Ausgold (ASX:AUC) said ongoing in-fill and step-out drilling at its Katanning gold project in Western Australia returned high-grade results, with the initial 44,000-meter drill program expanded to 54,000 meters with five drill rigs, according to a Monday Australian bourse filing.

The results were up to 10 meters at 2.2 grams per tonne (g/t) gold from 346 meters, including two meters at 9.5 g/t gold from 346 meters.

The company said tendering, tender evaluation, and contract discussions are well underway for key project development contracts, including workforce accommodation facility construction, process plant engineering, procurement and construction, build-own-operate power supply, and mining contractor services.

The company's shares rose 1% in recent Monday trade.