Ausgold has executed key early works agreements for its Katanning Gold Project (KGP) in Western Australia, supporting its planned final investment decision (FID) by the end of 2026 and first gold production in mid-2028.
The company has signed an early works agreement with preferred engineering, procurement and construction (EPC) contractor Lycopodium, allowing detailed engineering and project execution planning to begin ahead of FID.
Ausgold has also signed an early works agreement with preferred build-own-operate power provider CrossBoundary Energy, enabling detailed engineering and procurement of long-lead equipment for the project’s planned hybrid gas, solar and battery energy storage system power station.
The milestones come after Ausgold completed an updated definitive feasibility study for Katanning in December 2025, with engineering, infrastructure, power, accommodation and permitting activities now advancing in parallel.
Ausgold executive chairman John Dorward said the company was focused on de-risking the project 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.”
Construction has also commenced at the Katanning Accommodation Village following the execution of a fixed-price construction 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.
Ausgold said the timing was designed to ensure accommodation capacity is available for the early construction workforce following FID.
Environmental permitting is also progressing, 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 assessment process continued to reinforce the project’s permitting characteristics, with Katanning located predominantly on cleared agricultural land and requiring relatively limited disturbance of native vegetation.
“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.”
Ausgold is also continuing a 54,000m reverse circulation and diamond drilling campaign targeting resource growth, future reserve conversion and new discoveries across its 3000km² regional tenure in south-west WA.
Read More: Ausgold bolsters leadership ahead of final investment decision
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