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OzAurum Resources (ASX:OZM) reports it has returned ‘significant’ gold results from diamond drillhole MNODH 006, recently completed at the company’s new virgin gold discovery Demag Zone within the Mulgabbie North Project area, located 130km northeast of Kalgoorlie.

The Demag Zone continues to demonstrate its potential to host significant gold mineralisation directly adjacent to the Northern Star (ASX:NST) Carosue Dam mill.

OzAurum reports diamond hole MNODH 006 results:

  • 4m @ 3.65g/t Au (from 280m) within 7m @ 2.45g/t Au (from 279m)
  • 1m @ 5.38g/t Au (from 453m)
  • 3m @ 1.37g/t Au (from 275m)

Gold mineralisation at the Demag Zone is associated with significant wide downhole intervals of sericite-carbonate-chlorite alteration, and a ± hematite dusting ± pyrite ± magnetite which has been intersected in both RC and diamond drilling at the Demag Zone. This indicates the company is potentially on the periphery of potentially ‘higher-grade’ gold mineralisation. Current interpretations by the company is that faulting is clearly a fluid pathway for mineralising oxidised fluids sourced from a deeper enriched intrusive body.


At the Demag Zone, secondary magnetite as part of an early high temperature alteration assemblage has been altered to hematite which is part of the lower temperature alterage assemblage including sericite, carbonate, pyrite and arsenopyrite. The Demag Zone is most likely a result of fluid pathways along the interpreted fault zone. Further, recent reverse circulation (RC) and diamond drilling has confirmed the host conglomerate unit having a true thickness of approximately 120m. Petrology has been completed on samples from diamond hole MNODH 006 256-257m (2.12g/t Au) and MNODH 006 425-426m (0.32g/t Au) revealing more primary free gold at the Demag Zone despite the grades of fire assay analysis.


The primary gold occurs as free gold grains in close proximity to sulphides (pyrite and arsenopyrite) or as fine gold grains along the pyrite grain margins and fractures, and is therefore expected to be extracted via conventional CIP processing techniques. Although arsenopyrite is observed at Mulgabbie North Demag Zone, there is not always a direct relationship between arsenopyrite and gold grades. Gold grades are typically associated with pyrite mineralisation. Petrology confirmed the presence of albite veining and alteration associated with ‘high-grade’ gold mineralisation in MNORC 202 246-247m (9.52g/t Au).


This is an exciting new target for diamond drilling with current diamond hole MNODH 007 planned to test the down dip extension of gold mineralisation. Diamond MNODH 007 is currently at a depth of 132.5m and is planned to be drilled to a depth of 430m. OzAurum CEO and Managing Director, Andrew Pumphrey said the company is excited to announce the results from the diamond drilling. “The new virgin gold discovery Demag Zone has continued to intersect significant gold mineralisation, with planned structural work on site expected to assist us in targeting high grade ore shoots with future drilling.




Importantly, we believe that strategic framework diamond drilling will be the key to unlocking the potential of the Mulgabbie North Project.


“We look forward to providing shareholders with further drilling updates at this exciting new discovery.”


The framework diamond drilling strategy is to drill holes on a 50m spacing along strike within the Demag Zone, allowing planned structural work to be completed with a view of better understanding the geometry of ‘high-grade’ ore shoots. ‘High-grade’ gold ore shoots will be targeted with future RC and diamond drilling. Archaean orogenic gold deposits commonly have faults on various orientations that host and control significant gold mineralisation. The Demag Zone is currently interpreted as an area where a significant North-South fault has intersected the Relief Shear that trends at 315º. Significant zones of faulting were intersected in diamond holes MNODH 002, MNODH 003, MNODH 004, MNODH005, and MNODH 006. One of the aims of the planned structural work starting in min-October is to understand this faulting and any relationships of particular faults to gold mineralisation.


Another important aspect of the structural work will be to determine the geometry of these faults and any potential relationships to ‘high-grade’ gold ore shoots. Mineralisation intersected in MNODH 006 is observed within a strong to intensely altered intermediate volcaniclastic conglomerate unit. The intermediate to felsic volcaniclastic units, including the conglomerate, at Mulgabbie are equivalent to the Black Flag group within the Kalgoorlie stratigraphy that hosts ‘significant’ gold deposits like the 6.5Moz Kanowna Belle Gold Mine. The conglomerate unit that hosts the mineralisation at Mulgabbie contains fuchsite clasts and represents an unconformity within the intermediate and felsic volcaniclastic sequence. This is significant as it indicates reactivation of syn-volcanic faults at the time of 2660 Ma felsic to intermediate volcanism, associated with early mineralisation. Additionally, a late basin epiclastic conglomerate unit, that represents an important stratigraphic unconformity, was intersected at EOH in MNODH 002, 003, 004 and 006.