Ausgold Commences EIS Co-Funded Drilling at Katanning

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) has kicked off a high impact RC (Reverse Circulation) drilling program at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold anticipates completion of the 21-hole RC program in June.

The new drilling will target down hole electromagnetic (DHEM) targets Ausgold has identified within the Central Zone at KGP located along strike from areas of high-grade gold mineralisation intercepted at the Jinkas South and Jinkas areas.

Previous drillin intersected high-grade gold mineralisation at Jinkas South over a 400m strike length and the upcoming RC drilling will test a further 400m along strike extending beyond the current Resource while extending towards the down dip position of the current Jinkas Resource.

Six holes are planned to target the down-dip portion of Jinkas where there is relatively limited past drilling.

At the Burong prospect a Western Australia Government Exploration Incentive Scheme (EIS) co-funded RC drill program will target a previously encountered broad zone of gold mineralisation.

The new RC drill program will target this high-grade mineralisation with a six-hole program, following which an aircore program will commence along the eastern extension of the Burong – Datatine trend.

Ausgold also received a further grant of $150,000 under the WA Government EIS round 21 that will fund RC and diamond drilling at Jinkas North to test the extensions of high-grade gold mineralisation north along strike from the Jinkas deposit.

Ten holes are planned along a trend that has been identified in recent drilling and ground gravity surveying.

The drill targets will test the northern extensions of Jinkas, which extends along an 850m strike from the main Jinkas deposit and within the gap in the current Resource located between the Olympia and Jinkas Resource areas.

“This new round of RC drilling follows up on targets identified in the recent rounds of drilling which have combined DHEM programs with recent drilling,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“The new EM targets have identified several potential strike extensions of the high grade Jinkas South lode which potentially extends for over one kilometre north beneath the current Jinkas Resource.

“These new targets have the potential to add high-grade ounces to the current the 1.2 million ounce gold Resource at Katanning.

“We are pleased to report that Ausgold has again been successful in our recent EIS grant application (Round 21), with a further validation of the innovative exploration we are undertaking at the KGP.

“Drilling funded by this latest EIS grant will help answer some key questions regarding the potential strike extent of high-grade gold mineralisation at the Jinkas deposit.

“The drilling has been designed to discover additional ounces by testing extensions of the Jinkas mineralisation at depth.

“In addition to the systemic drilling within the Resource areas Ausgold is exploring at the near regional Burong prospect, a newly identified structure seven kilometres from the main Resource.

“It is highly encouraging that all drill holes intercepted gold mineralisation in the last round of RC drilling with the highest-grade intercept of 1m at 6.47 grams per tonne gold at end of hole confirmed this area as a new discovery.

“The follow-up drill program at Burong is co-funded under the WA Government’s EIS scheme (Round 19) and new drilling along this trend has the potential to significant expand the project as a whole.”