Western Gold Secures Key Approvals and Boosts Resources at Gold Duke Project
Western Gold Resources Limited has secured expanded mining approvals, confirmed strong metallurgical recoveries, and updated its mineral resource estimate at the Gold Duke Project, positioning the company for a transition to production.
- Expanded mining approval granted for all four pits at Gold Duke Project
- Metallurgical testwork confirms gold recoveries up to 95.1%
- Updated Mineral Resource Estimate totals 3.25Mt @ 2.1g/t Au for 214,000 oz
- Raised $720,000 via share placement at a 28% premium
- Preferred mining contractor selected with deferred payment facility
Expanded Approvals Clear Path for Mining
Western Gold Resources Limited (ASX: WGR) has made significant strides in advancing its flagship Gold Duke Project in Western Australia. The company announced expanded approval of its Mining Proposal and Mine Closure Plan, now covering all four proposed open pits: Eagle, Emu, Golden Monarch, and the recently approved Gold King deposit. This regulatory milestone, granted by the WA Department of Energy, Mines, Industry Regulation and Safety, effectively greenlights the commencement of stage 1 open pit mining operations.
Robust Metallurgical Performance Supports Project Viability
Independent metallurgical testwork has demonstrated excellent gold recoveries, with cyanide leach tests achieving up to 95.1% extraction for oxide ore. The testing employed conventional crush, grind, and carbon-in-leach (CIL) processing routes, confirming the suitability of the ore for standard treatment methods. Low to moderate cyanide and lime consumption rates further enhance the project's economic prospects.
Resource Upgrade Reflects Growing Confidence
The company updated its Mineral Resource Estimate (JORC 2012) for the Gold King deposit, now reporting 427,000 tonnes at 1.91 grams per tonne gold for 26,000 ounces, including an Indicated Resource category for the first time. The overall Gold Duke Project resource stands at 3.25 million tonnes at 2.1 grams per tonne gold, totaling 214,000 ounces. This upgrade reflects extensive drilling campaigns and refined pit optimisations, although the Gold King resource tonnage decreased slightly due to stricter economic extraction criteria.
Strategic Appointments and Capital Raising
To support the transition towards production, Western Gold appointed a highly experienced Managing Director, Cullum Winn, alongside a new Chief Financial Officer and additional Non-Executive Directors. These leadership changes aim to strengthen operational and financial management as the project advances. Complementing these moves, the company raised $720,000 through a share placement priced at $0.04 per share, a 28% premium to the recent trading average, bolstering its working capital position.
Mining Contractor Selection and Deferred Payment Facility
Post-quarter, Western Gold issued a non-binding notice to SSH Group Limited (ASX: SSH) as the preferred mining contractor for the Gold Duke Project. SSH has proposed a deferred payment arrangement designed to ease Western Gold’s cash flow during the initial operational phase. This partnership leverages SSH’s established presence in mining and civil construction, promising efficient project development under compliant and safe practices.
Looking Ahead
With approvals secured, metallurgical confidence high, and resources upgraded, Western Gold is now focused on detailed planning for infill and grade control drilling, finalising processing arrangements with nearby plants, and formalising agreements with SSH Group. The company also continues to review its broader tenement portfolio in Australia and Sweden, aiming to streamline its asset base and concentrate on core projects.
Bottom Line?
Western Gold’s recent approvals and resource upgrades set the stage for a critical production phase, but execution risks and funding needs remain key watchpoints.
Questions in the middle?
- How will Western Gold finalize processing arrangements with nearby plants to optimise throughput?
- What are the terms and potential impacts of the deferred payment facility with SSH Group on project financing?
- How might fluctuations in gold prices affect the economic viability of the updated Gold Duke resource?
