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Ausgold (ASX:AUC) is preparing to ramp up activities at its Katanning Gold Project (KGP) in Western Australia on the back of strong extensional and in-fill drilling results, electing to increase reverse circulation and diamond drilling out to 54,000 metres with an additional rig on the way to the project.
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Executive chairman, John Dorward, said drilling in the Central and Southern zones is targeting resource growth at the KGP along with new discoveries across the 3,000 sq. km of regional tenure in the south-west of Western Australia.
“These latest results from the Central and Southern Zones continue to reinforce the scale and continuity of the mineralised system at the Katanning Gold Project,” he said.
The Ausgold chairman continued: “The decision to expand the program to 54,000 metres reflects our confidence in the opportunity in front of us. With an additional diamond rig now mobilising to site – increasing the total to five rigs – and multiple growth fronts now active across Jinkas, Jackson, White Dam and Datatine, we are deliberately accelerating drilling to unlock further growth.”
Exploration to date has defined a 15-kilometre trend hosting multi-lode gold mineralisation across three key resource zones. Latest drilling has successfully extended mineralisation across all major Central zone deposits as Ausgold looked to test mineralisation beyond the current 2.44 million ounces mineral resource envelope.
An ongoing diamond program aimed at collecting additional metallurgical composites from material scheduled for mining within the first one to two years of operation has also returned significant results.
Mr Dorward noted the substantial positive grade reconciliation between RC and diamond drilling has supported expectations for higher grade feed early in the mine life.
Drilling to extend the primary Jinkas lode down-plunge is now underway, building on previously reported down-dip extensions and targeting depth continuity within the core of the mineralised system.
Reverse circulation drilling at regional targets, including Nanicup Bridge and Kulin, will commence in March, aimed at expanding the company’s growth focus beyond the current mineral Resource footprint.
Ausgold is planning to release an updated mineral resource estimate in Q3.
AUC is down -0.43%, to $1.16. Mkt cap $635.5M.
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