Western Gold Resources Advances Gold Duke Project with Successful Heritage Survey
WESTERN GOLD RESOURCES LIMITED. (WGR) Share Update August 2024 Thursday 1st
WGR Completes Aboriginal Heritage Survey, Moves Closer to Gold Production
Western Gold Resources (ASX: WGR) has announced the successful completion of an Aboriginal heritage survey at its Gold Duke Project, marking a significant step towards commencing gold production.
Instant Summary:
- Aboriginal Heritage Clearance Survey completed over Gold Duke Program.
- Survey provides clearance for mining at Eagle, Emu, Gold King, and Golden Monarch deposits.
- Further surveys scheduled for Q3 over Brilliant and Bottom Camp prospects.
- Production Scoping Study based on 4.57Mt and 2.00g/t gold to be completed soon.
- First stage production to focus on 178,000 oz of gold across four deposits.
Survey Completion and Mining Clearance
Western Gold Resources (ASX: WGR) has successfully completed an Aboriginal Heritage Clearance Survey over its Gold Duke Program. This survey, conducted to a mining level, provides the necessary heritage clearance for mining operations at the Eagle, Emu, Gold King, and Golden Monarch deposits.
The survey was carried out in collaboration with the Tarlka Matuwa Piarku Aboriginal Corporation and the Martu traditional owners. WGR Managing Director Warren Thorne expressed gratitude for their cooperation and efforts, emphasizing the strengthened relationship between WGR and the traditional owners, aiming for long-term benefits for all parties involved.
Future Surveys and Production Plans
Further Aboriginal Heritage Surveys are scheduled for Q3 over drill targets at the Brilliant and Bottom Camp prospects. These surveys are part of WGR's strategy to increase the ounces for Stage 2 gold production.
WGR is also nearing the completion of its production Scoping Study, which will be based on the current Mineral Resource Estimate of 4.57Mt and 2.00g/t gold. The study will focus on determining the strategy that provides the maximum financial return, considering options such as processing the ore through a mill, CIL, Heap Leach, or a combination of these methods.
First Stage Production Focus
The first stage of production will concentrate on a portion of the four deposits—Eagle, Emu, Gold King, and Golden Monarch—that collectively contain a total of 178,000 oz of gold. This represents 61% of the total resource of the Gold Duke project.
WGR continues to progress with discussions related to toll milling and mining of the assets. These discussions are part of the ongoing Scoping Study, with results expected in early Q3. Additionally, diamond core samples are currently being analyzed at ALS in Perth for assay, density determination, CIL, and Heap-Leach amenability test work, with results anticipated in the third quarter of 2024.
Next Steps
To advance mining operations at the Eagle, Emu, Gold King, and Golden Monarch deposits, WGR is preparing its project mining plan for submission to DMIRS. The company is also preparing for grade control drilling over the four production-ready deposits and deciding on the optimal path to production. This includes evaluating processing methods such as milling, CIL, Heap Leach, or a combination of the two.
WGR plans to appoint a mining contractor and will continue to provide regular market updates on exploration activities and drilling results as they become available.
The successful completion of the Aboriginal Heritage Survey is a crucial milestone for WGR, as it clears a significant regulatory hurdle and paves the way for mining operations to commence. This progress is likely to positively impact WGR's stock price, as it demonstrates the company's commitment to advancing its Gold Duke Project and achieving gold production.
Furthermore, the upcoming Scoping Study results and the potential increase in gold resources from further surveys could boost investor confidence and attract new investments. The company's strategic focus on maximizing financial returns through various processing methods also indicates a well-thought-out approach to production.
Investor Reaction:
Analysts are expected to react positively to this announcement, as it shows significant progress towards gold production. The successful heritage survey and the upcoming Scoping Study results are likely to be seen as positive developments, enhancing the company's prospects and potentially leading to an increase in stock value.
However, some investors may adopt a cautious approach, awaiting the final results of the Scoping Study and further heritage surveys before making significant investment decisions.
Conclusion:
Western Gold Resources' successful completion of the Aboriginal Heritage Survey marks a significant step towards gold production at the Gold Duke Project. Investors should stay tuned for the upcoming Scoping Study results and further updates on exploration activities. These developments could have a positive impact on WGR's stock price and overall market position.