Ausgold Limited announced initial results of air core drilling (AC) at its 100%-owned Katanning Gold Project (KGP) in Western Australia's south-west. A large AC drill campaign of 331 holes for 7,810m was completed over the course of December 2017 and January 2018, targeting geochemical and geophysical targets along strike from known gold mineralisation. As part of the campaign 264 AC drill holes for 4,033m tested along strike on the Jackson-Lone Tree and Olympia- Jinkas mineralized trends at the KGP. The AC drilling was completed to blade refusal, with most holes being relatively shallow (4-38m). Where holes were intersected less than 20m total depth, additional holes were drilled infilling along the same line to ensure adequate testing of targets. Results have been received from 181 of the 264 holes (3,406m) drilled, with results from a further 83 holes (1,627m) drilled in the Jackson-Olympia area pending. Results of AC drilling highlight the continuity of the east-dipping (40-60m) gold mineralisation from Lone Tree towards Jackson in the north. This northward trend is evident in aeromagnetic images and the continuity of mineralisation is confirmed by the recent round of drilling with a number of significant intercepts > 0.1 g/t including three bottom-of-hole intercepts > 0.5 g/t Au (holes BSAC1593, BSAC1603 & BSAC17420). Olympia is located 820m north along strike from the Jinkas mineralisation and has a similar moderate easterly dip. The results of new AC drilling extend mineralisation a further 700m towards the northwest and highlight prospective mafic granulite that is locally folded around a quartz monzonite (previously referred to as adamellite) body. The quartz monzonite is the footwall to the Olympia mineralisation and separating it from Jackson to the west is thought to terminate at the northern end of the Olympia and Jackson prospects. The bottom-of-hole geology supports this model, highlighting previously undrilled areas of mafic-intermediate granulite similar to the rocks that host gold mineralisation at Jinkas and Jackson. Results from drilling have shown continuity in mineralisation, with 17 intercepts > 1 g/t, including two bottom-of-hole intercepts > 0.5 g/t Au (holes BSAC1614 and BSAC1713).