Ausgold Intersects Burong Gold at KGP

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) has completed reconnaissance Reverse Circulation (RC) drilling to test two areas within the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold drilled a maiden RC program of five shallow holes at the Burong prospect, located seven kilometres from the Central Zone Resource area at the KGP – partly funded by the WA Government Exploration Incentive Scheme (EIS) – to test bedrock gold mineralisation.

Results include:

1 metre at 6.47 grams per tonne gold from 101m at the bottom of hole; and

7m at 0.49g/t gold, including 1m at 1.49g/t gold from 125m.

Ausgold said the drilling at the Burong prospect has confirmed the regional potential surrounding the KGP.

The company now has soils sampling underway along this structure to target gold mineralisation along this newly defined mineralised trend.

Elsewhere, four RC holes were between the Jinkas and Olympia Resource areas that were designed to locate the northern extensions of Jinkas mineralisation, which is thought to be offset from the Jinkas Resource by faulting and has not been intersected in previous drilling.

The new drilling intersected gold mineralisation peripheral to the Jinkas lode for the first time within the Resource gap zone.

The best intercepts include:

1m at 2.15g/t gold from 90m; and

4m at 0.87g/t gold from 100m, including 1m at 2.8g/t gold.

Ausgold has interpreted these intersections as the up-dip portion of the Jinkas lode, extending the potential strike a further 400m north of the current Jinkas Resource.

Further drilling is anticipated and will target the high-grade extensions to the Jinkas deposit.

“Ausgold’s recent RC drilling at the Burong prospect has intersected bedrock gold mineralisation over 200 metres of strike length with the best result being 1 metre at 6.47 grams per tonne gold having been returned from the bottom of hole,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“Further RC drilling is planned targeting gold mineralisation within a package of mafic-ultramafic host rocks which extends at least 1.2 kilometres along strike.

“RC drilling within the Central Zone has intersected the northern portion of the Jinkas lode a further 400 metres north of the current Jinkas Resource.

“Future drilling is anticipated to target the high-grade extensions to the Jinkas mineralisation which are noted to the south and is expected to recommence as soon as practically possible.

“Currently, Ausgold is carrying out a soils sampling program along the Burong – Datatine structure which is clearly visible in aeromagnetics and ground gravity.

“This structure extends a further 10 kilometres eastward towards the Datatine Resource area.

“This newly identified mineralised trend has the potential to further expand the KGP’s current Mineral Resource and highlights the scale of gold mineralisation regionally.”