Ausgold Hits 6.6m at 3.40g/t Au, Extends Katanning Gold Shoot 240m Down-Plunge

Drilling Success at Datatine

Ausgold Limited (ASX – AUC) has announced encouraging assay results from its recent drilling campaign at the Datatine deposit, part of the Katanning Gold Project (KGP) in Western Australia. The company’s four Reverse Circulation-Diamond and diamond drill holes have extended the known high-grade gold shoot by 240 metres down-plunge beyond the current resource boundary.

Among the standout results is an intercept of 6.6 metres grading 3.40 grams per tonne (g/t) gold, including a higher-grade section of 3.8 metres at 5.80 g/t gold. These findings confirm the continuity of high-grade mineralisation at depth, underscoring Datatine’s potential as a significant underground mining target.

Implications for Resource Growth

The extension of the high-grade shoot at Datatine complements the open down-plunge mineralisation already identified at the Central Zone of the KGP. Together, these zones present a compelling case for future resource expansion. Ausgold’s updated geological model, informed by the latest drilling data, highlights areas where high-grade mineralisation may have been previously overlooked and identifies targets up to 150 metres beyond the current down-plunge extent.

Executive Chairman John Dorward emphasised the strategic importance of these results, stating that the findings validate the company’s focus on underground resource growth. The open-ended nature of mineralisation at both Datatine and the Central Zone suggests that the Katanning project could see substantial increases in its resource base with continued exploration.

Support from Exploration Incentive Scheme

Ausgold’s exploration efforts have been bolstered by successful co-funding of up to $180,000 through Round 31 of the Geological Survey of Western Australia’s Exploration Incentive Scheme (EIS). This funding will support further down-plunge drilling at Datatine, enabling the company to test the newly identified extensions and refine its geological understanding.

The company’s methodical approach to sampling, assaying, and geological logging, adhering to industry best practices and JORC Code standards, provides confidence in the robustness of these results. The drilling program’s design, including angled holes intersecting mineralised structures at high angles, ensures representative sampling and reliable data for resource estimation.

Looking Ahead – Feasibility and Further Drilling

With a feasibility study for the Katanning Gold Project scheduled for release in late June 2025, investors and analysts will be watching closely to see how these exploration results translate into economic viability. The study will provide critical insights into mining plans, processing strategies, and project economics, potentially setting the stage for development decisions.

Meanwhile, Ausgold’s commitment to expanding the resource through targeted drilling, supported by EIS funding, signals a proactive stance in unlocking the full potential of the Katanning Gold Project. The company’s ability to secure funding, execute drilling programs, and integrate new data into its resource models will be key factors shaping its near-term trajectory.