Ausgold Ends Legal Battle, Secures Key Land for Katanning Gold Project Expansion

Transformative Land Acquisition

Ausgold Limited (ASX, AUC) has taken a decisive step forward in the development of its Katanning Gold Project (KGP) in Western Australia by signing a binding agreement to acquire approximately 860 hectares of freehold land. This land is not only central to the project’s footprint but also includes a material portion of the KGP’s mineral resource, previously constrained by tenure disputes.

The acquisition effectively ends a legal dispute that has been ongoing since August 2023, which had restricted Ausgold’s access to key areas of its Mining Licence ML70/211. By resolving this dispute, Ausgold has removed a significant barrier that had limited exploration and development activities, allowing the company to move ahead with renewed confidence.

Unlocking New Potential and Project Optimisation

With the land acquisition secured, Ausgold plans to re-optimise the June 2025 Definitive Feasibility Study (DFS). The original DFS was developed under the constraint of limited tenure, which excluded some promising mineralised zones from the mine plan. The expanded landholding now enables the company to incorporate these areas, potentially extending the life of mine and improving production profiles.

Additionally, the re-optimisation aims to reduce mining costs by relocating waste dumps closer to mining areas, thereby decreasing haulage distances. This operational refinement could enhance project economics and improve overall efficiency.

Exploration Drilling to Accelerate

Access to the newly acquired land also unlocks immediate exploration opportunities. Ausgold intends to launch a multi-rig drilling program targeting down-plunge extensions of the Central Zone ore shoots, where previous drilling returned high-grade gold intercepts. The program will also focus on the White Dam lode, known for some of the highest-grade results within the project.

These drilling efforts are designed to de-risk the first two years of production and potentially add significant ounces to the resource base. The company’s Executive Chairman, John Dorward, highlighted the importance of this breakthrough, noting that it removes a key obstacle and allows the full potential of the Katanning district to be realised.

Financial and Strategic Implications

The total consideration for the land acquisition is $35 million, payable in two stages, $15 million by late August 2025 and $20 million upon the Final Investment Decision (FID) or by August 2026, whichever comes first. Ausgold’s cash position of $45 million as of July 31, 2025, provides a solid financial foundation to support this transaction and upcoming development activities.

The vendors are required to vacate the land by February 2027, ahead of anticipated mining commencement, ensuring Ausgold can proceed without further tenure complications. This strategic move not only secures the project’s immediate future but also provides a buffer for potential expansion, positioning Katanning as a more robust and scalable gold operation.