Following the release of the definitive feasibility study for its Katanning gold project in Western Australia, Ausgold has made progress in facilitating land, water and infrastructure access at the site.
The company has confirmed Katanning’s water supply will come from bores located on freehold land approximately 5km south of the project.
The bores will draw brackish-saline water from an aquifer situated deeper underground than the shallower groundwater, which could be prospective to local farmers for stock watering purposes.
“The company had previously installed a bore pursuant to an existing access agreement with a local landholder,” Ausgold said.
“Pump testing of the bore is currently underway, and early indications are that the water flow rate available from that borefield will be sufficient to meet the water requirements of the project.”
Ausgold and the local landholder have now signed a binding easement agreement for the former to locate water infrastructure such as additional bores and pumps and an underground pipeline from the bore field to the Katanning site for the project’s life.
The company has also signed a $1.5 million agreement to acquire a farm situated approximately 2.5km from Katanning’s proposed processing plant.
Underpinned by a 1.25-million-ounce ore reserve, Katanning is poised to produce an average of 140,000 gold ounces per annum over its first four years, with 1.14 million ounces produced across its 10-year life.
Comprising 348 hectares, Ausgold may use the new acquired land for additional tailings dam capacity and to support mine life extensions beyond Katanning’s 10-year mine life if required.
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