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Critical mass established

Gold Resource 3.04Moz @ 1.06g/t

Maiden Ore Reserve 1.28Moz @ 1.25g/t

Supports a stand-alone gold operation >136kozpa

Upgraded Resource

Large Exploration Program

Project Infrastructure

Gold ounces increased to 3.04Moz (from 2.64Moz)

Maiden Ore Reserve delivered for 1.28Moz @ 1.25g/t

Importantly, M+I resource over 2.42Moz

Low discovery cost ~$11 per resource oz

Recent high-impact drilling program focused on the Central Zone, returned high-grade results, including:

  • 28m @ 11.3 g/t from 90m
  • 20m @ 10.5 g/t from 10m
  • 26m @ 6.6 g/ t from 117m
  • 20m @ 7.6 g/ t from 96m
  • 13m @ 11.3 g/t from 7m
  • 28m @ 4.8 g/ t from 49m
  • 20m @ 6.5 g/ t from 93m
  • 20m @ 15.6 g/t from 97m

>4,000km2 landholding covering 130km strike length

Excellent infrastructure with:

  • Access to grid power
  • Sealed roads
  • Nearby towns
  • Resource on granted mining licences

Tenements on freehold land, not subject to Native Title

Upgraded Resource

Gold ounces increased 28% to 1.54moz (from 1.20moz)

Gold grade increased 14% to 1.25g/t (from 1.1g/t)

Importantly, IVI+| resource grew by 73% to over 1moz @ 1.26g/t

Low discovery cost $15 per resource oz

Further resource upgrade planned by end CY2021

Large Exploration Program

Recent high-impact drilling program focused on the Central Zone, returned high-grade results, including:

  • 28m @ 11.3 g/t from 90m
  • 20m @ 10.5 g/t from 10m
  • 26m @ 6.6 g/ t from 117m
  • 20m @ 7.6 g/ t from 96m
  • 13m @ 11.3 g/t from 7m
  • 28m @ 4.8 g/ t from 49m
  • 20m @ 6.5 g/ t from 93m
  • 20m @ 15.6 g/t from 97m

Project Infrastructure

+4,000km2 landholding covering 130km strike length

Excellent infrastructure with:

  • Access to grid power
  • Sealed roads
  • Nearby towns
  • Resource on granted mining licences

Tenements on freehold land, not subject to Native Title

Potential for Larger Scale

Ausgold has identified a number of opportunities to grow the resource.

New Untested Zones

Resource Extensions
and New High-Grade Targets

Underground Potential
below 150m

Introduction

The 100% owned Katanning Gold Project (KGP) is located 275km south-east of Perth and approximately 40km north-east of the town of Katanning in southwest Western Australia. The tenements cover  >4,000km2 of the Katanning Greenstone Belt in the south-west corner of the Yilgarn Craton, which hosts some of Australia’s largest gold deposits.

Gold mineralisation has been identified over 20 kilometres of strike at the KGP and the project contains a JORC 2012-compliant Mineral Resource Estimate of 88.9 million tonnes at 1.06g/t gold for 3.04Moz, of which 2.42Moz are in the Measured and Indicated categories.

A 40,000m high-impact drilling program was recently completed which focused on the Central Zone, and returned high-grade results, including:

  • 28m @ 11.3 g/t from 90m
  • 20m @ 10.5 g/t from 10m
  • 26m @ 6.6 g/ t from 117m
  • 20m @ 7.6 g/ t from 96m
  • 13m @ 11.3 g/t from 7m
  • 28m @ 4.8 g/ t from 49m
  • 20m @ 6.5 g/ t from 93m
  • 20m @ 15.6 g/t from 97m

Figure 1

Katanning Gold Project (KGP)

The KGP represents a 17km-long mineralised trend with significant potential across three key zones (Figure 1):

  • Northern Zone – Datatine
  • Central Zone – Jackson, Olympia, Jinkas, and Jinkas South
  • Southern Zone – Rifle Range, Dingo, and Lukin

The Company is pursuing the potential for a larger scale resource at the KGP, having already established a critical mass of 3.04Moz Resource (ASX Announcement 4 Sep 2023).

An improved geological model has identified numerous high-grade targets in untested exploration areas along 17km strike.

The Company is currently targeting multiple areas, focused on large scale Resource growth, which is supported by a number of outstanding exploration opportunities within and outside existing Resources areas.

Central Zone

Critical Mass Established, with further upside potential

Drilling programs have identified a large gold system in the Central Zone.

Ausgold announced an upgraded Resource in September 2023 (ASX Announcement) of:

  • 3.04Moz @ 1.06g/t

This Resource has established a critical mass which supports a stand alone gold operation of over 136kozpa, and was achieved with a very low discovery cost of ~$11 per Resource oz. Importantly, the Company increased the Measured and Indicated category to 2.42Moz.

Significant high-grade results from the Central Zone include:

  • 28m @ 11.3 g/t from 90m
  • 20m @ 10.5 g/t from 10m
  • 26m @ 6.6 g/ t from 117m
  • 20m @ 7.6 g/ t from 96m
  • 13m @ 11.3 g/t from 7m
  • 28m @ 4.8 g/ t from 49m
  • 20m @ 6.5 g/ t from 93m
  • 20m @ 15.6 g/t from 97m

Central Zone

Significant Results and Regional Maps

Southern Zone

Potential for Larger Scale, that can materially change the scale of Katanning

The southern extent of the Katanning Gold Project covers a largely untested 7.5km strike length, almost double that of the Central Zone.

Ausgold is currently undertaking drilling programs focused on the Rifle Range, Dingo and Lukin prospects.

Initial results have been promising with the Company confirming extensive and wide zones of mineralisation of the same repeats of mineralised structures from Central Zone.  Importantly, the 2.5km untested Rifle Range area is mineralized which is important in the context of linking the Central to the Southern Zone.

First results from the Southern Zone include:

  • 10m @ 2.89 g/t Au from 84m including 3m @ 8.35 g/t Au in BSRC1231
  • 6m @ 4.5 g/t Au from 32m including 2m @ 12.75 g/t Au in BSRC1168
  • 9m @ 2.52 g/t Au from 85m including 5m @ 4.09 g/t Au in BSRC1200
  • 18m @ 1.23 g/t Au from 83m in BSRC1230
  • 10m @ 2.01 g/t Au from 66m in BSRC1226

Further exploration activities continue with new and follow-up drilling, electromagnetic surveying, along with metallurgical test work and geotechnical studies.

Underground Potential

The Company reported, for the first time, a high-grade underground Resource. The new geological model highlights clear extensions of gold mineralisation which remain open at depth. There has been limited drilling below a depth of 250m which provides meaningful potential to further expand the underground potential Resource.

The current underground Resource is 0.56 Mt @ 3.25 g/t for 59Koz. Down plunge extensions of high-grade Jinkas and Jinkas South lodes have been identified to further add Resource ounces.

JORC Mineral Resource

On 4 Septermber 2023, Ausgold released a resource upgrade for its 100% owned Katanning Gold Project (KGP) in WA, increasing the resource to 3.04Moz @ 1.06g/t. More importantly, the higher confidence M+I resource grew to 2.42Moz. The Company believes that it has critical mass for a stand-alone 136kozpa gold project.

The Mineral Resource comprises 88.9Mt @ 1.06 g/t Au for 3.04 million ounces of gold using a cut-off grade of 0.45 g/t. Details of the Mineral Resource estimate are provided in Table 1.

  • 2.42Moz in Measured and Indicated Resource categories
  • 0.56Mt at 3.25 g/t Au for 59,000 ounces in Jinkas Underground Resource
  • Open below 150 m depth

Current Mineral Resource and Ore Reserves

Mineral
Resource
Tonnes
(Mt)
Grade
(g/t Au)
Contained Gold
(Moz)
Measured 38.1 1.10 1.352
Indicated 31.8 1.04 1.067
Inferred 18.9 1.02 0.620
TOTAL 88.9 1.06 3.04
 
Ore Reserve
Probable 32 1.25 1.28
TOTAL 32 1.25 1.28

Table 1

Competent Persons Statement

The information in this statement that relates to the Mineral Resource Estimates is based on work carried out by Dr Michael Cunningham of Sonny Consulting Services Pty Ltd, Mr Daniel Guibal of Condor Geostats Services and Dr Matthew Greentree of Ausgold Limited in 2021, 2022 and 2023.

Dr Greentree is Managing Director and is a Shareholder in Ausgold Limited. Dr Greentree takes responsibility for the integrity of the Exploration Results, including sampling, assaying, QA/QC, the preparation of the geological interpretations and Exploration Targets. Dr Michael Cunningham is an option holder in Ausgold and takes responsibility for the Mineral Resource Estimate for the Jackson, Olympia, Dingo and Datatine deposits and Mr Daniel Guibal takes responsibility for the Jinkas and White Dam Resources.

Dr Cunningham and Dr Greentree are Members of The Australasian Institute of Mining and Metallurgy, Mr Daniel Guibal is a Fellow (CP) of The Australasian Institute of Mining and Metallurgy. They have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity they are undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition).

The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears.

Forward-Looking Statements

This Announcement includes “forward-looking statements” as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Ausgold Limited’s control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding Ausgold Limited’s future expectations. Readers can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,” “will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause Ausgold Limited’s actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include, but are not limited to, the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for coal and base metal materials; fluctuations in exchange rates between the U.S. Dollar, and the Australian dollar; the failure of Ausgold Limited’s suppliers, service providers and partners to fulfil their obligations under construction, supply and other agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. The information concerning possible production in this announcement is not intended to be a forecast. They are internally generated goals set by the board of directors of Ausgold Limited. The ability of the company to achieve any targets will be largely determined by the company’s ability to secure adequate funding, implement mining plans, resolve logistical issues associated with mining and enter into any necessary off take arrangements with reputable third parties. Although Ausgold Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.