Ausgold Limited's latest drilling at the Katanning Gold Project reveals exceptional high-grade gold intercepts, supporting resource growth and mine life extension prospects in Western Australia.
- High-grade assays up to 41.25g/t Au reinforce resource expansion potential
- Drilling extends mineralisation beneath DFS pits and outside current reserves
- Focus on Central Zone deposits including Jinkas-White Dam and White Dam-Jackson
- Ongoing campaign includes 54,000m RC and diamond drilling with regional targets
- Resource and reserve estimates from December 2025 remain unchanged
Exceptional High-Grade Drilling Results Strengthen Katanning Outlook
Ausgold Limited (ASX:AUC) has delivered a fresh wave of compelling assay results from its ongoing drilling campaign at the Katanning Gold Project in Western Australia. The standout intercept of 11 metres at 7.88 grams per tonne gold including a blistering 2 metres at 41.25g/t Au underscores the project's capacity to grow its resource base and extend mineralisation at depth.
The drilling, focused primarily on the Central Zone's Jinkas-White Dam and White Dam-Jackson deposits, is part of an expansive 54,000-metre reverse circulation and diamond drilling program. These results not only confirm high-grade continuity beneath the Definitive Feasibility Study (DFS) pits but also reveal mineralisation beyond current reserves, suggesting potential for both production base growth and mine life extension.
Resource Conversion and Early Production Confidence
Significant in-fill drilling has targeted conversion of Inferred Resources to Indicated and Measured classifications, bolstering confidence in the early years of the mine plan. Notably, 23 in-fill RC holes beneath DFS pits have returned intercepts that support upgrading resource confidence and improving grade estimates. This drilling underpins the potential for reserve growth and enhanced cash flow predictability during the initial production stages.
Grade reconciliation from in-fill drilling aligns well with existing geological models, with many assays meeting or exceeding expectations. This consistency reinforces the robustness of the Mineral Resource Estimate and provides a solid foundation for upcoming mining phases.
Extensional Drilling Uncovers New Down-Plunge Targets
Beyond resource infill, Ausgold’s extensional drilling has successfully pushed mineralisation boundaries. Drilling beneath the White Dam-Jackson lodes has identified a down-plunge repetition extending over 620 metres, a discovery that could materially increase the resource footprint. As these lodes remain shallowly tested compared to Jinkas, ongoing drilling along this trend is anticipated to yield further extensions.
Future drilling plans include testing down-plunge extensions of the primary Jinkas lode, with assays pending from recently completed programs. Ausgold is also advancing diamond drilling at Datatine in the Northern Zone and progressing follow-up programs at Jackson and White Dam. Meanwhile, regional exploration at the Nanicup Bridge satellite project is complete with results awaited, and new RC drilling campaigns are slated for early-stage targets Moulyinning and Kulin.
This drilling momentum follows the company’s recent decision to accelerate Katanning exploration, adding a fifth rig to the campaign after earlier high-grade hits in the Central and Southern Zones, as detailed in the company’s March update.
Mineral Resource and Ore Reserve Status
As of December 2025, the Katanning Gold Project hosts a total Mineral Resource of 68.6 million tonnes at 1.11g/t Au for 2.44 million ounces, with Ore Reserves of 37.4 million tonnes at 1.11g/t Au containing approximately 1.33 million ounces. Ausgold confirms that no material changes have occurred to these estimates in light of the latest drilling results, though ongoing assays and modelling updates could influence future resource and reserve revisions.
Ausgold’s Executive Chairman John Dorward emphasised the strategic significance of these results, highlighting the opportunity to grow production and extend mine life while optimising early production phases. The company’s methodical approach to resource classification and reserve conversion aims to underpin a robust and sustainable mining operation.
Bottom Line?
Ausgold’s high-grade drill results at Katanning reinforce its growth trajectory, but upcoming assay releases and deeper extensional drilling will be crucial to unlocking the project's full potential.
Questions in the middle?
- How will pending assays from down-plunge and regional targets impact Katanning’s resource base?
- What are the implications of extending mineralisation beyond current DFS pit designs for mine planning?
- To what extent can early production confidence translate into improved cash flow and project financing?