Ausgold has completed a scoping study at its Katanning gold project in Western Australia, demonstrating the potential for a larger scale project.
Located 275km south-east of Perth, the Katanning gold project encompasses 20km of gold mineralisation with a mineral resource estimate of 56 million tonnes.
According to Ausgold, a new scoping study at the mine has identified the potential for a larger throughput capable of delivering 136,000 ounces of gold per annum of a ten-year mine life.
“Following the results of the 2022 PFS (pre-feasibility study), this scoping study clearly indicates increased scale from the PFS level mine plan producing 163,000 more ounces than the PFS over life of mine,” Ausgold managing director Matthew Greentree said.
“More importantly in the first six years, higher gold grades deliver an extra 174,000 ounces from what was determined in the PFS.”
The scoping study delivered a number of outcomes for Ausgold, including:
- high gold production and cash flow enabling payback of initial capital
- location providing access to supporting infrastructure, work force and stable low-cost energy with access to renewable sources
- a long mine life, providing opportunities to further optimise production with consideration of different mining scenarios
- updated resource due in the third quarter of 2023 (Q3 CY2023) to further expand the current mine plan.
Additional new drilling is planned for Q3 CY2023, with the definitive feasibility study expected to be complete in Q4 CY 2023.
“The scoping study underscores the Katanning gold project as the largest underdeveloped, free-milling, open cut gold project in Western Australia,” Ausgold said.