Ausgold releases Resource estimate for Katanning project

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) has released a maiden JORC code-compliant Mineral Resource Estimate for the company’s Katanning gold project in Western Australia.

Using a cut-off grade of 0.7 grams per tonne, the Resource has been estimated at 10.4 million tonnes averaging 1.21g/t gold for a contained 403,000 ounces of gold.

The Measured Resource is 1.08 million tonnes at 1.47g/t gold, the Indicated Resource is 4.28 million tonnes at 1.27g/t gold and the Inferred Resource is 5 million tonnes at 1.1g/t gold.

“This Maiden Mineral Resource estimate is a milestone for Ausgold and the Katanning gold project” Austgold CEO Andrew Tunks said in the company’s announcement to the Australian Securities Exchange.

“Based on these estimates we will now conduct metallurgical tests to confirm previous gold recoveries and then embark upon a Preliminary Economic Analysis to test various production scenarios.

“We also plan to continue with our exploration in the area with drilling on resource extensions and new targets commencing in January 2013.”

 

Katanning gold project gold geochemical trend overlain on aerial photography. Source: Company announcement

 

Ausgold has committed to restarting its exploration program early in 2013 with an 8,000m drilling program planned to commence in mid-January.

This drilling will be following on from previous drilling the company conducted at Lukin, Dingo and Jackson as well as following up on historic results at Datatine where previous drilling had intercepted 5m at 13.6g/t gold.

New magnetic targets the company announced in November will also be tested in this program.