Westgold (ASX:WGX) will be initiating a Scoping Study for the Starlight underground mine in Western Australia, after almost doubling its mineral resource estimate.
Following the 91% increase the MRE now totals 12.9 million tonnes at 2.7 grams per tonne gold for 1.13 million ounces of gold.
Westgold, which has a market capitalisation of $2.63 billion, says the Scoping Study will assess the potential for an expanded and integrated open-pit and underground operation at the Fortnum Expansion Project.
CEO Wayne Bramwell says the Scoping Study has begun to evaluate expansion options, with results from the Fortnum study due in Q2 FY25.
“A 91% increase in the MRE at Starlight marks two significant milestones for Westgold and the Fortnum Project,” Bramwell says.
“Our technical team has drilled continuously for two years to extend mine life and has now defined mineral resources that offer the potential to integrate both open pit and underground mining to expand Fortnum production.
“Importantly, this result demonstrates the organic growth opportunities that exist within Westgold’s portfolio.”
Starlight’s expanded mineral resource comprises two components, comprising an underground mineral resource of 8.7Mt @ 3g/t gold for 840,000 ounces of gold and a newly estimated open pit mineral resource of 4.2Mt @ 2.2g/t gold for 290,000 ounces.
At Starlight, 525,000 ounces of gold have been produced historically at 3.1g/t gold to a total depth of 260m by previous open pit and shallow underground operators before mining ceased.
Westgold has subsequently mined 307,000 ounces from Starlight underground.
The Fortnum Project is located within Westgold’s Murchison business unit in Western Australia, 140km north of Meekatharra and encompasses the 0.9 million tonnes per annum Fortnum processing plant, and the three mining areas.
Starlight is the predominant feed source to Westgold’s Fortnum processing hub.
Westgold Resources is an Australian gold producer that has built a more than 400,000 ounces per annum operation. The company owns the Murchison and Southern Goldfields operations in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Westgold Resources
