Following completion of a 27 km RC and diamond drill programme, Ausgold has updated its Resource estimate for the Katanning Gold Project. The update has added 320kozs to the overall estimate for 2.2Mozs @ 1.2 g/t Au. The most significant change is to the proportion of the estimate in the higher confidence Measured and Indicated categories, with 600kozs added for 1.8Mozs @ 1.2 g/t in total. This high rate of conversion is testament to Ausgold’s strong grasp on mineralisation controls at Katanning. Pending more robust costings expected in the PFS expected next month, we update our boilerplate assumptions to factor in a slightly higher throughput and assumed inventory. Our valuation improves from 9cps to 11cps. In our view Ausgold is on the cusp of becoming a mid-tier gold producer and deserved of investor attention.
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