- Ausgold (AUC) identifies new zones of high-grade mineralisation five kilometres north of its Katanning gold project in WA
- Two diamond drill holes from AUC’s 25,000-metre drilling program have struck ‘bonanza’ zones, returning up to 99 grams per tonne (g/t) gold
- The Datatine prospect, where AUC struck the gold, is not part of the current Katanning ore reserve, but the company says the new results highlight the potential to expand the project area
- The company says further drilling at Datanine could increase the average grade of the 1.28-million-ounce Katanning ore reserve
- AUC shares close 2.04 per cent higher at 5 cents on Thursday afternoon
Ausgold (AUC) has identified high-grade mineralisation in a new northern zone outside its current Katanning gold project ore reserve in WA.
AUC’s diamond drilling program began in December 2022, designed to expand regional exploration by testing targets across the 5500-square-kilometre tenement.
Two diamond drill holes from AUC’s 25,000-metre program have struck “bonanza” zones, revealing visible gold and grades up to 99 grams per tonne (g/t).
The mineralisation is located at the Datatine prospect, five kilometres north of the main Katanning resource, and the new zones remain open down-dip and along strike.
The Datatine prospect is not part of the current Katanning ore reserve, but AUC said the new results highlighted the potential to expand the project area.
“The early results from the 25,000-metre drilling program are very promising and only continue to reinforce our view that Katanning will only get larger,” Ausgold Managing Director Matthew Greentree said.
“Importantly, continued exploration success underpins the company’s recent decision to assess development options for a significantly larger gold operation than originally contemplated.
“Gold grades at Datatine appear likely to support both an open-pit and an underground operation and could add valuable high-grade ounces to the operation.”
The company said that further drilling at Datanine could increase the average grade of the 1.28-million-ounce Katanning ore reserve.
AUC shares closed 2.04 per cent higher at 5 cents on Thursday afternoon.