Ausgold (ASX:AUC) enters mid-week trading halt

• Ausgold (AUC) places its shares in a trading halt in regards to an upcoming capital raising announcement
• The company’s shares will remain in the halt until March 4 or when the announcement is released, whichever occurs first
• On February 25, Ausgold announced further high-grade gold mineralisation in the Central Zone at the Katanning Gold Project in Western Australia
• Up to 9.08 g/t gold was intersected under a drilling program aiming to upgrade the Katanning mineral resource
• Shares in Ausgold last traded at 4.3 cents

Ausgold (AUC) has placed its shares in a trading halt in regards to an upcoming capital raising announcement.

The company’s shares will remain in the halt until March 4 or when the announcement is released, whichever occurs first.

Ausgold is yet to disclose how much it intends to raise or what it will use the funds for once received.

The company is undertaking a 30,000-metre drilling program at its flagship Katanning Gold Project in the WA Wheatbelt. The program is testing significant gaps in the prospect’s Central and Southern zones in a bid to upgrade the mineral resource.

Both the Jackson and White Dome lodes at Katanning have been subject to limited drilling compared to the main Jinkas Lode.

On February 25, Ausgold announced it had intersected further high-grade gold mineralisation in the Central Zone along the Jackson and White Dam lodes.

Pleasingly for Ausgold, a result of six metres at 4.79 grams per tonne (g/t) gold from 48 metres including three metres at 9.08g/t gold was intersected from the White Dam Lode.

Drilling is continuing to target the mineralisation which remains open along strike and down plunge with a resource upgrade expected in April.

Ausgold’s portfolio also includes the Doolgunna Station copper-gold project and the Yamarna nickel-copper-cobalt project, both in Western Australia, and the Cracow gold project in Queensland.

Shares in Ausgold last traded at 4.3 cents. The company has a $69.42 million market cap.