Exploration

Ausgold’s Exploration

Ausgold has been actively exploring in the Southwest Yilgarn since 2010 following its listing on the Australian Securities Exchange in late 2009. Following a change in management in 2017, the Company began a thorough re-interpretation of the KGP geological model and the application of a systematic exploration approach across the tenement package. The improved understanding of the high-grade controls of the mineralisation and the continuity of mineralisation within the KGP, has been used to guide drilling along a strike length of over 18km.

In November 2019, with the benefit of new deposit knowledge and a renewed emphasis on exploration, Ausgold announced a revised Mineral Resource estimate for the KGP of 33.93Mt grading 1.10g/t Au for 1.2 Moz of contained gold, of which 590Koz ounces are in the Measured and Indicated categories. A Scoping Study confirms viability of standalone gold mining operation.

There remain untested, drill-ready targets within 10km of existing resources with significant greenfields potential within the broader KGP landholding.

The area covered by the KGP tenements is freehold land, meaning it is not subject to Native Title and on granted mining licences. The project is also well serviced by infrastructure including grid power and sealed roads.

Figure 1. Location of KGP and near regional prospects
Figure 1. Location of KGP and near regional prospects

Geology and Mineralisation

The KGP Gold deposit occurs as a series of stacked lodes similar to orogenic shear-hosted deposits common in the Yilgarn Craton. Gold mineralisation has undergone metamorphism and deformation which has created the characteristic high-grade zones of gold mineralisation (10 – 182 g/t gold), which occur within pipe-like structures encapsulated within broad zones of gold mineralisation. Along the mine corridor, three mineralised trends have been identified showing strong continuity (Figure x) with mineralisation strongly correlating to NNW trends seen in magnetic and a gravity high geophysical imagery. High gold grades have a strong relationship with magnetic pyrrhotite, making targeting effective through Electromagnetic (EM) geophysical surveys (Figure x) and Down Hole EM that has been used to directly target high-grade gold mineralisation.

Historical Exploration

Exploration on the Katanning Greenstone Belt has been limited compared to other Archean greenstone belts within the Yilgarn. Otter Exploration first discovered gold at Jinkas Hill in 1979, a small-scale open-cut mining of the Jinkas and Dingo deposits also occurred between 1995 and 1997.

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