Ausgold updates Katanning Gold Project estimate

THE DRILL SERGEANT: Ausgold (ASX: AUC) has announced an updated JORC 2012 Mineral Resource estimate at the company’s 100 per cent-owned Katanning gold project (KGP), located in the south west of Western Australia.

The new Mineral Resource estimate has come in at 11.3 million tonnes at 1.26 grams per tonne gold for 460,000 ounces of contained gold for Jinkas, Dingo and Jackson lodes.

The prospect breakdown comprises:

Jinkas at approximately 270,000 ounces (including a high-grade core of around 125,000 ounces at 2.57g/t gold);

Dingo approximately 155,000 ounces (which includes a higher grade core of 40,000 ounces); and

Jackson at approximately 35,000 ounces.

Ausgold said the Mineral Resource estimate includes a substantial proportion sitting in the Measured and Indicated categories (87 per cent), is reported at a 0.5g/t gold cut-off grade, and restricted to approximately 150 metres below surface, which suggests it could be potentially amenable to low cost open cut mining.

“We are extremely pleased with the updated resource which follows the recent successful Resource Development and Exploration drilling program at the Katanning gold project,” Ausgold said in its ASX announcement.

“The delineation of a significant shallow 460,000 ounce gold resource at potentially economic grades is a major milestone for Ausgold and the result of a great team effort – both within Ausgold and together with the Katanning community and our various service providers.

“Accordingly we have commenced a Scoping Study to assess amenability to open cut mining and to capitalise on the favourable geology, geometry and location of the Mineral Resource.

“With an improving understanding of the mineralisation, which remains open in a number of directions, there is significant scope for further increases.

“We are proposing further drilling at the KGP and regional targets”

Email: info@ausgoldlimited.com.au

Website: www.ausgoldlimited.com.au