Significant Gold Discoveries Unveiled by Ausgold Ltd

Striking Gold: Ausgold's Regional Prospects Deliver Promising Results

Ausgold Limited (ASX: AUC) has announced significant new gold discoveries from multiple prospects surrounding its flagship Katanning Gold Project (KGP) in Western Australia, strengthening the company's vision for a regional gold district with satellite deposits feeding a central operation.

Wide Gold Zones Expand Project Scale

The latest reverse circulation (RC) drilling campaign has returned encouraging results from four key regional prospects along the Stanley Thrust – a regionally significant fault extending over 100km primarily within Ausgold's tenure.

Most notably, the Zinger prospect, located 40km southeast of the KGP, delivered exceptional results including:

• 10m @ 4.75g/t Au from 23m including 2m @ 23.20g/t Au from 24m in NBRC011
• 51m @ 0.37g/t Au from 17m including 13.0m @ 0.60g/t Au from 26m in NBRC016
• 38m @ 0.47g/t Au from 68m including 9m @ 1.22g/t Au from 79m in NBRC015

These wide intercepts complement strong results from three other regional prospects:

• Stanley Hill: 11m @ 0.42g/t Au from 36m including 6m @ 0.66g/t Au from 37m
• Moulyinning: 6m @ 0.51g/t Au from 18m including 1m @ 2.57g/t Au from 18m
• McDougalls: 17m @ 0.22g/t Au from 30m with broader mineralisation potential

A Regional Gold District Taking Shape

What makes these results particularly significant is their location within 40km of the KGP, supporting Ausgold's vision of developing a regional network of satellite deposits that could feed into a central processing facility at the KGP.

"This drilling to establish the potential for regional satellite deposits represents the last piece of the puzzle in our current exploration campaign," said Ausgold Executive Chairman John Dorward. "These assays from key prospects along the Stanley Thrust indicate an exciting opportunity to define a significant gold district surrounding the Katanning Gold Project."

The new gold discoveries by Ausgold Ltd build upon strong recent drilling results at the KGP, including intercepts such as 10m @ 10.55g/t Au and individual assays up to 94.20g/t Au. These findings align with recent high-grade gold discoveries that have been reported by other explorers in Western Australia.

Understanding the Stanley Thrust: Geological Context

The Stanley Thrust represents a critical structural corridor for gold mineralisation in the eastern Katanning Greenstone Belt. This regional fault extends over 100km, splaying from the Youanmi-South West Terrane Boundary, and shows consistent gold-in-soil anomalism along much of its length.

For investors, understanding this structural control is important as it indicates the potential for systematic gold mineralisation along a predictable corridor, rather than isolated occurrences. This geological setting supports Ausgold's regional approach and suggests further discoveries may be possible along the same structural trend, similar to how Dart Mining confirmed sulphide mineralisation at their gold project.

Zinger Prospect: The Standout Discovery

Among the regional prospects, Zinger has emerged as particularly promising. The recent drilling programme marks the first systematic testing below the base of oxidation at this prospect, with results confirming substantial gold-bearing structures transecting a thick biotite-quartz gneiss package.

The exceptionally wide intercepts define a 120m strike extent in fresh rock, interpreted to represent the same thick lode modelled at Nanicup Bridge located 1.8km to the north. Importantly, the gap between these areas remains untested in fresh rock, suggesting potential for continuity across a much larger area.

What Makes These Gold Discoveries Significant?

The gold discoveries by Ausgold Ltd are important for several reasons:

1. Multiple Mineralised Zones: The drilling has identified gold mineralisation across four different prospects, suggesting a district-scale mineralised system.

2. Promising Widths and Grades: The intercepts show both width and grade, with standout results like 10m @ 4.75g/t Au including 2m @ 23.20g/t Au at Zinger.

3. Consistent Mineralisation Style: The gold is consistently associated with structural controls along the Stanley Thrust, enabling a systematic exploration approach.

4. Proximity to KGP Infrastructure: All prospects are within 40km of Ausgold's flagship KGP, making them potential satellite operations.

5. Regional Growth Potential: The 100km+ length of the Stanley Thrust and the presence of gold along much of its extent suggests further discoveries could be made with continued exploration, similar to how Austin Metals identified new gold targets along strike from their discovery.

Future Exploration Plans

Ausgold's exploration strategy will now focus on several key areas:

1. At Zinger, extending drilling to test hypogene mineralisation north and south of the current intersections while identifying potential high-grade domains

2. Evaluating the economic potential of modelled +1g/t oxide mineralisation at Zinger in light of current gold prices

3. At Stanley Hill, testing north of STHRC005 while looking to identify +1g/t domains

4. At Moulyinning, testing both the undrilled central gap and northern strike extension

Additionally, diamond drilling is ongoing at Datatine in the KGP Northern Zone, targeting extensions to high-grade gold intercepts including previous results of 7.4m @ 4.54g/t Au and 3.3m @ 11.47g/t Au. Results from this programme are expected later this quarter.

Why Investors Should Take Notice

Ausgold's latest gold discoveries strengthen the investment case for the company in several important ways:

1. Resource Growth Potential: The wide intercepts across multiple prospects suggest potential for significant additions to the company's resource base.

2. Project Economics: Satellite deposits within trucking distance of a central processing facility could enhance the overall project economics through increased throughput and extended mine life.

3. District-Scale Opportunity: The consistent mineralisation along the Stanley Thrust supports the potential for a significant gold district, rather than just an isolated deposit.

4. Multiple Catalysts: With ongoing drilling at the high-grade Datatine prospect and a Feasibility Study for the KGP expected in the first half of 2025, investors can anticipate a steady flow of news.

Ausgold has positioned itself to capitalise on the current strong gold price environment by not only advancing its flagship KGP toward development but also by establishing a pipeline of regional opportunities that could significantly enhance the project's scale and longevity. This approach mirrors strategies employed by companies like Sunshine Metals which intercepts promising gold-silver veining at their projects.

The gold discoveries by Ausgold Ltd across the Stanley Thrust region represent a significant step forward in establishing Katanning as a substantial gold district in Western Australia, with multiple prospects now demonstrating the potential to contribute to the company's future production profile. Furthermore, the addition of new targets at gold projects has become a common theme among successful explorers in the region.

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