Ausgold expands Katanning

Ausgold has secured two farming properties to expand its Katanning gold project (KGP) in WA.

Covering a combined area of 1026 hectares, the properties are located 275km south east of Perth.

The first property, which covers 94 hectares, encompasses the southern extent of the central zone resource, including the Jinkas, Jinkas South and Jackson deposits. This area will be primary source of ore in the first 18 months of production at Katanning.

The second property, covering 932 hectares, will form the site of the mine infrastructure once built.

“This is an important milestone for the Katanning gold project which reflects our intent to advance this large-scale asset towards development,” Ausgold managing director Matt Greentree said.

“We are pleased to have reached agreement with two key landowners to secure these properties, which cover significant parts of the early mine plan as well as proposed mine infrastructure.

“This is a significant de-risking step for the development of a proposed long-term mining operation at the KGP.”

The total consideration of the properties is $10.76 million. Ausgold has paid $3.12 million on signing the agreements and will pay the balance in early April 2024.

Ausgold is considering traditional and non-dilutive funding alternatives to fund the deferred consideration and land acquisition.

The company increased its gold resource estimate for Katanning on September 3, 2023, seting it at 89 million tonnes at 1.06 grams per tonne for 3.04 million ounces.