Ausgold Extends Jinkas South Lode Mineralisation

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) released results from the first six holes it has completed of a 21 hole program of reverse circulation (RC) drilling at the Central Zone within the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold has utilised down hole electromagnetic (DHEM) and Moving Loop EM (MLEM) to target drilling locations along strike from areas of high-grade gold mineralisation previously intercepted at the project’s Jinkas South and Jinkas areas.

The latest results include:

5 metres at 13.67 grams per tonne gold from 120m, including 1m at 65.8g/t gold

39m at 1.32g/t gold from 96m, including 8m at 4.1g/t gold and 1m at 22.2g/t gold

9m at 2.34g/t gold from 89m, including 5m at 3.95g/t gold
16m at 1.19g/t gold from 126m, including 2m at 4.31g/t gold

6m at 2.81g/t gold from 78m
5mat 2.93g/t gold from 88m, including 1m at 8.75g/t gold

1m at 16.8g/t gold from 141m

6m at 1.41g/t gold from 79m

Ausgold indicated the new drill results have extended the zone of high-grade gold mineralisation to a total strike length of 580 metres north along strike from mineralisation intersected in previous drill programs.

The company said the results validate both the geological model it is using to predict the location of high-grade gold mineralisation and the effectiveness of the geophysics used to directly target this mineralisation.

The results also demonstrate potential for the Jinkas South lode to add substantial high-grade ounces to the existing 1.2 million ounce gold Resource at Katanning.

“We are pleased with the high-grade gold mineralisation intersected within the initial RC drilling results which significantly extend the Jinkas South lode to a strike length of over 580 metres,” Ausgold managing director Matthew Greentree said in the company’s announcement t the Australian Securities Exchange.

“The new drilling has validated the geological model and the initial DHEM targets, providing clear confirmation that the high-grade Jinkas South lode extends over a significant strike length and remains open along strike.

“This zone remains open with drilling underway to test three additional DHEM targets north of the currently identified Jinkas South mineralisation.

“The high-grade Jinkas South gold mineralisation has been now shown to extend north along strike and will add to the current 1.2 million ounce gold Resource at Katanning.

“The new drilling shows high-grade gold mineralisation extends well beyond that estimated in the current resource model.

“This will further expand the open pit Resource and further improve the project economics.

“Further drilling is planned to target high-grade mineralisation down dip and north along strike where it remains open, Ausgold is extending the coverage of DHEM to target this mineralisation.”