Ausgold has locked in a $30.1 million EPC contract with ADD Business Group to build a 250-room workforce village near its Katanning Gold Project, marking a key step towards a final investment decision in late 2026.
- EPC contract signed with ADD for 250-room accommodation village
- Construction to start May 2026, partial availability by mid-September
- Total cost estimated at $30.1 million, slightly above DFS estimate
- Village completion aligns with key permits and Q4 2026 final investment decision
- Site leased long-term from Shire of Katanning
EPC Contract Secures Workforce Accommodation for Katanning
Ausgold Limited (ASX:AUC) has taken a decisive step in advancing its Katanning Gold Project by signing an engineering, procurement, and construction (EPC) contract with Perth-based ADD Business Group for a 250-room Workforce Accommodation Village. Located in Katanning town, roughly 40km from the project site, the village is set to become a critical infrastructure component supporting the mine’s development.
The contract, valued at $30.1 million, slightly exceeds the 2025 DFS update estimate of $30.0 million but remains within a tight range, excluding contingency allowances. ADD, a family-owned Western Australian builder with a track record in mining accommodation solutions, has already progressed detailed design and commenced modular building fabrication at its Perth facility. Construction is scheduled to begin in May 2026, with the first 100 rooms and kitchen facilities expected to be operational by mid-September.
Strategic Timing Aligns with Permitting and Investment Decision
The village’s completion is targeted for December 2026, aligning with Ausgold’s anticipated receipt of key permits and a final investment decision (FID) for the Katanning Gold Project in Q4 2026. This timing underscores the company’s commitment to maintaining momentum despite recent permitting delays that have pushed the FID timeline, as noted in the expanded drilling and partnership updates earlier this year.
The site is leased long-term from the Shire of Katanning, which also granted development approval in April 2026, reflecting strong local government support. Initial preparatory works, including electrical services installation, have commenced on site, signalling tangible progress on the ground.
Leadership and Project Momentum Amid Resource Expansion
Executive Chairman John Dorward highlighted ADD’s capability in delivering industrial accommodation projects and framed the contract as a milestone reinforcing Ausgold’s acceleration towards development. This infrastructure push complements ongoing high-grade drilling results and resource expansion efforts, which have extended the mineralisation footprint beyond the existing 2.44 million ounce resource estimate.
Recent leadership changes, including the appointment of Ben Stockdale as CEO, coincide with this phase of project maturation, signalling a transition from exploration to development and eventual production. The workforce village will be pivotal in supporting operational needs once mining commences, integrating with broader project permitting, financing, and contract tendering activities.
The village layout and modular design offer flexibility and efficiency, reflecting modern mining accommodation trends. The project’s progress will be critical to watch as Ausgold navigates the final hurdles before committing capital and moving towards construction of the mine itself.
Bottom Line?
Ausgold’s workforce village contract cements a tangible step toward project delivery, but execution risks and permitting remain key hurdles before mining begins.
Questions in the middle?
- Will Ausgold secure all remaining permits to meet its Q4 2026 final investment decision?
- How might ongoing drilling results influence project scale or timelines ahead of construction?
- What financing arrangements will support the transition from development to production phases?