Ausgold Ltd (ASX: AUC) provided an update of exploration activities at the Company’s 100% owned 1.84 Moz Katanning Gold Project (KGP). Ausgold Ltd has now completed its 30,000m multi-rig reverse circulation drilling campaign designed to add near-surface Resource ounces and support open-pit mine planning as part of the Prefeasibility Study. Results have been received for 15,000m of drilling along the Jackson and White Dam Lodes with further results pending and an additional 2500m of drilling underway within the Olympia and Jinkas North areas.The Company is encouraged by the extent of near-surface gold mineralisation identified within both the Jackson and White Dam Lodes.

Following the announcement, shares in Ausgold Ltd traded flat at $0.067/share.

When a mining company announces a new resource discovery it’s exciting times for shareholders.

A lot of capital goes into exploration and when a new deposit is found there’s usually a share price boost.

Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.

When discussing new resource discoveries it’s beneficial to know the difference between greenfield and brown exploration.

Greenfield exploration is looking for mineral deposits in areas that have not been explored.

In brownfield exploration deposits are being sought near or next to an already existing mine.