Land deal clears path for Katanning expansion

Ausgold has secured a pivotal landholding that removes major barriers to advancing its Katanning gold project (KGP) in Western Australia.

The company has signed a binding agreement to acquire around 860 hectares of freehold land critical to the project’s development footprint. Included in the deal is 212 hectares of mining licence ML70/211, which hosts a material portion of the KGP’s mineral resource and open-pit mineable ounces.

The acquisition brings an end to legal disputes that have been running since August 2023, enabling Ausgold to progress with exploration and project optimisation.

“Securing this land is the key de-risking event for the development of the KGP,” Ausgold executive chair John Dorward said.

“Land access issues, which have impaired the optimal development of the Katanning gold project up 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 (definitive feasibility study) due to previous tenure constraints and we look forward to showcasing the full potential of the KGP.”

With access secured, Ausgold will launch a multi-rig drilling program targeting down-plunge extensions of the central zone, along with high-grade areas such as the White Dam lode. These targets could add substantial ounces to the mine plan while also improving early production certainty.

The June 2025 DFS will now be re-optimised, with potential to extend mine life and reduce mining costs by relocating waste dumps to more efficient positions.

Ausgold will pay $35 million for the land in two stages: $15 million by August 26, followed by $20 million upon a final investment decision or by August 2026.

“We expect to be able to deliver material enhancements to the existing project as we progress our permitting and financing activities towards a final investment decision,” Dorward said.