Westgold Resources contemplates 10-year expansion at Fortnum

Australia’s Westgold Resources (ASX: WGX) (TSX: WGX) has unveiled a 10-year expansion plan for its Fortnum operation following a scoping study that outlined potential gold production boosts from 713,000 to 871,000 oz.Along with more gold production, the expansion is expected to reduce Fortnum’s midpoint all-in sustaining cost to $1,558/oz. once at steady state. In fiscal 2024, its AISC was $1,883/oz. The project has a mid-point net present value (at 8% discount) of $306 million, assuming a gold price of $3,500/oz.The expanded project will comprise three large open pits at Nathan’s, Starlight and Yarlarweelor, plus the larger Starlight underground mine, which currently is the main source of gold production at Fortnum. The existing processing plant will also be expanded from 900,000 tonnes per annum to 1.5 million tonnes.The scoping study is part of the company’s portfolio asset review of its assets in Western Australia. The Fortnum hub represents the the northernmost group of Westgold assets, encompassing several mining areas that collectively have delivered approximately 2 million oz. in gold production.The study, which Westgold warns is preliminary in nature, is underpinned by a significant rise in the mineral resource for the Starlight deposit, now sitting at 12.9 million tonnes grading 2.7 g/t gold for 1.13 million oz., for a 91% increase from the previous estimate. Of the resources scheduled for extraction in the study, approximately 8% is classified as measured, 56% indicated and 36% as inferred.The study contemplates mining the existing ore reserves at Starlight underground and Nathan’s open pit initially, before moving onto indicated and inferred mineral resources at Starlight underground and the Nathan’s, Starlight, Yarlarweelor and satellite open pits.“Fortnum is a mature, yet under-drilled asset and is one of Westgold’s most profitable and productive operations, with the Starlight mine having produced over 800,000 oz. of gold over its life,” stated Westgold managing director and CEO Wayne Bramwell. “The scoping study contemplates a modest upfront capital investment to deliver a long-life, fully integrated open pit and underground project of increased scale.”Funding of approximately $294 million will likely be required over the life of mine. These include $39 million in open pit pre-production capital, $93 million for processing plant upgrades, $113 million for underground capital development, and $48 million in working capital and exploration funding.Shares of Westgold Resources gained 4.1% by noon ET Tuesday following the Fortnum expansion announcement, pushing the miner’s market capitalization to nearly A$3 billion.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com