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Introduction:  Ausgold (ASX:AUC)

Ausgold is focused on becoming Australia’s next mid-tier gold producer, with a 100% interest in the Katanning Gold Project which is located 275km south-east of Perth and approximately 40km north-east of the town of Katanning in southwest Western Australia.  The tenements cover over 5,500km2 of the Katanning Greenstone Belt in the south-west corner of the Yilgarn Craton, which hosts some of Australia’s largest gold deposits.

Gold mineralisation has been identified over 20 kilometres of strike at the KGP and the Project contains a JORC 2012-compliant Mineral Resource Estimate of 56 million tonnes at 1.21 g/t gold for 2.16 million ounces, of which 1.78 million ounces (83%) are in the Measured and Indicated categories.

A Prefeasibility Study (PFS) was completed and announced on 1 August 2022 highlighting the 2.16 Moz Katanning Gold Project as the largest undeveloped free milling open cut gold mining project in Western Australia. The PFS outcomes will form the basis for the DFS, which demonstrated:

  • Maiden Probable Ore Reserve of 32Mt @ 1.25g/t gold for 1.28Moz (Inferred Mineral Resource excluded)
  • High 1.47g/t Au head grade in the initial 6 years of production
  • Average annual gold production of 105,000 oz for 11 years LOM using simple open cut mining methods
  • Excellent metallurgical characteristics with gold recoveries over 90%
  • Project Mineral Resources 56Mt @ 1.21g/t gold for 2.16Moz
  • Post-tax NPV5 of A$364M, with an assumed gold price of A$2,300
  • Internal Rate of Return (IRR) of 40.7% post-tax
  • All-In-Sustaining Cost (AISC) A$1,370/oz first six years of production
  • Payback period of 1.7 years

Overview:  Katanning Gold Project

The KGP represents a 20km long mineralised trend with significant potential across three key zones:

  • Northern Zone – Datatine
  • Central Zone – Jackson, Olympia, Jinkas, and Jinkas South
  • Southern Zone – Rifle Range, Dingo, and Lukin

Ausgold is currently executing on a large 25,000m drilling program which is designed to unlock further mulit-million-ounce potential by expanding Resources and regional exploration – testing numerous high-value targets across the 5,500km2 tenement holding in the South West Yilgarn.

The Company also has potential associated with its regional tenure holding for gold, copper, silver and PGE opportunities. In particular, an assessment of lithium potential across the Katanning greenstone belt is underway, with re-analysis for lithium in eight pegmatite occurrences at the Katanning Gold Project, Woodanilling Project and Nanicup Bridge.

The relative proximity of Ausgold tenure to the giant Greenbushes lithium deposit approximately 50 km to the west is an encouraging indicator for potential.

Recent significant drilling results include:

Central Zone

16m @ 2.42 g/t Au from 23m

15m @ 1.43 g/t Au from 9m

9m @ 1.58 g/t Au from 24m

20m @ 10.5 g/t Au from 10m

26m @ 6.6 g/t Au from 117m

20m @ 7.6 g/t Au from 96m

13m @ 11.3 g/t Au from 7m

28m @ 4.8 g/t Au from 49m

20m @ 6.5 g/t Au from 93m

20m @ 15.6 g/t Au from 97m

Southern Zone

6m @ 2.10g/t Au from 111m

21m @ 2.11 g/t Au from 61m

10m @ 2.89 g/t Au from 84m

6m @ 4.5 g/t Au from 32m

9m @ 2.52 g/t Au from 85m

18m @ 1.23 g/t Au from 83m

10m @ 2.01 g/t Au from 66m


Ausgold represents an opportunity to invest in one of the largest undeveloped free-milling open cut gold projects in Western Australia.  Over the last year, the Company has added almost 1Moz to the Project, and with ongoing exploration success, the significant scale potential at Katanning means Ausgold is just getting started.

Key highlights:

  • Significant foundation established with 2.16Moz gold Resource, including a 1.28 million ounce Maiden Ore Reserve
  • Pre-Feasibility Study delivered demonstrating a mid-tier gold operation
  • DFS underway and a Scoping Study running in parallel to assess larger scale development options
  • Tier 1 jurisdiction with access to key infrastructure, grid power, which supports a sustainable low-cost life of mine operation
  • Whole of belt exploration play with over 5,500 km2 of tenure – Further exploration potential exists that can materially change the scale of the Katanning Gold Project with a 25,000m multi-rig drill program currently underway focused on resource expansion and regional exploration
  • Low discovery cost ~$11 per Resource oz
  • Resource update planned Q3 CY2023
  • Regional gold, lithium and Ni-PGE targets

Katanning Gold Project Resource and Reserves

Peer Comparison