(MENAFN- ProactiveInvestors - Australia) Ausgold (ASX: AUC) is set to begin a detailed aeromagnetic survey at its Katanning Gold Project in the Yilgarn region of Western Australia next week to test the prospectivity of the area.
The company is targeting the definition of a maiden JORC Resource for the project in the December quarter of 2012.
Ausgold has engaged GPX Surveys to undertake the survey across the 25 kilometre by 6 kilometre core zone of the project.
The survey is expected to take around a week, with data to be available at the end of September 2012.
Multi-million ounce potential
A major gold discovery has been made at Katanning, together with the discovery of a new Archean greenstone belt 200 kilometres in length surrounding the discovery.
The Katanning Gold Project has demonstrated the potential to become a multi-million ounce deposit.
The project is located 190 kilometres southeast of Newmont Mining's 30 million ounce Boddington mine on a parallel greenstone belt.
The Katanning Belt is similar to the Southern Cross Belt that has produced 10 million ounces of gold.
Exploration, which began in September 2010, has now identified continuous gold mineralisation at Katanning over a strike length of 20 kilometres.
Multiple gold targets have been identified from reverse circulation drilling, aircore drilling and geochemistry.
Over 50 follow up targets have been identified outside of the Katanning discovery.
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