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 had garnered robust investor support for the KGP, successfully raising A$38-million in a two-tranche placement, the company reported on June 6.
The fundraising was anchored by international institutional investors, including Jupiter Asset Management and Dundee Corporation.
Newly appointed executive chairperson John Dorward also committed to subscribing for A$1-million under the institutional placement.
The capital raised will support the work programmes at KGP through to a final investment decision.
Ausgold is nearing the completion of the definitive feasibility study – set to be delivered in the second half of the year – for the project development.
The funding also enables the company to buy key farming properties that cover the main orebody and infrastructure areas of the KGP.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Ausgold, tel +61 8 9220 9890 or email info@ausgoldlimited.com.