Westgold restarts Cue gold mine

Zenith Energy has signed a 25-year power purchase agreement (PPA) to supply Northern Star’s (ASX: NST) Kalgoorlie consolidated gold mines (KCGM) in WA. 

Northern Star slashes guidance as sales take a hit Northern Star (ASX: NST) has revised FY26 production and cost guidance following lower gold sales across its three production centres in the December quarter.FY26 group all-in sustaining cost (AISC) guidance was increased to $2600–2800/oz from $2300–2700/oz, predominantly driven by lower gold sales and higher royalties from elevated gold prices.FY26 production guidance has been lowered to 1600-1700koz, from 1700-1850koz, with Northern Star citing a number of one-off operational events.Northern Star managing director Stuart Tonkin comments on the December quarter performance.“As previously announced, a number of one-off operational events across our assets resulted in a softer December quarter and prompted us to revise FY26 production and cost guidance,” he said.“Looking ahead, our team remains firmly focused on driving productivity improvements and strengthening cost discipline."The December quarter delivered positive advances at our two key growth projects that will structurally reshape our cost base and support delivery of higher-margin ounces.”KCGM’s December quarter gold sales were impacted by lower throughput after a primary crusher failure, with normal operations resuming in early January.At Yandal, Jundee recovery works took longer than planned with up to a 20koz impact. Thunderbox was hit by lower mined grades, unplanned processing downtime and reduced recoveries linked to carbon-in-leach tank failures, as well as ventilation fan downtime that affected underground volumes and mill feed grades.At Pogo, grades fell due to new mining areas and higher dilution, before improving late in the quarter, while lower gold sales also pushed up unit AISC.Northern Star has also lifted its KCGM Mill Expansion capex from $530–550m to $640–660m. The project remains on track for early FY27 commissioning.

Brightstar receives major approval for Goldfields project Brightstar (ASX: BTR) has received approval from the WA Government for the open pit development of the Lady Shenton project in Menzies.With the Mining Development and Closure Proposal approved by the WA Department of Mines, Petroleum and Exploration and the previously approved Native Vegetation Clearing Permit, the Lady Shenton deposit is now “mine ready” for production.Brightstar managing director Alex Rovira comments on the approval.“This signifies a key milestone for the development of our Menzies assets, which once in operation will represent the first mining to occur since the successful Selkirk mining JV in 2024,” he said.“Lady Shenton is now ‘mine ready’ and represents a low capex, high-margin deposit for Brightstar that complements the broader Goldfields Hub development.“With over 4moz of mineral resources on granted mining leases, Brightstar has a strategic objective of developing both the Goldfields and Sandstone projects in the coming years as part of our aspiration to be a multi-asset, mid-tier scale WA gold producer.”Brightstar plans to release an updated definitive feasibility study (DFS2.0) and a development update and timeline for the Menzies and Laverton gold projects later this quarter.

Westgold Resources (ASX: WGX) will divest the Mt Henry-Selene gold project in WA, closely following the announced spin-out of the company’s non-core Murchison projects.Alicanto (ASX: AQI) will acquire 100% of the 150moz project including all associated mining tenements, licences, heritage agreements, contracts and technical information.The Mt Henry project was acquired by Westgold in 2024 after being placed on care and maintenance in 2019 by Karora Resources. It hosts a combined mineral resource of 24.5mt at 1.2g/t gold for 915,000oz of contained gold and an ore reserve of 11.7mt at 1.3g/t gold for 478,300oz.Westgold will receive $15m cash and $19.6m via the issue of 19.9% of the ordinary shares in Alicanto post transaction close.Westgold says the transaction is aligned with its long-term strategic plans of focusing on larger, core operating assets rather than non-core assets such as Mt Henry.“This transaction delivers Westgold shareholders an attractive mix of cash, exposure to project upside via a large strategic shareholding and deferred consideration payable on specific project milestones,” Westgold managing director and chief executive Wayne Bramwell said.“Westgold is pleased to partner with Alicanto, whose board and management team are experienced and committed explorers and have a demonstrable record of rapidly advancing gold projects.“Westgold continues to progress discussions in relation to the potential sale of its Peak Hill and Chalice gold assets following strong inbound interest.”Alicanto interim executive chair Ray Shorrocks comments on the transaction.“The Mt Henry acquisition is an exceptional company-making opportunity for Alicanto,” he said.“It provides immediate scale, a high-quality, near-surface Resource and a clear platform for rapid growth and development.“The .9moz resource and pit shells were calculated when the gold price was one-quarter of its current level and the historic drilling data shows most holes ended in mineralisation.”The divestment follows Westgold’s recently announced demerger, with the company spinning out its non-core Reedy’s and Comet gold exploration assets to new stand-alone Valient Gold.The Reedy’s and Comet assets have a combined mineral resource of 15.6mt at 2.4g/t gold for 1.2moz.Both projects were previously in production before being placed on care and maintenance in FY23.“By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages,” Mr Bramwell said.“Valiant will have a fast-track to cashflow with an ore purchase agreement (OPA) to be entered into with Westgold.“This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG).“This model saw NMG transition from explorer to producer, with gold production from NMG’s Crown Prince deposit now delivering high grade oxide ore to Westgold’s Meekatharra processing hub.“Valiant can replicate this success. With several small underground mines in care and maintenance, a range of open pit opportunities and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near term cashflow.”Westgold will retain upside to exploration and production success through a substantial equity holding in Valiant.