QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 JUNE 2012

Transcription

1 ASX Code: AUC Directors and Management: Dr. Andrew Tunks Chief Executive Officer Robert Pett Chairman Simon Trevisan Non-Executive Director Richard Lockwood Non-Executive Director Christopher Kelsall Non-Executive Director Mark Di Silvio CFO & Company Secretary Gary Brabham Exploration Manager Registered Office: 80 Churchill Avenue Subiaco WA 6008 Share Registry: Security Transfer Registrars 770 Canning Highway, Applecross WA 6153 Issued Capital: (30 Jun 12) Ordinary Shares: 130.6M Listed Options: 73.0M Unlisted Options: 7.0M Key Shareholders: CQS: 10% JP Morgan: 6% Capital Group: 4% Fidelity: 2% Investor Relations: Andrew Tunks, CEO T: E: atunks@ausgoldlimited.com HIGHLIGHTS Exploration: QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 JUNE 2012 Diamond drilling program successfully completed at Jinkas and Dingo deposits; On track to deliver maiden interim mineral resource estimate in 2012; Additional aircore drilling and soil sampling results at the Katanning Gold Project extend the gold mineralised corridor to 30km strike length; Significant aircore drill intercepts at Dingo South ready for follow-up drilling; Quadrio Joint Venture (AUC 60%) to the southwest and south east of the Katanning Gold Project confirms anomalous zones in excess of 60km; Mapping at Cracow discovers epithermal vein occurrence at Allendale prospect; Appointment of Mr Gary Brabham as Exploration Manager. Commenting on the quarterly results, Dr Andrew Tunks, CEO of Ausgold Limited said: The diamond drilling at Jinkas and Dingo deposits has enabled a step change in our understanding of those deposits that will significantly increase our discovery rate at other targets on the Katanning region. Systematic soil geochemistry and aircore drilling are clearly outlining fertile Archaean greenstone corridors over areas more extensive than were previously recognised. Areas such as Lukin, Dingo South and Datatine, along with the Woods Road/Bullock Pool and Nanicup Bridge represent priority exploration targets. Our Cracow project in Queensland is also yielding very encouraging results and we re confident of defining significant epithermal gold targets in the near future." Victoria Thomas, Six Degrees Media T: E: victoria@sixdegreesmedia.com.au 80 Churchill Avenue, Subiaco, Western Australia 6008 T F E info@ausgoldlimited.com W

2 SUMMARY OF EXPLORATION ACTIVITIES Ausgold Limited ( Ausgold or the Company ) (ASX: AUC) is pleased to release its Quarterly Activities Report for the period ended 30 June Katanning Gold Project, Western Australia (AUC 100%) The Katanning Gold Project is located 275 kilometres southeast of Perth. Ausgold holds over 9,000 square kilometres of tenure within the region (Figure 1). Figure 1: Location map of Ausgold s Katanning Gold Project The Katanning Gold Project ( KGP ) comprises an area of multi-lode gold mineralisation, encompassing the Jinkas, Dingo and Jackson deposits, that Ausgold s exploration has now demonstrated exceeds 20km strike length (Figure 2). Soil sampling and aircore drilling has confirmed the potential for significant gold mineralisation in the area and it remains open to the north and south.

3 Figure 2. Gold mineralisation corridor comprising the Katanning Gold Project

4 RESOURCE DEFINITION DRILLING Assays have been received for 11 of 12 diamond core holes (including three extensions of existing RC holes) drilled in the program that was completed during the March 2012 quarter. That program, totalling 2,140 metres in large diameter (PQ) diamond core, was designed to confirm results of previous RC drilling, acquire samples for preliminary metallurgical test work, test down-dip extensions of mineralisation and assist geological understanding of Jinkas and Dingo gold mineralisation. Results include (refer Appendix 1 for details): Jinkas: Dingo: Jackson: BSDD001 BSDD002 BSDD004 BSDD005 BSDD006 BSDD008 BSDD009 BSDD g/t Au from 77m 2.23 g/t Au from 116m 2.20 g/t Au from 69m 4.38 g/t Au from 77m 2.85 g/t Au from 84m 6.33 g/t Au from 99m 3.64 g/t Au from 106m 14.4 g/t Au from 225m 1.52g/t Au from 69m 2.20g/t Au from 106m 3.33g/t Au from 263m SOIL GEOCHEMISTRY Katanning Gold Project Ausgold has completed a grid-based soil sampling program over and around the Katanning Gold Project, with over 7,700 samples collected on 50m spacing on 200m spaced lines. Soil geochemistry is progressively outlining chalcophile corridors and multi-element geochemical trends that clearly indicate underlying, prospective greenstone belts and directly indicating gold-in-soil anomalies (Figure 3). These data have been used to guide systematic aircore drilling of the Datatine and Dingo South corridors, discussed below. DINGO CORRIDOR EXPLORATION Approximately 5,800 metres of wide spaced (200m x 100m) aircore geochemical drilling results from the within the South Dingo-Lukin Prospects have identified four gold lodes (A, B, C and D, Figure 4) associated with mafic rocks defined by geochemical signatures. There is strong correlation between magnetic trends that reflect specific geological units and the presence of anomalous gold zones intersected by the Lukin aircore drilling, indicating gold mineralisation associated with pyrrhotite and magnetite as is observed at the Dingo and Jinkas deposits.

5 Figure 3: Soil gold anomalies/corridors within the 30km long KGP and adjacent gold zones to the east and west. Orange areas indicate gold greater than 25x background.

6 Key outcomes from the drilling are: Discovery of the largest gold anomaly to date at the Lukin Prospect; Lukin Prospect is now the highest priority drill target following aircore drilling confirming four stacked anomalous zones over four kilometres in strike; Soil sampling also confirms strong gold and multi-element soil anomalies within the Datatine Corridor to the north of Jinkas; Strong correlation between gold mineralisation and sulphide (pyrrhotite) and magnetite alteration clearly demonstrated by recent diamond drilling and petrological analysis; A total of 12 geochemical targets have now been identified within the highly gold anomalous Dingo Corridor and will be progressively tested during 2012 commencing with the Lukin Prospect; The gold mineralised system that hosts the current Katanning Gold Project has been extended to over 20km and remains open north and south. Cross sections along lines N and N are shown in Figure 5, indicating the potential for multiple, stacked gold lodes in the area south of Dingo deposit. Infill aircore drilling is proposed to refine targets prior to RC drilling. Aircore drilling and multi-element soil geochemistry suggest a major break at around N, with the southern block possibly faulted with an apparent displacement of 500m east. Further aircore drilling is now planned to define the southerly continuation of the two eastern mineralised trends. Additionally, the southernmost line of reconnaissance aircore drilling, along section N, has confirmed continuity of the gold zone (interpreted as Lode B). Recent soil sampling suggests that this zone continues at least a further 2km south of the current aircore drill coverage and additional reconnaissance drill lines are planned. DATATINE CORRIDOR EXPLORATION A new 5km zone of gold in soil anomalies has been identified north of Jinkas deposit. The zone includes limited shallow historic RC drilling within the oxide zone that returned a result of 15.6 g/t that was never followed up nor was there testing within fresh rock. The trend remains open to the north and remains a focus of further work including geophysical analysis and drill testing.

7 Lukin Prospect Figure 4. Aircore drilling at Lukin Prospect, bottom of hole gold geochemistry. The location of sections shown in Figure 5 is indicated on the map. This 3.5 km long anomaly has been named the Lukin Prospect Figure 5. Dingo South aircore drill intercepts shown on vertical cross sections trending east west and looking north. Locations of the sections are shown on Figure 4.

8 KATANNING REGIONAL PROJECT, WA (AUC 100% & Quadrio JV) Ausgold has increased its tenement position to over 9,000 square kilometres in south Western Australia, covering a strike length of 250 kilometres east and south of the 30 million ounce Boddington Gold Deposit and surrounding the Katanning Gold Project. KATANNING GREENSTONE BELT Geological interpretation continued using the Company s growing regional stream and soil multi-element geochemical database. To date, over 9,300 soil and 750 stream samples have been collected for multielement analyses, supplemented by open file sources which has expanded the data set to over 60,000 samples. Interpretation to date has: Identified 54 regional gold targets (Figure 6); Defined a major prospective greenstone terrane, similar to other greenstone belts within the Yilgarn Province, over 200 kilometres strike length; Highlighted regional geochemical provinces within the belt characterised by base metal anomalism; Related geochemical trends indicative of major structures and associated local and regional alteration halos. QUADRIO JV (Ausgold 60%) Ausgold has earned 60% interest in the Bullock Pool and Nanicup Bridge projects in a joint venture with Quadrio Resources Pty Ltd, a wholly owned subsidiary of Kingsgate Consolidated Limited. Tenements comprising those projects are contiguous with Ausgold s Katanning Regional Project. Previous exploration at Bullock Pool and Nanicup Bridge by Quadrio Resources Pty Ltd returned highly encouraging shallow gold intercepts, including: Bullock Pool: Nanicup Bridge: 2.0 g/t Au from 30m, Hole 00BPRC g/t Au from 36m, Hole 00BPRC g/t Au from 0m, Hole 01NBR g/t Au from 25m, Hole 04NBDH g/t Au from 6m, Hole 01NVR011 Ausgold has completed 28,000 metres of aircore drilling in 689 holes within the JV tenements, on 400m x 100m hole spacing, resulting in the definition of two large gold systems that represent extensions to previously identified gold mineralisation at the Woods Road/Bullock Pool prospect and the Nanicup Bridge prospect (Figure 7). Both systems display strong similarities to the signatures of gold mineralisation at the Katanning Gold Project.

9 Figure 6: Katanning Regional Project tenement holding with greenstone derivative lithologies and gold targets highlighted

10 Figure 7: Gold anomalies defined by aircore drilling over 60km strike at Bullock Pool and Nanicup Bridge Prospects. Key results of Ausgold s work to date include: Bottom-of-hole multi-element geochemistry indicating far more extensive mafic greenstone belts than have been previously recognized; Woods Road trend extends over more than 20km strike and remains open to the north; Bullock Pool trend similarly extends over more than 20km strike and remains open to the southeast; Nanicup Bridge belt extends over 22km strike and remains open to the north and south. A total of 70 three metre composite samples reported values exceeding 0.1g/t Au from 52 holes. The highest gold response was returned from Hole BSAC0274, 0.9g/t Au, including 1.37g/t Au from 48-51m. Given that these intercepts are from the gold depleted weathered zone above the primary zone, the results are highly significant. Infill aircore drilling and geophysical surveys are proposed prior to initial RC drilling of priority targets.

11 Cracow, Queensland (AUC 100%) Ausgold s Cracow project comprises four tenements covering 1,200 square kilometres, located approximately 375km north-west of Brisbane. Four additional tenement applications, covering an additional similar area, are pending grant. The tenements and applications enclose extensive areas of highly prospective Camboon Volcanics, host to the +1 million ounce Cracow gold mine located 16km south of Ausgold s area of interest. Exploration to date has included geological mapping, stream sediment sampling and follow-up by systematic soil geochemical sampling of target areas (Figure 8). Assays are awaited for approximately 1,600 soil samples but results received to date clearly define several multi-element geochemical anomalies with characteristics typical of high-grade epithermal Au-Ag mineralised systems. One such target area at Allendale was ground truthed during the quarter, with mapping locating an epithermal vein float occurrence (Figure 9) in an area of sparse outcrop. The banded, chalcedonic quartz veins are typical of those associated with the upper parts of epithermal gold systems and assays of rock chip samples are awaited. Figure 8: Cracow Project tenement holding underlain by magnetic imagery with target areas highlighted

12 Figure 9: Cracow epithermal vein float - Allendale prospect Corporate Activities Mr. Gary Brabham was appointed as Exploration Manager during the quarter. Mr Brabham was Managing Director of ASX listed De Grey Mining Limited and throughout his career has held positions such as Technical Director of Adamus Resources Limited along with other senior positions in exploration and mining companies in Australia and overseas. During the 1990 s, Mr Brabham was responsible for the drill out and quantification of the multimillion ounce Damang Gold Mine in Ghana. Mr Brabham brings substantial organisational expertise in exploration management and resource estimation to the Ausgold team.

13 CONTACT DETAILS Registered Office 80 Churchill Avenue Subiaco WA 6008 Tel: Fax: For further information, shareholders and media please contact: Andrew Tunks Victoria Thomas CEO Six Degrees Investor Relations Ph: Ph: atunks@ausgoldlimited.com victoria@sixdegreesmedia.com.au or visit: About Ausgold Limited Ausgold Limited was formed to utilise some of the latest innovations in geosciences to target areas in Australia prospective for the discovery of gold and copper-gold ore bodies. This work was initially carried out by the Centre for Exploration Targeting, an internationally renowned group affiliated with the University of Western Australia and Curtin University, using a team of highly qualified geoscientists with extensive experience in gold mineralised systems and exploration targeting. The result was Ausgold's acquisition of tenements covering 17,500 km² of ground prospective for gold and copper mineralisation. These tenements cover a range of mineralised systems in known and emerging mineral provinces throughout Australia, where potential exists for new gold and copper discoveries. Ausgold has identified a major new greenstone belt 200 km in length within south Western Australia similar to other greenstone belts in the Yilgarn and with attributes of other Giant Archaean gold camps. This successful targeting by Ausgold has led to the unearthing of the Katanning Gold Discovery, 275 km south west of Perth. The discovery sits within the greater Katanning Regional Project covering an impressive 7,500 km² in the Yilgarn to the southeast of Newmont's Boddington Gold Mine. A major reverse circulation drilling program undertaken by Ausgold has identified multiple gold mineralised horizons at Katanning within a corridor having a strike length in excess of 20 kilometres. To date, three main zones have been uncovered within the confines of the Katanning Gold Discovery, those being Jackson, Jinkas and Dingo with gold mineralisation at a fourth prospect, Fraser, also being discovered. In addition to the burgeoning Katanning Gold Discovery and Katanning Regional Project, highly prospective ground has also been identified and acquired at Doolgunna Station, Yamarna, Paterson and Cracow. Competent Persons Statement The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gary Brabham, who is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy. Mr Brabham is a full-time employee of Ausgold Limited, and has sufficient experience relevant to the style of mineralisation 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 Brabham consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

14 Appendix 1: Summary of Diamond Drill Hole Significant Intercepts PROSPECT SECTION HOLEID Easting Northing RL Hole Depth From To Interval Au g/t JINKAS BSRD NSI JINKAS BSRD NSI JINKAS BSRD JINKAS BSDD JINKAS BSDD JINKAS BSDD ABD JINKAS BSDD JINKAS BSDD JINKAS BSDD DINGO BSDD assays awaited DINGO BSDD DINGO BSDD JACKSON BSDD Quoted co-ordinates are in MGA Zone 50 GDA94. All holes drilled on an azimuth of 243 and dip at -60 degrees unless otherwise noted. Intercept lengths approximate true widths of mineralisation. Intercepts calculated using a 1 g/t Au lower cut, no upper cut, and a maximum 2 metre internal dilution. Assay samples comprise quarter PQ core generally in 0.5m lengths. Gold assays by 50g fire assay by Quantum Analytical Services in Perth, Western Australia. Reference standards and blanks are routinely inserted.