Drilling at Ausgold’s Katanning sites yielded positive results in December, with the company finding high-grade mineralisation that could drive deposit estimates past 1.2 million ounces.

Ausgold managing director Matthew Greentree said recent capital raising would allow the company to carry out a “significant” exploration program near Katanning.

“The initial results from (reverse circulation) drilling within the central zone have validated new geological concepts which have the potential to significantly extend resource areas and to add high-grade ounces to the current 1.2Moz gold resource at Katanning, as well as extending high-grade mineralisation outside of current optimised pit shells,” Mr Greentree said.

“Further work is currently being undertaken to better delineate high-grade gold mineralisation.”

The Katanning Gold Project is located about 40km north-east of the townsite.

Ausgold has held tenements in the area since 2009 when it listed on the Australian Securities Exchange.

In early 2017, after a change in management, the company started a thorough re-interpretation of the KGP geological model taking into account all drilling conducted from late 2015.

 

Image: Ausgold drilling in Katanning, Kalgoorlie Miner.