Ausgold : AUC Intercepts Sulphides at Jinkas Deeps Clarification

AUC Intercepts Sulphides at Jinkas Deeps

ASX Release

27 July 2022

Highlights:

only	 5,000m of follow up RC drilling pending with five holes for 1,500m targeting the Jinkas Deeps area
 Broad zones of magnetite - pyrrhotite alteration intercepted in three holes show favourable geology
down plunge from the high-grade Jinkas South lode
 Significant sulphidic intervals have been identified in Jinkas Deep drilling corresponding to DHEM
	plates used for drill targeting
	 Diamond drilling is underway to test for two large EM plates extending over 400m down-plunge from
use	existing drilling at Jinkas Deeps, which if successful, could demonstrate the scalability of the
underground Resource.
Ausgold Limited (ASX: AUC) (Ausgold or the Company) 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.
personalfrom 253m in BSRC1530. Hole BSRC1530 drilled the hinge position of the Jinkas lode which crucially remains poorly

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 (Figures 1 and 2). 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 (Figures 2-4 and Table 1).

The most significant sulphides were intersected in BSRC 1530, which included 2m of ~40% semi-massive pyrrhotite

tested up and down-plunge (Figure 2), 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

Forreturned 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 (Figures 1, 2 and 4). 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 (Figures 1 and 2). 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.

ABN 67 140 164 496

Level 4, 251 St Georges Terrace, Perth WA 6000

1. 08 9220 9890 F: 08 9220 9820 E: [e-mail] W: www.ausgoldlimited.com

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Figure 1: Recent RC and diamond drilling results and position of the Jinkas Deeps area at the KGP

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Figure 2: Long section view towards the west of the Jinkas Lode only in the KGP Central Zone showing grade as gram metres and location of down hole EM plates, with significant

sulphide intervals at Jinkas Deeps labelled

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Figure 3: Zone of semi-massive pyrrhotite in recent Jinkas Deeps RC drilling1 (BSRC1530 assays pending)

Figure 4: Drilling to a downhole EM target has intercepted a zone of semi-massive pyrrhotite1 (BSRC1530 assays pending)

• n.b. should not be considered a substitute for laboratory analyses

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Figure 5: Diamond drilling targeting the EM plate in the down-plunge position north of the Jinkas high-grade zone (see

figures 1 and 2)

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