Ausgold Limited (ASX: AUC) has reached an agreement in principle with the Shire of Katanning for an 8-hectare lease to develop a 250-bed workforce accommodation facility, located 40km from the Katanning Gold Project site.
The 12-year lease includes two 5-year extension options at market rent, marking a key step in early works ahead of the company's targeted Q4 2026 final investment decision.
The agreement supports construction of the village to house project workers, with bus transport planned for the daily 40km commute to site.
"We are delighted by the support we have received from the Shire of Katanning. It is through collaborations like this with our local partners that we seek to ensure that the Katanning Gold Project delivers tangible long-term benefits for all stakeholders." Said Ausgold Executive Chairman John Dorward.
This follows the 2025 Definitive Feasibility Study, which estimated $30 million for the accommodation village within total project CAPEX.
The Katanning Gold Project targets first gold production in 2027 from its 2.1 million ounce JORC resource at 1.1g/t Au.
Ausgold continues advancing permitting, financing, and community engagement as it progresses toward development decision.
The Shire's support underscores local backing for the project, which promises economic benefits including jobs and regional infrastructure investment.