Overview of Western Gold Resources' positive scoping study for Gold Duke Project

Western Gold Resources Limited (ASX:WGR) has released a positive scoping study for its Gold Duke Project in the north-eastern goldfields of Western Australia. The study assessed various options for open-pit mining and third-party toll treatment, demonstrating potential cash generation and further upside for the project. Using a gold price of $3,500, the Production Target mining inventory for the Project is approximately 447Kt at 2.55g/t producing 34koz gold, with an estimated undiscounted accumulated cash surplus of $38.10M. Pre-mining capital and start-up costs are estimated to be approximately $2.1M to $2.5M, with total funding requirements of between approximately $6M and $7.2M for a 12-month mine life.

Executive commentary on the Gold Duke Project's scoping study

The Managing Director of WGR, Warren Thorne, highlighted the attractive value and potential cash generation of the Gold Duke Project over a broad range of gold prices. He emphasized the significant further upside potential as the study only includes 51% of the published resource of the Project. Thorne also outlined the company's focus on securing a toll milling agreement, appointing a mining contractor, and assessing potential non-dilutive JV interest. Additionally, he expressed the company's commitment to advancing exploration efforts across the Project to find additional ounces and build WA's next meaningful gold producer.

Summary of the Gold Duke Project's scoping study and outlook

The scoping study for Western Gold Resources' Gold Duke Project has revealed promising potential for cash generation and further upside, especially with the assessment based on only 51% of the published resource. The company's focus on securing a toll milling agreement, appointing a mining contractor, and exploring non-dilutive JV interest demonstrates its commitment to advancing the project. With robust project economics for a broad range of gold prices and positive outcomes returned above a gold price of $2,340 per ounce, the outlook for the Gold Duke Project appears optimistic. Investors are cautioned about the low level of geological confidence in Inferred Mineral Resources and the need for further exploration and studies before estimating ore reserves or providing assurance of an economic development case.