Ausgold reinforces Katanning underground potential with high-grade hits

• AUC extends Datatine shoot at Katanning gold project
• Assays include grades up to 5.8g/t gold
• Project feasibility study due for release in late-June

Special Report: Ausgold has extended the Datatine high-grade shoot by 240m down-plunge at its Katanning gold project (KGP) in WA.

New results reinforce the potential of Datatine as a high-grade underground prospect and support a strong outlook for future resource growth at Katanning.

The company is in the final stages of a feasibility study at the project, as it accelerates towards its goal of becoming Australia’s next mid-tier gold producer.

The Datatine prospect hosts some of the highest gold grades within the project, previously returning grades of up to 11.47g/t.

This final batch of assays from four reverse circulation-diamond and diamond drill holes have extended the Datatine shoot 240m down-plunge of the current Datatine resource.

They returned a notable 6.6m at 3.40g/t gold from 362m, including 3.8m at 5.80g/t from 364.85m in BSRCD1805, the deepest hole in this program.

Hole BSRCD1803 returned 2m at 3.67g/t from 297m along with 11.3m at 0.96g/t, including 4.2m at 1.81g/t from 333.83m.

This hole, along with holes BSRCD1802 and BSDD049, returned intersections consistent with economic open pit grade intercepts.

These results have informed an updated geological model for the high-grade mineralisation at Datatine.

Highlights underground mining potential

Ausgold (ASX:AUC) will now utilise funding of up to $180,000 secured through Round 31 of the Geological Survey of Western Australia (GSWA) Exploration Incentive Scheme (EIS) to:

• Target sections where high-grade mineralisation is interpreted to have been missed; and
• Test for further high-grade mineralisation up to 150m beyond the current down-plunge extent.

“The latest assay results from Datatine continue to validate the potential for underground mining at Katanning,” AUC executive chairman John Dorward said.

“Results from BSRCD1805, which sit 240m down-plunge of the current resource, are particularly encouraging and support our strategy to pursue resource growth at depth.

“With both Datatine and the Central Zone remaining open down-plunge, we see clear opportunities to increase resources at the KGP and look forward to undertaking additional drilling at Datatine, supported by EIS co-funding, to follow-up this opportunity.”

The company is on track to complete the project feasibility study considering the development of a large-scale, long-life open pit gold project at Katanning in late June.

This article was developed in collaboration with Ausgold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.