Ausgold (ASX:AUC) reports deep diamond drilling has intersected gold mineralisation 300m down plunge of its current open pit resource at the Katanning Gold Project in Western Australia.
The company’s first deep diamond hole returned 13.8m @ 0.48 grams per tonne gold (Au) from 481.5m, confirming the continuation of the mineralised system well beyond existing resource limits.
Assays remain pending for a second diamond hole drilled approximately 550m down plunge of the current resource.
Ausgold notes the two diamond holes, supported through a Western Australian Government Exploration Incentive Scheme (EIS) co-funded drilling grant, represent some of the deepest drilling completed in the Central Zone.
Executive Chairman John Dorward says the results provide further evidence that Katanning has substantial room to grow beyond the current 2.44 million ounce (Moz) open pit mineral resource estimate (MRE).
“Intersecting mineralisation some 300 metres down plunge of the existing resource confirms the continuity of the mineralised system at depth and supports our view that the Central Zone remains substantially underexplored,” Dorward says.
The company completed eight extensional reverse circulation and diamond holes targeting extensions beneath the current resource, with multiple key intersections including 16m @ 1.32g/t Au from 252m and 12m @ 1.49g/t Au from 261m.
Ausgold also received results from 38 infill holes designed to reduce drill spacing to approximately 20m by 20m within the first two years of the planned mine schedule.
Notable results include 10m @ 1.56g/t Au from 36m and 4m @ 3.31g/t Au from 11m.
Ausgold currently holds a 2.44Moz open pit resource and 1.33Moz open pit ore reserve at Katanning.
With the company continuing its 25,000m infill drilling program, it expects to complete an updated MRE in the December quarter.
Regional drilling results from the Moulyinning and Kraken prospects are also expected.
Ausgold is a gold explorer and developer focused on its flagship Katanning Project in WA.
Write to Paula Fabe at Mining.com.au
Images: Ausgold
