An early works agreement has been signed with preferred EPC contractor Lycopodium, supporting detailed engineering and project execution planning to commence ahead of FID.
Ausgold (ASX:AUC) has also executed an agreement with CrossBoundary Energy, its preferred build-own-operate power provider, for a planned hybrid gas, solar and battery energy storage power station at Katanning.
This agreement permits detailed engineering and procurement of long-lead equipment to begin, reducing schedule and supply chain risk for a critical piece of the project.
The early work follows completion of an updated definitive feasibility study in December 2025 and is aimed at compressing the construction schedule after FID.
Executive chairman John Dorward said the company was focused on the workstreams most likely to reduce execution risk.
“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,” Dorward said.
“By progressing detailed engineering, accommodation infrastructure development, power supply and permitting activities in parallel, we are ensuring that the Katanning Gold Project is well positioned for a smooth transition into construction following FID.”
Construction is underway at the Katanning Accommodation Village following Ausgold’s execution of a fixed-price contract with ADD.
Site establishment and civil works are in progress with off-site modular building manufacturing about 45% complete.
Delivery of the first accommodation modules is scheduled for early August, with the initial stage expected to be operational by November 2026.
Ausgold says the timing will ensure accommodation is available for the early construction workforce, subject to a positive FID.
The accommodation village is being developed on the outskirts of Katanning under a long-term lease with the shire, with ownership to revert to the shire at the end of mining.
Ausgold has submitted all outstanding information to the WA Environmental Protection Authority as environmental permitting advances.
Targeted flora and fauna surveys, including a regulator-requested trapdoor spider assessment, found no individuals or habitat constraints within the planned development area.
Ausgold says recent studies reinforce Katanning’s strong permitting profile with the project largely on cleared farmland and minimal native vegetation disturbance required.
Dorward said the EPA process had reinforced Katanning’s low-impact development case, keeping Ausgold on track for FID by late 2026 and first gold in mid-2028.
A native seedling planting program is underway to establish vegetation screening and reduce off-site impacts around the project area.
Katanning’s inclusion in WA’s Priority Permitting Program is streamlining approvals, with multiple state agencies assessing the project in parallel.
In coming months, Ausgold will continue to advance engineering, procurement, permitting, financing and commercial workstreams.
Key activities for the remainder of 2026 include complete engineering under the Lycopodium early works agreement, ongoing construction of the accommodation village, engineering and procurement for the hybrid power station, regulatory engagement and project financing.
Ausgold is also progressing a 54,000m reverse circulation and diamond drilling campaign, with further assays expected in the coming weeks.
The drilling program is targeting resource growth, potential future reserve conversion, improved confidence in early mine-life areas and new discoveries across Ausgold’s 3,000km2 regional tenure in southwest WA.
