Ausgold has unveiled a highly favourable definitive feasibility study for its Katanning gold project in Western Australia, highlighting robust financial returns and a rapid payback period.
Completed on schedule by Ausgold and Minescope Services, the DFS outlines average gold production of 140,000 ounces per annum over the first four years, with total production reaching 1.14 million ounces across the mine’s 10-year life.
At a gold price of $4300 per ounce, the project is expected to generate a post-tax cashflow of $1.37 billion and deliver an internal rate of return of 53 per cent. Payback is estimated at just 13 months from the commencement of production.
“We are delighted with the outcomes of the DFS which clearly demonstrate the robust financial returns that will be generated by the Katanning gold project,” Ausgold executive chairman John Dorward said.
“The on-schedule completion of this high-quality study marks a critical milestone in Ausgold’s journey to becoming Australia’s next mid-tier gold producer.”
The proposed 3.6-million-tonne-per-annum open pit operation is projected to achieve all-in sustaining costs of $2180 per ounce in its initial four years, rising slightly to $2265 per ounce over the life of mine.
Underpinned by a 1.25-million-ounce ore reserve, Katanning is deemed “development-ready”. Ausgold is now focusing on front-end engineering, design, and securing project financing.
“We are now turning our minds to the next phase of project development, including front-end engineering and design and debt financing, while we also progress activities to finalise land access and complete permitting for the project,” Dorward said.
Katanning is a new entrant in Western Australia’s gold sector, bolstering Ausgold’s ambitions for mid-tier producer status.
