Westgold increases Bluebird mine capacity, gold reserves
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The news: Westgold Resources has expanded the mine capacity at its Bluebird-South Junction complex at the Meekatharra gold project in Western Australia, and increased the site's ore reserve by 233%.
The numbers: Westgold said it will target a run rate of 1.2 million tonnes per year at the mine by Q3 FY25. RBC Capital Markets analyst Alex Barkley said this was "substantially higher" than RBC's expectations of 520,000 tonnes per year by FY25, and 720,000 by the end of FY26.
The gold producer also flagged a 233%, or 150,000 ounce, increase in the site's ore reserve compared to the FY23 total.
Westgold shares were up 1.4% to $2.92 by 12:40am AEST.
The context: Westgold's expanded reserve and resource could help a higher production rate to be sustained over the medium-term, RBC's Barkley noted. The Bluebird mill is the highest contributor to Westgold's gold production with an estimated 45% share of its output, he said, so "any production increases at the site could be material for the group overall".
What they said: "Westgold is rapidly building a mine of significant scale and life at Meekatharra," Westgold managing director and CEO Wayne Bramwell said.
"The maiden ore reserve for South Junction and the rapid expansion of the Bluebird-South Junction mining complex to 1.2 million tonnes per annum run rate by the third quarter of FY25 has been a remarkable success story and underpins the value in drilling."
Barkley said: "Prior to today's announcement the prospective Bluebird mine had less than a year's reserve life. This announcement extends that multiple years. Ongoing exploration with four drill rigs is likely to give further eventual extensions, in our view."
The sources: ASX announcement, RBC Capital Markets research
