Ausgold Extends Katanning Gold Project Exploration

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) has extended the Jinkas South and White Dam areas at the Central Zone within the company’s 100 per cent-owned Katanning Gold Project in Western Australia.

Ausgold recently completed reverse circulation (RC) drilling programs at both sites that have also been utilised to carry out further down hole electromagnetic (DHEM) surveys that has resulted in the identification of a further 18 DHEM targets within the Jinkas, Jinkas South and White Dam lodes where RC drilling is underway to test these.

The latest drilling at Jinkas South involved 17 holes targeting areas along strike from high-grade gold mineralisation previously intercepted, returning:

29 metres at 1.84 grams per tonne gold from 120m, including 15m at 3.17g/t gold;

11m at 1.16g/t gold from 138m including 5m at 2.06g/t gold;
4m at 2.03g/t gold from 114m including 1m at 7.46g/t gold;

4m at 2.03g/t gold from 111m and 11m at 1.16g/t gold from 134m;

4m at 2.25g/t gold from 30m including 1m at 7.84g/t gold;

2m at 4.62g/t gold from 102m including 1m at 8.84g/t gold; and

7m at 1.28g/t gold from 117m including 2m 3.45g/t gold.

The Jinkas South drilling intersected a broad zone of gold mineralisation at a much higher grade than the overall Resource, as well as extending the high-grade gold mineralisation to over 600m north along strike on the eastern edge of the defined Resource.

RC drilling carried out within the Jinkas and White Dam Resource areas targeted gold mineralisation that had been poorly defined by previous drilling, including areas outside of the current Resource.

Results from this area, include:

20m at 0.87g/t gold from 139m, including 3m at 2.66g/t gold and 2m at 1.51g/t gold;

17m at 0.94g/t gold from 66m, including 1m at 5.59g/t gold;

4m at 2.41g/t gold from 21m and 7m at 1.02g/t gold from 44m and 3m at 1.79g/t gold from 87m; and

4m at 2.25g/t gold from 30m, including 1m at 7.84g/t gold.

“Recent RC drilling has targeted high-grade gold mineralisation within the Jinkas South, Jinkas and White Dam lodes with the aim to add higher 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.

“New drilling shows high-grade gold mineralisation extends well beyond that estimated in the current Resource area which will further improve the project economics.

“The application of geophysical programs alongside RC drilling has continued to provide targets for high-grade gold mineralisation within the Jinkas South lode.

“The recent drill program where broad zones of higher-grade gold mineralisation, including 29 metres at 1.84 grams per tonne gold from 120 metres in BSRC0993, indicate further potential north along strike.

“The Jinkas South lode can be traced over a 600 metres strike length and remains open along strike.

“Follow-up RC drilling currently underway is targeting this high-grade mineralisation north along strike.

“Ausgold is extending the coverage of DHEM and has completed a high-resolution ground gravity survey to target this mineralisation.”