Westgold Resources has delivered a significant milestone with its updated mineral resource and ore reserves statement, posting a 41% increase in ore reserves to 4.1 million ounces while maintaining impressive cost discipline at just $27 per ounce in reserve additions. This growth was achieved post-mining depletion and after adjusting for non-core asset divestments, demonstrating the underlying strength of the company’s core portfolio within its streamlined asset base.
The ore reserve grade improved substantially, climbing 15% to 2.22 grams per tonne, marking the third consecutive year of reserve growth following mining depletion. This grade improvement directly translates to better future unit economics as Westgold not only grows its reserve base but does so at higher grades. The company has maintained approximately a 10-year reserve life at current processing capacity, providing a solid foundation for medium-term production planning.
The total mineral resource base expanded 8% to 14.4 million ounces (194 million tonnes at 2.30 g/t) after adjusting for divestments, while the resource quality improved meaningfully. Measured and indicated resources now represent 62.6% of the total resource inventory, up from 56.6% a year prior, reflecting better geological definition and reducing uncertainty for future mine planning and investment decisions.
With 26 drill rigs currently operating across the Murchison and Southern Goldfields regions, Westgold is positioning itself for continued organic growth. The company has committed $50-75 million in planned exploration and resource development drilling for FY27, targeting both near-term reserve conversion opportunities and medium-term production growth options. This aggressive investment stance suggests management confidence in the quality and extensibility of the resource base.
Investors should track the pace of reserve conversions from the enlarged resource base as the expanded drilling campaign progresses, with particular attention to the cost per ounce of future reserve additions. Maintaining reserve growth at similar or improving unit economics will be critical to long-term shareholder value creation. This announcement has been classified as price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About Westgold Resources Limited (ASX: WGX)
Westgold Resources Limited is an Australian gold mining company that explores, develops, and operates gold mines in Western Australia. The company operates mining facilities across the Murchison and Southern Goldfields regions and recently expanded its operations through the acquisition of Karora Resources. Westgold is listed on both the Australian Securities Exchange (ASX) and the Toronto Venture Exchange (TSX).
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