Ausgold (ASX:AUC) has executed early works agreements with preferred contractors at the Katanning Gold Project in Western Australia, as it targets a final investment decision by the end of 2026.
The company has signed early works agreements with preferred engineering, procurement and construction contractor Lycopodium (ASX:LYL) and build-own-operate power provider CrossBoundary Energy to advance detailed engineering and project execution planning ahead of a final investment decision (FID).
Construction activities are underway at the Katanning Accommodation Village following a fixed-price construction contract with ADD Business Group. Siteworks have commenced and modular building manufacture is approximately 45% complete off-site, with delivery of the first modules expected from early August 2026.
Initial accommodation modules are scheduled to be operational by November 2026 to support mobilisation of the early construction workforce following FID.
Environmental permitting continues to advance after Ausgold submitted all additional information requested by the WA Environmental Protection Authority, including a comprehensive program of targeted field surveys.
“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,” Ausgold Executive Chairman John Dorward says.
The early works agreement with Lycopodium enables detailed engineering, project execution planning, refinement of construction methodologies, and purchase of vendor data for procurement packages.
The agreement with CrossBoundary Energy allows detailed engineering and procurement of long-lead equipment to commence for the planned hybrid gas, solar, and battery energy storage system power station.
Environmental studies continue to support the project’s permitting process, with Katanning located predominantly on cleared agricultural land and requiring relatively limited disturbance of native vegetation.
Targeted surveys completed include a specialist trapdoor spider survey requested by regulators, with no occurrences identified within the project footprint.
Ausgold is targeting first gold production in mid-2028 following an FID and commencement of construction.
The company continues to progress its 54,000m reverse circulation and diamond drilling campaign, with additional assay results expected in the coming weeks. The drilling campaign is targeting resource growth to support future reserve conversion and improve confidence in early mine life areas.
Write to France Pinzon at Mining.com.au
Images: Ausgold
