Westgold Resources (ASX:WGX) has provided an updated mineral resource and ore reserves statement for its operations in the Archean Murchison Province and the Proterozoic Bryah Basin in Western Australia.
The $824.10 million market capitalisation company reports an increase to its total group mineral resource of 311,000 ounces, now sitting at 107 million tonnes (Mt) @ 2.39g/t Au for 8.3 million ounces (Moz) of gold.
Meanwhile, the total ore reserves are at 23Mt @ 2.68g/t Au for 2Moz of gold.
The company says it has historically underinvested in drilling, which resulted in the depletion of its mineral resource base until FY22. Westgold started to address this trend this financial year, investing $19 million towards exploration and resource drilling.
As a result, the company achieved 4% growth in its mineral resource base for the first time since 2017, alongside delivering a 7% improvement to its global mineral resource grade.
Commenting on the updated MRE, Westgold Resources Managing Director Wayne Bramwell says: “This investment saw our mineral resource and ore reserve improve in quality, with our mineral resource base growing by over 300,000 ounces. In short order, we also replaced 42% of depleted ore reserves in this year.
“There is still untapped opportunity across our Murchison tenure that can be unlocked“
Group grade increases across mineral resources and ore reserves gives us confidence that the quality of the group resource and reserve statement will continue to be enhanced as we continue to drill.
There is still untapped opportunity across our Murchison tenure that can be unlocked. In FY24, Westgold is investing $25 million towards exploration and resource definition drilling, and we are confident that will deliver additional ore reserves from our existing mineral resource.
Importantly, with increasing free cash flow and industry-leading in-house drilling capability, Westgold is now internally funded, resourced, and confident our team can build scale and add value through the drill bit.”
Westgold adds that it has 8 drill rigs currently operating, aimed to add to the expansion of the mineral resource and subsequent conversion to ore reserves. This is expected to take place during FY24.
The Murchison operations include the Bluebird and Tuckabianna processing hubs, and the Bryah operations include the Fortnum processing hub.
Westgold Resources is an ASX-listed explorer and developer focused on gold mines operating in the Goldfields of outback Western Australia. As of 30 June 2023, the company had $192 million cash, bullion, and liquid assets at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Westgold Resources
