- Ausgold (ASX:AUC) is set to publish the DFS for its Katanning gold project in Q2 of CY24
- The company is heading towards the financing stage with FID expected by Q1 CY25 at the latest but Q4 CY24 ideally
- Gold remains high through geopolitical trouble as ever and remains an interesting proposition through turbulent times
- Shares last traded at 2.9 cents
Ausgold (ASX:AUC) has outlined its path towards producing 3.4Moz of gold a year with the definitive feasibility study (DFS) for its Katanning project set for Q2 of the calendar year.
The DFS is to be established on the existing, but recently upgraded, resource – which AUC anticipates to underpin “the largest new free-milling, open cult gold project in WA.”
Progress towards publication is well and truly in situ with the company already having clocked wildlife surveys; geotech assessments, metallurgy, early plant design and proposals for power supply.
Western Power has conducted a capacity study looking at the possibility of connecting the Katanning project into a major grid connection.
AUC is also assessing whether it’s viable to use renewable energy on-site – but LNG contracts have also been received by the company.
Who is leading the study?
GR Engineering is commissioned to captain the DFS, and, binding agreements are locked in with two “farming properties” nearby for key assets – “significantly de-risking the project,” the company wrote today.
“GR Engineering Services, fully engaged and working with our in-house team and other consultants with the clear objective of finalising and delivering the DFS to market during Q2 2024,” Ausgold Managing Director Matthew Greentree said.
“The Katanning gold project DFS is now moving into its final stages … this is an exciting time for our team.”
Financing discussions underway
Ausgold is keen to have the project at its penultimate stage by Q4 2024 – aiming to lock in financing and a positive final investment decision (FID) by Q4 2024.
To that end, the company flagged ongoing discussions with financial institutions – un-named – for “non-dilutive funding” with expressions of interest already sitting in the company’s inbox.
This would mean that everything is ready to go for early 2025, bar the actual operational start of the mining project itself. The company flagged an upper estimation for completion of FID in Q1 2025.
Worth noting is that Ausgold’s market cap is sub $70 million.
Shares last traded at 2.9 cents.
Ausgold (ASX:AUC) is set to publish the DFS for its Katanning...
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