Westgold Resources (ASX:WGX,TSX:WGX,OTCQX:WGXRF) released a maiden ore reserve statement for its South Junction mine, part of the Bluebird – South Junction mining complex, on Wednesday (August 14).
According to the company, the ore reserve for Bluebird – South Junction has increased by 233 percent and now stands at 3 million tonnes at 2.8 grams per tonne (g/t) gold for 277,000 ounces of the yellow metal.
South Junction contributed 2.6 million tonnes at 2.7 g/t gold for 225,000 ounces of gold.
Westgold said the 233 percent boost is in comparison to its 2023 fiscal year ore reserve post-depletion.
Located in the regional town of Meekathara, South Junction is owned by Westgold and was identified as a priority growth opportunity after initial drill testing of the project was done in early 2023.
A drill program was initiated in January of this year with the aim of extending and infilling the project. This program is ongoing, with two rigs active on the surface and in the underground environment, respectively.
The company released an updated resource estimate for Bluebird – South Junction in April, reporting 6.4 million tonnes at 3.1 g/t gold for 827,000 ounces; that was an increase of 134 percent from the previous estimate.
Wednesday’s release shows a further increase of 130,000 ounces post-depletion of 14,000 ounces. The property’s resource estimate now stands at 10.71 million tonnes at 2.8 g/t gold for 960,000 ounces.
The company said in its release that mining at South Junction is scheduled to commence in August, and that production rates at the asset will rapidly increase as the project moves along.
Overall, the company’s strategy is to further expand its biggest mines and focus on grade moving forward. This includes the expansion of the Bluebird underground to include new mining fronts from South Junction.
‘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,’ said CEO Wayne Bramwell, adding that the company will be drilling at properties across its portfolio in the months to come.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.