Ausgold (ASX: AUC) has reported a 17% increase to the Mineral Resource Estimate for its flagship Katanning Gold Project following 26,700m of new RC and diamond drilling.
The company notes that the updated MRE, which now contains 2.16 million ounces of gold, has delivered a 33% increase in Measured and Indicated Resource categories and supports a stand-alone open-pit operation with further underground potential identified.
Commenting on the news, Ausgold Managing Director Matthew Greentree said: “The Katanning Gold Project continues to build scale and demonstrate its significance, with a large 2.16 Moz Resource with massive multi-million-ounce exploration upside.
“The Katanning Gold Project continues to build scale and demonstrate its significance”
This increased Resource confirms the Company’s robust understanding of the geology at Katanning delivers a number of outcomes:
- De-risks the Project with 1.78 Moz of the Resource in Measured and Indicated categories;
- Large Resource base will support a long life open-pit operation;
- Supports the Prefeasibility Study due out next month and forms part of our Maiden Ore Reserve; and
- Will continue to drive high-value exploration opportunities for further Resource expansion
Critically, Ausgold is now positioned firmly on the path to becoming a mid-tier gold producer.”
The company also reports that over 957,000 ounces of gold have been added to the Resource Estimate over the previous 12 months, with ‘best-in-class’ discovery economics of around $11 per Resource ounce.
In addition, Ausgold has refined its understanding of the KGP gold mineralisation, providing potential to further expand the current Resource, with mineralisation remaining open at depth and along strike.
Map of the Katanning Gold Project displaying Resource locations and drill collarsThe Katanning Gold Project is located approximately 40km north-east of its namesake township Western Australia and comprises over 4,000km² of land covering 130km of strike, with 100% of all tenements being owned by the company.
The company reports that it is moving forward with a Prefeasibility Study, due in late Q2 2022, which will be supported by engineering and cost-estimate work, metallurgical testwork, and community stakeholder engagement.
Images: Ausgold Limited
