Ausgold Highlights Katanning Gold Mineralisation Extensions

THE DRILL SERGEANT: Ausgold (ASX: AUC) announced it has initial results from air core drilling (AC) carried out at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold completed the large AC drill campaign of 331 holes through December 2017 and January 2018, targeting geochemical and geophysical targets along strike from known gold mineralisation.

Part of the campaign, consisting 264 AC drill holes, tested along strike on the Jackson-Lone Tree and Olympia-Jinkas mineralised trends at the KGP.

The AC drilling results have been received from 181 of the 264 holes drilled, with results from a further 83 holes drilled in the Jackson-Olympia area pending.

Ausgold said the results from Jackson have highlighted the continuity of east-dipping (40-60m) gold mineralisation from Lone Tree towards Jackson in the north.

The company said this northward trend was evident in aeromagnetic images and the continuity of mineralisation has been confirmed by the recent round of drilling with a number of intercepts returning greater than one gram per tonne gold, including three bottom-of-hole intercepts greater than 0.5g/t gold (holes BSAC1593, BSAC1603 & BSAC17420).

Olympia is located 820m north along strike from the Jinkas mineralisation and has a similar moderate easterly dip.

Ausgold said the latest AC drilling results have extended mineralisation a further 700m towards the northwest and highlight prospective mafic granulite that is locally folded around a quartz monzonite (previously referred to as adamellite) body.

“With this latest round of air core drilling, we have significantly advanced our knowledge of the geology and the extent of gold mineralisation within our 100 per cent-owned Katanning gold project,” Ausgold chief executive officer Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“The initial results have highlighted the relatively untested continuity between Resources that have significant gold grades being intersected close to surface.

“There remains significant potential to grow the KGP’s mineral inventory through near-Resource additions and elsewhere along the project’s total 17-kilometre strike length.”