Ausgold Acquires 348 Hectares and Secures Water Access for Katanning Mine
Ausgold Limited advances its Katanning Gold Project with secured land access for water infrastructure and a strategic land acquisition, while legal proceedings on land compensation loom.
- Binding easement agreement secured for borefield and pipeline infrastructure
- Acquisition of 348 hectares of freehold land near processing plant site
- Pump testing indicates sufficient water supply from brackish aquifer
- Two-week Mining Warden hearing scheduled to resolve land compensation disputes
- Potential for expanded tailings capacity supporting mine life extensions
Securing Water Infrastructure Access
Ausgold Limited (ASX – AUC) has made significant strides in advancing its 100%-owned Katanning Gold Project (KGP), located 275 kilometres southeast of Perth. Following the completion of its Definitive Feasibility Study in June 2025, the company has secured a binding easement agreement with a local landholder, granting access to freehold land approximately 5 kilometres south of the project site. This land will host borefield infrastructure to draw brackish-saline water from a deep aquifer, critical for the project's operational water needs.
Initial pump testing of the borefield, installed under a prior access agreement, suggests that the water flow rate is sufficient to meet the project's requirements. The easement also allows for the installation of additional bores, pumps, and an underground pipeline connecting the borefield to the processing plant, ensuring a reliable water supply for the mine's lifespan.
Strategic Land Acquisition for Future Growth
In a complementary move, Ausgold has agreed to acquire a 348-hectare farm located about 2.5 kilometres from the proposed processing plant site for $1.5 million. This acquisition provides the company with valuable freehold land that could be used for various future purposes, including additional tailings dam capacity. Such capacity would be essential if the mine life extends beyond current projections outlined in the DFS, subject to further technical studies and permitting.
The settlement of this land purchase is expected to occur in August 2025, positioning Ausgold to better manage infrastructure needs and environmental considerations as the project progresses.
Navigating Legal Challenges on Land Access
Despite these positive developments, Ausgold faces ongoing legal proceedings related to land access and compensation. The company has lodged two plaintiffs with the Mining Warden's Court seeking determinations on compensation payable to landowners and confirmation of surface rights validity over portions of freehold land intersecting the project area.
The hearings, scheduled to commence on 14 August 2025 and span two weeks, will be pivotal in resolving these disputes. The outcomes will directly impact Ausgold's ability to commence and continue mining operations on affected tenements, underscoring the importance of these legal processes in the project's timeline.
Looking Ahead
Ausgold's recent progress in securing essential land access and expanding its land holdings reflects a methodical approach to de-risking the Katanning Gold Project ahead of development. However, the pending Mining Warden hearings introduce an element of uncertainty that investors will watch closely. The company's ability to secure water infrastructure and manage land rights effectively will be critical to maintaining project momentum and unlocking value from this promising gold asset.
Bottom Line?
Ausgold’s land access wins and strategic acquisition set the stage, but legal hurdles remain a key watchpoint.
Questions in the middle?
- Will the Mining Warden’s Court rulings enable uninterrupted mining operations at Katanning?
- Can further pump testing confirm long-term water supply adequacy from the brackish aquifer?
- How might the newly acquired land influence the project’s capacity and mine life extensions?
