Ausgold Drills Extensions to Katanning Gold Resource

THE DRILL SERGEANT: Ausgold (ASX: AUC) released results of reverse circulation drilling (RC) carried out at the Central Zone within the company’s 100 per cent-owned Katanning gold project (KG”) in Western Australia.

Ausgold completed the drilling during February and March that consisted a program of 23 RC drill holes and downhole EM (DHEM) within the Central Zone, from which it has identified targets the company believes to have potential to add both grade and total ounces to the current KGP Mineral Resource.

The KPG Mineral Resource currently stands at 33.1 million tonnes at 1.1 grams per tonne gold for 1.2 million ounces of gold.

Drilling at Jinkas South targeted a broad zone of gold mineralisation extending down dip and south of the Jinkas Resource.

Intercepts from Jinkas South encountered broad zones of mineralisation extending beyond current Resource areas, including:

13 metres at 1.11 grams per tonne gold 99m;
20m at 0.94g/t gold from 119m;

17m at 1.03g/t gold from 93m;

These holes also hit zones of high-grade gold mineralisation of:

1m at 11.2g/t gold from 142m;

1m at 16.35g/t gold from 73m;

The latest drilling has extended the zone of high-grade gold mineralisation along a strike length of 400m and beyond what Ausgold had intersected in previous drill programs.

A program of DHEM surveys was conducted that developed new target plates that the company hopes to test with RC drilling in coming months.

Ausgold anticipates further drilling will extend mineralisation where it remains open along a strike length of over 400m.

Drilling carried out within the Central Zone, immediately west of the historical Jinkas pit, targeted near-surface gold mineralisation and intersected mineralisation along a strike length of 350m in an area which was previously untested.

The Central Zone drilling intersected near surface mineralisation, including:

7m at 1.79g/t gold from 113m, including 1m at 9.33g/t gold from 118m;

6m at 1.51g/t gold from 37m, including 3m at 2.63g/t gold;
4m at 1.06g/t gold from 111m;

7m at 1.42g/t gold from 96m;
8m at 0.97g/t gold from 84m; and
1m at 4.98g/t gold.

“RC drilling within the Central Zone has intersected broad zones of gold mineralisation which extend beyond current Resource areas and will add further high-grade ounces to the current 1.2 million ounces gold Resource at Katanning,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“Drilling has been complemented with a program of DHEM, which is being used to target high-grade gold mineralisation.

“Newly identified high-grade gold mineralisation at Jinkas South has been intersected over a strike length of 400 metres and this zone remains open both down dip and along strike.

“Drilling adjacent to the historical Jinkas pit has intersected extensions of the White Dam and Jackson Resources which will add Resource ounces to the KGP.

“RC drilling program at nearby regional targets including Burong and Jinkas North have been completed with results anticipated to be released to the market in the coming weeks.

“These areas are located within five kilometres of the main Resource and have the potential to add to the current 1.2 million-ounce Resource.”