Ausgold Extends Katanning Drilling Following High-Grade Gold Discoveries

Expanded Drilling Campaign Reveals High-Grade Extensions

Ausgold Limited (ASX:AUC) has ramped up its drilling activities at the Katanning Gold Project (KGP) in Western Australia, extending the program from an initial 44,000 metres to 54,000 metres. With five rigs now operating on site, the company has reported significant step-out drilling results that push mineralisation well beyond the existing 2.44 million ounce resource estimate and the December 2025 Definitive Feasibility Study (DFS) pit designs.

Notable intercepts include 10 metres at 2.24 grams per tonne (g/t) gold from 346 metres depth, featuring a 2-metre high-grade interval of 9.45 g/t, and 20 metres at 1.20 g/t from 180 metres, among others. These results suggest substantial down-dip extensions of mineralisation, particularly in the Central and Southern Zones, which could materially enhance the mine’s life and scale.

In-fill drilling has also confirmed and locally exceeded the current resource model, with intercepts such as 24 metres at 0.89 g/t and 20 metres at 1.00 g/t gold, underpinning confidence in the early years of production. Metallurgical diamond drilling returned even higher grades early in the mine schedule, including 8 metres at 9.54 g/t, reinforcing expectations of a robust feed grade in initial operations.

Strategic Partnership with Traditional Owners

In a significant development for social licence and cultural heritage management, Ausgold signed a binding Consultation and Cooperation Agreement with the Wagyl Kaip Southern Noongar Aboriginal Corporation. This landmark deal establishes a formal framework for ongoing engagement, cultural heritage protection, and community benefits, including a target of 5% Indigenous workforce participation by the third year of operations.

This partnership aligns with Ausgold’s commitment to respectful stakeholder relations and supports sustainable project development in the Great Southern region of WA. The agreement follows earlier announcements detailing the company’s community engagement efforts and is a critical milestone in securing social approval for the KGP.

Permitting Progress and Delays

While Ausgold continues to advance permitting through Western Australia’s Priority Approvals Program, the Environmental Protection Authority (EPA) has requested additional ecological information. This includes surveys on groundwater impacts, black cockatoo habitats, and trapdoor spider presence, necessitating small-scale ecological studies in Q2 2026.

Consequently, the timing for key approvals and the Final Investment Decision (FID) has shifted to Q4 2026. Ausgold remains confident that these requirements do not pose material development risks but acknowledges the impact on the project timeline.

The company also received a new water permit in January 2026, facilitating groundwater testing essential for future mine water supply. Meanwhile, contract tendering is well underway for critical components such as workforce accommodation, process plant construction, power supply, and mining services, positioning Ausgold for a swift transition to construction once approvals are secured.

Financial Position and Upcoming Catalysts

Ausgold closed the quarter with a strong cash balance of A$97.9 million, bolstered by a $30 million placement and option exercises. Quarterly cash outflows primarily related to exploration and evaluation activities totalled approximately $5.6 million, reflecting the intensive drilling campaign and pre-development work.

Looking ahead, the June quarter will see the commencement of workforce accommodation construction and ongoing tender evaluations. The expanded drilling program will continue, targeting resource growth at key lodes such as Jinkas, White Dam, and Jackson, alongside regional exploration at Nanicup Bridge and other prospects.

These initiatives build on recent high-grade assay hits that have reinforced the resource expansion narrative at Katanning, as highlighted in the company’s prior update reporting assays up to 41.25 g/t gold. Such results reinforce the potential for a substantial, long-life gold operation in WA’s south-west.