Westgold Resources Reports Significant Growth in Bluebird-South Junction Mineral Resource
WGX (WGX) Share Update November 2024 Sunday 17th
Westgold Resources Increases Bluebird-South Junction Mineral Resource by 37%
Westgold Resources Limited has announced a substantial increase in the Mineral Resource Estimate for its Bluebird-South Junction mining complex, highlighting its strategic importance within the company's Murchison operations.
Instant Summary:
- Bluebird-South Junction Mineral Resource Estimate grows to 15Mt at 2.9g/t Au for 1.4Moz.
- 65% increase in Measured and Indicated Resources to 8.7Mt at 2.9g/t Au for 814koz.
- Ongoing drilling program with two surface and two underground rigs into 2025.
- Study underway for a second portal access to the Polar Star Lode.
Resource Growth and Exploration
Westgold Resources Limited has reported a 37% increase in the Mineral Resource Estimate (MRE) at its Bluebird-South Junction mining complex, now totaling 15 million tonnes at 2.9 grams per tonne of gold for 1.4 million ounces. This significant growth underscores the strategic importance of the Bluebird-South Junction as a key driver of Westgold's Murchison business.
The Measured and Indicated Resources have seen a remarkable 65% increase, reaching 8.7 million tonnes at 2.9 grams per tonne of gold, equating to 814,000 ounces. This expansion is attributed to an extensive drilling program that has been ongoing since early 2023, aimed at extending and infilling the mineralized system.
Drilling and Development Plans
Westgold has committed to an extended drilling program with two surface rigs and two underground drill rigs operating into 2025. The goal is to further explore the mineralized system, which remains open at depth and along strike to the south. This data will be crucial for optimizing mine infrastructure positioning.
Additionally, a study is underway to accelerate access to the Polar Star Lode, considering the development of a second portal. This could potentially convert into a production decline, providing access to a third mining front and increasing overall mine outputs.
Strategic Impact and Future Prospects
Wayne Bramwell, Westgold's Managing Director and CEO, emphasized the importance of Bluebird-South Junction as a growth driver. The increase in resources supports ongoing mining studies, which are expected to lead to an updated Ore Reserve in the second half of fiscal year 2025.
Westgold's continued investment in exploration and development highlights its commitment to expanding its resource base and optimizing its mining operations. The company plans to provide regular updates on the outcomes of these investments throughout the year.
The substantial increase in the Mineral Resource Estimate at Bluebird-South Junction is likely to have a positive impact on Westgold's stock, as it strengthens the company's resource base and enhances its growth prospects. The ongoing drilling and development plans further demonstrate Westgold's commitment to maximizing the potential of its Murchison operations.
Investor Reaction:
Analysts are expected to view the resource increase positively, as it aligns with Westgold's strategic objectives and enhances its long-term growth potential. The market may respond favorably to the news, reflecting confidence in Westgold's ability to deliver on its expansion plans.
Conclusion:
Investors should keep a close eye on Westgold's ongoing drilling results and the forthcoming updates on the Ore Reserve. The company's strategic initiatives at Bluebird-South Junction could significantly influence its future performance and market position.