Legal Dispute Resolved: Ausgold’s Land Deal Paves Way for Cost Cuts and Production Gains
Ausgold Limited has completed a $35 million capital raising and acquired critical freehold land, resolving a long-standing legal dispute and enabling a re-optimisation of its Katanning Gold Project mine plan. This strategic move sets the stage for an extensive drilling campaign and advances the project toward a final investment decision in mid-2026.
- Binding agreement to acquire 860 hectares of critical freehold land
- Re-optimisation of June 2025 Definitive Feasibility Study (DFS) underway
- $35 million capital raising strongly supported by institutional investors
- Major 44,000m multi-rig drilling program commencing in October
- Pre-development activities progressing including permitting and infrastructure
Strategic Land Acquisition Resolves Legal Impasse
Ausgold Limited has taken a decisive step forward in developing its 100%-owned Katanning Gold Project (KGP) in Western Australia by signing a binding agreement to acquire approximately 860 hectares of freehold land. This acquisition is pivotal, not only because it secures a substantial portion of the project’s proposed footprint but also because it resolves a legal dispute that had been ongoing since August 2023. The land includes key areas previously excluded from mining plans due to tenure constraints, unlocking new opportunities for resource extraction.
Re-optimising the Mine Plan for Greater Value
With the land acquisition in place, Ausgold is now re-optimising the June 2025 Definitive Feasibility Study (DFS) mine plan. This re-optimisation aims to incorporate additional gold production from the Central Zone, which was previously off-limits, and to reduce mining costs by relocating waste dumps closer to mining areas, thereby cutting haulage distances. The updated mine plan is expected to enhance the project’s economics and extend its life-of-mine production profile.
Robust Capital Raising and Financial Position
To fund these advancements, Ausgold successfully completed a $35 million share placement during the quarter, attracting strong support from both new and existing offshore and domestic institutional investors. This capital injection bolsters the company’s balance sheet, with cash reserves standing at $23.4 million at quarter-end, providing ample runway to progress pre-development activities and exploration drilling.
Advancing Pre-development and Drilling Programs
Pre-development work continues apace, covering permitting, mine water supply arrangements, accommodation facilities, and process plant engineering. Notably, Ausgold finalised a borefield and pipeline easement agreement with a local landholder, securing essential water infrastructure for the project’s lifespan. Meanwhile, a major 44,000-metre drilling campaign is set to commence in October, focusing on resource growth, mine plan de-risking through in-fill drilling, and exploration of new targets within Ausgold’s extensive landholdings in the Katanning Greenstone Belt.
Expanding Regional Footprint and Partnerships
Beyond the KGP, Ausgold is actively expanding its exploration portfolio. The company lodged four new exploration licence applications targeting highly prospective greenstone belts and entered a farm-in agreement with Serena Minerals Limited over the Lake Magenta Project. This partnership allows Serena to earn up to an 85% interest by funding exploration, enabling Ausgold to focus resources on its core projects while maintaining exposure to promising regional opportunities.
Looking Ahead to Final Investment Decision
Ausgold’s Executive Chairman John Dorward emphasised the company’s momentum toward a final investment decision (FID) targeted for mid-2026. The resolution of land access issues, combined with the capital raise and upcoming drilling program, positions Ausgold well to enhance project value and advance the KGP from feasibility to development. The coming months will be critical as the company finalises mine plan optimisation, progresses permitting, and delivers drilling results that could further underpin the project’s robust economics.
Bottom Line?
Ausgold’s strategic land acquisition and capital raise mark a turning point, setting the stage for a re-optimised Katanning Gold Project and a pivotal drilling campaign ahead of its 2026 investment decision.
Questions in the middle?
- How will the DFS re-optimisation quantitatively impact the KGP’s production profile and costs?
- What are the key risks remaining in permitting and community approvals that could affect timelines?
- How might drilling results from newly accessible land influence resource estimates and project valuation?