Ausgold (ASX: AUC) has released a ‘significantly’ upgraded mineral resource estimate for it’s Katanning Gold Project in Western Australia following extensive drill work.
The JORC-2012-compliant upgrade totals ~1.84 million ounces of gold, representing a 19% increase in total contained ounces compared to the previous resource delivered in April 2021.
Addressing the news, Ausgold Managing Director Matthew Greentree said: “I am pleased to present an expanded 1.84 Moz Resource at Ausgold’s near surface open-pit flagship Katanning Gold Project. This is effectively an interim update to the Resource ahead of our original planned update in Q1 CY2022.
“The Company continues to focus on our ambition for a large multi-million-ounce Resource at Katanning”
The Company continues to focus on our ambition for a large multi-million-ounce Resource at Katanning. Already this year, we have increased the Resource by 53%, which is now pushing ~2 million ounces, and this critically sets us on the path to potentially becoming a mid-tier gold producer.
Ausgold starts to look very interesting in this context, and our shareholders have much to look forward to with substantial exploration activities in train designed to unlock further value at Katanning and at our regional opportunities.”
The resource upgrade comes from assessment of the project’s Central Zone and Dingo Resource areas, using data from a recently-completed RC drilling campaign comprised of 99 holes for 16,738m, with 4 additional diamond holes for 605m.
The Central Zone contains the bulk of the resource, including the stacked Jinkas-White Dam (now combined), Olympia and Jackson lodes. This has been combined with updated density estimation.
A series of high-grade ore shoots have also been identified within the Jinkas, White Dam and Jinkas South lodes.
Moving into 2022, a further resource upgrade is planned for the first quarter following the completion of additional drilling. This will be followed by feasibility studies looking at results of metallurgical and geotechnical test work, and regional exploration across the 4,500km² Katanning regional exploration package.
Images: Ausgold Limited