Name of the Project
Katanning Gold Project (KGP).

Location
Western Australia, about 37 km from the regional hub of Katanning.

Project Owner/s
Gold and precious metals explorer Ausgold.

Project Description
The KGP is a substantial, proposed new openpit gold mine development. 

A positive definitive feasibility study (DFS) completed in June 2025 has confirmed a development-ready, long-life gold project. It is underpinned by a 1.25-million-ounce ore reserve and a mineral resource estimate of 69-million tonnes at 1.11 g/t gold for 2.44-million ounces of contained gold.

Average gold production is forecast at 140 000 oz/y in the first four years, with 1.14-million ounces produced over the ten-year life-of-mine at an average gold recovery of 90.4%. 

Ore will be processed in a 3.6-million-tonne-a-year processing facility using industry-standard unit processes, such as single-stage crushing, two stages of grinding (semiautogenous grinding and ball mill), gravity concentration and a hybrid carbon-in-leach circuit. Cyanide detoxification is also included in the tailings stream. 

The mining method will be conventional openpit mining using a load-and-haul arrangement, incorporating selective mining practices to minimise dilution and ore loss. 

The project will include a hybrid thermal power station, with 42% of power consumption met by renewable-energy sources (liquefied natural gas, solar and a battery energy storage system). Waste-rock dumps and a lined tailings storage facility are designed to minimise environmental impact.

Potential Job Creation
Operations are estimated to peak at an estimated 50 full-time roles. During the estimated 18-month preproduction development phase, construction is expected to peak at about 250 full-time equivalent jobs.

Net Present Value/Internal Rate of Return
Assuming a $4 300/oz gold price, the project returns an ungeared, after-tax net present value, at a 5% discount rate, of $954-million and an internal rate of return of 53.2%, with a payback of 13 months.

Capital Expenditure
Preproduction, including contingency, is estimated at A$355-million.

Planned Start/End Date
The final investment decision (FID) is targeted for mid-2026. Construction is expected to take about 18 months from the FID, with the first gold pour scheduled by the end of 2027.

Latest Developments
Ausgold is progressing with the next phase of development, which includes front-end engineering design and securing debt financing.

Activities are under way to finalise land access and complete permitting, while ongoing environmental work and community engagement are also being conducted. 

Formal engagement with project financiers started in the second half of 2024, with positive feedback received to date.

Key Contracts, Suppliers and Consultants
Minescope Services (project delivery and metallurgical testwork); SRK Consulting (mineral resources); 3rd Rock Consulting (geotechnical studies); Orelogy Consulting (mine planning and ore reserve management supervision); GR Engineering Services (process design and nonprocess infrastructure); ECG Engineering (power supply); WSP (tailings storage facility, site water balance and surface water management); and Rockwater (hydrogeology consultant).

Contact Details for Project Information
Ausgold, tel +61 8 9220 9890 or email info@ausgoldlimited.com/investor@ausgoldlimited.com.