OzAurum Resources Limited provide an update on the first completed diamond hole MNODH 002 at the new virgin gold discovery Demag Zone at Mulgabbie North. The first hole has intersected gold mineralisation that closely correlates with adjacent Reverse Circulation hole MNORC 177, further validating the potential of Mulgabbie to be a significant gold discovery in the Eastern Goldfields of Western Australia. The first diamond hole, MNODH 002, drilled at the Demag Zone has delivered exceptional results; 55m @ 1.00 g/t Au from 47m including 4m @ 4.98 g/t Au (with 1m @ 15.55 g/t Au).

This result closely correlates with recently reported RC hole, MNORC 177, which intersected 56m @ 1.31 g/t Au from 68m including 1m @ 5.26 g/t Au, and 18m @ 2.07 g/t Au. Significant wide downhole intervals of silicification with pyrite and arsenopyrite mineralisation has been intersected in both RC and diamond drilling at the Demag Zone, and have also confirmed the host conglomerate unit having a true thickness of approximately 120m. The Demag Zone diamond drilling program continues with a third hole underway and currently at a depth of 160m, planned to be drilled to a depth of 400m.

Significant zones of faulting were intersected in diamond holes MNODH002 and MNODH003, and these faults may impact on the final depth of the current third diamond hole. The second diamond drill hole MNODH 003 at the Demag Zone, on the 8400N section, was planned to target gold mineralisation at a depth previously intersected by RC drill hole MNORC 177. Diamond hole MNODH 003, which was drilled to a depth of 335m, has intersected zones of arsenopyrite and pyrite mineralisation with silica flooding that correlates well with mineralisation seen in recently drilled RC hole MNORC 177.

Recent logging of both MNODH 002 and 003 has revealed a number of mineralising episodes of arsenopyrite and pyrite mineralisation, as well as quartz veining.