Ausgold takes another step in Katanning’s development pipeline, pointing to a shift in the project’s status from a gold site being advanced through study and exploration to one prepared for execution.
The miner has since executed key early works agreements for the gold project in Western Australia, as Ausgold looks to de-risk the project ahead of a final investment decision (FID) by the end of 2026 and first gold production in mid-2028.
The company signed an early works agreement with Lycopodium, allowing detailed engineering and project execution planning to begin ahead of FID.
Ausgold has also signed an early works agreement with CrossBoundary Energy, enabling detailed engineering and procurement of long-lead equipment for the planned hybrid gas, solar and battery energy storage system power station.
Ausgold executive chairman John Dorward said the company was focused on advancing the workstreams that matter most before moving into construction.
“We are continuing to execute a disciplined development strategy at Katanning that focuses on advancing those workstreams that will have the greatest impact on reducing project risk and compressing the construction schedule once a final investment decision is made,” Dorward said.
“By progressing detailed engineering, accommodation infrastructure development, power supply and permitting activities in parallel, we are ensuring that the Katanning Gold Project is well positioned for a smooth transition into construction following FID.
That is the central significance of the latest update. Rather than waiting for FID before pushing into engineering, power, accommodation and permitting, Ausgold is advancing those areas in parallel to support a faster transition into construction if the board gives the project the green light.
Ausgold’s June 2025 definitive feasibility study outlined average production of 140,000 ounces per annum over the first four years, total production of 1.14 million ounces across a 10-year mine life, and a 3.6-million-tonne-per-annum open-pit operation.
The project was further strengthened in December 2025, when Ausgold updated the DFS to reflect enhancements stemming from a land acquisition deal announced in August. The updated DFS increased life-of-mine forecast gold production by 82,000 ounces to 1.22 million ounces, lifted the ore reserve to 1.33 million ounces and maintained a 3.6Mtpa processing facility.
This puts the latest early works update in a broader context. Ausgold has already established Katanning’s production case; the current focus is on reducing the risks that can slow a project between study, financing, approvals and construction.
Construction has also commenced at the Katanning Accommodation Village following the execution of a fixed-price contract with ADD.
Siteworks are underway, while modular building manufacture is approximately 45 per cent complete off-site. Delivery of the first modules is expected to begin in early August 2026, with initial accommodation modules scheduled to be operational by November 2026.
The accommodation piece speaks directly to project readiness, and by having early workforce capacity available ahead of a construction decision, Ausgold is positioning the project to move quickly after FID rather than losing time to mobilisation constraints.
Permitting is also continuing to advance, with Ausgold submitting all additional information requested by the Western Australian Environmental Protection Authority, including targeted flora and fauna field surveys.
The company said the project’s location predominantly on cleared agricultural land continues to support its view that Katanning has favourable permitting characteristics.
“Importantly, the ongoing environmental assessment process continues to reinforce what we have long believed – that Katanning is a highly developable project located predominantly on cleared farmland with a relatively modest environmental footprint,” Dorward said.
“The extensive follow-up surveys requested by the EPA, including specialist fauna surveys, have further strengthened this position.
“With these important milestones now being achieved, we remain firmly focused on achieving a final investment decision by the end of 2026 and first gold production in mid-2028.”
The EPA’s own project page describes Katanning as an open-cut gold mine proposal approximately 275km south-east of Perth and 37km north-east of Katanning, with total proposed disturbance of up to 68.78 hectares across a 10-year mine life.
Beyond development works, Ausgold is continuing to chase resource growth. Previously reported, the company launched a 44,000m drilling campaign in October 2025 to expand Katanning’s 2.44-million-ounce resource and test regional discovery opportunities across 3000km² of tenure.
That drilling campaign has since increased to 54,000m of reverse circulation and diamond drilling, targeting resource growth, future reserve conversion, confidence in early mine-life areas and new discoveries across Ausgold’s regional tenure in south-west WA.
The result is a dual-track development strategy: Ausgold is preparing Katanning for a near-term investment decision while continuing to test whether the project can grow beyond its current mine plan.
Katanning’s next phase will hinge on whether this early execution work can translate into financing, approvals and a construction decision by the end of 2026.
