Gold Duke Project Drilling Progresses, But Key Assay Details Still Pending
Western Gold Resources has completed over 45% of its 35,300-metre grade control and infill drilling program at the Gold Duke Project, receiving initial assay results from the Eagle prospect. The company is finalizing an updated scoping study and secured $3 million in non-dilutive funding to support a planned mining start in late 2025.
- Over 16,000 metres of 35,300-metre drilling completed on schedule
- Initial raw assay results received for 20 holes at Eagle prospect
- Drilling supports de-risking and flexible mine scheduling for late Q4 2025 start
- Updated scoping study in final review stage amid strong gold prices
- Secured $3 million non-dilutive loan facility with options issuance planned
Drilling Progress and Initial Assays
Western Gold Resources Limited (ASX, WGR) is making steady progress on its Gold Duke Project, having completed more than 16,000 metres; approximately 45%; of its planned 35,300-metre grade control and infill drilling program. This extensive drilling campaign, focused on the Stage 1 open pits including Emu, Eagle, Golden Monarch, and Gold King, remains on schedule and is critical to refining mine planning and resource confidence ahead of production.
On 12 September, the company received the first batch of assay results in raw, unvalidated form from 20 drill holes at the Eagle prospect. While these initial results represent less than 2% of the total planned holes and are incomplete, they align with existing resource models and will be compiled and interpreted before formal release. Western Gold Resources has emphasized its preference to report results only after a substantial data set is available, consistent with industry best practices for large-scale programs.
Strategic Importance of the Drilling Program
The current drilling campaign is designed to de-risk operations by providing detailed grade control and infill data, effectively eliminating the need for grade control drilling during production. This upfront investment enhances operational flexibility and supports rapid advancement toward a mining start targeted for late Q4 2025. By drilling all Stage 1 pits comprehensively, the company aims to optimize ore production efficiency and improve reconciliation between resource models and mine designs, which is vital for accurate production scheduling and financial forecasting ahead of the Final Investment Decision.
Updated Scoping Study and Financial Position
Amid a sustained gold price above A$5,400 per ounce, Western Gold Resources is finalizing an updated scoping study expected to further enhance the project's economics. The study is in its final review stage, signaling a near-term milestone that investors will watch closely.
Financially, the company has secured a $3 million non-dilutive loan facility, with all funds received and agreements executed. As part of the loan terms, Western Gold Resources plans to issue 19 million unlisted options to lenders and the lead manager, exercisable at $0.15 within two years. This funding underpins the ongoing drilling and development activities without diluting existing shareholders.
Geological Context and Historical Significance
The Gold Duke Project, located 35 kilometres southwest of Wiluna in Western Australia’s Joyners Find Greenstone Belt, has a rich history of gold exploration dating back to the early 20th century. The Eagle prospect mineralization occurs within steeply dipping banded iron formation units associated with the Joyners Find shear zone. Historical mining focused on high-grade underground quartz reefs, with recorded grades averaging over 10 grams per tonne gold. The current drilling program builds on this legacy with modern techniques and aims to convert inferred resources to higher confidence categories.
Western Gold Resources’ geological team is diligently compiling and validating assay data to support resource updates and mine planning. The company plans to continue providing regular updates as the drilling program progresses and more assay results become available.
Bottom Line?
As Western Gold Resources advances drilling and finalizes its scoping study, the market awaits clearer insights into Gold Duke’s production potential and financial returns.
Questions in the middle?
- How will the full assay results impact the updated resource estimates and mine plan?
- What are the expected timelines for the Final Investment Decision following the scoping study release?
- How will the secured loan facility and options issuance affect the company’s capital structure and shareholder value?
