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Ausgold (ASX:AUC) expands Katanning gold resource to 1.84Moz

ASX News, Materials
ASX:AUC      MCAP $61.99M
07 December 2021 11:37 (AEST)
Ausgold (ASX:AUC) - Managing Director, Matthew Greentree

Source: Matthew Greentree/LinkedIn

Ausgold (AUC) has announced a 19 per cent in total contained ounces for its wholly-owned, Western Australia-based Katanning gold project (KGP).

AUC has now increased total resources by 53 per cent since April this year.

The Katanning Project MRE now stands at 46.14 million tonnes at 1.24 grams per tonne (g/t) of gold for 1.84 million ounces. Of this, 1.2 million ounces are in the measured and indicated categories.

The expansion comes off the back of an assessment of the Central Zone and Dingo Resource areas with the Central Zone representing most of the resource at KGP.

AUC announced the expansion delivered with an improved geological model and an upgraded density measurement can amount to roughly $10 per ounce of gold.

The company said another resource update has been planned for the first quarter of 2022 after the current 30,000 reverse circulation (RC) drill series has been completed.

“The company continues to focus on our ambition for a large multi-million-ounce resource at Katanning. Already this year, we have increased the resource by 53 per cent, which is now pushing roughly two million ounces, and this critically sets us on the path to potentially becoming a mid-tier gold producer,” Managing Director, Matthew Greentree said.

“I am pleased to present an expanded 1.84 million ounce resource at Ausgold’s near-surface open-pit flagship Katanning Gold Project. This is effectively an interim update to the resource ahead of our original planned update in Q1 CY2022.”

AUC shares increased 7.78 per cent to 4.9 cents a share at 11:26 am AEDT.

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