Ausgold (ASX:AUC) said it will now undertake a further optimization of the definitive feasibility study mine plan at its Katanning gold project in Western Australia, following the recent acquisition of freehold land critical to the development of the project, according to a Monday filing with the Australian bourse.

The optimization will aim to add life-of-mine gold production from areas excluded from previous production estimates and reduce mining costs, the filing said.

Shares of the company fell 2% in recent Monday trade.