An improved mineral resource estimate has been released by Ausgold for its flagship Katanning gold property in Western Australia. The updated mineral resource estimate is 89 million metric tonnes at 1.06 grammes per tonne, or 3.04 million ounces.
Following what Ausgold Ltd (ASX: AUC) described to be a “Robust and Successful” reverse circulation and diamond drilling strategy, the gold resource at the Katanning deposit has now reached 3.04 million ounces. This is the result of the expansion of their Katanning Gold deposit. Katanning is the largest free milling, open cut gold project in the state, according to the business, thanks to the recent rise in the resource to 89 million tonnes at 1.06 grammes per tonne gold, for a contained 3.04Moz.
The Great Southern region of Western Australia, some 275 kilometres south-east of Perth, is home to this extraordinary project owned by Ausgold. According to todays announcement, Katanning’s Northern, Central, and Southern zones have all been increased thanks to the drilling programme, increasing the amount of the mineral resource by 15%.
Approximately 80 percent of the contained resources, or 2.42 million ounces, are now classified as having greater levels of confidence either measured or indicated. According to Ausgold, a long-term mining operation will be supported by this most recent resource as well as the amount that falls into higher classification groups.
Because the majority of the deposit is located above a depth of 220 metres, it can be mined in an open pit independently of any other mining operations. Since the discovery of the Jinkas South deposit, which represents a $11-per-ounce finding cost, the resource has increased by more than 2Moz over the course of the past four years, bringing the total to an astounding number, Ausgold stated.
The most recent drill programme saw an increase in production of 400,000 ounces thanks to the completion of 17,305 metres in April. According to Ausgold, this indicates that the company has a better understanding of the geology at the Katanning Gold Project, which has led to the quick and cost-effective expansion of the resource. This will help in the execution of future drilling operations that are well targeted at key prospects.
The most recent drilling produced a number of interesting results that include:
- 4 metres at 17.05 grammes per tonne of gold and
- 2 metres at 33.86 grammes per tonne of gold
Other assays returned results of:
- 7 metres at 6.99 grammes per tonne of gold, including 2 metres at 23.3 grammes per tonne, and
- 12 metres at 3.88 grammes per tonne of gold, including 11 metres at 4.19 grammes per tonne
The Central zone contains the majority of Katanning’s resources and is comprised of the Jinkas-White Dam, Olympia, and Jackson lodes.
Matthew Greentree, Managing Director of Ausgold, made the following statement in response to the rise in Resources:
This is a tremendous result which cements the Katanning Gold Project as one of the most significant new multimillion ounce open pit gold development projects in Australia. The further significant increase in contained ounces reflects the success of our targeted drilling programs in the past year and also delivers a substantial increase in Measured and Indicated Resources to underpin the upcoming Definitive Feasibility Study.
