Bluebird-South Junction expands to 1.2Mtpa run rate from Q3 FY25

PERTH, Australia and TORONTO, Aug. 16, 2024 /CNW/ – Westgold Resources Limited (ASX: WGX) (TSX: WGX) (OTCQX: WGXRF) – Westgold or the Company) is pleased to present the maiden Ore Reserve for its South Junction mine. 

South Junction is a part of a broader Bluebird – South Junction mining complex which is becoming the primary ore source for the Bluebird processing hub at Meekatharra with a 1.2Mtpa run rate targeted from Q3, FY25.

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Highlights

Bluebird – South Junction Ore Reserve increases to 3.0Mt @ 2.8g/t Au for 277koz

• 233% increase (+158koz) from the FY23 Ore Reserve post depletion.
• Contribution from the maiden South Junction Ore Reserve of 2.6Mt @ 2.7g/t Au for 225koz.

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Updated Bluebird – South Junction Mineral Resource exceeds Interim Mineral Resource announced in March 2024 by a further 130koz post depletion of 14koz

• 61% increase in Indicated Resources.
• Ore Reserve underwritten by updated Mineral Resource Estimate (MRE) of 11Mt @ 2.8g/t Au for 960koz featuring a Measured and Indicated component of 4.7Mt @ 3.1g/t Au for 465koz Au.

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Further Resource conversion targeted with substantial drilling program ongoing

• 2 x surface rigs and 2 x underground drill rigs continue to extend and infill the Bluebird – South Junction Mineral Resource.
• South Junction remains open at depth and to the south along strike/down plunge.

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Production from South Junction to commence in August

• The significant width of the South Junction orebody enables a highly productive primary / secondary transverse stoping method which will significantly increase production from the Bluebird – South Junction system.
• Production rate of 1.2Mtpa – from Bluebird-South Junction targeted from Q3 FY25.

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Westgold Managing Director and CEO Wayne Bramwell commented:

“Westgold is rapidly building a mine of significant scale and life at Meekatharra.

 

“The maiden Ore Reserve for South Junction and the rapid expansion of the Bluebird-South Junction mining complex to a 1.2Mtpa run rate by Q3, FY25 has been a remarkable success story and underpins the value in drilling.

 

“A larger, more productive Bluebird-South Junction underground mine is a game changer for our Murchison business. It will reduce the requirement and cost of road haulage of ore from Cue (circa 140km) as the Bluebird-South Junction complex is within 2km of the nearby Bluebird mill.

 

“Westgold will continue to invest in drilling across our portfolio in FY25. With Bluebird-South Junction and Big Bell in the Murchison, buttressed by the expanding Beta Hunt in the Goldfields, we continue to build a diversified platform that can produce more consistent and sustainable long term cashflows and returns to our shareholders.”

 

 

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South Junction – production online in August, due to lift rates from Q3 FY25

Westgold’s pipeline of organic growth targets is extensive. S

outh Junction at Meekatharra was identified as a priority growth opportunity following the results of initial drill testing of the project in early 2023¹. A significant drilling program was initiated in January 2024 aimed at extending and infilling South Junction. This program continues, with two rigs active on surface and two in the underground environment.

Westgold recognised the vast scale of South Junction, prompting the undertaking of an interim MRE² to expedite mine planning studies.

Since March, drilling to increase the confidence in the Inferred portion of the MRE has progressed in parallel with mine planning studies. The results of this drilling have enabled Westgold to undertake an update to the MRE that has seen the substantial conversion of Inferred material to Indicated (See Table 1 and Figure 2). This update includes 14koz of depletion from three months of production on the Bluebird side of the mine.

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To read the full news release, please click HERE

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Disclosure

At the time of writing the author holds shares in Westgold.

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