Ausgold Limited provides a clarification of the ASX announcement (7 July 2022) which describes intercepts of extensive zones of magnetite ­ pyrrhotite alteration at the Company's 100% owned 2.16 Moz Katanning Gold Project (KGP), located 275km south-east of Perth, Western Australia. After the completion of the recent 30,000m large-scale drilling program and 2.16Moz Resource upgrade in May, the Company undertook a follow-up drilling program which was designed to further test high-value and near-surface mineralisation on the Jackson and Jinkas lodes along strike and down plunge from current Resource areas as well as test for extensions to high-grade mineralisation at depth. A further 5,666m RC drill program has now been completed with results pending.

Of this RC program, 6 holes for 1,554m was completed to test high-grade gold mineralisation down-plunge of the Jinkas lodes within the Central Zone to a vertical depth of 200m below surface. Drill targets are based on Ausgold's geological model combined with DHEM plates. The DHEM plates correspond to disseminated to semi-massive pyrrhotite (up to 40% sulphide) and broad zones of magnetite alteration intercepted in several recent holes, which is consistent with high-grade gold mineralisation.

The most significant sulphides were intersected in BSRC 1530, which included 2m of ~40% semi-massive pyrrhotite from 253m in BSRC1530. Hole BSRC1530 drilled the hinge position of the Jinkas lode which crucially remains poorly tested up and down-plunge, making these observations especially significant as they open up a new zone of potential underground Resources. Assay results for the remainder of the RC program are expected to be returned and reported in the next month.

In addition, diamond drilling, which has targeted extensions to the high-grade gold mineralisation north along strike and down plunge of previous drilling and beyond currently reported Resource areas, is continuing. Jinkas Deeps drilling aims to demonstrate the scalability of a potential underground Resource. This drilling steps out a further 800m north along strike from the current Resource.

High-grade gold mineralisation will further add to the open-pit studies being assessed in the current Pre-feasability Study and shows potential to extend the high-grade underground mineralisation in the Central Zone.