- Ausgold (AUC) hits further high-grade gold at its Katanning gold project in Western Australia
- The company underwent a program across the project to further expand the scale of its current ore reserve, drilling 41 reverse circulation holes for 5666 metres
- Eight reverse circulation holes drilled at Jinkas Deeps returned up to 33.86 g/t gold from 208 metres, while drilling within the Central Zone revealed the potential of near-surface, high-grade gold mineralisation
- Further testing is still ongoing at the Southern Zone, which has already been shown to host similar gold as the Central Zone
- Ausgold shares are up 16 per cent to trade at 5.8 cents at 11:40 am AEST
Ausgold (AUC) has hit further high-grade gold at its Katanning gold project in Western Australia.
The company underwent a drilling program across the project to add to the near-surface resource and further expand the scale of its current ore reserve.
The company drilled 41 reverse circulation (RC) holes for 5666 metres to target gold mineralisation, which intercepted several significant zones of gold mineralisation both at depth and near-surface.
The company reported results from a RC program at Jinkas Deeps, where eight holes were drilled for 2040 metres. The work aimed to extend the high-grade gold mineralisation at depth beyond the current resource.
High grade gold mineralisation was intersected, with results including four metres at 17.05 grams per tonne (g/t) gold from 207 metres, including two metres at 33.86 g/t gold from 208 metres.
Meanwhile, drilling within the southern portion of the Central Zone revealed the potential of near-surface, high-grade gold mineralisation. Thirty three holes were drilled for 3626 metres, returning assays such as five metres at 2.98 g/t gold from 31 metres, including two metres at 6.82 g/t gold from 34 metres.
Ausgold said the new results continue to demonstrate the growth potential of the resource areas within 100 metres of surface, further building the grade and scale of an open pit mining operation.
Further testing is still ongoing at the Southern Zone, which has already been shown to host similar gold as the Central Zone.
Ausgold Managing Director Matthew Greentree said the results clearly demonstrate the potential of the Katanning gold project, along with its recent pre-feasibility study delivering a large 1.28 million ounce ore reserve.
“It is pleasing to continue this momentum with near surface high-grade gold intersected as well as expanding the depth potential which remains open,” Matthew Greentree said.
“Both add to the significant multi-million-ounce resource potential of the project. The KGP is now shaping up to be one of the largest free-milling undeveloped gold projects in Western Australia.”
Ausgold shares were up 16 per cent to trade at 5.8 cents at 11:40 am AEST.