en.Wedoany.com Reported - Ausgold (ASX:AUC) has announced that it has signed early works agreements with preferred contractors for the Katanning Gold Project in Western Australia, targeting a final investment decision by the end of 2026.
The company has signed early works agreements with preferred engineering, procurement, and construction contractor Lycopodium (ASX:LYL) and build-own-operate power supplier CrossBoundary Energy. These agreements aim to advance detailed engineering design and project execution planning ahead of the Final Investment Decision (FID). Construction of the Katanning accommodation village has already commenced, with Ausgold having previously signed a fixed-price construction contract with ADD Business Group. Site works have begun, and off-site manufacturing of modular buildings is approximately 45% complete, with the first modules expected to be delivered from early August 2026. The first accommodation modules are planned to be operational by November 2026 to support the mobilization of early construction crews post-FID.
Environmental permitting approvals continue to progress, with Ausgold having submitted all requested supplementary information to the Western Australian Environmental Protection Authority, including a comprehensive program of specialized field surveys.
Ausgold Executive Chairman John Dorward stated that the company is consistently executing a rigorous development strategy at Katanning, focusing on key work streams that will minimize project risk and compress construction timelines once a final investment decision is made.
The early works agreement with Lycopodium will cover detailed engineering, project execution planning, construction methodology optimization, and procurement of supplier data for procurement packages. The agreement with CrossBoundary Energy allows for detailed engineering and long-lead equipment procurement for the planned hybrid gas, solar, and battery energy storage system power station.
Environmental studies continue to support the project's permitting process. The Katanning project is primarily located on already cleared agricultural land, with relatively limited disturbance to native vegetation. Completed specialized surveys include a trapdoor spider survey required by regulators, with no specimens of the species found within the project area.
Ausgold targets first gold production by mid-2028 after FID and commencement of construction. The company is also continuing to advance a 54,000-meter reverse circulation and diamond drilling campaign, with further assay results expected in the coming weeks. This drilling aims to increase resource volumes to support future reserve conversion and enhance confidence in the early mine life areas.
