Ausgold Limited has announced the results of a scoping-level study that demonstrates the potential for a larger scale, 5 million metric tonnes per annum throughput at the Katanning Gold Project.
According to the company, the increased throughput will support the delivery of around 136-kilo ounces per year over a ten-year life of mine (LOM) using the same mine plan determined in the Katanning Gold Project Pre-Feasibility Study (PFS) conducted in August 2022.
It added that the scoping study underscores the project as the largest undeveloped, free-milling, open-cut, gold project in Western Australia.
The 5 Mtpa throughput option from the scoping study indicated an LOM revenue of $3.64 billion, an LOM pre-tax cashflow of $1.14 billion, an LOM post-tax-free cashflow of $770 million, a post-tax internal rate of return of 46% and a payback period of 20 months.
Other study outcomes include a projected average gold production of 155,000 ounces per year over the first six years and an average 136,000 per year over the 10-year Scoping Study evaluation period at an average head grade of 1.05 g/t gold, a 30% increase in average annual gold production to PFS, and a pre-production capital cost of $297 million, including 7% contingency.
According to Ausgold Managing Director Matthew Greentree, the Scoping Study indicates the increased scaled from the PFS level mine plan producing 163,000 more ounces than the PFS over life of mine.
“This scoping study was undertaken to assess the optionality of the KGP while progressing the DFS. The project demonstrates potential for further production scale and delivers a number of outcomes,” he added.
Outcomes include high gold production and cash flow that will enable the early payback of initial capital, an updated resource due in the third quarter of 2023 expected to further expand the current mine plan, as well as a large resource that delivers a long mine life and provides opportunities to further optimise production while considering different mining scenarios.
