Pre-Development Work Progresses at Katanning
Ausgold Limited (ASX:AUC) continues to advance pre-development activities at its Katanning Gold Project in Western Australia. The Company has a one hundred percent share in the project and is situated 275 kilometres south-east of Perth. On 30 June 2025, Ausgold finished the Definitive Feasibility Study (DFS) concerning Katanning. The Company has been preoccupied with gaining access to land, water and infrastructure.
Land Acquisition for Future Expansion
Ausgold has agreed to purchase a farm located 2.5 kilometres from the proposed processing plant. The $1.5 million acquisition covers 348 hectares of freehold land. The purchase strengthens Ausgold’s development flexibility at Katanning. The land could support additional tailings dam capacity if technical studies and approvals allow. The Company may also use the land to support mine life extensions beyond current DFS projections. Settlement on the acquisition is expected in August 2025.
KGP Project Location
Water Supply Secured from Borefield
Katanning will source water from bores located on freehold land about five kilometres south of the project site. These bores will draw brackish-saline water from a deeper aquifer. This aquifer sits beneath shallower groundwater that local farmers could use for stock watering. Ausgold previously installed a bore under an access agreement with a local landholder.
Pump testing of the bore is in progress, with early results indicating adequate flow rates to meet project water needs. “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 landholder have signed a binding easement agreement. This agreement allows the Company to install additional bores, pumps, and an underground pipeline from the borefield to the project site. These facilities will operate for the life of the mining project.
Ore Reserve and Production Outlook
Katanning hosts a 1.25‑million‑ounce ore reserve. The DFS outlines expected production of an average of 140,000 ounces of gold annually during the first four years. Over a 10-year mine life, Katanning is projected to produce 1.14 million ounces of gold. The newly acquired land could help extend operations beyond this timeframe.
Land Access Proceedings in the Warden’s Court
Ausgold Limited (ASX:AUC) has lodged Plaint 688801 under the Mining Act 1978 (WA) to determine compensation for certain freehold landowners and occupiers at Katanning. Without an agreed or determined compensation outcome, Ausgold cannot commence or continue mining on tenements overlapping with private freehold land.
On 15 November 2024, the Company lodged Plaint 719694 regarding the same land. This seeks a declaration from the Mining Warden confirming the validity of various surface rights grants as recorded in the Department’s register. The Warden’s Court in Perth will hear both proceedings in a two-week sitting starting 14 August 2025.
Caution Regarding Forward‑Looking Information
Ausgold has mentioned that there exist known and unknown risks and uncertainties in forward-looking statements contained in its announcements. Such risks are possible setbacks in the commissioning of the mines, cost changes, fluctuations of commodity prices, and supply chain issues. These other risks include exchange rate, regulatory variations, shortages in labour and natural occurrences.
According to the Company, it is the funding, building and logistical issues that will determine whether or not it will be able to meet the production targets. It is still crucial that one can secure offtake agreements with reputable third parties.
Ongoing Development Commitment
The progress on securing water supply and acquiring strategic land reflects Ausgold’s continued commitment to advancing Katanning. The combination of infrastructure agreements, land consolidation, and regulatory steps positions the project toward development readiness.
Ausgold’s focus remains on delivering the project according to the DFS framework while maintaining flexibility for future growth.
