Ausgold receives timely results

THE DRILL SERGEANT: Ausgold received a pleasant stocking-stuffer in the form of assay results from a RC drilling program undertaken at its Yamarna project, located in central Western Australia.

Two holes carried out at the company’s Winchester copper-nickel discovery returned significant copper, nickel and cobalt intervals, reported as copper equivalent values:
 
–    21 metres at 1.24 per cent copper equivalent from 88 metres; and

–    28m at 1.16 per cent copper equivalent from 99m.

 

Winchester prospect discovery section, with significant intersections. Source: Company announcement

 

The recent drilling was designed to follow up a discovery hole drilled in late 2010.

An additional reconnaissance hole undertaken at a separate target returned:

–    153m at 0.1 per cent nickel from 5m.

Ausgold is of the opinion these results from Yamarna are significant in terms of early first pass drilling results as they demonstrate potential for the area to host multiple copper-nickel-cobalt sulphide and nickel sulphide deposits.

“The results from the work our field team has been undertaking at Yamarna confirms the potential we believe for this project to host a significant copper-nickel-cobalt discovery,” Ausgold chairman Robert Pett said in the company’s announcement to the Australian Securities Exchange.

“Whilst the Katanning gold discovery remains our key focus, we have a number of other projects within our portfolio that warrant further exploration – as these latest results clearly demonstrate.”

Ausgold started drilling the eight hole program at Yamarna in September focussing on three main areas, specifically the Winchester deposit and two electromagnetic (EM) anomalies – Yam09 and Yam19.

Drilling was completed by November with all eight holes cased for downhole EM testing.

Ausgold is now awaiting final results from the program.

Assays received for the first six of the eight holes have returned results including:

–    21m at 0.63 per cent copper, 0.20 per cent nickel, and 0.02 per cent cobalt (1.24 per cent copper equivalent) from 88m; and

–    28m at 0.50 per cent copper, 0.21 per cent nickel, and 0.02 per cent cobalt (1.16 per cent copper equivalent) from 99m.
 
Ausgold said it intends to drill adjacent sections at Winchester during the 2012 field season to determine the extent of the mineralising system.

The company said it believes recent work at Yamarna has enhanced the prospectivity of the immediate area and region for copper-nickel-cobalt and nickel Sulphide mineralisation.