Permitting and Financing Risks Loom as Ausgold Advances Katanning DFS

Definitive Feasibility Study Confirms Strong Project Fundamentals

Ausgold Limited has delivered a comprehensive Definitive Feasibility Study (DFS) for its Katanning Gold Project (KGP) in Western Australia, outlining a compelling pathway to become a mid-tier gold producer. The study confirms a 10-year open-pit mine life with total gold production of approximately 1.14 million ounces, underpinned by a robust mineral resource of 2.44 million ounces and ore reserves of 1.25 million ounces.

Financially, the project is highly attractive, boasting a post-tax free cash flow of A$1.37 billion and an internal rate of return (IRR) of 53% based on a gold price of A$4,300 per ounce. The initial capital expenditure is estimated at A$355 million, with a rapid payback period of just 13 months from first production, targeted for late 2027.

Operational and Economic Highlights

The KGP is designed as a straightforward, low-risk operation in a Tier-1 mining jurisdiction. It features a conventional carbon-in-leach (CIL) processing plant with a throughput of 3.6 million tonnes per annum and an average gold recovery rate of over 90%. The project’s all-in sustaining cost (AISC) is competitive, averaging A$2,265 per ounce over the life of mine, positioning Katanning in the lower half of the Australian cost curve.

Production is front-loaded with higher grades in the initial four years, averaging 140,200 ounces annually, supporting strong early cash flows. The mine plan incorporates a strip ratio of 6.85, reflecting efficient waste-to-ore movement, and the project footprint has been designed to minimize environmental disturbance.

Exploration Upside and Regional Potential

Ausgold is aggressively pursuing exploration to extend the mine life beyond the initial 10 years. The company controls over 3,500 square kilometers of tenure in the Katanning Greenstone Belt, with multiple regional prospects showing promising drill results. Recent drilling has increased the cornerstone Jinkas-White Dam resource by 207,000 ounces and identified high-grade zones down-plunge and along strike.

Ongoing infill and near-mine drilling aim to de-risk early production zones, while regional exploration targets satellite deposits to feed a potential future production hub. The company’s strategy includes underground resource expansion and resource growth through systematic exploration, supported by a refreshed leadership team with strong technical and financing expertise.

Community Engagement and Permitting Progress

Ausgold has made significant strides in community engagement, establishing a Consultation Hub in Katanning and forming a Community Reference Group chaired by a former WA EPA Chair. The permitting process is advancing on schedule, with key environmental and land access approvals targeted for completion in 2025 and early 2026.

Land access negotiations are underway, including a Warden’s Court hearing scheduled for August 2025 to determine compensation for affected landholders. The company has already secured over 1,000 hectares of freehold land to host processing and infrastructure facilities, further de-risking project development.

Outlook and Next Steps

With the DFS completed on time and budget, Ausgold is now focused on securing project financing, finalizing permitting and land access, and advancing exploration to enhance resource confidence and growth. The company aims to deliver a low-cost, long-life gold operation that leverages its dominant land position and regional exploration upside.

Investors and stakeholders will be watching closely as Ausgold moves toward a final investment decision and project construction, positioning Katanning as a significant new gold producer in Australia’s premier mining jurisdiction.