Westgold Board Approves Big Bell Expansion

The board of Westgold Resources Limited (ASX: WGX) has approved the expansion of the Big Bell project in Cue, WA, and its immediate commencement.

The expansion involves a new long-hole open stoping (LHOS) operation below the existing sub level cave.

Westgold managing director Wayne Bramwell says 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,” he said.

“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 3moz of gold production to-date and with this expansion now approved, the mine is set to ring true to its name.”

The base case for the expanded Big Bell includes:

• 7mt of ore production for 1.5moz of gold;
• mine grades lifting from about 2.5g/t to about 3g/t Au;
• mine life of 16 years, with LHOS development commencing immediately and first ore from the LHOS operation in H1 FY25;
• 93kozpa of gold annualised production at an All-In Cost (AIC) of about $2388/oz, with peak production rate of 134kozpa of gold in FY30.

Westgold expects to be cashflow positive in the first year due to significant upside at current gold spot prices.

A third-party provider is currently being considered to build, own and operate the proposed paste fill infrastructure during the initial years of the LHOS operation.

Westgold forecasts $24m of capital expenditure in FY24, predominantly towards the paste fill system and associated infrastructure.