en.Wedoany.com Reported - During the March 2026 quarter, gold producers and developers in Western Australia continued to strengthen production, advance expansion projects, and expand resource potential. Companies across the state reported strong cash generation, development progress, and ongoing drilling success. Firms including Capricorn Metals, Lefroy Exploration Limited, and Ausgold highlighted operational momentum, advancing key projects across some of Western Australia's most active gold districts.

Capricorn Metals achieved steady gold production and strong cash generation from its Karlawinda Gold Project during the March 2026 quarter. Karlawinda produced 30,358 ounces of gold for the quarter at an All-in Sustaining Cost (AISC) of $1,617 per ounce, broadly consistent with the previous quarter. Year-to-date production reached 93,152 ounces at an AISC of $1,623 per ounce, positioning the operation to achieve the upper end of the FY2026 guidance range of 115,000 to 125,000 ounces. The company generated a record quarterly operating cash flow of $143.1 million, with cash and bullion balances reaching $507.6 million at quarter-end. Total gold sales were 29,009 ounces at an average realised price of $7,034 per ounce, generating $204 million in revenue, with a further 4,112 ounces of gold in inventory at quarter-end. Capricorn also declared its first fully franked interim dividend of 5 cents per share, totalling $22.8 million. Development of the Karlawinda Expansion project continued following receipt of regulatory approvals, with commissioning on track for the September 2026 quarter. During the quarter, site concrete works were largely completed, major structural steel and piping packages were delivered, and CIL tank welding and installation were completed. The ball mill was also delivered and positioned slightly ahead of schedule. The company continued to advance development activities at the Mt Gibson Gold Project, including mine planning, environmental approvals, and process plant design work, with tender evaluations for key plant construction packages also progressing during the quarter.

Ausgold continued to advance development and drilling activities at its Katanning Gold Project in Western Australia during the March 2026 quarter, with work focused on expanding and upgrading the project's 2.44-million-ounce resource base ahead of development. The company expanded its ongoing drilling campaign from 44,000 metres to 54,000 metres during the quarter, supported by five drill rigs, targeting resource growth and infill drilling opportunities. Infill drilling identified additional mineralisation beyond the open pit designs outlined in the current Mineral Resource estimate and project Feasibility Study update, while infill drilling continued to confirm and locally exceed existing resource interpretations. Ausgold also completed metallurgical diamond drilling for the early mine plan. Beyond exploration activities, the company continued to advance multiple development workstreams for the Katanning project, including tendering and contract discussions for workforce accommodation, process plant engineering, procurement and construction, power supply infrastructure, and mining services. During the quarter, Ausgold signed a binding consultation and cooperation agreement with the Wagyl Kaip Southern Noongar Aboriginal Corporation, establishing a framework for consultation, cultural heritage management, and stakeholder engagement. Executive Chairman John Dorward stated that the company continues to make progress towards near-term project development. "Throughout the quarter, we continued to advance a substantial drilling program designed to extend and upgrade our existing 2.44-million-ounce resource base, with excellent results achieved from both infill and step-out drilling," Dorward said.

Lefroy Exploration Limited achieved a key milestone during the March 2026 quarter, delivering first gold from the Lucky Strike Gold Mine in Western Australia, transitioning from explorer to producer. The company continued to advance its profit-sharing mining agreement with BML Ventures Pty Ltd for the Lucky Strike gold deposit, located 60 kilometres southeast of Kalgoorlie. The deposit hosts a Mineral Resource of 1.27 million tonnes grading 1.95 g/t for 79,600 ounces of gold. During the quarter, the first toll treatment campaign at Lucky Strike processed 31,796 dry tonnes of ore at a head grade of 1.42 g/t, producing 1,392 ounces of recovered gold at a gold recovery rate of 96.2%. Lefroy also continued to build inventory at the operation, with an additional 13,069 tonnes of ore stockpiled at surface ahead of future toll treatment campaigns. Exploration activities during the quarter highlighted further growth potential across the company's broader portfolio. Drilling results at Lucky Strike South supported the potential development of a Stage 2 South Pit, while resource extension drilling at the Burns Gold Project confirmed additional untested growth opportunities. The company's cash position was strengthened by the receipt of an additional $500,000 instalment under the cash advance profit agreement with BML. Lefroy Managing Director Graeme Gribbin said the quarter represented a defining milestone for the company. "This quarter marked a defining milestone for Lefroy as we formally transitioned from explorer to producer, delivering first gold from the Lucky Strike Gold Mine," Gribbin said.

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