Westgold Resources has outlined an ambitious yet capital-efficient pathway to expand its Meekatharra processing hub by 61 percent, increasing throughput from 1.8 million tonnes per annum to 2.9 million tonnes by financial year 2028. The expansion plan, supported by a scoping study released on 25 August 2026, targets approximately $100 million in capital expenditure and a remarkably short payback period of just nine months once the facility is commissioned.
The brownfields expansion is notable for its pragmatic approach to addressing an emerging processing constraint at one of Westgold’s core assets. Rather than constructing an entirely new processing plant, the company intends to install a parallel crushing and single-stage SAG milling circuit integrated with the existing downstream leach, adsorption and gold recovery infrastructure. This strategy leverages Westgold’s existing hub infrastructure and long-lead equipment already procured, reducing both execution risk and capital intensity compared to a greenfield alternative.
The expansion’s economics appear compelling from an investor perspective. The project would add approximately 47,000 ounces per annum to baseline production, bringing total gold output from Meekatharra to 1.6 million ounces over the life of the operation. This represents an increase of 424,000 ounces relative to the current plan. At the scoping study’s assumed all-in sustaining costs of $1,968 to $2,406 per ounce, the project delivers a net present value improvement of approximately $1.1 billion at a gold price of $5,500 per ounce, rising to approximately $1.6 billion at the spot price of $6,000 per ounce.
The expansion is underpinned by increasing ore supply from the nearby Bluebird-South Junction underground mine and a range of open pits across Westgold’s Murchison district. Recent drilling at the Polar Star Lode and optimisations at Nannine and Paddy’s Flat are expected to diversify baseload ore sources and enhance plant utilisation and metallurgical recovery rates. This integrated approach, combining ore supply development with processing infrastructure expansion, positions the company to extract greater value from its mineral resources and improve cash generation across the forecast period.
Westgold remains at the scoping study stage with feasibility-level technical and economic assessments, ore source validation, capital estimate refinement and execution planning now underway. The company targets commissioning in FY28, contingent on completion of these workstreams and relevant approvals. Investors should monitor the progression of feasibility work and any updates to capital estimates and production schedules. This announcement is price sensitive and has been 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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