OzAurum Resources Ltd. provided an update on the diamond drilling currently underway at the new Demag Zone recently discovered at the
Mulgabbie North Gold Project, situated 130 kilometres (km) northeast of Kalgoorlie in Western Australia. The second diamond drill hole MNODH 003 has been completed at the Demag Zone at the 8400N section which aimed to target gold mineralisation at depth previously intersected in RC drill hole MNORC 177. Planning is underway for a third diamond hole
at the Demag Zone, with drilling due to commence on the 6th of June 2022. Diamond hole MNODH 003 has intersected zones of arsenopyrite and pyrite mineralisation with silica flooding that correlates well with mineralisation seen in recently drilled RC hole MNORC 177, this latest diamond hole was drilled to a depth of 335m. Mineralisation intersected in MNODH 003 is situated within a highly altered intermediate/felsic volcanoclastic conglomerate unit (host unit) that is interpreted to be the stratigraphic equivalent to an
Upper Black Flag unit. The key characteristic of this particular Upper Black Flag unit is the presence of fuchsite altered clasts within the mineralised clastic unit. Of particular significance is the downhole thickness of the host conglomerate unit intersected in
MNODH 003 being in excess of 150m, situated within the Demag Zone. At the Demag Zone, secondary magnetite (as part of an early high temperature alteration assemblage) has been altered to hematite which is part of the lower temperature alteration assemblage including sericite, carbonate, pyrite and arsenopyrite. Highlights: The second diamond drill hole, MNODH 003, has been drilled to a depth of 335 metres (m) at the new virgin discovery Demag Zone, and will be dispatched for assaying once core processing
has been completed. Diamond hole MNODH 003 intersected arsenopyrite, and pyrite mineralisation with zones of
silica flooding - which closely correlates with the gold mineralisation intersected in adjacent Reverse Circulation (RC) hole 177, situated 20 meters grid east of MNODH003. Thick sequence, in excess of 150m downhole, of Mulgabbie North gold host - intermediate volcanoclastic lithology - intersected. Initial diamond holes aim to target extensions of gold mineralisation associated with MNORC 177 - 56m @ 1.31 g/t gold (Au) - (from 68m) incl 18m @ 2.07 g/t Au and MNORC 176 - 26m @ 1.79 g/t Au - (from 136m) incl 8m @ 4.78 g/t Au. Mineralisation intersected in MNORC 177 is associated with pyrite and arsenopyrite mineralisation and quartz veining. The Demag Zone hosts significant RC gold results over three 100m- spaced drill lines 8300N, 8400N and 8500N. Diamond core will provide valuable information on lithology, mineralisation, alteration and structure associated with the gold mineralisation at the Demag Zone. High priority RC drilling of the Demag Zone will commence in one week's time. The Demag Zone is located on the Relief Shear and the lithological contact that hosts gold
mineralisation is located at the James, Ben and Alicia Prospects. Higher grade gold intersections at the
Demag Zone have significant pyrite and arsenopyrite mineralisation within the intensely sericite altered
felsic to intermediate volcaniclastic unit. Intrusive porphyries have been intercepted now in a number of RC drill holes at Mulgabbie North along the Relief Shear. Future geological work will be undertaken to understand the potential the links of
intrusive porphyry to current gold mineralisation and will be targeted with future diamond drilling.
The RC drilling at Mulgabbie North has defined primary gold mineralisation for over 1.3km of strike and
we are confident that extensional RC drilling completed will further extend this strike. Also, the company believe
future RC drilling will continue to identify new primary gold mineralisation related to the numerous
geochemical gold anomalies and recent AC saprolite hosted gold mineralisation targets. Recent RC results, combined with recently announced AC results defining new zones of mineralisation now extending for 2.8 km in strike (see ASX announcement on 2nd September 2021), further highlight the potential of Mulgabbie North to be a significant gold project. RC drilling at Mulgabbie North has also discovered wide zones of weak to moderate hematite alteration in some RC holes. Specifically, the hematite alteration indicates oxidised fluids from an intrusive complex suggesting proximity to the mineralising centre - likely to be within OzAurum's 100%-owned Mulgabbie North tenure. Upcoming RC and AC drilling and Planned Exploration Activities: Follow up RC drilling at the Mulgabbie North Demag Zone is a high priority, along with ongoing RC drill testing of AC saprolite gold anomalies and extensions to the Ben and James Prospects. An RC rig is planned to mobilise to site in one weeks' time to commence RC drilling at the Demag Zone. Utilising best practice RC drilling, sampling and assay protocols will allow for a potential future JORC 2012 compliant resource to be estimated with confidence at Mulgabbie North. The Company will continue to provide regular market updates on exploration activities and report on drilling results as soon as they become available.