Westgold shares rise on drilling results at Bluebird mine
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The news: Shares in Westgold Resources rallied on the ASX after the gold miner reported "highly encouraging" results from a drilling campaign at its Bluebird-South Junction mining complex in Meekatharra, Western Australia.
The numbers: Westgold shares were up 2.7% to 8.5 cents by 2:30pm AEDT, making it the third best performing ASX 200 company. Westgold closed 3.7% lower on Friday, after reporting higher mining costs for the September quarter.
The context: Westgold said that the drilling results at Bluebird-South Junction have been "outstanding" to date and that a new resource upgrade for the complex is pending in November.
The potential to extend the mining project is considered large, the company said, and the South Junction resource definition drilling program has been extended throughout Q2 FY25 as a result.
The Bluebird mill is the highest contributor to Westgold's gold production with an estimated 45% share of its output. In August, the miner announced an expansion to the mine's capacity and a 233% increase in the site's ore reserve.
What they said: "The Bluebird-South Junction mine is rapidly becoming the key growth driver of Westgold's Murchison portfolio," Westgold managing director and CEO Wayne Bramwell said.
The source: ASX announcement
