Western Gold Resources - June 2024 Quarterly Activities Report
WGR (WGR) Share Update July 2024 Tuesday 30th
Western Gold Resources Advances Towards Gold Production
Western Gold Resources Limited (ASX: WGR) has released its quarterly activities report for the period ending June 30, 2024, highlighting significant advancements in its Gold Duke project.
Instant Summary:
- Completed 15 HQ3 diamond holes at Gold Duke project.
- Metallurgical test work to evaluate CIL and Heap Leach processes.
- Scoping study to determine the most financially viable processing strategy.
- First stage production to focus on 178,000 oz of gold from four deposits.
- Capital raising of $1 million through Share Placement and Convertible Notes.
Gold Duke Project Progress
Western Gold Resources (WGR) has made substantial progress at its Gold Duke project, completing 15 HQ3 diamond holes. These holes provided critical geological, mineralisation, and structural data that will aid in future studies. The metallurgical test work program is set to test both Carbon-in-Leach (CIL) and Heap Leach amenability.
The scoping study, expected to be delivered in early Q3, will focus on identifying the most financially viable processing strategy, whether through milling, CIL, Heap Leach, or a combination. The first stage of production will target a portion of the four deposits—Eagle, Emu, Gold King, and Golden Monarch—which contain a total of 178,000 oz of gold, representing 61% of the Gold Duke project's total resource.
Mining Approvals and Test Work
Mining approvals are already in place for the Eagle, Emu, and Golden Monarch deposits, with approvals for the Gold King deposit currently in progress. Preliminary heap leach test-work results indicate a likely ~80% gold extraction under standard operational conditions. The diamond drilling campaign focused on these four deposits, providing valuable samples for metallurgical testing and geotechnical analysis.
Downhole geophysical surveys, including optical televiewer (OTV) assessments, were completed on all holes to gather structural information that will inform pit design. The gold at all deposits is BIF-hosted, simplifying blending and processing options.
Corporate and Financial Updates
WGR ended the quarter with $751,000 in cash. The company successfully raised $1 million through a Share Placement and Convertible Note subscription. During the quarter, WGR spent $632,000 on exploration and evaluation activities, primarily focused on the Gold Duke project.
Future activities planned for Q3 2024 include completing geotechnical and metallurgical test work programs, conducting native title surveys, and executing RC drill programs to sterilize planned waste dump locations and key infrastructure areas.
The advancements at the Gold Duke project are likely to have a positive impact on WGR's stock, as the company moves closer to production. The scoping study's results will be crucial in determining the most financially viable processing strategy, which could significantly enhance shareholder value. The successful capital raising also strengthens WGR's financial position, enabling continued progress on the project.
Investor Reaction:
Analysts are likely to view the progress at the Gold Duke project positively, especially given the high gold prices. The completion of the scoping study and the commencement of production could further boost investor confidence. However, the final impact will depend on the results of the scoping study and the company's ability to execute its plans efficiently.
Conclusion:
Investors should keep an eye on the upcoming scoping study results and the company's progress towards production. Western Gold Resources' strategic advancements at the Gold Duke project indicate a promising future, potentially offering significant returns for shareholders.