AuStar Gold (ASX:AUL) is gearing up to start production at its historic Morning Star and Rose of Denmark gold mines in Victoria’s eastern goldfields.

According to a statement from AuStar, the company milestone is the result of an effective exploration program as well as successful development, mining and processing initiatives in 2018. The company plans to begin mining at both mines, with ore to be processed at Morning Star’s gravity processing plant.

The majority of material for plant feed will initially come from Rose of Denmark and the recently discovered McNally’s Reef. This is set to take place while the company works towards developing access to Stone’s Reef, another high-grade area discovered not long ago.

“We have repeatedly witnessed diamond drill core with visible gold and accompanying outstanding high grade assay results, which gives us confidence that mining can be undertaken successfully,” AuStar CEO Tom de Vries said in a statement.

“Our process plant is proven, the infrastructure is all well tested, and our exploration work gives us confidence that we have high grade material available for mining. We have conducted extensive work internally to assess potential production rates and costs and the board and management are confident the decision to commence production will generate positive results for shareholders.”

Going forward, mine development plans for AuStar will first consist of exposing the reef at McNally’s, with a similar approach taken to Stone’s Reef after an initial pre-development stage. The company will begin development in the first week of February as logistics and procurement activity is underway; processing is docketed to start before the end of the month.

For the time being, the company can’t release production or cost details due to ASX and ASIC disclosure restrictions, though AuStar intends to provide further results as mining continues.

AuStar’s share price remained unchanged at the end of ASX trading on Tuesday (February 5), closing the day at AU$0.004.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.