ASX-listed Ausgold has finalised the acquisition of two freehold properties at its 100%-owned Katanning gold project (KGP), about 275 km south-east of Perth, marking a milestone in advancing the project towards production.
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.
The properties were bought following a recent successful capital-raising initiative. MD Matt Greentree has emphasised the strategic importance of these acquisitions in derisking the project and advancing towards the commencement of production at KGP.
"Securing full ownership of these key landholdings is a pivotal achievement in our journey towards production at the Katanning gold project," said Greentree. "These acquisitions not only bolster our initial mine plan, but also underpin our proposed project infrastructure, significantly enhancing the overall project development strategy."
The vendors involved in the transaction are independent entities unrelated to Ausgold, ensuring transparency and adherence to corporate governance standards.
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.