Ausgold (ASX:AUC) secured an agreement with a local landowner, allowing the company to install and maintain water infrastructure on the property for the duration of the Katanning project in Western Australia, according to a Wednesday filing with the Australian bourse.

Pump testing of a bore previously installed to provide water for the project is underway, with early indications that the water flow rate will be enough to meet requirements, the filing said.

Also, the company agreed to acquire a farm for AU$1.5 million, which will be used for future use, including additional tailings dam capacity to support mine life extensions, according to the filing.