Westgold Resources is evaluating a potential ten-year expansion of its Fortnum Gold Operation, located 140km north of Meekatharra in Western Australia (WA).
A scoping study, conducted on a 100% basis, is exploring the technical and economic viability of the expansion, focusing on estimating ore reserves for the Fortnum Expansion Project (FXP).
The study indicates a need for further infill drilling and evaluation work before Westgold can fully estimate ore reserves for the FXP.
Of the mineral resources, 8% are measured, 56% indicated and 36% inferred.
There is low geological confidence in inferred mineral resources and further exploration may not convert these into indicated resources.
The expansion plan involves mining existing ore reserves at the Starlight underground operation and the Nathan’s open-pit mine, followed by indicated and inferred mineral resources at various sites.
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The current ore reserves at Starlight and Nathan’s are set for extraction, forming 17% of the scheduled material in the scoping study production target.
The existing 900,000 tonnes per annum processing plant will be upgraded to approximately 1.5 million tonnes per annum, with long-term tailings disposal planned for the Nathan’s open-pit void after mining. A new paddock-style tailings storage facility may also be necessary.
The Fortnum Gold Operation has produced approximately 800,000oz of gold since the 1980s. Westgold is confident in the projected outcomes, having previously mined Yarlarweelor and currently mining Starlight underground.
The Starlight underground mine is currently the primary source of feed for Westgold’s Fortnum processing hub, accounting for 90% of all processed tonnes, with the remaining 10% coming from surface stockpiles.
Westgold confirms the FXP’s financial viability at the scoping level, excluding inferred resources.
The company believes it has a reasonable basis for its forward-looking statements, although it acknowledges uncertainties in assumptions and outcomes.
Funding of approximately $294m (A$465.7m) is required over the project’s life, with $39m for open-pit pre-production, $93m for processing plant capital, $113m for underground capital development and $48m for working capital and exploration.
Westgold has $103m in cash, bullion and investments as of 30 September 2024 and has increased its Syndicated Facility Agreement to $300m, drawing down $50m.
