OzAurum uncovers more gold hits at Mulgabbie North’s promising virgin discovery

OzAurum (ASX:OZM) shares have jumped slightly in afternoon trades as the company reports its latest batch of gold hits at the Mulgabbie North project in WA.

While share price movements have not replicated the 31% jump achieved back in mid-May on initial results, today’s news does give shareholders what it has been waiting for: the results of a nine hole RC drill program for 1,870m of core equivalent.

What is OzAurum reporting today? 

Investor information provider Undervalued Equity notes high grade gold is that where gold concentrations in ore exceed five grams of gold per tonne (5g/t). 

Many Australian projects with grades of 4g/t, however, are widely accepted as high grade. 

Compare that to the following RC rig results from OzAurum: 

• 18m @ 2.00g/t gold from 90m depth, including: 

  • 05m @ 5.68g/t gold (MNORC202)

• 23m @ 1.24g/t gold from 232m depth (MNORC200)

• 40m @ 0.73g/t gold from 98m depth, including: 

  • 07m @ 1.46g/t gold (MNORC195)

• 15m @ 1.22g/t gold from 146m depth (MNORC198) 

What we can devise from these results today is that OzAurum’s latest drill run has hit thick intersections of mineralised gold, with mineralisation ranging from low-mid grades. 

These results are consistent with prior assay results posted back in July. 

Plans for depth unclear

Worth noting is one result which runs at 232m depth, a finding which suggests an underground mine, lest the company wants to build a mammoth open pit operation; something it is likely unable to acquire the funding for without further evidence. 

At the end of the June quarter, OzAurum held $4.29m in cash.

As for what a future mine at Mulgabbie North might look like, OzAurum has not yet ventured to say. 

‘Potential for significance’

“We are excited to report on the significant drilling progress at Mulgabbie North…the holes drilled at the new virgin gold discovery have continued to intersect significant gold,” OzAurum CEO Andrew Pumphrey said. 

“These results further validate the potential of Mulgabbie to host a significant discovery.”

“We look forward to providing shareholders with further drilling updates at the exciting [Demag Zone] discovery.” 

OzAurum has previously highlighted the Demag Zone, a virgin gold discovery, is directly proximate to Northern Star (ASX:NST) acreage next door. Northern Star boasts a Group Ore Reserve of 20.7Moz gold.

OzAurum's six month charts show the company's share price in gradual decline since climbs in May and June. Note also the relatively low liquidity