Western Gold Resources shifts focus into the next development phase

Western Gold Resources is shifting its focus to the next phase of development at the Duke Gold Project in Western Australia, following the update of the outcomes from a Scoping Study for open-pit mining and toll treatment. The company intends to focus on beginning grade control and infill drilling to evaluate resource confidence and advance towards production readiness. The revised Scoping Study production target delivered an estimated undiscounted cash surplus of $56.1 million at $4,500 per ounce gold price – representing a 47% increase on the previous estimate of $38.1 million.

At a $5,500 per ounce gold price, the surplus increases to $97.3 million. Using the increased gold price of $4,500 per ounce, the production target for the project is estimated to be 686,000 tonnes @ 2.1 grams per tonne, producing 42,800 ounces of gold. The revised production delivers a 53% increase in tonnes and a 26% increase in gold ounces, supporting enhanced project economics.Pre-mining capital and start-up costs are estimated to be $2.6 million to $2.8 million, with a 14-month mine life.

Managing Director Cullum Winn says the company’s preferred mining construct SSH Mining has provided a deferred payment facility to fund production in a non-dilutive manner.