Ausgold Limited (ASX: AUC) has released results from a recent AC drill program conducted by JV partner Great Boulder Resources Ltd (ASX: GBR) at the Winchester prospect within the Yamarna Project in Western Australia.
The company reported that the most recent aircore drilling extends known anomalism to more than 2.5km with grades of up to 1.1% copper, 0.7% nickel and 0.04% cobalt.
AUC also noted that high-resolution ground gravity survey has assisted in developing a new geological interpretation over the prospect. AUC said that planning is currently underway for a follow-up drill program.
Ausgold reported that Great Boulder has earnt a 51% interest in the Yamarna Joint Venture, having spent a total of $250,000 and meeting the first milestone.
Yamarna nickel – copper project
Ausgold’s 100%-owned Yamarna Project is located approximately 125km north-east of Laverton in central Western Australia. The project covers 300km2 of prospective ground over the Yamarna Greenstone Belt in the Yilgarn Craton. The project includes the highly prospective Winchester nickel-copper JV project.
Winchester JV terms
Under the terms of the Joint Venture, Great Boulder has issued Ausgold 1,500,000 GBR shares which are under staged voluntary escrow periods of 3 to 9 months.
Great Boulder can earn a 51% interest in the Winchester project by spending $250,000 on exploration over two years, and an additional 24% (75% in total) by spending an additional $250,000 ($500,000 in total) over four years. The first milestone has now been met.
Upon Great Boulder meeting the minimum expenditure milestone, Ausgold will retain a 25% free-carried interest in the Winchester project to a decision to mine.
Winchester exploration program
AUC reported that the recent exploration program consisted of 118 AC holes drilled for 3,776m and a ground gravity survey of 575 stations. AC drilling was conducted on a wide-spaced east-west grid measuring 400m x 1000m with the purpose of improving the current geological interpretation.
Ausgold said that drilling has identified geochemical anomalism extending over a strike length of 2,500m with nickel values (>1500ppm), coincident copper (>100ppm) and >10ppb PGE (>10 ppm). The geochemical anomaly extends anomalism identified at Winchester to the southern tenement boundary.
It may be noted that previous drilling at the Winchester prospect had identified significant Ni-Cu-Co-PGE mineralisation. Previous significant intercepts at Winchester include 19m @ 0.6% Cu, 0.3% Ni, and 0.02% Co from 106m including 10m @ 0.8% Cu, 0.4% Ni, 0.03% Co and 13m at 0.9% Cu, 0.3% Ni, 0.02% Co from 138m including 5m at 1.1% Cu, 0.7% Ni, 0.04% Co, 0.10g/t PGE.
Ground gravity survey
AUC said that a high-resolution ground gravity survey covering the Winchester prospect was completed to assist with geological interpretation. The survey was conducted along 400m spaced east-west traverses with stations at 200m intervals with total of 575 stations.
AUC reported that the new gravity data highlights thinning of the mafic-ultramafic rock package towards the south, suggesting the lower levels of this intrusion are brought close to the surface in these areas and are considered more prospective for Ni-Cu-PGE mineralisation.
Further plans
Ausgold reported that it has engaged Mine Scope Consultants to conduct a metallurgical study of its Katanning Gold Project, WA with a re-sampling of past drill core and new drilling. An exploration program including 4,000m RC and 1,000 diamond drilling is currently underway to target extensions to the current Resource areas.
The company said that Down Hole Electromagnetic (DHEM) and Magnetometric Resistivity (MMR) surveys have been completed at Jinkas South, Jinkas and Jinkas North areas (within KGP) and interpretation of those targets is underway. Further work includes petrographic and multi-element geochemical analysis to characterise the mineralisation and mine stratigraphy within the Jinkas deposit.
Management statement
Ausgold’s Managing Director, Matthew Greentree said: “We are pleased with the results of the recent exploration program which highlight the potential of the Yamarna Project. AC drilling intersecting grades of up to 1.1% copper, 0.7% nickel and 0.04% cobalt over 2,500m strike length highlight the potential for significant magmatic sulphide mineralization.
Great Boulder continue to advance the Yamarna Project by spending $250K, thereby meeting the first milestone to earn a 51% interest in the project. The fast rate of progress ensures the highly prospective Yamarna Project continues to be advanced by a focused nickel – copper explorer.The Joint Venture is structured in such a way that Ausgold retains a 25% free-carried interest through to a decision to mine, allowing Ausgold to focus its efforts on its 100%-owned Katanning Gold Project (KGP), where the Company continues to have exploration success and is progressing towards a mine development of the 1.04 Moz gold Resource.”
