Name of the Project
Katanning gold project (KGP).

Location
Western Australia.

Project Owner/s
Ausgold.

Project Description
A scoping study, based on an existing prefeasibility study, has shown the potential for Katanning to support a larger five-million-tonne-a-year operation. Projected gold production is estimated at 155 000 oz/y over the first six years and an average 136 000 oz/y over a ten-year mine life.

The on-site processing plant will treat a blend of oxide, transitional and fresh gold-bearing ores from the KGP’s openpits.

The scoping study envisages processing throughputs of three-million tonnes a year and five-million tonnes a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of A$819-million and an after-tax internal rate of return of 46%%, with a payback of about 20 months.

Capital Expenditure
Preproduction capital costs are estimated at A$297-million, including a 7% contingency.

Planned Start/End Date
Not stated.

Latest Developments
Ausgold has finalised the acquisition of two freehold properties at the KGP, marking a milestone in advancing the project towards production.

"These acquisitions not only bolster our initial mine plan, but also underpin our proposed project infrastructure, significantly enhancing the overall project development strategy," MD Matt Greentree has said.

The vendors involved in the transaction are independent entities unrelated to Ausgold, ensuring transparency and adherence to corporate governance standards.

The acquired properties span a total area of 1 026 ha within the KGP. One property, situated within mining lease 70/488, covers 94 ha and encompasses the southern extent of the Central zone resource, which includes deposits such as Jinkas, Jinkas South and Jackson. This area is slated to be a primary source of ore during the initial 18 months of production at the KGP.

The second property, located within exploration licences 70/2928 and 70/3952, spans 932 ha. It is earmarked for mine infrastructure, including processing facilities and tailings storage.

Ausgold has initiated the process of converting exploration tenure to mining leases.

Meanwhile, Ausgold is nearing the completion of the definitive feasibility study for the project development, which is set to be delivered in the second half of the year.

Key Contracts, Suppliers and Consultants
None stated.

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