Perth-based Ausgold doubles size of Katanning gold project with two new lease acquisitions

Ausgold has acquired two additional leases for the upcoming gold mine at Badgebup, 40km north-east of Katanning, doubling the size of the 3.04 million ounce project.

The two leases, granted by the Department of Energy, Mines, Industry Regulation and Safety, will expand the project by 649ha — doubling the area of the gold project covered under the mining lease.

Infrastructure to be built on the lease sites for the Katanning gold project will include mining infrastructure, processing facilities, waste dumps and tailings storage.

The Perth-based mining company announced in June it had secured an additional $38 million in funding from investors to complete studies and buy properties to support ongoing work programs in Katanning and the completion of the definitive feasibility study.

The project aims to hire about 150 local workers and collaborate with local businesses for development and operations.

In 2023, the project acquired two farming properties spanning 1026ha that covers the Jinkas, Jinkas South and Jackson deposit sites for $10.76m.

Ausgold executive chairman John Droward said the granting of the two leases marks a “significant milestone” for the Katanning gold project.

“Acquisition of the freehold land underlying the mining leases was only settled in June of this year, so to have already received these mining leases highlight the favourable conditions for undertaking new mining projects in Western Australia,” he said.