Ausgold : Large Scale Program of Follow up RC Drilling Completed

Large Scale Program of Follow Up RC Drilling Completed

ASX Release

7 July 2022

Highlights:

only	 5,000m of follow up RC drilling now completed following the 30,000m large-scale drilling program that
concluded in May
 Program designed to test high-value and near-surface mineralisation with results now pending
 450m diamond drilling is in train targeting down hole EM plates along strike from the high-grade Jinkas
	gold mineralisation
use	 Prefeasibility Study (PFS) and maiden Ore Reserve nearing completion and expected to be released
shortly.
Ausgold Limited (ASX: AUC) (Ausgold or the Company) is pleased to provide an update on activities at the
Company's 100% owned 2.16 Moz Katanning Gold Project (KGP), located 275km south-east of Perth, Western
Australia.
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Large-Scale Program Follow Up

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. A further 5,000m RC drill program has now been completed with results pending.

Of this RC program 1,500m was completed to test high grade gold mineralisation down-plunge of the Jinkas lode within the Central Zone to a vertical depth of 200m below surface (Figure 1 and 2). Drilling has shown semi-massive pyrrhotite in several recent holes which is consistent with high-grade gold mineralisation (Figure 3)

In addition, diamond drilling targeting extensions to the high-grade gold mineralisation along strike and down plunge extending beneath the currently reported Resource is currently underway (Figure 1, 2 and 4). Jinkas Deeps drilling aims to demonstrate the scalability of a potential underground Resource. This diamond drill hole steps out a further 800m north along strike from the current Resource (Figure 1 and 2). This high-grade gold mineralisation will further add to the open - pit studies being assessed in the current PFS and shows potential to extend the high- grade underground mineralisation in the Central Zone.

ForExploration Drilling

Regional exploration has focused on targets in the northeast KGP building on recent results from the Duggan prospect with an additional 1,200m of RC drilling completed to test along strike and down plunge from recently announced high-grade mineralisation (including 7m @ 4.05 g/t Au from 19m in DUGRC015 and 4m @ 5.48 g/t Au from 72m in DUGRC019). This area continues to show significant potential, a follow-up program of downhole EM is planned to assist future drill targeting. Additional results are also awaited from exploration drilling at Rifle Range targeting the down-dip portions of the Dingo deposit.

Prefeasibility Study (PFS)

A Prefeasibility Study (PFS) and maiden Ore Reserve for the KGP is nearing completion. The Company expects to be in a position to announce both shortly.

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

For personal use only

Figure 1: Recent RC and diamond drilling that the KGP

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r personal use only

Figure 2: Long section view towards the west of the KGP Central Zone showing grade as gram metres and location of down hole EM plates

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For personal use only

Figure 3: Zone of semi-massive pyrrhotite in recent Jinkas deep RC drilling (BSRC1231 assays pending)

Figure 4: Diamond drilling targeting the EM plate in the down plunge position north of the Jinkas high-grade zone.

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About Ausgold Limited

Ausgold Limited (ASX: AUC) is a gold

onlyKatanning Gold Project, located 275km south-east of Perth and approximately 40km north-east of the wheatbelt town of Katanning. Ausgold holds a dominant ground

exploration and development company based in Western Australia.

The Company's flagship project is the

position in this relatively underexplored greenstone belt, an area prospective for

Archean gold deposits. The current Resource

at Katanning is 2.16 Moz gold (Table 1).

Ausgold's portfolio also includes the

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Doolgunna Station Cu-Au project and the

Yamarna Ni-Cu-Co project in Western

Australia and the Cracow Au Project in

Queensland.

Table 1 - Current Mineral Resource

(details in ASX release 25 May 2022)

Grade

MOz

Tonnes

(Mt)

(g/t)

Gold

Measured

19.0

1.31

0.80

Indicated

26.8

1.14

0.98

Figure 5 - Regional map showing the KGP, other Ausgold projects

and mineralised greenstone belts

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Inferred

9.5

1.03

0.37

Total

56.0

1.21

2.16

For

The information in this report that relates to the Mineral Resource in Table 1 is based on information announced to the ASX on 25 May 2022. Ausgold confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

The Board of Directors of Ausgold Limited approved this announcement for release to ASX.

On behalf of the Board

Matthew Greentree

Managing Director

Ausgold Limited

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