- AusGold's (AUC) recent drilling at the Burong Prospect has intersected bedrock gold mineralisation
- Nine holes were drilled to test two areas within the Katanning Gold Project in WA
- Five of the holes were drilled at the Burong Prospect to test bedrock gold mineralisation
- The remaining four were drilled at Jinkas North to locate the northern extensions of the mineralisation
- Further drilling is now planned at both areas to target gold mineralisation and test the extents
- AusGold is up 7.69 per cent and shares are trading for 1.4 cents each just before market close
AusGold (AUC) has updated the market on exploration activities at its Katanning Gold Project in the Yilgarn Craton.
The Katanning Gold Project is located 275 kilometres southeast of Perth and 40 kilometres northeast of Katanning in Western Australia.
The project covers 4031 square kilometres of the Katanning Greenstone Belt which is known for hosting some of Australia's biggest and best gold deposits.
Nine reverse circulation holes, for 1015 metres, were drilled to test two areas within the project.
Five of the nine holes were drilled at the Burong Prospect and this was partly funded by the WA Government Exploration Incentive Scheme.
This program tested bedrock gold mineralisation at the prospect and reverse circulation (RC) drilling intersected steeply dipping gold mineralisation beneath a gold anomaly than stretched more than 1.2 kilometres.
Best results include one metre at 6.47g/t gold from 101 metres, and seven metres at 0.49g/t gold including one metre at 1.49g/t gold from 125 metres.
These results confirm the potential surrounding the Katanning Project.
"AusGold's recent RC drilling at the Burong Prospect has intersected bedrock gold mineralisation over 200 metres strike length with the best result being one metre at 6.47g/t gold having been returned from the bottom of the hole," Managing Director Matthew Greentree said.
"Further RC drilling is planned targeting gold mineralisation within a package of mafic-ultramafic host rocks which extends at least 1.2 kilometres along strike," he added.
The remaining four holes were drilled at Jinkas North and they were designed to locate the northern extensions of the mineralisation.
Results include one metre at 2.15g/t gold from 90 metres, and four metres at 0.87g/t gold from 100 metres including one metre at 2.8g/t gold.
Further drilling is planned to target the high-grade extensions.
"RC drilling within the Central Zone has intersected the northern portion of the Jinkas lode a further 400 metres north of the current Jinkas resource," Matthew commented.
"Future drilling is anticipated to target the high-grade extensions to the Jinkas mineralisation which are noted to the south and is expected to recommence as soon as practically possible," he said.
AusGold is up 7.69 per cent and shares are trading for 1.4 cents each at 3:56 pm AEST.