Westgold’s $11M Exploration Spend Fuels Growth Amid Fortnum Expansion Uncertainties

Exploration Momentum in Murchison and Southern Goldfields

Westgold Resources Limited (ASX | TSX: WGX) has delivered a strong exploration and resource development performance in the March 2025 quarter, drilling a total of 82,898 metres and investing $11 million in advancing its gold assets. The company’s focus on expanding existing mines and defining new organic growth opportunities is evident across its extensive portfolio in Western Australia’s Murchison and Southern Goldfields regions.

In the Murchison, drilling at Bluebird-South Junction continues to underpin production growth, with notable intercepts such as 8.11 metres at 12.66 g/t Au and 6.57 metres at 9.41 g/t Au. The Nightfall orebody within the Starlight underground mine remains a standout, consistently delivering grades and widths exceeding current mine plan models, including exceptional results like 25 metres at 17.66 g/t Au and 15.47 metres at 23.53 g/t Au. These results reinforce the mine’s potential to sustain and possibly enhance its output profile.

Meanwhile, in the Southern Goldfields, Beta Hunt’s Western Flanks zone continues to demonstrate its scale and quality, highlighted by a 22-metre intercept at 4.69 g/t Au. Stage 1 drilling of the Fletcher Zone, targeting between 0.8 and 1.2 million ounces, has yielded encouraging results, including 63 metres at 3.62 g/t Au, supporting the imminent compilation of an initial Mineral Resource Estimate by the end of FY25.

Strategic Greenfields Exploration and Portfolio Review

Following the merger with Karora Resources, Westgold’s exploration tenure expanded to approximately 3,200 square kilometres. A comprehensive target review identified 20 priority greenfields targets, with drill testing underway and set to accelerate into the next quarters. Programs such as the Five Ways South RC drilling at Peak Hill and the Murphy Creek Aircore program are probing prospective analogues and strike extensions, with initial assay results indicating potential for further resource growth.

Westgold’s Managing Director and CEO, Wayne Bramwell, emphasised the dual objectives of the exploration strategy: to grow existing mines through resource conversion and to define the next generation of mines through exploration. He highlighted the company’s strong funding position and systematic approach as key enablers for delivering higher quality mine outputs, cost efficiencies, and an enhanced production profile.

Advancing the Fortnum Expansion Project and Mine Planning

Significant progress continues on the Fortnum Expansion Project (FXP), with the Pre-Feasibility study advancing through detailed pit design and scheduling. The FXP contemplates increasing milling rates to 1.5 Mtpa over a ten-year life, integrating open pit mining as part of a broader Murchison-wide campaign. Drilling programs to support a final investment decision are being designed, alongside permitting and infrastructure development. A new drill platform within the Starlight underground mine is planned to facilitate increased production and de-risk deeper open pit zones, with development expected to commence in Q4 FY25.

Other resource development activities include ongoing drilling at the Fender underground mine and Great Fingall, where exploration outside current mine plans is revealing promising mineralisation extensions. At Higginsville, the company has transitioned its first Southern Goldfields open pit project into execution, with ore production commencing from multiple open pits and underground target development advancing.

Operational Scale and Infrastructure

At the end of the quarter, Westgold operated 17 drill rigs, 16 underground and one surface rig, across its key operations including Starlight, Bluebird, Great Fingall, Beta Hunt, and Two Boys. The company’s well-established infrastructure, including processing plants and accommodation facilities, supports its exploration and mining activities. Westgold continues to operate in compliance with environmental and regulatory requirements, maintaining good standing across its tenements.

With $34 million invested year-to-date in exploration and resource development, Westgold’s disciplined capital deployment underpins its strategy to organically grow its resource base and production capacity. The company’s focus on high-grade zones and strategic greenfields targets positions it well to sustain its growth trajectory.