OzAurum confirms high-grade gold discovery at Cross Fault

OzAurum has been delivered broad, high-grade RC intersections including 48m at 1.66g/t gold from surface
Further drilling is underway with diamond drilling to start next week
Cross Fault discovery boosts the overall prospectivity of the 260,000oz project

Special Report: OzAurum has enhanced its belief that the new Cross Fault discovery at the Mulgabbie North project is linked to a substantial gold system.

This follows an RC drilling program which intersected 48m at 1.66g/t gold from surface.

The program was designed to test for mineralisation extending into fresh rock and validate earlier aircore drilling results of 6m at 1.54g/t gold to the end of hole along the Relief Shear.

OzAurum Resources’ (ASX:OZM) 20-hole RC campaign has confirmed the Cross Fault as an official ‘discovery’ with gold intersections over a 400m strike length including:

48m at 1.66g/t gold from surface to 48m, including 9m at 5.79g/t from 12m;
12m at 4.26g/t gold from 18m, including 2m at 22.58g/t; and
17m at 1.65g/t gold from 45m, including 39m at 1.09g/t from 31m.

The Cross Fault target is 2km south of the 260,000oz Mulgabbie North resource, with both sitting on the Relief Shear.

Mulgabbie North Gold Project AC drill area. Image: OZM

Similar rocks to Northern Star’s Carosue dam

Mulgabbie North is about 2km from Northern Star Resources’ (ASX:NST) ~3.5Moz Carosue Dam and boasts similar rocks.

More than 38 years ago, limited RC drilling in the area intersected gold mineralisation that was never followed up.

In 1998 Gutnick Resources undertook a wide-spaced vertical drill hole program with one vertical rotary air blast hole intercepting gold mineralisation.

Work is ongoing in a bid to unlock new discoveries at the underexplored project to add to the 260,000oz resource at 0.7g/t gold.

‘Pivotal moment’

OZM CEO and managing director Andrew Pumphrey said the results were truly exceptional.

“We’re particularly encouraged by the extension of the mineralisation into fresh rock and the widespread presence of sulphides, both of which point to the potential for a substantial gold system,” he said.

“With further drilling underway and diamond drilling about to commence, we’re confident that the Cross Fault discovery will significantly enhance the overall value of the Mulgabbie North gold project.

“This is a pivotal moment for our company, and we look forward to delivering further positive results as we continue to unlock the full potential of this exciting discovery.”

RC drilling at cross fault site Mulgabbie North. Image: OZM

What now?

Mulgabbie North project areas including James, Ben and Alicia are dominantly conglomerate-hosted gold deposits and are extensively foliated.

OZM’s observations indicate that the Cross Fault area appears to be a sandstone dominated lithology in the immediate area.

Wide zones of pyrite and arsenopyrite mineralisation were also observed in RC drill chips from multiple RC drill holes indicating gold mineralisation potential at depth.

Another seven holes have been drilled for 745m with results expected in the coming weeks.

The diamond drill rig will begin drilling at high-priority Cross Fault targets next week targeting the high-grade RC intersections and will drill into the fresh rock to enable OZM to understand this area better.

This article was developed in collaboration with OzArum Resources, 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.