Westgold Resources has revealed plans to hit this financial year with a $25 million exploration program on the back of showing it has grown its group mineral resource by 311,000 ounces in the previous period.
The company says it finished the period with a total mineral resource of 107 million tonnes at 2.39 grams per tonne gold for 8.3 million ounces and has also confirmed total ore reserves of 23 million tonnes at 2.68g/t gold for 2 million ounces – a 6 per cent increase in ore reserve grade and a 7 per cent hike in its mineral resource grade.
Management says systematic drilling delivered respective mineral resource upgrades at both its Big Bell and Great Fingall operations of 55 per cent and 49 per cent. It currently has eight drill rigs running in a bid to expand its mineral resource and add to its impressive ore reserve.
Westgold’s total mineral resource takes in two distinct geological terrains, with its Murchison operations on the Archean Murchison province and its Bryah operations in the Proterozoic Bryah Basin. The Murchison operations take in the Bluebird and Tuckabianna processing hubs, while ore from the Bryah operations are processed at the Fortnum hub.
Management says it finished the past financial year debt-free and with $192 million in cash, bullion and liquid assets. It believes it is now fully funded to deliver on its FY24 objectives.
There is still untapped opportunity across our Murchison tenure that can be unlocked. In FY24 Westgold is investing $25M towards exploration and resource definition drilling and we are confident that will deliver additional Ore Reserves from our existing Mineral Resources. Westgold Resources managing director Wayne Bramwell
In addressing gold production, Westgold unveiled a 2023-24 guidance of 245,000 to 265,000 gold ounces at an all-in sustaining cost (AISC) of between $1800 and $2000 per ounce after hitting its target at the top end of production and mid-point of AISC in the past financial year. It says continued strong production from the company’s Blue Bird and Big Bell mines near Meekatharra underpinned an improvement in total ore processed at an increased grade.
In the past financial year’s final quarter, Big Bell produced 290,000 tonnes of ore mined at 2.8g/t for 26,000 ounces and Bluebird produced 139,000 tonnes of ore mined at 4.3g/t for 19,000 ounces. Production at Bluebird peaked in May this year, with a new record of 49,000 tonnes at 4g/t for 6300 ounces for the month – up eight per cent from April.
The first of Westgold’s four hybrid power stations is also officially up-and-running at its Tuckabianna site, 20km east of Cue, replacing its existing diesel-powered facility. The hybrid facility includes a 6MW solar farm fitted with 11,088 photovoltaic panels, a battery energy storage system with 2.4MW capacity and a 9.5MW gas-fuelled power station for a total of 17.9MW.
The company says the planned 82MW, four-plant facility is expected to reduce its annual diesel fuel consumption by 38 million litres and lower annual carbon dioxide equivalent emissions by about 57,000 tonnes. It expects its AISC to reduce by some $60 per ounce due to the lower cost of energy provided by the new hybrid power facilities.
Management says it is now internally funded, well resourced and confident its team can build scale and add value through the drillbit.
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