Name of the Project
Katanning gold project.

Location
Western Australia.

Project Owner/s
Ausgold.

Project Description
A scoping study has highlighted the potential for Katanning to support a viable 1.25-million-tonnes-a-year standalone mining and processing operation.

The project has total mineral resources of 33.93-million tonnes grading 1.1 g/t gold for 1.2-million ounces of gold.

The mine is expected to produce 50 000 oz/y of gold over a mine life of more than seven years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$77-million and an internal rate of return of 28.2%, with a payback of about 2.5 years.

Capital Expenditure
Preproduction capital costs are estimated at A$102.5-million.

Planned Start/End Date
Not stated.

Latest Developments
Ausgold has announced plans to raise A$12-million in a share placement to fund resource expansion drilling, and complete feasibility and scoping studies. Recent high-grade drilling results have shown that the project can support a materially larger operation of 150 000 oz/y of gold production.

The shares will be issued under the company’s existing capacity and will not require shareholder approval.

The placement has been strongly supported by shareholder Dundee Corporation, which will maintain a 12.5% interest in the company, as well as Jupiter Asset Management, which has increased its shareholding in the company to 9.5%.

Key Contracts, Suppliers and Consultants
GR Engineering (process and infrastructure design, capital and operating expenditures); SRK Consulting (geology and resources, openpit optimisation and mine planning); Knight Piésold (tailings management facilities); and Sextant (environmental and permitting).

Contact Details for Project Information
Ausgold, tel +61 8 9220 9890 or email info@ausgoldlimited.com.