Ausgold Limited has acquired 240 hectares of key land, removing a major hurdle for its Katanning Gold Project and enabling expanded resource development and operational improvements.
- Acquisition of 240 hectares including part of Mining Licence ML70/210
- Land purchase priced at $3 million with settlement in November 2025
- Enables expansion of Dingo Resource beyond current mine plan
- Ongoing Definitive Feasibility Study (DFS) optimisation underway
- Launch of multi-rig drilling program targeting high-grade zones
Strategic Land Acquisition Advances Katanning Gold Project
Ausgold Limited (ASX – AUC) has taken a decisive step forward in the development of its 100%-owned Katanning Gold Project (KGP) in Western Australia by signing a binding agreement to acquire approximately 240 hectares of freehold land. This parcel includes a significant portion of the existing Mining Licence ML70/210 and an additional buffer zone that could facilitate future resource expansion beyond the current mine plan outlined in the June 2025 Definitive Feasibility Study (DFS).
Located about 275 kilometres south-east of Perth, the Katanning project has faced historical challenges related to land access, which have impeded its progress. Executive Chairman John Dorward highlighted the acquisition as a key de-risking milestone, stating it removes previous constraints and allows the company to fully explore the district’s potential.
Implications for Project Development and DFS Optimisation
The $3 million land acquisition, expected to settle in November 2025, is more than a simple property transaction. It strategically positions Ausgold to revisit and optimise its mine plan. The company is currently updating the DFS to incorporate the expanded tenure, aiming to add life-of-mine gold production from previously excluded areas of the Central Zone mineral resource. Additionally, the optimisation seeks to reduce mining costs by relocating waste dumps to more efficient locations, potentially improving haulage logistics.
This expanded footprint could unlock new value by allowing access to high-grade ore shoots that were off-limits due to prior land restrictions. The move signals Ausgold’s confidence in the underlying geology and the economic viability of the project as it moves closer to production.
Exploration Drilling to Target High-Grade Zones
Complementing the land acquisition and DFS work, Ausgold is launching a multi-rig drilling program starting in late October. This campaign will focus on extending the down-plunge reach of the Central Zone ore shoots and testing the White Dam lode, which has historically yielded some of the highest-grade gold intercepts at Katanning.
Previous drilling results in these areas have been impressive, with intercepts such as 16 metres at 19.25 grams per tonne gold and 7 metres at 10.94 grams per tonne gold. The new drilling aims to build on these results, potentially expanding the resource base and enhancing the project’s economic outlook.
Looking Ahead
With land tenure issues resolved and exploration ramping up, Ausgold is positioning the Katanning Gold Project for a critical phase of development. The company’s ability to convert these strategic moves into increased resources and improved project economics will be closely watched by investors and analysts alike.
Bottom Line?
Ausgold’s land acquisition clears a major hurdle, setting the stage for resource growth and operational gains at Katanning.
Questions in the middle?
- How will the DFS optimisation impact the project’s production timeline and cost structure?
- What results will the upcoming drilling program yield, and how might they affect resource estimates?
- Are there any remaining regulatory or community challenges that could affect project development?