Ausgold Intersects Further High-Grades at Katanning

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) released the latest drilling results achieved at the Central Zone within the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold completed a program of RC drilling in December 2019 within the Central Zone targeting extensions of previously identified high-grade gold mineralisation at the Jinkas South and Jackson deposits.

The company believes high-grade mineralisation in both areas has the potential to add both grade and total ounces to the KGP Mineral Resource, which currently stands at 33.1 million tonnes at 1.1 grams per tonne gold for 1.2 million ounces of gold.

Most of the December drill program was conducted at Jinkas South targeting high-grade gold mineralisation.

The drilling intersected several broad zones of gold mineralisation which show continuity along 400 metres of strike length, including:

12 metres at 3.52 grams per tonne gold from 120m, including 3m at 9.64g/t gold;

1m at 5g/t gold from 54m and 1m at 9.81g/t gold from 117m;

18m at 0.97g/t gold from 120m including 1m at 10.25g/t gold from 123m;

20m at 0.94g/t gold from 119m and 1m at 11.2g/t gold from 142m;

13m at 1.11g/t gold from 99m including 2m at 2.18g/t gold from 107m;

22m at 0.85g/t gold from 132m; and

23m at 0.8g/t gold from 126m.

Ausgold said the he recent drilling at Jinkas South had better delineated the high-grade mineralisation in south-eastern portion of the defined Resource.

The company indicated its ongoing work on the geology of the Jinkas South area is focusing on the key host rock associations and the accompanying alteration zones, which primarily contain pyrrhotite and biotite (potassic) alteration, as well as strike slip faults in the area.

“Following the recent capital raise Ausgold is now well funded to conduct a significant exploration program at Katanning,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“The initial results from RC drilling within the Central Zone have validated new geological concepts which have the potential to significantly extend Resource areas and to add high-grade ounces to the current 1.2-million-ounce gold Resource at Katanning, as well as extending high-grade mineralisation outside of current optimised pit shells.

“Further work is currently being undertaken to better delineate high-grade gold mineralisation down dip and along strike from the Jinkas trend.

“This high-grade gold mineralisation, down dip and east of the current Resource, has been intersected over 400 metres and remains open both down dip and along strike.

“In addition to the near-Resource drilling, Ausgold is targeting mineralisation in nearby regional identified areas such as the Burong and Cleggs Bend prospects.

“These areas are located within five kilometres of the main Resource and have potential for the discovery of significant new gold mineralisation.”

Ausgold has commenced a 4,500m aircore drill program to test regional targets at the above mentioned Burong and Cleggs Bend prospects.

The company has commenced planning for a high-impact RC drill program in February 2020 within the Central Zone, targeting high-grade gold mineralisation.

This will be followed by RC drilling of regional targets, including Burong and Nanicup Bridge prospects, which is to be partially funded by the WA Government Exploration Incentive Scheme.

Additional field work is being completed within the regional KGP, which includes mapping, reconnaissance rock chip sampling and auger programmes being conducted over six prospects.