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- Ausgold (AUC) intersects high-grade gold mineralisation at its Katanning Gold Project in Western Australia
- Drilling was undertaken in the Southern Zone with more than 8700 metres drilled across the Rifle Range, Lukin and Dingo areas
- Up to 12.75 grams of gold per tonne (g/t) was intersected and additional drilling has been planned to further target the gold mineralisation
- Downhole electromagnetic surveys are now being carried out at the Southern Zone with preparations for diamond drilling also underway
- Ausgold is up 2.44 per cent on the market with shares trading at 4.2 cents at 10:56 am AEST
Ausgold (AUC) has intersected high-grade gold mineralisation at its Katanning Gold Project in Western Australia.
Katanning lies 275 kilometres southeast of Perth and covers more than 4000 square kilometres of the Greenstone Belt in the Yilgarn Craton.
Drilling was undertaken in the Southern Zone with 8739 metres drilled at the Rifle Range, Lukin and Dingo areas.
The company said promising early results showed the potential to expand the scale of the total gold resource at Katanning.
First results include six metres at 4.5 grams of gold per tonne (g/t) from 32 metres including 12.75 g/t; and 10 metres at 2.89 g/t gold from 84 metres including three metres at 8.35 g/t gold.
Further drilling has been planned to target gold mineralisation down dip at Dingo and within the large alteration system at Rifle Range.
Drilling was also undertaken in the Jinkas South and Lukin areas with results pending.
A total of 24 holes were drilled to test extensions to the Central Zone Resource and test target areas along a four-kilometre strike.
Follow-up downhole electromagnetic surveys are now being carried out at the Central and Southern Zones with preparations for a diamond drill program under way.
Managing Director Matthew Greentree is pleased with the promising results.
“Our first drill program in this largely untested area has returned widespread and significant zones of high-grade mineralisation,” Mr Greentree said.
“In terms of next steps, we have our next set of results from assays pending at Jinkas South and Lukin. Preparations are also under way for new and follow-up drilling in the Central and Southern Zones which includes metallurgical testing.”
Ausgold was up 2.44 per cent on the market with shares trading at 4.2 cents at 10:56 am AEST.
