Western Gold Resources Expands Resource Estimates at Gold Duke Project
WESTERN GOLD RESOURCES LIMITED. (WGR) Share Update September 2024 Wednesday 18th
Western Gold Resources Announces Major Resource Expansion at Gold Duke Project
Western Gold Resources Limited (ASX: WGR) has announced a substantial update to its Mineral Resource Estimate (MRE) for the Eagle, Emu, and Golden Monarch deposits at its 100% owned Gold Duke Project in the north-eastern goldfields of Western Australia.
Instant Summary:
- Indicated tonnage at Eagle expanded by 300%.
- First Indicated Resource declared at Emu.
- Total Mineral Resource Estimate (JORC 2012) for the Gold Duke Project now stands at 2.95Mt @ 2.07g/t Au for 235,000 oz.
- Measured, Indicated, and Inferred resources updated for Eagle, Emu, and Golden Monarch deposits.
- Scoping Study underway to move Gold Duke into production.
Resource Expansion Details
Western Gold Resources Limited (WGR) has released an updated Mineral Resource Estimate (MRE) for its Eagle, Emu, and Golden Monarch deposits at the Gold Duke Project. This update has significantly increased the Indicated tonnage at Eagle by 300% and allowed for the declaration of an Indicated Resource at Emu for the first time.
The updated MRE, reported in accordance with JORC 2012 guidelines, includes a total of 2.95 million tonnes (Mt) at 2.07 grams per tonne (g/t) gold (Au) for 235,000 ounces (oz) of gold. This update is based on a 0.50 g/t cut-off grade.
Breakdown of Resources
The detailed breakdown of the updated resources is as follows:
- Golden Monarch: Measured 31Kt @ 3.05g/t Au for 3koz, Indicated 276Kt @ 2.29g/t Au for 20koz, Inferred 203Kt @ 1.88g/t Au for 12koz, Total 510Kt @ 2.17g/t Au for 36koz.
- Eagle: Indicated 317Kt @ 2.51g/t Au for 26koz, Inferred 103Kt @ 1.97g/t Au for 7koz, Total 420Kt @ 2.38g/t Au for 32koz.
- Emu: Indicated 124Kt @ 1.86g/t Au for 7koz, Inferred 121Kt @ 2.09g/t Au for 8koz, Total 245Kt @ 1.98g/t Au for 16koz.
The updated global Measured, Indicated, and Inferred Mineral Resource Estimate for the Gold Duke Project now stands at 2.95Mt @ 2.07g/t Au for 235,000 oz.
Geological Insights
The update has also provided substantial improvements in the understanding of the deposit geology, increasing confidence in the domains and structural controls on the mineralisation. This provides a robust framework for further analysis and supports WGR's strategy to move the project forward towards mining.
The updated resource confidence will support a Scoping Study currently underway, as WGR looks to move the Gold Duke Project into production. The company plans to update the market on this study in the near term.
Management Commentary
Warren Thorne, WGR’s Managing Director, commented: ‘The updated Mineral Resource Estimate for the Golden Monarch, Eagle, and Emu deposits highlights a better interpretation of the drilling campaigns completed on the project in 2021 and 2022. Together with data from geotechnical drilling completed in 2024, and incorporating current mining costs and the gold price, the updated MRE provides further validation of the economic viability of the Gold Duke Project. The increased resource confidence will also support a Scoping Study underway as the Company looks to move the Gold Duke Project into production.’
The significant expansion of the Indicated tonnage at Eagle and the first-time declaration of an Indicated Resource at Emu are positive developments for Western Gold Resources. This increased resource confidence is likely to bolster investor sentiment and support the company's strategy to move the Gold Duke Project towards production. The updated MRE provides a strong foundation for the ongoing Scoping Study, which could further enhance the project's economic viability.
Investor Reaction:
Analysts are likely to view the substantial increase in Indicated resources positively, as it demonstrates the potential for economic extraction and supports the company's plans to advance the project towards production. The detailed geological insights and robust framework provided by the updated MRE are expected to increase investor confidence in the project's viability.
Conclusion:
Investors should closely monitor the upcoming updates from Western Gold Resources, particularly the results of the Scoping Study. The significant expansion of resources at the Gold Duke Project underscores the potential for future growth and production. Investors are encouraged to stay informed on the company's progress and consider the long-term potential of the project in their investment decisions.