ASX-listed Ausgold has taken a big step toward advancing its 100%-owned Katanning gold project (KGP) after signing a binding agreement to acquire a substantial freehold land position critical to the development of the project.

The deal covers about 860 ha of freehold land, including 212 ha within mining licence (ML) 70/211, which hosts a significant portion of the project’s mineral resource and mineable gold ounces identified in the company’s definitive feasibility study (DFS) published in June.

The acquisition resolves long-running legal disputes tied to Plaints 688801 and 719694, which had restricted Ausgold’s ability to enforce mining rights. With the legal actions now discontinued, the company gains both development certainty and immediate exploration access to prospective areas that had been off-limits for years.

The acquisition also delivers a buffer area around ML70/211, materially improving opportunities for future expansion of the project.

“Securing this land is the key de-risking event for the development of the KGP. Land access issues, which have impaired the optimal development of the Katanning gold project up to this point, have now been removed and we can now get on with the unfinished business of determining the full potential of this emerging gold district. Significant gold endowment was artificially excluded from the DFS due to previous tenure constraints and we look forward to showcasing the full potential of the KGP," said Ausgold executive chairperson John Dorward. 

Ausgold will now undertake further optimisation of its DFS mine plan. This will focus on incorporating previously excluded portions of the mineral resource and reducing haulage costs by relocating waste dumps to more efficient locations.

The company also plans to launch a multi-rig drilling programme across newly acquired ground, targeting extensions of the Central zone ore shoots and high-grade mineralisation at the White Dam lode. Significant historical intercepts include 16 m at 19.25 g/t gold, 26 m at 6.60 g/t gold, and 7 m at 10.94 g/t gold.

The acquisition carries a total consideration of A$35-million, comprising land costs and compensation for the relocation of four families currently residing on the land. Payments will be staged as A$15-million by August 26, 2025, and A$20-million upon a final investment decision (FID) or by August 26, 2026, whichever comes first. As of July 31, Ausgold reported A$45-million in cash on hand.

“We expect to be able to deliver material enhancements to the existing project as we progress our permitting and financing activities towards an FID. We look forward to updating shareholders on the results of the drilling we will be undertaking targeting down-plunge extensions of some of the highest potential areas of the orebody," said Dorward.