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Katanning gold project, Australia

29th November 2019

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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, 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
As a result of the positive outcome of the scoping study, the Ausgold board has approved the start of further studies and metallurgical testwork, as well as a new drilling programme, to expand the current resource, with a focus on targeting high-grade mineralisation within the Central Zone.

Key Contracts and Suppliers
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).

On Budget and on Time?
Not stated.

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

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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