ASX Release | 25 May 2022 |
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personalAusgold Limited (ASX: AUC) (Ausgold, or the Company) is pleased to announce a significantly upgraded JORC 2012 Code-compliant Mineral Resource estimate for the Company's 100%-owned flagship Katanning Gold Project (KGP) located 275km south-east of Perth, Western Australia.
Upgraded 2022 JORC Resource Mineral Resource
The expanded Resource, which now totals 2.16 million ounces of gold (see Table 1 for details), represents a 17% increase in total contained ounces compared with the previous Resource estimate which had itself been upgraded in December 2021 (ASX Announcement 7 December 2021).
ForThe updated KGP gold Resource was reported and classified in accordance with the 2012 JORC Code and has further expanded the Central and Southern Zone Resources. Over 26,700m reverse circulation (RC) and diamond drilling has been completed since the December 2021 Resource Estimation. Of this new drilling assays have been received for 230 RC drill holes for 22,413m and 7 diamond drillholes for 865m (Figure 1) which have added a further 320,000 ounces to the Resource (Figures 2 - 4). Importantly, the new drilling has increased Measured and Indicated Resource categories a further 594,000 ounces, bringing this to a total of 1,784,000 ounces, which will form the basis of Prefeasibility Studies and form part of the Maiden Ore Reserve (Figure 5).
The Central Zone represents the majority of the KGP Resource, including the stacked Jinkas-White Dam, Olympia and Jackson lodes, which has been updated by 15,078m of new RC and diamond drilling (Figures 1 - 4 and 6 - 8). The Southern Zone Resource has been updated by over 8,199m of new RC and diamond drilling, with the Dingo Resource, which now includes the Dingo South area, extending the Resource a further 900m along strike (Figures 2
- 4 and 8). The Datatine deposit remains unchanged from the 2019 estimation. However, further drilling has been conducted after the Resource upgrade with results awaited.
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Management Comment
Commenting on the Resource increase, Ausgold Managing Director, Matthew Greentree, said:
"The Katanning Gold Project continues to build scale and demonstrate its significance, with a large 2.16 Moz Resource with massive multi-million-ounce exploration upside. This increased Resource confirms the Company's robust understanding of the geology at Katanning delivers a number of outcomes:
only | - De-risks the Project with 1.78 Moz of the Resource in Measured and Indicated categories; |
- Large Resource base will support a long life open-pit operation; | |
- Supports the Prefeasibility Study due out next month and forms part of our Maiden Ore Reserve; and | |
- Will continue to drive high-value exploration opportunities for further Resource expansion. | |
Critically, Ausgold is now positioned firmly on the path to becoming a mid-tier gold producer." | |
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May 2022 Mineral Resource Summary
The May 2022 Mineral Resource estimate for the KGP now reports at 56 Mt @ 1.21 g/t Au for 2.16 million ounces of contained gold (Tables 1 and 3). Details of this estimate are outlined in Appendices 1 and 2.
personalFor | RESOURCE CATEGORY | TONNES (MT) | GRADE (G/T AU) | CONTAINED GOLD (OZ) |
MEASURED | 19.0 | 1.31 | 800,000 | |
INDICATED | 26.8 | 1.14 | 984,000 | |
INFERRED | 9.5 | 1.03 | 370,000 | |
TOTAL RESOURCE | 56.0 | 1.21 | 2,160,000 | |
Notes to Table 1:
Resource is reported at a lower cut-off grade of 0.6 g/t Au and above 150m RL (approximately 220m depth), the underground Resource is reported at 1.8 g/t Au beneath 150m RL.and historic tails are reported at 0 g/t Au cut-off grade Details are shown in Table 2 and Appendix 1 and 2. Resource numbers may not total exactly due to rounding.
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Resource Upgrade Key Points:
- Addition of 320,000 Resource ounces - 17% increase since December 2021
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- Moz in Measured and Indicated categories - a 33% increase, forming a substantial basis for the on-going Prefeasibility Studies
957,000 oz added to the Katanning Resource during 2021 at average cost of $11 per Resource ounce
- Mt at 3.25 g/t Au for 59,000 ounces in Jinkas underground Resource, reported below 150mRL at a higher
- g/t cut-off grade, now shows untested potential at depth, with planned drilling targeting down-holeEM targets a further 800m along strike
Historical tails dam provides a further Resource of 9,730 ounces
Addition of almost 26,700m new RC and diamond drilling in Resource areas since the previous (December 2021) estimate. With assays available for 23,300m of this new drilling
Mineral Resource is reported at a 0.6 g/t Au cut-off grade for open pit and 1.8 g/t Au cut-off grade for underground Resource, which remains consistent with previous Resource estimates. Grade tonnage curve shows scale and grade of open-cut Resource at a variety of cut-off grades (APPENDIX 1 Table 4 and Figure 14)
A summary of the key technical aspects of the Resource update is provided in Appendix 1 as per Section 5.8.1 of the ASX Listing Rules.
Bulk of Resource is considered as Open Pitable and is reported above 150mRL, to an approximate maximum depth of 220m from surface
Improvements to the mineralisation model confirm continuity along strike, with three laterally extensive mineralised systems (Jinkas, White Dam and Jackson) defined from west to east (Figures 1 and 2).
- Jinkas - White Dam Resource is now estimated as a single folded lode (55 holes for 6,050m), this refinement significantly improves the understanding of the Central Zone and enables mining studies to be accelerated;
- Olympia is extended northward with new drilling (27 holes for 2,088m) and remains open along strike to the south; it represents the likely strike extension of Jinkas, which has now been better modelled by drilling planned to link the geological models between the two Resource areas
- Jackson Resource - new drilling (58 holes for 5,313m) extends towards the north where it coalesces with the Olympia-Jinkas mineralisation; new drilling has extended this model which remains open along strike with
further drilling planned.
- Dingo - new drilling (77 holes for 8,199m) has identified mineralisation extending from the Dingo Resource
and now extends southward over an additional 900m along strike
- Tails Dam - new drilling (20 RC for 1,627m) have tested tails material and the mineralisation within the underlying White Dam and Jackson lodes, which show continuity along strike and down dip.
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Figure 1 - Katanning Gold Project Resource locations with drill collars shown
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Ausgold Limited published this content on 24 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2022 23:52:04 UTC.