Ausgold (ASX:AUC) extended timelines for the Katanning gold project in Western Australia, with no fundamental change to project development apart from timing, Euroz Hartleys said in a Monday note.

The company extended its project timeline due to Environmental Protection Authority requests for further information on environmental impacts, including groundwater vegetation, certain fauna habitats, the possible presence of trapdoor spiders, and the preparation of a detailed offsets management plan.

Key permit approvals and the final investment decision are now aimed for the fourth quarter of the year, delaying the expected first gold production to the second quarter of 2028, from the previous target of late 2027.

The project is expected to deliver more than 140,000 ounces of gold per year at an all-in sustaining cost of about AU$2,160 per ounce in its first full production years, before averaging over 120,000 ounces per year at roughly AU$2,250 per ounce over the 10-year life-of-mine plan.

Euroz Hartleys reaffirmed its speculative buy recommendation and lowered its price target to AU$2.60 from AU$2.70 on Ausgold.

Ausgold shares rose 3% in midday trade Tuesday.