"Ausgold Limited Uncovers Broad, High‐Grade Gold Zones in Regional Drilling, Expanding Katanning Satellite Prospect Pipeline"

Wednesday, May 14, 2025
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8:18 am
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Ausgold Limited’s new drilling campaign reveals promising wide, high-grade gold zones in regional prospects near its flagship Katanning Gold Project. Positive intercepts hint at a network of satellite deposits, while ongoing diamond drilling targets high-grade extensions—fueling investor optimism on future gold growth.

Ausgold Limited has disclosed encouraging assay results from its latest reverse circulation drilling campaign focused on regional prospects along the Stanley Thrust, near its flagship Katanning Gold Project in Western Australia. The campaign, which drilled 32 holes over 4,302 meters, has intersected wide and near-surface gold mineralisation in several key areas such as Zinger, Stanley Hill, Moulyinning, and McDougalls. Notable intercepts at Zinger include a 10‑meter section grading 4.75g/t gold – featuring an internal segment of 2 meters at 23.20g/t – and other substantial intercepts measuring 51 meters and 38 meters at moderate grades. Similar broad intercepts were recorded with promising technical details at the Stanley Gold Project prospects that extend along a significant strike length. The announcement outlines that these drilling results not only confirm the presence of both supergene and hypogene gold mineralisation but also support the view that a regional network of satellite deposits is emerging around the Katanning Gold Project. The technical methodology employed—with samples collected in 1‑meter intervals, rigorous QAQC processes, and detailed geological logging—provides confidence in the data’s integrity. Historical data and recent high-grade results have added depth, with prior intercepts such as 10m at 10.55g/t and other high‑grade anomalies further underpinning the project’s technical foundation. Executive Chairman John Dorward emphasized that this phase of drilling, aimed at testing both the existing mineral resource and regional extensions, represents the last piece of the puzzle in the current exploration campaign. Additional drilling is planned at the high-grade Datatine area within the KGP Northern Zone, where earlier diamond drilling returned intercepts such as 7.4m at 4.54g/t gold. With these activities, Ausgold is positioning itself to refine its resource estimates and bolster the early mining inventory’s de-risking. Technical indicators from the regional drilling show both broad, lower‑grade intercepts and narrower, high‑grade zones. For example, at Stanley Hill, intercepts include 11m at 0.42g/t gold and 5m at 0.65g/t gold over a 500‑meter strike, while the Moulyinning and McDougalls prospects deliver intercepts that hint at a structurally controlled, extensive gold system. The data, calculated using a ≥0.1g/t cut‑off and rigorous internal dilution protocols, further supports Ausgold Limited’s strategy to exploit its over 3,500km² tenement package. In terms of market sentiment, bullish investors may focus on the positive technical intercepts and regional potential that indicate a scalable gold district surrounding the Katanning Gold Project. The prospect of integrating satellite deposits into the flagship operation, along with an upcoming feasibility study and further drill results expected later this quarter, could drive increased investor confidence. Conversely, bearish sentiment might arise from the modest grades in certain zones and the inherent risks associated with early-stage exploration, where further drilling is required to validate resource continuity and mineability. Overall, while exploration outcomes remain uncertain, Ausgold Limited’s latest announcement points to a promising progression toward establishing a more robust and economically viable gold system.

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