Ausgold in Heightened Drilling Mode at KGP

THE DRILL SERGEANT: Ausgold (ASX: AUC) reported on recent drilling activity at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold recently conducted a program of regional exploration aircore drilling on the Burong prospect the included 156 holes for 4,366 metres on wide-spaced centres (40m x 80m and 60m x 160m).

The main focus of this drilling was at Burong, which is located seven kilometres from the Central Zone Resource area at the KGP.

The AC drilling at Burong identified a new mineralised trend with a coherent gold anomaly extending over a 1.2km strike length.

The company explained this gold anomaly is closely associated with sulphidic mafic and ultramafic granulites, which have previously been interpreted to host gold mineralisation at the KGP deposit.

This new mineralised trend remains open along strike and is parallel to a major regional fault which extends eastward towards the Datatine Resource.

Other recent work undertaken by Ausgold includes a 4,000m RC drill program that is currently underway, having already drilled approximately 1,400m within the Central Zone targeting high-grade gold mineralisation using the results of a recently completed Downhole Electromagnetic (DHEM) survey.

Ausgold has further drilling planned for Jinkas South, Jinkas and Jinkas North, enabling direct targeting of sulphide rich high-grade gold mineralisation, where it recently encountered strong intercepts.

The company intends following up the recent AC drilling with RC and diamond drilling at Burong and Nanicup Bridge, which will be co-funded up to $150,000 by the Western Australian Exploration Incentive Scheme (EIS).

“Ausgold’s exploration drilling at its 100 per cent-owned Katanning Gold Project continues its two-pronged approach, which includes both near regional exploration at the Burong prospect and RC drilling targeting high-grade gold mineralisation within the Jinkas South area,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“Recent AC drilling at Burong has intersected a large zone of gold mineralisation associated with a package of highly prospective mafic-ultramafic host rocks.

“Drilling has intersected mineralisation over a strike length 1.2 kilometres, which is open for a further 10 kilometres, extending eastward towards the Datatine Resource area.

“This newly identified mineralisation area has potential to expand the KGP’s current Mineral Resource.

“Further near Resource exploration is also underway with a DHEM program being completed and RC drilling commenced within the Central Zone.

“The new EM anomalies provide clear targets which in the past have corresponded to high-grade zones of gold mineralisation.”