Westgold scales up production and exploration

Westgold (ASX: WGX) has increased its FY25 production guidance as its WA mines Beta Hunt, Bluebird – South Junction and Great Fingall begin to deliver increased outputs.

FY25 guidance is 400,000-420,000oz, a substantial increase from its 220,000-235,000oz FY24 guidance.

The company is gearing up for a peak investment year, as Southern Goldfields assets are integrated and optimised, the Murchison operating assets are expanded and Great Fingall commences production.

Westgold managing director and chief executive Wayne Bramwell says FY25 sees a substantial step change in the scale of operation for Westgold.

“Integrating and optimising the Southern Goldfields assets will be the focus in H1, FY25 with Beta Hunt beginning to deliver increased output in H2,” he said.

“Murchison production lifts in H2 also as Bluebird-South Junction’s run rate hits 1.2mtpa and our Great Fingall mine comes online in Q3/Q4.”

Production for the financial year will be back ended as it is anticipated that in H2 FY25, the South Junction, Big Bell Deeps and Great Fingall projects are expected to commence production ramp up and Beta Hunt is expected to reach a 2mtpa run rate.

Westgold will invest $50m in exploration for FY25, with about 60% of the investment to be directed towards the Southern Goldfields, targeting infill and extension of the Fletcher zone and greenfields exploration at Higginsville including the Zuleika and BLF-Speedway targets.

At Beta Hunt, Westgold has a Stage 1 exploration target of 12–16mt at 2.1-2.5g/t gold for 0.8-1.2moz of gold, representing just the southern half of Fletcher. If a resource can be defined, early mining is a potential.

“Westgold has moved quickly post-merger to advance opportunities to increase production at Beta Hunt,” Mr Bramwell says.

“Through the release of the Fletcher zone exploration target, Westgold can now articulate what we believe to be the size of the prize, demonstrating both the potential scale and the importance of the Fletcher discovery to the Beta Hunt operation.

“Resource definition will be accelerated Fletcher.

“The first of two Westgold owned underground drill rigs has arrived on site to complement the existing contract rig with a three-rig program key to enhancing the potential to deliver a Maiden Resource from the southern zone.”

In the Murchison, Westgold will continue to invest heavily in Bluebird-South Junction and the extension of the next parallel lode, Polar Star, alongside resource development at Great Fingall, Big Bell Deeps and Starlight.

“Drilling investment over FY23 and FY24 has delivered the first increase in Murchison Ore Reserves since 2017,” Mr Bramwell says.

“On an inorganic basis the integration of the Southern Goldfields assets has lifted our Mineral Resource base to 13.2moz and Ore Reserves to 3.3moz.

“Resource conversion across the portfolio is our focus and opportunities are abundant.

“The Starlight mine continues to grow in stature, the Bluebird-South Junction complex continues to grow in scale, and through drilling, the emerging Fletcher zone at Beta Hunt will reveal its true potential.

“On an exploration front, the Higginsville area has seen limited attention for over a decade and is wide open for exploration success.”

Westgold has also identified opportunities for ore purchases from regional third parties, including Ora Gold’s (ASX: OAU) Crown Prince deposit at Meekatharra.