Westgold Resources reveals Fortnum Expansion Study details

Westgold Resources (ASX:WGX) has announced results from its Fortnum Expansion Study, evaluating the Fortnum Gold Operation in Western Australia. The study suggests a potential 10-year project life, with gold production between 713,000 to 871,000 ounces. The All-In Sustaining Cost is expected to decrease significantly.

Key takeaways from Westgold's Fortnum Expansion Study

Westgold Resources' Fortnum Expansion Study highlights a decade-long project potential with increased gold production and reduced costs. The study indicates a Life of Mine gold production of up to 871,000 ounces, with the All-In Sustaining Cost potentially dropping to $1,558 per ounce. Expanding the mill capacity from 0.9 Mtpa to 1.5 Mtpa is expected to lower operating costs. The mid-point net present value is projected at $306 million, with free cash flow possibly reaching $1.2 billion at a higher gold price. The Mineral Resource Estimate at the Starlight deposit has significantly increased, supporting a robust development strategy. Westgold's financial strength, evidenced by $103 million in cash and assets, along with secured debt facilities, positions it well for funding the expansion. The company plans further drilling and technical assessments, with a Pre-Feasibility Study to optimize design and resources.

Executive insights on the Fortnum Expansion Study

The Fortnum Expansion Study underscores Westgold's commitment to strategic growth and operational efficiency. The projected increase in gold production and reduction in operating costs will enhance our competitive position in the market.