Ausgold Unveils High-Grade Gold Hits, Boosting Katanning Project Outlook
Ausgold Limited’s latest drilling results from the Katanning Gold Project reveal high-grade gold mineralisation beyond current resources, underscoring significant growth potential. The ongoing 44,000m drilling campaign is validating and expanding the project’s resource base in Western Australia.
- Initial 11 drill holes return high-grade gold assays from newly acquired land
- Step-out drilling extends mineralisation beyond existing resource boundaries
- In-fill drilling confirms and locally upgrades resource grades
- Two rigs active with diamond drilling to target underground potential
- Resource growth and early mine life confirmation are key campaign goals
Strong Start to New Drilling Phase
Ausgold Limited (ASX – AUC) has reported promising assay results from the first tranche of its latest drilling campaign at the Katanning Gold Project (KGP) in Western Australia. The initial 11 reverse circulation (RC) holes, totaling 1,581 metres, were drilled on recently acquired land that had been inaccessible for three years. This fresh access has provided a critical platform for resource expansion and validation.
The results highlight both step-out and in-fill drilling successes. Notably, step-out holes have intersected high-grade gold mineralisation beyond the current Mineral Resource, with standout intercepts including 14 metres at 6.18 grams per tonne (g/t) gold and 10 metres at 2.27 g/t gold. These findings suggest the potential to extend the open-pit resource and explore underground opportunities.
Validating and Enhancing the Resource Model
In-fill drilling within the Central Zone, the heart of the KGP and home to 90% of the resource, has returned assay grades consistently higher than those predicted by the existing resource model. Intercepts such as 13 metres at 2.27 g/t gold and 17 metres at 1.55 g/t gold reinforce the continuity and robustness of the deposit. This local grade uplift could translate into improved project economics and mine planning.
Executive Chairman John Dorward emphasized the significance of these results, noting that the drilling confirms the consistency of mineralisation and opens avenues for resource growth. He highlighted that some high-grade mineralisation lies outside the current reserve pit shell, offering exciting expansion potential.
Ongoing Campaign and Strategic Focus
The current 44,000-metre drilling program is well underway, with two RC rigs active and diamond drilling set to commence shortly. The campaign targets two main objectives – expanding the known mineralisation footprint within the Central Zone and confirming high-margin, early mine life areas through in-fill drilling. These efforts aim to underpin a re-optimised Definitive Feasibility Study (DFS) mine plan that incorporates recent land acquisitions.
The KGP spans a major mineralised structural corridor with three key zones, Northern, Central, and Southern, each hosting multiple lodes. The Central Zone, where these latest results come from, remains the primary value driver, with the Jinkas-White Dam synformal structure continuing to demonstrate both scale and grade upside.
Looking Ahead
With over 5,700 metres drilled so far in this campaign and more results expected in the coming months, Ausgold is poised to refine its resource estimates and advance project development. The combination of high-grade step-out hits and encouraging in-fill results strengthens the case for resource growth and early mining potential at Katanning.
Bottom Line?
Ausgold’s latest drilling success at Katanning sets the stage for resource expansion and a stronger project economics outlook.
Questions in the middle?
- How will upcoming diamond drilling results impact underground resource potential?
- What is the timeline for updated resource estimates and the re-optimised DFS?
- Could local grade uplifts materially improve the project’s early mine life economics?
