Ausgold Upgrades Katanning Gold Resource to 1.54Moz

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) announced a substantial upgraded JORC 2012 Mineral Resource estimate for the company’s 100 per cent-owned Katanning Gold Project (KGP) in Western Australia.

The new Resource totals 1.54 million ounces of gold and represents a 28 per cent increase in total contained ounces and a 14 per cent increase in grade, from the company’s previous Resource estimate released in 2019.

Ausgold explained this assessment was undertaken from the Central Zone Resource area, which extends along a 4.5km strike length.

This Resource area includes the stacked Jinkas, White Dam, Olympia and Jackson lodes.

The total Resource includes the Dingo and Datatine deposits which remain unchanged from the 2019 estimation.

“The new Resource has added 338,670 ounces, an increase of 28 per cent to the previous Resource Estimate with an increased overall grade of 14 per cent which now stands at 1.25 grams per tonne gold and is underpinned by a very low discovery cost of $15 per ounce,” Ausgold managing director Matthew Greentree said in the company’s ASX announcement.

“The upgraded Resource also incorporates over 31,000 metres of new drilling and is based on an improved geological model that has substantially increased the Measured and Indicated Resource to over 72 per cent of total ounces.

“In addition, we now for the first time report a high-grade underground Resource.

“The new geological model highlights clear extensions of gold mineralisation which remain open at depth.

“There has been limited drilling below a depth of 250 metres, which provides meaningful potential to further expand the underground potential Resource.

“This Resource upgrade provides critical mass to the KGP and supports Ausgolds strategy to develop ae standalone mining operation focused on the Central Zone.

“Importantly, it also shows the exploration potential within the Resource areas and regionally to significantly increase the scale of the Katanning Gold Project with targeted exploration.”