Ausgold Limited (ASX:AUC) - Exceptional High-Grade Gold Intercepts Reinforce Growth Potential at Katanning.
- Noel Ong
- May 3
- 5 min read
Updated: 3 days ago
Announcement:
Key Highlights
33 RC holes for 4,116m drilled across the Southern Zone (Dingo & Lukin) and Grasmere.
Dingo delivers standout results, with intercepts like:
10m @ 10.55g/t Au from 42m (including 2m @ 50.57g/t Au)
22m @ 2.16g/t Au from 117m (14m @ 3.03g/t Au)
11m @ 2.80g/t Au from 49m (6m @ 4.82g/t Au)
Lukin drilling confirmed low-grade shallow mineralisation but no new lodes.
Grasmere Prospect returned broad, shallow anomalous mineralisation, confirming prospective geology.
Datatine and Stanley Thrust drilling now underway, with results expected in the coming quarter.
Figure 1: – KGP Resource1 areas with a selection of drilling results; see Figures 2 & 5 for smaller-scale maps of Dingo and Lukin.
Ausgold Limited (ASX: AUC) has unveiled a set of exceptional drill results that underscore the growing promise of the Katanning Gold Project (KGP) in Western Australia (Figure 1). The latest Reverse Circulation (RC) drilling campaign—part of a broader 19,000m program—has returned standout high-grade gold intercepts from the Southern Zone and strong geological confirmations at the Grasmere prospect.
Dingo: High-Grade Intercepts Could Reshape the Resource
Figure 2 – Geological map of the Dingo Resource area displaying new drilling and an outline of the A$4000 Pit Shell
Once considered a modest contributor, Dingo is quickly emerging as a potential game-changer (Figure 2). The recent drilling has intersected zones of high-grade mineralisation above historical averages, reinforcing Ausgold’s confidence in expanding and upgrading the existing 434koz @ 0.94g/t Au resource.
“The grade and width of the results from Dingo is particularly encouraging,” noted Executive Chairman John Dorward. “These high-grade and shallow intercepts indicate the potential for a more meaningful contribution to the overall project.”
Lukin: Steady but Modest
Figure 3 – Geological map of the Lukin prospect (KGP) Southern Zone with new drilling and results highlighted
Drilling at Lukin focused on both extending the existing resource and exploring for new lodes (Figure 3). Results remained consistent with previously defined shallow mineralisation, but no new significant lodes were intersected.
Despite this, potential still exists in untested southern extensions, although Ausgold is now shifting its near-term focus to higher-grade targets elsewhere, including Datatine and Jinkas.
Grasmere: Confirmation of Host Stratigraphy
Figure 4 – Prospect-scale geological map of the Grasmere Prospect with drilling
Located 7km southwest of Dingo, the Grasmere prospect (Figures 4 and 5) revealed a promising 8km gold-in-soil anomaly. The first phase of EIS co-funded drilling confirmed the presence of KGP-style host rocks and returned shallow intercepts of up to:
3m @ 0.31g/t Au (incl. 1m @ 0.52g/t)
9m @ 0.13g/t Au
6m @ 0.16g/t Au
Figure 5 – Prospect-scale geological map of the Grasmere Prospect with drilling.
Near-Term Catalysts (1H 2025):
Results from high-grade drilling at Datatine (intercepts >4g/t Au) (Figure 5)
Results from regional prospects along the Stanley Thrust
Feasibility Study updates for the KGP
Land tenure and access updates
Concluding Comments from Samso
The latest results from Ausgold demonstrate a significant uptick in the resource potential of the Katanning Gold Project. With high-grade, shallow intercepts at Dingo and ongoing drilling at Datatine and across regional targets, the company is strategically positioned to deliver meaningful resource growth and economic upside.
As I mentioned in my article (AusGold Limited (ASX:AUC) - The Making of A New Boddington Gold Miner - The Katanning Gold Project), I am confused as to why this aspiring gold company is not closer to being a producer. Ausgold now has a market capitalisation of just under AUD $190m, which would make this company "cheap" with the potential upside.
Figure 6: The Ausgold Limited share price chart. (source; commsec)
Looking at the share price journey (Figure 6) of the company, it has been a real steady rise to AUD $0.53 (01/05/2025). I think the rising gold price (Figure 7) is making any companies like Ausgold a prime target, especially when the rest of the market is suffering.
The key now is the upcoming Feasibility Study that is expected soon. What is a good point to remember is that these drilling results are confirming the consistency of results, and the preparation for a future resource is not a bad thing.
Figure 7: Gold Price chart over the last 5 years. (source: Trading Economics)
The big question is now that Trump is "back-peddling" or is now "making deals", will the rising gold price start to recede? If it does, how far will it head back? Remember that when lithium was running, many investors felt that it was a situation that would have no negatives and look at it now. The gold price now looks strong and undefeatable, but I have seen it go from USD 420 to USD 252 in 1999.
Figure 8: Gold price in 1999. (source: www.sdbullion.com)
What I have learnt in the investing game is that you are either a long-term investor or you better be the one who creates and manages the weather. If you are not both, you will get soaking wet when the storm comes and badly burnt when the heat rises. A long-term investor has a long average curve that protects them from the volatility.
Happy Investing.
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