Westgold shares climb as Bluebird mine reserve doubles
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More news: Shares in Westgold Resources advanced at market open on the ASX after the gold miner doubled the ore reserve at its Bluebird-South Junction mine in Western Australia.
Westgold shares were up 1.8% to $2.86 by 10:40am AEDT, extending gains of around 30% since January.
RBC Capital Markets analyst Alex Barkley said the expansion at Westgold's Bluebird mine is an "incremental positive" but "largely expected".
Barkley noted that the lower overall reserve grade, versus the measured and indicated resource, is a "potential negative".
What they said: "Overall, this announcement itself was a neutral outcome for [Westgold], said Barkley.
"However, it is another reminder of the results being reaped from [Westgold]'s recent focus on exploration," he said.
Westgold records further increase to Bluebird ore reserves
The news: Gold miner Westgold Resources has more than doubled the ore reserve at its Bluebird-South Junction mining complex in Meekatharra, Western Australia.
The numbers: Westgold reported a 107% increase in the ore reserve from the total recorded in August, with the figure revised from 277,000 ounces to 573,000 ounces.
The miner said it has delivered a 400% increase in the ore reserve at the Bluebird-South Junction mine over the past year, including a 233% uplift in August.
Westgold is targeting a run rate at the mine of more than 1.2 million tonnes per year during the second half of FY25.
The context: Westgold's managing director and chief executive Wayne Bramwell noted that the company has "not yet defined the limits of this ever-expanding system".
What they said: "With scale comes the opportunity to reduce costs with mine studies to-date showing that the South Junction deposit lends itself to a lower-cost, bulk extraction mining method that will deliver higher ounces-per-vertical metre — underpinning its potential to be a highly effective mining operation on the doorstep of our Meekatharra process plant," said Bramwell.
The source: ASX announcement
