinity (26 February 2011)

Nice graph Sinner. An interesting situation here.
MCO is still yet to see much interest with gold production reports coming so soon.
Waiting for some positive announcements, go go MCO!




sinner said:


> Interesting performance on MCO recently.
> 
> Nov-Dec period for most ASX gold stocks was a spike high that got sold hard. Morningstar looks a bit different.
> 
> ...


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## Miner (26 November 2011)

Is any one following this thread since Feb 2011 ?
MCO price is downwards and  thinly threaded inspite of a very high stake from the directors, who bought at 32 cents against current market price of 29 cents, excellent prospects and glowing outlook from Chairman.
All is good but price, volume of trade and projected performance are not aligned 

Cheers


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## Warpspeed (26 November 2011)

We are all still here.....

The way I see it, MCO is a very small company with a huge task ahead of it, and patience is required.

It is likely that some investors expected a sustained and continuous upward trajectory in share price, and have become disillusioned when other market segments are showing much more positive results. 

The entire financial system is about to fall flat on it's corrupt ugly face, and until it has, the precious metals mining sector is going to have a rather hard road to hoe.

It is no secret that gold and silver prices are rigged, and very likely the mining shares are being shorted as well. 

IMHO a golden opportunity for accumulation by the ultra small investor with a wide time horizon.


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## Miner (26 November 2011)

Warpspeed said:


> We are all still here.....
> 
> The way I see it, MCO is a very small company with a huge task ahead of it, and patience is required.
> 
> ...




Thanks on your commentary on MCO.
BTW are you one of the business speech writers or an author - very good writing indeed and giving same time the scenario of mining market rigging and MCO future.
I am hopeful on MCO or getting hopeful as the technical strenghts on this company tell me very good and need to have patience. 

I agree with your points .
All it needs a recommendation from ASI or DD newsletter to get the steriod of price rise and fall


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## Warpspeed (27 November 2011)

Miner said:


> BTW are you one of the business speech writers or an author -



No,  just a retired engineer on a pension.


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## chakvetadze (10 June 2012)

Looks like another sorry end for a Victorian gold hopeful. The major shareholder has pulled the pin on $10M worth of financing and they have no cash left. One thing I could never understand with MCO. Why didn't they build a decline and use bulk tonnage methods. Shifting small amounts of ore up a winder seems an odd way to advance a project given the huge labour costs involved in this method.
Glad I listened to an experienced air-leg miner who told me to avoid this project like the plague.


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## Bonk (14 June 2012)

MCO has been under many question marks for years . It has been run on a PR basis and hyped by a tight team of rampers in the Nik club . Anyone who was around in the days of Consolidated Victorian Goldfield [Company] , run on a indentical play as MCO would have told the story how it was to develop etc.,. These Victorian goldies all go the same way . Why risk ones hard earnt on these dogs!


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## boundless (14 June 2012)

disappointing for another Vic goldie to fall over. Lots of burnt shareholders out here


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