 has executed a gold ore purchase agreement between its subsidiary Big Bell Gold Operations and Zeus Mining, owned by New Murchison Gold (ASX: NMG).){kind=link}
Westgold agreement to boost Meekatharra
Westgold Resources (ASX: WGX) has executed a gold ore purchase agreement between its subsidiary Big Bell Gold Operations and Zeus Mining, owned by New Murchison Gold (ASX: NMG).
Westgold has agreed to purchase between 30,000 and 50,000t of gold ore per month from NMG’s planned open pit operation at Crown Prince. NMG is targeting the commencement of open pit mining in mid-2025.
Crown Prince, which is located 33km by road from Westgold’s 1.6-1.8mtpa Bluebird processing plant, has a current JORC indicated and inferred mineral resource of 2.21mt @ 3.9g/t gold for 279koz gold.
Westgold managing director and chief executive Wayne Bramwell says the company is delighted to have achieved a mutually beneficial outcome for both the New Murchison Gold and Westgold shareholders.
“This type of commercial arrangement is capital efficient for both companies as it leverages the existing processing infrastructure Westgold has at Meekatharra,” he said.
“The introduction of softer oxide ore from Crown Prince in FY26 effectively increases throughput at the Westgold’s Bluebird plant — growing production and reducing our cost per ounce.
“At the same time, NMG realise value for its shareholders by unlocking a pathway to production for its Crown Prince deposit without the capital impost and execution risk of building a processing plant.
“As such this is a win-win for all shareholders and Westgold looks forward to working with New Murchison Gold in the development of the Crown Prince deposit.”
Westgold expects that most of the Crown Prince ore will be processed in the first two years of the agreement (FY26 and FY27), with potential ongoing terms to be agreed on a rolling, quarter-by-quarter basis following the two-year initial term.