Ausgold Limited (ASX: AUC) has announced high-grade intercepts from the RC drilling at the Central Zone within its Katanning Gold Project located in Western Australia’s south-west.
The company said that the significant new results from 11 holes for 1,666m from Jinkas South lode include 29m @ 1.84 g/t Au from 104m including 18m @ 2.72 g/t Au; 19m @ 2.92 g/t Au from 121m including 1m@ 35.4 g/t Au; 38m @ 1.12 g/t Au from 113m including 1m @ 8.30 g/t Au and 5m @ 2.10 g/t AU; 7m @ 4.09g/t Au from 111m including 1m @ 24.90 g/t Au; 30m @ 0.95 g/t Au from 132m including 9m @ 1.56 g/t Au; and 19m @ 1.02 g/t Au from 114m including 5m @ 2.65 g/t Au.
AUC said that the new results show an increasingly broad zone of higher-grade gold mineralisation extending northeast along strike from the Jinkas South lode, well beyond the existing 1.2 million-ounce gold Resource.
Ausgold said that the completion of DHEM and ground gravity programs within Central Zone have identified further target zones which further extend potential mineralisation. The company announced that the RC drilling is continuing with results from a further 17 holes for 1,948m pending.
The Katanning Gold Project (KGP), located 275km south-east of Perth and approximately 40km north-east of the wheatbelt town of Katanning is the Company’s flagship project. Ausgold holds a dominant ground position in this relatively underexplored greenstone belt, an area prospective for Archean gold deposits. The current Resource at Katanning is 1.2 Moz gold.
The project includes two main deposit areas comprising Jinkas in the north, and Dingo in the south. The Jinkas area is further subdivided into a set of mineralised zones. Other significant deposits include Dyliabing, Lone Tree, and White Dam.
Capital raising and exploration campaign
The company had recently completed a $6.3 million capital raising. Following this, Ausgold has commenced a large exploration campaign at the KGP, including an RC drill campaign of 25,000m targeting high-grade gold mineralisation with the aim of substantially increasing the current 1.2m ounce Resource.
RC drilling at Katanning
The company had recently commenced a reverse circulation (RC) drilling program at Katanning. The drilling at Jinkas South included 11 holes for 1,666m targeting gold mineralisation north along strike from previously intercepted high-grade gold mineralisation.
AUC reported that the drilling in Jinkas South focused on strike extensions identified by downhole EM results. The company said that that the new drilling has extended the Jinkas South lode northward and has shown increasing width down dip from the original high-grade intercepts.
AUC announced that encouraging results were reported from the 11 holes for 1,666m RC drilling completed at Jinkas South.
The company said that the new drilling at Jinkas South intersected a broad zone of gold mineralisation at a significantly higher grade than the overall Resource. AUC said that the gold mineralisation is associated with strong biotite-pyrrhotite-magnetite alteration localised along a fold hinge zone which extends over 1,850m along the strike length of the Jinkas Resource area.
Significant results from the RC drilling include 19m @ 2.92 g/t Au from 121m including 1m@ 35.4 g/t Au in BSRC1002; 29m @ 1.84 g/t Au from 104m including 18m @ 2.72 g/t Au in BSRC0993; 38m @ 1.12 g/t Au from 113m including 1m @ 8.30 g/t Au and 5m @ 2.10 g/t Au in BSRC1003; 7m @ 4.09 g/t Au from 111m including 1m @ 24.90 g/t Au in BSRC1007; 30m @ 0.95 g/t Au from 132m including 9m @ 1.56 g/t Au in BSRC0996; 19m @ 1.02 g/t Au from 114m including 5m @ 2.65 g/t Au in BSRC0994; 16m @ 1.04 g/t Au from 129m in BSRC0998; and 23m @ 0.7 g/t Au from 117m in BSRC0997.
Drilling extends mineralisation
The company said that the new drilling extended the high-grade gold mineralisation a further 100m north in BSRC0994, to a total strike length of over 700m north along strike. AUC said that this zone remains open with planned RC drilling underway to target this expanded zone of high-grade mineralisation north along strike.
AUC’s recent drilling in Jinkas South has focused on strike extensions identified by downhole EM results. The company said that the new detailed ground gravity has identified areas which are likely to host high-grade gold mineralisation associated with key host rock associations and the accompanying of pyrrhotite-magnetite alteration zones.
Updates and further work
Ausgold said that a larger Topdrill Schram 650 RC rig has been added to the exploration campaign at the KGP to enable more rapid drill testing as well as targeting deeper portions of the mineralisation.
The company reported that follow-up geophysics programs, including DHEM which is to be conducted on recently drilled RC holes as well as a program of high resolution (25m station spacing) ground gravity, have now been completed.
AUC said that these new geophysics programs provide improved targeting of high-grade gold mineralisation within the Jinkas, White Dam, and Jinkas South lodes. The company said that the new geophysics data will be used to support further targeted drill planning including the 2,200m RC drilling program in the Jinkas North area, which is to be partially funded by the WA Government’s Exploration Incentive Scheme.
AUC announced that additional work is underway within the regional KGP, which includes mapping, reconnaissance rock chip sampling for both gold and platinum group metals (PGM).
Ausgold’s Managing Director Matthew Greentree said: “New drilling targeting the Jinkas South lode has further extended this zone of high-grade gold and is demonstrating increasing thickness of mineralisation along strike.
This newly identified zone of higher grade gold mineralisation has potential to add significantly to the mineral Resource estimate planned for Q1 2021 and its geometry will further benefit the project economics. RC drilling at Jinkas South is continuing with results for 17 holes currently pending and drilling continues to extend this broad zone of gold mineralisation north and east of the current Resource.
Recently completed geophysics programs, including detailed ground gravity surveys and downhole EM (DHEM) alongside RC drilling, continue to provide new targets for immediate drill testing within the Jinkas South and Jinkas North areas. Drilling is currently underway to further extend the Jinkas South lode which has been intersected over a 700m strike length, and drilling is also planned to test the Jinkas North areas.”