Ausgold Identifies New Katanning Gold Targets

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) scored encouraging results from a reverse circulation (RC) drill program carried out at the company’s 100 per cent-owned Katanning gold project (KGP) in the South West Yilgarn Craton of Western Australia.

Ausgold completed a total of 23 RC holes designed to test mineralisation along strike and also to test potential beyond the current Resource areas, with the aim of adding to the current JORC Resource of 25.1 million tonnes at 1.29 grams per tonne gold for 1.04 million ounces of gold.

The drilling targeted extensions to high-grade mineralisation at Jackson and tested several new areas including the Jinkas North and Lukin prospects.

Drilling at Jackson included 10 RC holes in the southern portion of the Jackson Resource area, with the aim of providing better controls on mineralisation.

Jackson is the western most portion of the current Mineral Resource, with gold mineralisation dipping towards the east and underlying the White Dam and Jinkas lodes.

The latest drilling intersected high-grade mineralisation at shallow depths, returning results of:

3 metres at 6.55 grams per tonne gold from 13m, including 2m at 9.63g/t gold from 13m;

4m at 2.09g/t gold from 102m;

2m at 2.22g/t gold from 65m, including 1m at 3.89g/t gold from 66; and

1m at 4.36g/t gold from 47m.

Galileo interpreted these results to suggest potential for more extensive high-grade mineralisation recognised within the southern Jackson Resource area.

Further work is currently underway to delineate these high-grade shoots which have already been delineated over a strike length of at least 200m and remain open along strike.

The company completed three reconnaissance RC holes into the Jinkas North area, which extends for 850m between the Jinkas and Olympia Resources areas.

The Jinkas North area has not had any prior drilling and is not included in the current Resource, despite its proximity to two large Resource areas.

The RC drilling intersected the prospective mafic granulite and gold mineralisation, including:

1m at 2.77g/t gold from 83m.

“The recent RC program has targeted near Resource targets including the Jackson Trend as well as reconnaissance targets at Jinkas North and Lukin,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“The reconnaissance RC drilling has produced encouraging gold grades and intersected mineralisation near to surface suggesting the southern portion of the KGP has the potential to host significant gold mineralisation.

“It remains one of our primary goals to build the KGP mineral inventory, both through near-Resource additions and significant standalone discoveries, which is what we are looking for at Lukin and elsewhere within our extensive regional landholding at Katanning.

“The recent round of reconnaissance RC drilling within the KGP has shown extensive mineralisation strike length.

“This untested potential along the Jinkas trend and at the Jackson and Lukin prospects could deliver material additions to the KGP’s global Resource.

“Further work is being undertaken to better delineate high-grade mineralisation within the Jackson prospect intercepted previously which will have a significant impact on the overall grade of this deposit.

“A program of downhole EM and additional geological modelling is being undertaken to plan future drill programs.”