Westgold Resources has unveiled a 2023/24 production guidance of 245,000 to 265,000 gold ounces at an all-in sustaining cost of between $1800 and $2000 per ounce after hitting its target in the past financial year.
The company says it has set a conservative guidance figure for the next 12 months, assuming steady state production levels for its Big Bell and Bluebird underground mines, “right-sized” mine plans for Paddy’s Flat and Starlight and 17,000 gold ounces from the Fender underground mine near Cue.
After investing $19 million on exploration expenditure during the past financial year and expanding the mine lives of several key operations, Westgold has increased its budget to $25 million for the next reporting period.
A total of seven drill rigs are currently working on resource extensions at Big Bell, Bluebird, Starlight and Paddy’s Flat. Another two rigs are focusing on exploration and growth at the company’s Great Fingall deposit, which is now understood to be two separate reefs that have been divided into Upper Fingall and Lower Fingall.
The business is now structured to deliver safe and profitable ounces and critically, our FY24 growth ambitions are funded from our existing cash resources. Looking forward, prudent capital investment into our organic growth projects such as Great Fingall, the expansion of Big Bell and restart of Fender establishes a growth runway into FY25. Westgold Resources managing director Wayne Bramwell
The Big Bell expansion feasibility study is expected to be completed in the coming months, with a final investment decision to follow soon after. Capital allocation for the new financial year includes funds required for mine development, ventilation and development of a surface-located paste plant.
The Fender underground mine near the Western Australian town of Cue was paused in August last year, with the portal established and 120m of decline already developed. Westgold says it will now restart production from the site with first ore expected in the December quarter.
The company has allocated $6 million in growth capital to the Fender restart to continue the decline. It will also establish ventilation and escapeways to get to first ore, which will be processed at the Bluebird plant to displace lower grade stockpile feed at about 330,000 tonnes per annum at 2.7 grams per tonne gold.
Management says it also plans to develop the Great Fingall decline, subject to a financial investment decision in the coming months. The program is expected to be completed in 18 months, with first ore set for the second half of the 2025 financial year.
Westgold has also made significant progress at at its Tuckabianna site near Cue, with its first hybrid power station now in operation. The facility uses a combination of solar, battery storage and liquefied natural gas to reduce carbon emissions, while delivering a significant reduction in the cost of power.
While management has set a what it calls a “conservative” guidance target for the next 12 months, it should be noted that the company established a modest set of figures last financial year when it set quarterly records at several of its operations. With more money set to be spent on exploration this year and with runs on the board in terms of operations, Westgold certainly appears to have the ability to back up its success of the past financial year.
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