Ausgold to raise $4 million for drilling in Katanning

Recent drilling by mining company Ausgold Limited at its Katanning gold mine has lifted the mine’s gold resource by 23 per cent.

Ausgold will raise up to $4 million to advance drilling at the Katanning site with the gold resource increasing from 637,000oz to 785,800oz after recent geological findings.

The project has a link of more than 10km of soil, which has been identified with gold mineralisation.

The historic Katanning gold project consisted of three gold pits and started in the 1990s, where about 20,000 ounces of gold were mined.

Ausgold chief executive Matthew Greentree said the share placement will allow the company to continue drilling.

“We are pleased to have completed this placement which will enable Ausgold to commence its field program in November 2017,” he said

“The placement together with the proposed Rights Issue will fund an exploration programme at the Katanning Gold Project designed to significantly grow the current resource through focussed drilling targeting co-incident geophysical and geochemical targets along strike from currently defined resources.”