OzAurum Expands High-Grade Gold Discovery at Mulgabbie North
OzAurum Resources Ltd (ASX: OZM) has announced significant drilling results that confirm and extend its Cross Fault gold discovery at the Mulgabbie North Project in Western Australia's Eastern Goldfields. Recent reverse circulation (RC) drilling has validated high-grade gold mineralisation over a 400-meter strike length, substantially enhancing the scale potential of this emerging discovery.
Drilling Success Confirms Fresh Rock Gold Mineralisation
The latest RC drilling program, consisting of 17 holes for 1,858 meters, has delivered multiple high-grade gold intercepts in fresh rock at the Cross Fault target. Standout results include:
- 10m @ 2.18 g/t Au (from 85m) including 2m @ 6.09 g/t Au
- 21m @ 1.22 g/t Au (from 33m) including 1m @ 11.41 g/t Au
- 7m @ 3.14 g/t Au (from 101m) including 1m @ 13.40 g/t Au
- 21m @ 0.94 g/t Au (from 119m) including 1m @ 5.95 g/t Au
These results confirm substantial gold mineralisation in fresh rock, with the discovery remaining open at depth. This provides a compelling case for further expansion through upcoming drilling campaigns.
"These latest RC drilling results from the Cross Fault discovery are highly encouraging, confirming the presence of significant high-grade gold mineralisation in fresh rock across a growing strike length," said Andrew Pumphrey, CEO and Managing Director of OzAurum.
Strategic Location Enhances Project Value
The Cross Fault discovery is strategically positioned just 1.3km south of OzAurum's existing 260,000 oz Combined Mineral Resource at Mulgabbie North, which is reported at 0.3 g/t Au cut-off. Both mineralised zones are situated along the prolific Relief Shear, creating potential for a consolidated resource base.
This proximity creates significant operational synergies and could substantially enhance the overall project economics as exploration advances.
Understanding the Mineralisation Style
What makes the gold discovery at OzAurum Resources Ltd particularly promising is its geological characteristics. The gold mineralisation is hosted in brittle sandstones with extensive quartz veining, pyrite and arsenopyrite – similar to large gold deposits at the nearby Carosue Dam operation owned by Northern Star Resources (ASX: NST).
| Geological Feature | Significance to Investors |
|---|---|
| Brittle sandstone host rock | Ideal for hosting large gold deposits, similar to Carosue Dam |
| Extensive quartz veining | Indicator of substantial fluid movement, often associated with gold deposition |
| Pyrite & arsenopyrite | Common sulphide minerals associated with gold mineralisation |
| North-south faulting | Associated with large gold deposits in the Eastern Goldfields |
This mineralisation style contrasts with OzAurum's existing resources at Mulgabbie North (James, Ben, and Alicia deposits), which are primarily conglomerate-hosted. The sandstone-hosted mineralisation at Cross Fault demonstrates enhanced brittleness, potentially allowing for more extensive mineralisation networks.
What is the Relief Shear?
The Relief Shear is a major geological structure in the Eastern Goldfields of Western Australia. This structure runs along the eastern margin of the Carosue Dam basin and represents a primary control on gold mineralisation in the region.
For investors, shear zones like the Relief Shear are significant because they act as pathways for golden opportunity for gold-bearing fluids during mineralisation events. The fact that OzAurum's Mulgabbie North Project sits along this major structure enhances its prospectivity, as the company's tenements cover approximately 8km of strike along this gold-bearing corridor.
Future Plans and Growth Potential
OzAurum has outlined clear next steps to advance the gold discovery at OzAurum Resources Ltd:
- Follow-up drilling of high-grade targets at Cross Fault
- Expansion of drilling north and south on a 25m x 25m pattern
- Development of a maiden mineral resource estimate for the Cross Fault discovery
- Commencement of drilling at Heysen's Find once permitting is approved (where rock chip samples returned up to 16.23 g/t Au)
The company has also submitted a Programme of Work (POW) for the Heysen's Find prospect, where previous geochemical results from rock chip sampling returned high-grade results up to 16.23 g/t Au. Drilling is expected to commence once regulatory approval is received.
Investment Thesis
OzAurum Resources presents a compelling investment case based on several key factors:
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Resource Growth Potential: The confirmation of high-grade gold over a 400m strike at Cross Fault significantly enhances the resource growth profile of the Mulgabbie North Project.
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Strategic Location: Proximity to Northern Star's Carosue Dam operation provides potential development synergies and demonstrates the prospectivity of the geological setting.
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Multiple Growth Catalysts: With both the Cross Fault discovery and Heysen's Find prospect advancing, OzAurum offers multiple potential value drivers in the near term.
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Experienced Management: Led by CEO Andrew Pumphrey, the team brings significant gold exploration and development expertise in the Eastern Goldfields region.
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Systematic Exploration Approach: The company's methodical approach to testing and expanding targets demonstrates sound technical fundamentals.
Why Investors Should Follow OzAurum
OzAurum Resources Ltd represents an opportunity to invest in an emerging gold discovery in Western Australia with several compelling attributes:
- Established 260,000 oz resource base with clear growth pathway through the Cross Fault discovery
- Multiple high-grade intercepts demonstrating the quality of mineralisation
- Strategic landholding along the prolific Relief Shear
- Clear development pathway with near-term catalysts including resource expansion and new target testing
- Operating in a tier-1 mining jurisdiction with excellent infrastructure and proximity to existing operations
With a focused exploration program underway and multiple targets advancing simultaneously, OzAurum is positioned to deliver regular news flow and potential value accretion as it works toward expanding its resource base in this highly prospective gold region.
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