Ausgold Intersects Southern Extension of Jinkas Deposit

THE DRILL SERGEANT: Ausgold (ASX: AUC) released results of reverse circulation (RC) drilling carried out on Jinkas South at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Ausgold said the RC drilling, completed 340 metres south along strike from the Jinkas Resource, has intersected a broad zone of gold mineralisation which remains untested for a further extension of 300m along strike.

The first eight RC holes drilled at Jinkas South – a recently identified trend south of the current Jinkas Resource – intersected a broad zone of gold mineralisation with intercepts including:

10 metres at 2.09 grams per tonne gold from 84m, including 1m at 15.05g/t gold from 93m;

7m at 2.09g/t gold from 69m, including 4m at 3.15g/t gold from 71m;

8m at 2.01g/t gold from 96m, including 4m at 3.29g/t gold from 100m; and

2m at 3.32g/t gold from 58m.

Ausgold commenced its RC drill program at the start of February, with 32 holes having been completed over the Jinkas South, Fraser, Lukin, Jackson and Olympia prospects.

The current round of RC drilling is testing targets identified during recent air core (AC) drilling and geophysical programs.

“RC drilling results from Jinkas highlight the progress we have made using systematic exploration and our improved geological understanding to underpin our work on this project,” Ausgold chief executive officer Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“The Jinkas South drilling has tested a relatively simple target along strike from known mineralisation and is one of many significant gaps which previous exploration drilling has failed to test.

“The large areas previously left untested by earlier exploration work have the potential to significantly increase the Resource base at the Katanning gold project.

“We plan to rapidly expand the KGP’s mineral inventory through these near-Resource additions as well as further discoveries elsewhere along the project’s currently identified 17 kilometre strike length.”