"Ausgold Ltd.'s scoping study for its Katanning gold project in...

"Ausgold Ltd.'s scoping study for its Katanning gold project in Western Australia outlined a pre-tax net present value, discounted at 8%, of A$77 million, a 28.2% internal rate of return, and an about 2.5-year payback period, assuming a gold price of A$2,000 per ounce.
The pre-production capex was estimated at about A$102.5 million for a proposed standalone mining and processing operation of 1.25 million tonnes per annum.
The project is estimated to produce 50,000 ounces of gold per annum during a 7.2-year life of mine, according to the Nov. 1 release.
C1 operating costs are estimated at A$1,276/oz, and all-in sustaining costs are expected at A$1,615/oz.
The scoping study is based on a revised mineral resource estimate of 33.9 Mt at 1.10 g/t of gold containing 1.2 million ounces, at a lower cut-off grade of 0.6 g/t of gold."
Back when the scoping study was done they the gold price was a lot lower than today where it sits at around $2550 AUD/OZ.
The drilling which is in progress (results due any day) is designed to add high grade ounces from the zone known to produce good grade. As well as adding certainty to the current resource they are on the hunt for extensions. Should they define additional strike in the high grade zone then you can obviously expect the resource to increase along with grade. This will typically also reduce the AISC. The MD in a recent presentation mentions that the project NPV has doubled in the current gold environment.
Interesting that Anglo have acquired the bordering tenements, it's an area getting some serious interest and as AUC increase their resource they will be under increasing scrutiny from the surrounding majors. Also of note is that state that they are fully funded.
https://www.******.com.au/media/living-next-door-to-anglo-american-?videoId=2338