Ausgold Drills Towards Resource Upgrade

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) is anticipating a Resource upgrade following recent drilling results received from the company’s 100 per cent-owned Katanning Gold Project (KGP) in Western Australia.

Ausgold has completed RC and diamond drilling at the KGP with a total of 31,050m of drilling undertaken within the KGP Central zone since a 2019 Resource update.

Recent drilling within the Jinkas, White Dam and Jinkas South lodes identified new areas of high-grade gold mineralisation within a broad zone of mineralisation consistent with the company’s new geological model.

This extensive zone of gold mineralisation occurs at the culmination of the Jinkas and White Dam lodes within the Jinkas South lode, a fold hinge zone.

New results include:

29 metres at 1.23 grams per tonne gold from 86m, including 1m at 19.3g/t gold and 32m at 0.56g/t gold from 153m;

9m at 2.83g/t gold from 197m, including 3m at 6.5g/t gold;

11m at 1.11g/t gold from 88m; and

17m at 1.11g/t gold from 145m, including 9m at 1.39g/t gold.

The upgraded Resource estimate due out shortly is confined to the 4.5km strike length of the Central Zone and includes new RC and diamond drilling that has identified zones of high-grade gold mineralisation within the three stacked Jinkas, White Dam and Jackson lodes.

This will be the first time the high-grade Jinkas South lode will be included along a 1.3km strike length.

The new Resource estimate will be completed using improved estimation techniques and new geological model that will better incorporate the high-grade gold mineralisation of the KGP.

“Our improved geological model led to the discovery of the Jinkas South lode where we have just completed a substantial 30,000 metres program of new drilling, focused on key Resource areas within the Central Zone,” Ausgold managing director Matthew Greentree said in the company’s ASX announcement.

“Results have consistently shown a broad zone of higher-grade gold mineralisation over 1.3 kilometres of strike length, which will feed into our Resource upgrade due out shortly.

“New RC and diamond drilling at Jinkas North and Olympia highlight the exploration potential to further add Resource ounces beyond the March 2021 Resource upgrade.
“The team has done an incredible job evolving our geological model which ultimately will unlock the full potential at Katanning.”