Ausgold Intersects Further Jinkas South Mineralisation

THE DRILL SERGEANT: Ausgold (ASX: AUC) reported results of reverse circulation drilling (RC) undertaken at the Jinkas South prospect, within the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia’s south-west.

Ausgold commenced the drilling in March targeting high-grade gold mineralisation within the Jinkas South area it considers having potential to add both grade and total ounces to the current KGP Mineral Resource, which stands at 25.1 million tonnes at 1.29 grams per tonne gold for 1.04 million ounces of gold.

Intercepts from the recent RC drilling at Jinkas South include:

16 metres at 6.21 grams per tonne gold from 114m, including 4m at 22.38g/t gold;

5m at 1.88 g/t gold from 76m;

25m 1.13 g/t gold from 115m including 5m at 3.41 g/t gold;

6m at 2.11 g/t gold from 97m;

4m at 2.63 g/t gold from 72m including 2m at 4.65 g/t gold;

12m at 0.85 g/t gold from 63m including 6m at 1.15 g/t gold;

5m at 1.45 g/t gold from 71m including 4m at 1.70 g/t gold; and

14m at 0.98 g/t gold from 86m including 1m at 7.30 g/t gold.

Ausgold said the new drilling had combined with a ground gravity program to identify controls on high-grade gold mineralisation and supports the recent geological interpretation along the eastern edge of the Jinkas deposit.

“RC drilling at Jinkas South has again intersected high-grade gold mineralisation, further extending the identified zone of high-grade mineralisation over a strike length of 350 metres,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“This high-grade mineralisation remains open along strike making it an attractive target with the potential to significantly add to the 1.04 million ounces already identified at the KGP.

“With the new gravity survey, several previously unidentified faults have been highlighted allowing more targeted drill programs in the future.

“Further work is currently being undertaken to better delineate gold mineralisation down dip of and along the Jinkas trend.

“These represent immediate exploration targets coincident with gravity anomalies, where the Jinkas and White Dam lodes coalesce.

“This down-dip position towards the east remains poorly tested with the current drilling at the KGP only effectively testing the top 150 metres, leaving the down- dip extent of the Jinkas-White Dam mineralisation largely untested.”