HIGH-GRADE GOLD MINERALISATION CONTINUES ALONG STRIKE AT THE BODDINGTON SOUTH GOLD PROJECT
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- Hubert Cameron
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1 The Manager ASX Company Announcements PO Box H224, Australia Square Sydney NSW December 2010 HIGH-GRADE GOLD MINERALISATION CONTINUES ALONG STRIKE AT THE BODDINGTON SOUTH GOLD PROJECT New true-width intercepts from the Jinkas ore body include: o g/t Au from 97m o 5.19 g/t Au from 93m o 4.29 g/t Au from 81m o 4.53 g/t Au from 98m Extends gold mineralisation more than 120 metres along strike from historic resource Additional drill rigs on site in January to fast-track drilling Resource update scheduled for second quarter of 2011 Ausgold Limited (Ausgold or the Company) (ASX: AUC) is pleased to announce further significant assay results from the drilling program of the Jinkas ore body within the Company s Boddington South Gold Project. These new results indicate gold mineralisation extends at least a further 120 metres along strike of the historic Jinkas open pit and mineralisation continues to remain open to the north, east and at depth. The new drill and assay results are set out in Table 1. Reverse circulation (RC) drilling of this ore body is continuing and the Company anticipates being in a position to announce further assay results in the New Year. Ausgold also anticipates releasing a resource update for this project in the second quarter of To expedite the drill-out of the Company s existing ore bodies and to advance the exploration for additional gold deposits across its prospective project area, Ausgold has increased the number of drill rigs operating across the Boddington South Gold Project. One of these new rigs is capable of drilling to depths of up to 700 metres and will test the continuity of the gold mineralisation beyond depths of 200 metres. Ausgold Limited (ACN ) Level 14, 191 St George s Terrace Perth Western Australia 6000 T: F: info@ausgoldlimited.com
2 Figure 1: Collar locations and significant gold intercepts of Ausgold s resource development drilling of the Jinkas ore body. The dashed line indicates the position of drill traverse 18700N (mine grid coordinate) referred to in Figure 2.
3 Figure 2: Schematic cross section of drill traverse 18700N (mine grid coordinate) whose location is highlighted in Figure 1 Near-mine Exploration The robust thickness and grade of the intersections returned from the Jinkas resource development drilling to date supports the interpretation of a high-grade primary ore zone within the project area located along the maficgranite geological contact. The deposits of the Boddington South Gold Project are interpreted to have been formed by a simple chemical reaction between the intruding gold-bearing acidic fluids of the granite and the more alkaline mafic country rock. Consequently, the potential exists for gold deposits to form at multiple locations across the 15 kilometre long granite which currently hosts no fewer than five separate gold resources including the Jinkas ore body. An air core drilling program designed to test the continuity of the mineralisation along the entire strike length of this granite is subsequently scheduled to commence in January.
4 Figure 3: Schematic three-dimensional representation of ore formation at the Boddington South Gold Project Figure 4: Location of current JORC-compliant gold deposits along granite intrusion marked in red and selected exploration targets marked in yellow (Ausgold mining leases outlined in white with the Company s surrounding exploration leases outlined in orange)
5 Regional Exploration The Boddington South Gold Project covers an area in excess of 5,500 square kilometres within the underexplored Southwest Yilgarn region of Western Australia and is a direct result of a gold prospectivity study undertaken by the Centre of Exploration Targeting (CET) exclusively for Ausgold. This independent study highlighted the Southwest Yilgarn s potential to host repetitions of Boddington-style intrusion-related gold deposits along parallel regional structures. Ausgold s recent drill results along strike of the Jinkas ore body and the presence of other gold deposits within the Company s project area appear to support the outcomes of CET s gold prospectivity study. Consequently, Ausgold has commissioned an auger drill program to test a number of large, historic surface geochemical anomalies that overlap these regional structures along strike Ausgold s current gold resource. Targets will include the Hudson prospect where a 3 kilometre long gold-in-soil and 6 kilometre long copper-in-soil anomaly was identified by the CET approximately 25 kilometres south of Ausgold s Mining Leases. Figure 5: Historic regional soil anomalies identified during the Centre of Exploration Targeting gold prospectivity study
6 Boddington South Joint Venture Agreement The Company has recently notified Great Southern Resource Pty Ltd that Ausgold has satisfied its expenditure commitment under the Joint Venture Agreement to obtain an 80% interest in ML 70/210, 70/211 & 70/488 and EL 70/2590 & 70/2928 which host the Jinkas gold deposit. Shareholder or media contact: Benjamin Bell Chief Executive Officer Ph: (08) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Benjamin Bell, who is a Member of the Australian Institute of Geoscientists. Mr Bell is the Chief Executive Officer and a full-time employee of Ausgold Limited, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
7 Table 1: Summary of significant reverse circulation (RC) drill intercepts at Ausgold s Boddington South Gold Project Hole Number Easting Northing Total Depth From To Interval Gold (g/t) BSRC BSRC BSRC BSRC BSRC BSRC No sig. assays BSRC BSRC BSRC BSRC Including BSRC BSRC Assays pending BSRC BSRC
8 Hole Number Easting Northing Total Depth From To Interval Gold (g/t) BSRC BSRC Assays pending BSRC Previously Reported Assay Results Hole Number Easting Northing Total Depth From To Interval Gold (g/t) BSRC end of hole BSRC BSRC BSRC including &
9 BSRC including BSRC >40 gram metre intersections are highlighted Co-ordinates are in MGA Zone 50 GDA94. All holes are drilled on an azimuth of 243 and dip at -60 degrees. Intercepts calculated using a 0.5 g/t Au Cu lower cut, no upper cut, and a maximum 2 metre internal dilution All assays determined by 1 metre split samples using fire assay by Ultra Trace Laboratories in Perth Gram metres are calculated by multiplying the interval (in metres) by the gold grade (in grams per tonne)
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