Westgold Resources Limited (ASX:WGX) Announcement

Westgold Resources Limited (ASX:WGX) has announced the approval of the expansion of the Big Bell Project at Cue, Western Australia. The expansion will incorporate a new Long Hole Open Stoping (LHOS) operation below the existing sub level cave, with a 16-year mine life delivering 1.5Moz at a grade of approximately 3g/t Au.

Executive Commentary

Big Bell has a long and profitable life ahead of it now. This expansion underwrites the future of our Murchison operations and provides Westgold with further optionality to leverage our existing processing capital. The economics of making our biggest mine bigger is compelling. Big Bell will provide baseload feed for our Tuckabianna and Bluebird processing hubs across its planned 16-year mine life and its ore will be supplemented with high-grade, high margin ores from the Bluebird mine at Meekatharra, and the recently announced Great Fingall mine near Cue. There are very few mines in the Australian gold sector that can boast a 16-year mine life. Big Bell has delivered nearly three million ounces of gold production to date and with this expansion now approved, the mine is set to ring true to its name.

Summary

Westgold Resources Limited (ASX:WGX) has approved the expansion of the Big Bell Project at Cue, Western Australia, with a 16-year mine life delivering 1.5Moz at a grade of approximately 3g/t Au. The expansion will incorporate a new Long Hole Open Stoping (LHOS) operation below the existing sub level cave. The project's capital expenditure is expected to be $24M in FY24, with first ore from the LHOS operation anticipated in H1, FY25. The expansion is expected to provide baseload feed for the company's processing hubs and is projected to be highly value accretive, with an NPV of $313M or $447M at the current spot price. Drilling conducted in FY23 has expanded the Big Bell Mine's Mineral Resource by approximately 55% and Ore Reserve by 25%. Westgold has identified further potential for Mineral Resource expansion and expects to have results from the initial drill testing available in the coming months. The Big Bell Expansion Project has been approved for immediate commencement, and the company anticipates further resource extension drilling and potential near term production upside for Big Bell.