Ausgold Targets 70% Stake in 106km² Kulin Tenement with FY26 Drilling
Ausgold Limited has secured a farm-in agreement to acquire up to 70% of a highly prospective exploration license adjacent to its Kulin Gold Project, setting the stage for drilling in FY26 to unlock new gold targets.
- Farm-in agreement with Critica Limited for Exploration License E70/5077
- License covers 106 km² along the gold-rich Yandina Thrust structure
- Significant gold-in-soil anomalies and trench intercepts identified
- Ausgold to earn up to 70% interest through staged expenditure
- Maiden drilling campaign planned for FY26 targeting high-priority zones
Strategic Expansion in Western Australia
Ausgold Limited (ASX – AUC) has taken a decisive step to broaden its footprint in the Katanning Greenstone Belt by entering a farm-in and joint venture agreement with Critica Limited (ASX – CRI). This deal grants Ausgold the right to earn up to a 70% interest in Exploration License E70/5077, a 106 square kilometre tenement that lies adjacent to its existing Kulin Gold Project in Western Australia.
The tenement is strategically located along the northern extension of the Yandina Thrust, a geological structure known for hosting significant gold deposits such as Griffins Find and Tampia mines. This proximity underscores the prospective nature of the license and its potential to host economically viable gold mineralisation.
Compelling Exploration Data
While previous diamond drilling has tested deeper extensions of the mineralisation, results suggest significant near-surface gold remains untested. Ausgold’s planned drilling campaign in FY26 aims to systematically evaluate these anomalies, potentially identifying satellite deposits that could complement and scale up its flagship Katanning Gold Project.
Farm-In Terms and Future Plans
Under the agreement, Ausgold will earn an initial 51% interest by spending $250,000 within 18 months, followed by an additional 19% interest through a further $360,000 expenditure over the next two years. Upon completion, Critica will retain a 30% contributing interest with an option to convert to a 1.5% net smelter royalty.
Ausgold’s Executive Chairman, John Dorward, highlighted the strategic importance of this acquisition, emphasizing the company’s ambition to establish a regional production hub by leveraging existing infrastructure and expanding its resource base through satellite deposits.
Outlook and Market Implications
The addition of E70/5077 significantly enhances Ausgold’s regional landholding and exploration potential within a proven gold province. The upcoming drilling program will be closely watched by investors as it could materially impact the company’s resource inventory and development timeline. Success here would not only validate Ausgold’s regional growth strategy but also strengthen its position in the competitive Western Australian gold exploration landscape.
Bottom Line?
Ausgold’s farm-in deal marks a pivotal expansion, with FY26 drilling poised to reveal whether this promising ground can deliver the satellite deposits needed to boost its flagship project.
Questions in the middle?
- Will the upcoming drilling confirm near-surface gold mineralisation sufficient to justify resource upgrades?
- How will Ausgold balance exploration expenditure with advancing its flagship Katanning Gold Project?
- What are the potential timelines and capital requirements for developing satellite deposits into production?
