Westgold Resources (ASX:WGX) has committed to expanding its Cue processing hub in Western Australia from 1.4 million tonnes per annum (Mtpa) to 1.7Mtpa by FY28.
The Cue Expansion Plan will debottleneck the existing circuit, including replacing its 2.9MW mill motor with a 4.2MW liquid-cooled motor and variable speed drive.
Associated upgrades will target an increase in milling throughput from 170 tonnes per hour to 200t/h. Completion is scheduled for late FY27, with Westgold forecasting the additional capacity will lift annual gold production by about 15,000 ounces from FY28.
A Scoping Study estimates capital expenditure of $14.4 million–22.1 million and a payback period of about 10 months.
The company says the expansion is underpinned by increasing underground output from the Big Bell and Great Fingall mines, supplemented by the operating Fender underground mine and smaller open pits near Cue.
CEO Wayne Bramwell says growing output across Westgold’s Murchison operations is expected to build ore stockpiles from FY27.
“This simple upgrade and modest capital investment at the Cue hub reflects a deliberate shift towards processing hub optimisation and expansion, with lower operating costs and higher cashflow the objective,” Bramwell says.
At its midpoint, Westgold says the study forecasts average production of about 122,000 ounces per annum over 10 years, totalling 1.2 million ounces at an all-in sustaining cost of about $3,240 per ounce.
Using a gold price of $5,500 per ounce, Westgold estimates the expansion would increase Cue’s net present value from $674 million to about $1.08 billion.
The Scoping Study is preliminary, with the production target sourced predominantly from ore reserves and inferred mineral resources. A minor portion is based on the conceptual Big Bell South exploration target, and Westgold cautions there is no certainty the study outcomes will be realised.
Resource definition drilling has begun at Big Bell South and Cuddingwarra, both within about 50km of the hub. Cuddingwarra and potential third-party ore have not been included in the study’s production or financial estimates.
Westgold will now advance detailed engineering, procurement planning, and execution sequencing.
Write to France Pinzon at Mining.com.au
Images: Westgold Resources
