Ausgold (ASX:AUC) said an updated definitive feasibility study confirmed that its Katanning gold project in Western Australia is development-ready, with a long mine life, fast payback period, and "excellent" financial returns, according to a Tuesday filing with the Australian bourse.

The study delivered a post-tax project net present value of AU$2.3 billion and an internal rate of return of 92%, the filing said.

It also showed an average life-of mine production of about 1.2 million ounces at an average all-in sustaining cost of AU$2,252 per ounce, the filing added.

Shares of the company rose 2% in recent Tuesday trade.