The facility will be built in Katanning, about 40km from the project site. Ausgold (ASX:AUC) awarded the contract to ADD Business Group following a competitive tender.
It estimates the total cost at $30.1m, broadly in line with Definitive Feasibility Study estimates.
Ausgold Executive Chair John Dorward said the company was delighted to partner with ADD for its early works program.
“ADD has demonstrated capability in successfully delivering a range of different industrial workforce accommodation solutions,” Dorward said.
“This important milestone confirms our commitment to accelerating the development of the Katanning gold project as we continue to progress a range of other permitting, financing and contract tendering activities in preparation for a final investment decision targeted for Q4 2026.”
Construction will begin in May, with the first 100 rooms and kitchen facilities due by mid-September and full completion scheduled for December 2026.
The Shire of Katanning approved development for the village in April 2026 and is providing the site under a long-term lease.
ADD has already completed much of the design work, including initiating fabrication of modular buildings in Perth.
The contractor has also begun initial electrical supply works on site, supporting early-stage construction activities.
The accommodation village’s construction timeline aligns with AUC’s planned permitting milestones and a targeted final investment decision for the Katanning Gold Project, scheduled for the December quarter of 2026.
Katanning is expected to produce 1.22Moz over a decade-long mine life, including 143,000ozpa in its first four years, generating ~$2.3bn in post-tax cashflow at spot gold prices (A$6400/oz) and $1.028bn at more conservative prices of A$4300/oz.
That makes it one of the biggest development projects held by an ASX developer in the world class gold jurisdiction of WA.
