Ausgold Limited (ASX: AUC) has unveiled a significantly upgraded JORC 2012 Mineral Resource estimate for the company’s 100% owned flagship Katanning Gold Project (KGP), located 275km south-east of Perth, Western Australia.
Managing Director, Matthew Greentree, said the new Resource, which totals 1.54 million ounces of gold, is a 28% increase in total contained ounces and a 14% increase in grade, from the previous 2019 Resource estimate.
Completed in accordance with the 2012 JORC Code, assessment has been undertaken of the Central Zone Resource area which extends along a 4.5km strike length. This Resource area includes the stacked Jinkas, White Dam, Olympia and Jackson lodes. In addition, several high-grade ore shoots are identified within Jinkas, White Dam and Jinkas South lodes. The total Resource includes the Dingo and Datatine deposits which remain unchanged from the 2019 estimation.
The new Mineral Resource incorporates recent reverse circulation (RC) drilling (210 holes for 30,313m) and diamond drilling (five holes for 737m), which has targeted high grade mineralisation and strike extensions of known mineralisation.
I am pleased to present Ausgold’s upgraded 1.54 Moz Resource for our near surface open-pit flagship Katanning Gold Project,” Mr Greentree said.
“The new Resource has added 338,670 ounces, an increase of 28% to the previous Resource Estimate with an increased overall grade of 14% which now stands at 1.25 g/t Au and is underpinned by a very low discovery cost of $15 per ounce.
“The upgraded Resource also incorporates over 31,000m of new drilling and is based on an improved geological model that has substantially increased the Measured and Indicated Resource to over 72% of total ounces.
“In addition, we now for the first time report a high-grade underground Resource. The new geological model highlights clear extensions of gold mineralisation which remain open at depth. There has been limited drilling below a depth of 250m which provides meaningful potential to further expand the underground potential Resource.
“This Resource upgrade provides critical mass to the KGP and supports Ausgolds strategy to develop ae standalone mining operation focused on the Central Zone.
“Importantly, it also shows the exploration potential within the Resource areas and regionally to significantly increase the scale of the Katanning Gold Project with targeted exploration.”