Ausgold's (ASX:AUC) investment appeal is supported by its status as a gold developer based in Western Australia with a defined near-term production pathway, Euroz Hartleys said in a Tuesday note.

The company recently reported strong, high-grade results from its 54,000-meter drilling program at the Katanning gold project, with over 46,717 meters completed as of April.

The results were up to 11 meters at 7.88 grams per tonne grade of gold from 99 meters, including two meters at more than 41 g/t grade of gold from 100 meters.

Ongoing drilling is designed to boost resource growth, convert resources to reserves, and optimize mine plans to improve project economics, with a resource update anticipated in the third quarter of the year, the financial services firm said.

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

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

Ausgold shares rose 7% in morning trade on Wednesday.