Ausgold (ASX:AUC) ahead of the game at KGP

Ausgold stands ready to become the country’s next mid-tier gold miner with its mammoth Katanning Gold Project currently in the Feasibility Study. It offers increased scale and massive exploration opportunities to deliver a much larger mine.

The 100% owned regional scale project spreads across 5,500km2 of premium ground containing a rapidly expanding 2.16-million-ounce Resource and a Reserve of 1.28Moz, making it only one of the most significant undeveloped open-cut gold projects in Australia.

A recent pre-feasibility study confirmed that KGP is a uniquely positioned WA mining operation offering clear cost advantages relative to its access to low-cost power, which recently has been a challenge for mining project economics.

Ausgold’s Katanning Gold Project in Western Australia

The project’s exciting momentum under the transformative leadership of its Managing Director, Matthew Greentree, seems unstoppable.

Through the ongoing success of extended exploration and accommodating mine optimisation Matt and his team are showing an upside in exploration alone, amounting to over 1.5Moz in recent years.

It is a trend the Company believes will be sustained throughout the downhill run toward production — making for an attractive proposition for those looking for a position in a high-quality project.

“The PFS demonstrates that Katanning will be a mine,” Mr Greentree said.

Drilling-focused growth is underway across its regional scale tenement targeting the resource expansion and growth within Central and Southern Zones.

But the upside will also come from beneath ground with down dip chasing deep drilling, presenting potential critical mass for underground mining in the Northern Zone and across its extended holdings of gold and even critical mineral potential.

And with extra tonnes imminent, the team is focused on increasing the head grade for the 3tpa production circuit.

Mr Greentree said contingency had been factored through good metallurgy providing around 10 per cent reserve in the oxides reserve, which will increase with optimisation improvements.

“Optimisation for the oxide was left out of that calculation, and our mill will already process 6 million tonnes of oxide each year,” he said.

“The other factor is increasing the number of high-grade ore through the mill.

“There are several opportunities to do this from some of our satellite operations and potential underground Resources that run at a higher grade, which significantly increases gold production.”

Macro, Project, and Team … A Compelling Elevator Pitch

“With significant scale already delivered, the team has clearly shown it understands the geology and how to unlock even more value,” Mr Greentree said.

“If people are looking for a reason to buy in, they only need to consider the significant scale we’ve already delivered from a team who knows the geology and how to unlock more value.

“In sync with that is productivity gains through project optimisation and definitive feasibility studies amid a gold macro emerging offering a Company and project which is undervalued compared to peers today.”

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