- Ausgold (AUC) will soon deliver a mineral resource update for the Katanning Gold Project in Western Australia
- The project has an existing resource of 33.9 million tonnes at 1.1g/t for 1.2 million ounces of gold which was released in November 2019
- Since then, over 31,000 metres of drilling has been completed within the Central Zone
- The program has consistently returned high-grade gold results and extended the Jinkas South Lode's strike to 1.3 kilometres at the end of last year
- The resource upgrade is expected to be delivered before the end of this quarter
- However, Ausgold is already planning for another expansion which will reflect drilling at Jinkas North and Olympia
- Company shares are down 1.89 per cent and trading at 5.2 cents
Ausgold (AUC) has proved an exploration update as it moves towards a resource upgrade for the Katanning Gold Project in Western Australia.
The Katanning Gold Project has an existing mineral resource estimate of 33.9 million tonnes at 1.1g/t gold for 1.2 million ounces of gold. This estimate was delivered in November 2019.
Since then, Ausgold has completed 215 holes, for 31,050 metres, of reverse circulation (RC) and diamond drilling within the Central Zone. This extensive drilling program sought to extend the resource and intersect high-grade mineralisation.
Pleasingly, drilling has delivered on Ausgold's hopes, having consistently returned high-grade results.
Recent assays from the Jinkas South Lode include 29 metres at 1.23g/t gold from 86 metres including one metre at 19.3g/t gold and 32 metres at 0.56g/t gold from 153 metres, nine metres at 2.83g/t gold from 197 metres including three metres at 6.5g/t gold and four metres at 5.83g/t gold from 160 metres including two metres at 9.3g/t gold.
Additionally, drilling extended the lode's mineralised strike to 1.3 kilometres in November last year.
"Our improved geological model led to the discovery of the Jinkas South lode where we have just completed a substantial 30,000-metre program of new drilling, focused on key resource areas within the Central Zone," Managing Director Matthew Greentree said.
The upgraded resource estimate is expected to be released before the end of this quarter and will be confined to a 4.5-kilometre strike length of the Central Zone. Importantly, this will be the first time the Jinkas South lode will be included along a 1.3-kilometre strike length.
While the resource upgraded is due out shortly, Ausgold is already planning for a further resource expansion which will reflect successful drilling at Jinkas North and Olympia.
"The team has done an incredible job evolving our geological model which ultimately will unlock the full potential at Katanning," Matthew concluded.
Company shares are down 1.89 per cent and trading at 5.2 cents at 1:14 pm AEDT.