Ausgold Limited is ramping up its drilling efforts at the Katanning Gold Project with an imminent 25,000m infill program aimed at tightening drill spacing and underpinning early mine life. Recent results confirm robust resource growth potential and support advancing underground mining studies at Datatine.
- 25,000m infill drilling to reduce spacing to 20m x 20m
- Strong grade reconciliation confirms resource model reliability
- Extensional drilling highlights near-surface mineralisation continuity
- Underground mining studies underway at high-grade Datatine deposit
- Satellite opportunity at Nanicup Bridge gaining momentum
Imminent 25,000m Drilling to Support Early Mine Life
Ausgold Limited (ASX:AUC) is preparing to launch an additional 25,000 metres of reverse circulation (RC) drilling at its 100%-owned Katanning Gold Project (KGP) in Western Australia. This program aims to tighten drill spacing within the first two years of planned mine life to approximately 20m by 20m, a key step in advancing towards mining readiness. The company highlights a payback period of just 17 months, underscoring the project's economic potential.
Drilling Results Affirm Resource Growth and Model Confidence
The latest batch of assay results, part of a >58,000m RC and diamond drilling campaign, reinforce the growth trajectory of the KGP. A formal review of infill drilling shows excellent grade reconciliation, with over 80% of intersections within mineralised domains returning grades higher than predicted by the existing resource model. This robust validation supports Ausgold's confidence in the geological and mineralisation framework underpinning the project.
Extensional drilling beyond current resource boundaries has also yielded encouraging results, demonstrating mineralisation continuity at shallow depths amenable to open-pit mining. Notably, multiple significant intercepts were recorded outside the current pit shell, particularly at the Jinkas and White Dam–Jackson lodes in the Central Zone.
Datatine Deposit: Underground Potential Emerging
In the Northern Zone, the high-grade Datatine deposit continues to attract attention. Recent diamond drilling intersected mineralisation up to 700 metres down-plunge, including a standout intercept of 9.5m at 2.44g/t gold from 512m depth. This is the deepest hole drilled at Datatine to date.
Ausgold is updating the geological model for Datatine and initiating underground mining studies, including stope optimisation, to evaluate economic viability. This marks a strategic pivot towards unlocking value from deeper, higher-grade zones that could complement open-pit operations.
Satellite Deposit Opportunity at Nanicup Bridge
Approximately 40km southeast of Katanning, the Nanicup Bridge project is evolving into a promising satellite deposit. Ausgold completed 66 RC holes over the prospect, confirming multiple thick mineralised lodes extending over at least 1km of strike. The drilling identified a supergene enrichment blanket with localised zones grading above 2g/t gold near surface.
This discovery enhances the potential for Nanicup Bridge to augment the existing 2.44 million ounce Mineral Resource base at Katanning, offering logistical advantages due to road connectivity between the sites.
Looking Ahead: Resource Update and Further Drilling
Following completion of the current deep drilling and receipt of outstanding assays, Ausgold plans to define the next phase of resource extension drilling, expected in the third quarter of 2026. This will run alongside the infill program, supported by down-hole electromagnetic (DHEM) surveys to guide targeting.
The company anticipates a Mineral Resource update in the December quarter, which will incorporate the latest drilling results and potentially reshape the project's resource and reserve profile.
Bottom Line?
Ausgold's accelerated drilling and emerging underground studies at Katanning signal a methodical push towards mine development, with resource confidence and satellite opportunities in clear focus.
Questions in the middle?
- How will the upcoming resource update reshape the project's reserve base and mine plan?
- What economic thresholds will underground studies at Datatine need to meet to justify development?
- Could Nanicup Bridge evolve into a significant standalone satellite deposit or remain supplementary?