Ausgold Demonstrates Gold Mineralisation Continuity

THE DRILL SERGEANT: Ausgold (ASX: AUC) announced results of air core drilling (AC) at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia’s south-west.

Ausgold said the 331-hole drilling campaign had demonstrated strong continuity of mineralisation within the central project area around existing Resources along three laterally extensive mineralised lodes.

21 AC holes were drilled 400 metres along strike from the Jinkas Resource, with 12 holes delivering intercepts greater than 0.1 grams per tonne gold.

A further 38 AC holes were drilled over a strike length of 2,600m to test the continuity of the mafic gneiss host rocks southeast from the Jinkas deposit, 18 of which returned anomalous gold grades over 0.1g/t gold, including intercepts of:

10 metres at 0.34g/t gold from 16m; and

19m at 0.15g/t gold from 0m.

At Devil’s Elbow, AC drilling starting 200m south along strike from the Lone Tree Resource delineated mineralisation a further 1,600m south, with gold anomalism intersected along strike from Lone Tree south to the Fraser prospect.

Ausgold claimed the drilling tested the contact between the footwall granite to the west and the prospective mafic granulite to the east along the 1,600m of strike length and the new results have confirmed the western portion of Fraser to be the strike continuation of the Jackson-Lone Tree trend, located structurally beneath and parallel to the White Dam-Fraser mineralisation.

Ausgold has previously encountered high-grade gold intercepts from wide-spaced AC drilling in the western Fraser prospect.

The company explained the latest drilling infilled this wide-spaced (100m by 100m) drilling to a spacing of 50m by 50m to provide better controls on mineralisation, which returned the following intercepts:

16m at 0.16g/t gold from 16m;

14m at 0.47g/t gold from 4m, including 1m at 1.13g/t gold from 17m;

12m at 0.42g/t gold from 4m, including 4m at 1 .01g/t gold from 12m;

16m at 0.38g/t gold from 0m; and

16m at 0.17g/t gold from 12m.

“This latest round of air core drilling has provided valuable information which has proven the existence of mineralisation along three laterally continuous trends,” Ausgold chief executive officer Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“Using the results of the AC drill program, combined with the recently acquired ground geophysics, Ausgold has designed and commenced a significant reverse circulation drill program that has the potential to significantly grow the KGP’s mineral resources.”

Ausgold has commenced a reverse circulation drill program to test the targets generated by the AC drill program.

A ground gravity and Moving Loop Electromagnetic (MLEM) geophysics program has been completed and results are currently being processed.