Ausgold’s 10-Year Katanning Plan Shines in DFS: What it Means for Gold Prospects

June 30, 2025 01:46 PM AEST | By Team Kalkine Media

Ausgold’s 10-Year Katanning Plan Shines in DFS: What it Means for Gold Prospects — Image source: Shutterstock

Strong Production Outlook and Fast Payback

The DFS projects average annual gold production of 140,000 ounces during the first four years, contributing to a total estimated life-of-mine output of 1.14 million ounces. Importantly, the forecast outlines a rapid 13-month payback period from the commencement of production. Based on a gold price assumption of AUD 4,300 per ounce, the project anticipates a post-tax cash flow of AUD 1.37 billion and an internal rate of return of 53%.

This analysis confirms the project's potential to support long-term production with robust economics, positioning Katanning as a development-ready opportunity in Australia’s gold landscape.

Comprehensive Costing and Project Readiness

The DFS was conducted by a combined team from Ausgold and Minescope Services, offering a detailed breakdown of capital, operating costs, and production estimates. Plans include a 3.6 million tonne-per-annum processing facility. Engineering, procurement, and construction schedules are also mapped out, providing a solid foundation for project execution.

Katanning’s established ore reserves help de-risk the open-pit mine plan and support Ausgold’s efforts to advance into front-end engineering, equipment procurement, and debt financing.

Progressing Toward Final Investment Decision

Ausgold is currently pursuing multiple parallel workstreams to prepare for the project's next development phase. Environmental monitoring and permitting processes are underway, alongside engineering activities that enable early procurement of long-lead equipment.

Furthermore, an updated resource estimate for Katanning, as of September 2023, now stands at 69 million tonnes at 1.11 grams per tonne, totalling 2.44 million ounces of contained gold.

Though not currently an ASX 200 stock, Ausgold continues to attract interest from investors focused on emerging gold opportunities. For those tracking established market players, the ASX 200 index list remains a useful resource.

With a clear development path ahead and encouraging financial metrics, Ausgold’s Katanning project may stand out as one of the more compelling gold developments in Australia’s resource sector.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.