Ausgold announced the results of a Scoping Study for the Company’s 100 per cent owned Katanning Gold Project, with key outcomes highlighting the potential of the Project to support a viable standalone gold mining and processing operation.
|Regional map showing the KGP, other Ausgold projects and mineralised greenstone belts|
The Scoping Study incorporates a revised Mineral Resource Estimate of 33.9Mt at 1.10 g/t Au for 1.2 million ounces of gold, which includes recent drilling and a lower cut-off grade of 0.6 g/t. The lower cut-off grade is based on results from the current Scoping Study. The preliminary economics indicate the Project has positive financial metrics over an initial mine life of 7 years with capital payback early in the life of the project.
As a result of the positive outcome of the Scoping Study, the Ausgold Board has approved the commencement of further studies and metallurgical test work, as well as a new drilling program with the aim of expanding the current resource with a focus on targeting high-grade mineralisation within the Central Zone.
Ausgold’s Managing Director, Matthew Greentree sees the Scoping Study ias a huge step forward for the Katanning Gold Project– located in Western Australia – highlighting the potential for a standalone mining operation.
“The Scoping Study outlines a base case for a 1.25 Mtpa mining operation capable of producing over 350Koz over an initial 7-year mine life with an attractive payback period of less than two and half years,” said Mr Greentree.
“The Study has been completed to a high standard by an experienced team of independent Western Australian based consultants who have developed conservative operating parameters providing a high degree of confidence in study outcomes.
This provides a realistic base case at an AU$2,000 per oz gold price providing an attractive payback period of less than 2-and-a-half years, with these economics being significantly improved when current spot gold prices are considered.”
The project is located less than 300 kilometres from Perth and close to high-quality infrastructure which supports the near-term development of the project.
“The significant near resource exploration potential, improves the economics of this project with a planned drill program to further enhance projects economics.
“With this in mind, the Ausgold Board has approved the commencement of further studies, metallurgical test work and new drilling programs with the aim of expanding the current resource with a focus on targeting high-grade mineralisation,” concluded Mr Greentree.