Ausgold (ASX:AUC) identifies high-grade gold in Central Zone, KGP

• Ausgold (AUC) receives more drill results which have identified near surface, high-grade gold mineralisation in the Central Zone of the Katanning gold project in WA
• Drilling intersected a new high-grade shoot within the White Dam lode with results of four metres at 5.47 g/t gold from 42 metres and a higher-grade of 9.08 g/t over three metres
• This drilling is part of a 30,000-metre program that’s aiming to further upgrade the Katanning mineral resource
• The program is over halfway complete and an updated resource is expected to be delivered in April
• Ausgold shares are trading steady at 4.6 cents

Ausgold (AUC) has identified near surface, high-grade gold mineralisation in the Central Zone along the Jackson and White Dam lodes.

The company is undertaking a 30,000-metre drilling program at its WA-based Katanning gold project (KGP) with a focus on testing significant gaps in the Central and Southern zones to upgrade the KGP Mineral Resource.

Ausgold only updated the resource in December which currently stands at 46.14 million tonnes at 1.24 grams per tonne (g/t) gold for 1.84 million ounces. However, it indicated at the time that the 30,000-metre drilling effort would aim to expand it further.

The Jackson and White Dam lodes represent two of the three stacked lodes at Katanning which have seen limited drilling compared to the main Jinkas lode.

Positively for the company, drilling has intersected a new high-grade shoot within the White Dam lode with results of four metres at 5.47 g/t gold from 42 metres in BSRC1349.

Additional results from other drill holes include six metres at 4.79 g/t gold from 48 metres including three metres at 9.08 g/t gold, five metres at 3.43 g/t gold from 23 metres, and nine metres at 1.3 g/t gold from 27 metres.

The company said the results showed the potential for higher-grade gold mineralisation than is reported in the current resource model.

Ausgold has now surpassed the halfway mark of its 30,000-metre program with 17,631 metres of drilling completed.

Drilling will continue to target the mineralisation that remains open along strike and down plunge ahead of the resource upgrade expected in April.

Ausgold shares were trading steady at 4.6 cents at market close.