Westgold (ASX:WGX) has increased the Bluebird-South Junction mine’s ore reserve by 107% to 7.2 million tonnes a year at 2.5 grams per tonne, representing 573,000 ounces of contained gold.
On 16 August 2024, the mine’s ore reserve stood at 3 million tonnes at 2.8 grams per tonne (g/t) gold for 277,000 ounces.
Westgold, which has a market capitalisation of $2.65 billion, has been progressing mining studies following the release of an updated mineral resource estimate, which totals 15 million tonnes at 2.9g/t gold for 1.4 million ounces.
CEO Wayne Bramwell says the company has delivered a roughly 400% increase to the mine’s ore reserves over the past year.
“Drilling continues to transform our business, and across the Bluebird-South Junction mining complex we have not yet defined the limits of this ever-expanding system,” Bramwell says.
“Project economics and free cashflow is enhanced by a large, productive underground mine feeding a large processing plant.
“We have all these ingredients at Meekatharra as the Bluebird-South Junction underground mine is the primary ore source feeding the 1.4 to 1.8Mtpa Bluebird processing plant that sits 0.5km from the portal.”
Bramwell adds that mining studies to date show that the South Junction deposit lends itself to a lower-cost, bulk extraction mining method that will deliver higher ounces-per-vertical metre.
The South Junction mineralisation remains open at depth, along strike, and down plunge.
Westgold says drilling from surface is continuing to extend the footprint of South Junction and Bluebird at depth and to the south along strike.
The company is also planning to extend the current drilling program away from the immediate vicinity of the Bluebird-South Junction mine to proximal targets within close proximity of the Bluebird mill.
This work will be resourced over and above currently planned drilling activities to ensure the rapid progress at Bluebird-South Junction is maintained. In parallel, Westgold continues to optimise the mine plan.
Westgold Resources is a Western Australian gold producer with assets in the Murchison and Southern Goldfields regions.
Write to Aaliyah Rogan at Mining.com.au
Images: Westgold Resources
