viewAusgold Ltd

Ausgold intersects high-grade gold at Katanning project, extends exploration potential

Further work including ground-based geophysics and additional drilling will test the strike extents of the broad zone of gold mineralisation.

Katanning is 275 kilometres southeast of Perth

Ausgold Ltd (ASX:AUC) has intersected broad and high-grade gold mineralisation in reverse circulation (RC) and diamond drilling at its Katanning Gold Project in Western Australia.

Nine holes were drilled at the Jinkas South prospect for a total of 1,468 metres, with high-grade results confirming exploration potential over 1,100 metres along strike and down-dip.

Ausgold has engaged SRK Consulting to update the Katanning project’s mineral resource estimate which will include results from 16,205 metres of RC and 860 metres of diamond drilling.

The company expects to release an upgraded resource in the coming week.

High-grade gold assays

Highlighted intersections from the diamond hole include: 12.5 metres at 1.58 g/t gold from 117.6 metres, including 4.1 metres at 4.16 g/t; and 8 metres at 1.11 g/t from 95 metres, including 2 metres at 3.4 g/t.

Results from the remaining 8 RC holes include: 6 metres at 1.48 g/t from 116 metres, including 3 metres at 2.24 g/t; and 19 metres at 0.54 g/t from 105 metres, including 5 metres at 1.06 g/t.

‘Immediate exploration targets’

Ausgold managing director Matthew Greentree said: “RC and diamond drilling, along with past high-grade intercepts, demonstrates that high-grade mineralisation at Jinkas South has continuity along the strike length of the Jinkas and White Dam resource areas, which extend over 1,100 metres.

“The highest gold grades are coincident with gravity anomaly along the eastern edge of the Jinkas deposit, 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.

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

“These targets represent immediate exploration targets that should add significantly to the Jinkas-White Dam resources.”

READ: Ausgold starts drilling of high-grade gold targets at Katanning Project

Mineralisation at Jinkas South is the culmination of the Jinkas and White Dame lodes which thicken along the hinge zone of a regionally extensive fold that extends down-dip.

The two lodes contain the majority of the project’s mineral resource which amounts to 20.98 million tonnes at 1.17 g/t containing 785,000 ounces of gold, all within 150 metres of surface.

The recent drilling results are further supported by ground gravity data which shows a substantial gravity anomaly to the east of the Jinkas deposit and Jinkas South area.

This anomaly extends along the length of the entire project area and is interpreted to represent a significant crustal scale structure, likely providing a fundamental control on the gold mineralisation.

Quick facts: Ausgold Ltd

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Market: ASX
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