GOLD - Ausgold identifies new Katanning targets

Two new priority areas for drill testing have been identified by Ausgold at its Katanning gold project in Western Australia. Recent aircore drilling south of the Dingo corridor has discovered the largest gold anomaly to date at Lukin prospect, making it the highest priority drill target after the confirmation of four stacked anomalous zones continuing over 4km in strike.

Twelve geochemical targets have also been identified within the Dingo corridor and will continue to be tested this year, with the Lukin prospect first. Soil sampling has also confirmed strong gold and multi-elemental soil anomalies within the Datatine corridor to the north of the Jinkas corridor.

Ausgold says the gold mineralized system that hosts the Katanning project has been extended to more than 20km and remains open to the north and south.

The company’s chief executive officer Dr Andrew Tunks says, “These new anomalies are highly significant in that they extend the strike of the known gold mineralized system at Katanning. The gold anomalism appears to be related to a major through-going structural corridor with an orientation similar to the major structures that host significant deposits across the Yilgarn such as the Boulder Lefroy fault, the Zulieka shear zone and the Mt Ida fault.”

Significant results from the drill holes include 15 metres @ 1.03 grams/tonne gold to the south of the Dingo corridor and 2 metres @ 2.14 grams/tonne gold at the Lukin anomaly.

Andrew Tunks says the drill program also found a close link between gold mineralization and pyrrhotite and magnetite. The company is initiating an extensive geophysical program to provide targeted information on the high-grade zones to increase the chance of a major discovery.

The Katanning project is 275km southwest of Perth, taking in 9120sqkm within the Yilgarn belt in southern Western Australia.

Ausgold was established to utilize some of the latest geoscientific innovations to target some of the Australian regions prospective for gold and copper-gold ore bodies. The company has since acquired tenements covering 17,500sqkm with potential for new gold and copper discoveries.

www.ausgoldlimited.com