Ausgold Limited (ASX: AUC) has intersected extensive and broad zones of gold mineralisation during drilling in the Southern Zone at the Katanning Gold Project (KGP) in Western Australia.
The company is currently focused on the potential for a larger scale Resource through the drilling programme in the Southern Zone, which includes the Rifle Range, Dingo and Lukin areas along a total strike length of eight km.
These areas have demonstrated promising early results, which include extensive and broad zones of high-grade gold mineralisation showing the potential to expand the scale of the total gold Resource at the KGP.
Southern Zone drill programme
New RC drilling, consisting of 13 drill holes for 1,902m, has been completed which targeted the Southern Zone,located on a structural repeat of the mineralised structure identified within the Central Zone.
Managing Director, Matthew Greentree, said this area continues from the extensive zone of mineralisation encountered along the full 2.5km strike length in the Rifle Range area. Further work is planned to target gold mineralisation down dip at Dingo and within the large alteration system intersected by recent drill holes at Lukin and the Rifle Range areas.
“The early results from the Southern Zone continue to show promise, with drilling returning widespread and significant zones of high-grade mineralisation. This early view supports our thesis that there is potential to further expand our existing 1.54Moz Resource significantly to the south,” he said.
“We also continue to scale up, with the appointment of an experienced exploration manager, as we commence diamond drilling in both the Southern and Central Zones that will support upcoming geotechnical and metallurgical testing.”
Dingo
New results within the Dingo area continue to highlight high-grade Resource extension opportunities within the existing Southern Zone Resource, building on repeats identified from the existing 1.54Moz – largely in the Central Zone. Drilling results at Dingo further deliver extensive zones of gold mineralisation and include:
- 11m @ 1.89 g/t Au from 59m including 6m @ 2.98 g/t Au in BSRC1229
- 14m @ 0.78 g/t Au from 73m in BSRC1229
- 12m @ 1.29 g/t Au from 75m including 5m @ 2.11 g/t Au in BSRC1228
- 8m @0.71 g/t Au from 46m in BSRC1232
- 15m @ 0.68 g/t Au from 69m including 5m @ 1.27 g/t Au in BSRC1232
Results from this new drilling are very promising, with high-grade gold mineralisation intersected significantly beyond the current Resource area. Further work is planned to target gold mineralisation down dip at Dingo and within the large alteration system outlined in previously reported results, including:
- 10m @ 2.89 g/t Au from 84m including 3m @ 8.35 g/t Au in BSRC1231 (previously reported)
- 6m @ 4.5 g/t Au from 32m including 2m @ 12.75 g/t Au in BSRC1168 (previously reported)
- 9m @ 2.52 g/t Au from 85m including 5m @ 4.09 g/t Au in BSRC1200 (previously reported)
- 18m @ 1.23 g/t Au from 83m in BSRC1230 (previously reported)
- 10m @ 2.01 g/t Au from 66m in BSRC1226 (previously reported)
Lukin
Lukin is located 8 km south of the Central Zone and follows the same regional structures that control gold mineralisation identified there (Figure 1). New drilling includes nine reconnaissance RC holes drilled for 1,338m targeting numerous areas along a strike length of 4 km in the Lukin prospect, with a follow-up exploration program currently being planned to be carried out during the summer field season.
Recent significant results from reconnaissance drilling within the Lukin area include:
- 3m @ 0.5 g/t Au from 42m in BSRC1148
- 3m @ 1.18 g/t Au from 129m in BSRC1148
- 3m @ 0.39 g/t Au from 149m in BSRC1148
- 1m @ 1.8 g/t Au from 156m in BSRC1148
- 4m @ 0.67 g/t Au from 111m in BSRC1149
- 2m @ 0.64 g/t Au from 168m in BSRC1149
Exploration update
A diamond drill rig has been mobilised to the KGP for a ten hole 1,200m drill program in the Central Zone that will support metallurgical test work and geotechnical studies. To further accelerate development at the KGP, Ausgold has appointed Graham Conner, a highly experienced exploration geologist, as Exploration Manager.
Further appointments to the exploration team have also been made, with the addition of experienced exploration geologists to increase capacity as the company accelerates exploration activities ahead of the highly active summer period.
