Westgold Resources (ASX: WGX, TSX: WGX) has significantly bolstered its gold reserves at the Bluebird-South Junction mine complex, thanks to the first reserve estimation for the South Junction mine. This newly estimated resource is poised to enter production this month, enhancing Westgold’s overall capacity and positioning the South Junction as a critical ore source for the Bluebird processing hub in Western Australia.
The South Junction mine was flagged as a key growth area following initial drill tests in early 2023. Recognizing its potential, Westgold initiated an extensive drilling program in January 2024, aiming to expand and refine the resource base at South Junction. The results have been impressive, leading to an initial reserve estimate of 225,000 ounces of gold (2.6 million tonnes grading 2.7 g/t gold). This represents a significant portion of the 277,000 ounces now held at the Bluebird-South complex.
Compared to the company’s 2023 year-end reserve count, the Bluebird-South Junction complex has seen a remarkable 233% increase in reserves, adding 158,000 ounces to Westgold’s portfolio. This growth underscores the success of the company’s aggressive exploration and drilling strategies.
Strategic Expansion in Murchison Region
Westgold CEO Wayne Bramwell hailed the reserve boost as a transformative development for the company’s operations in the Murchison region. He emphasized that the expansion of the Bluebird-South Junction underground mine will significantly enhance the productivity of Westgold’s Murchison business. By increasing the mine’s output, Westgold can reduce its reliance on road haulage of ore from other sites, such as Cue, which is approximately 140 kilometers away. The proximity of the South Junction mine to the Bluebird mill—just 2 kilometers—will also streamline operations and lower costs.
The updated mineral resource, which now includes a 61% increase in the indicated resource category, brings the total measured and indicated resources to 4.7 million tonnes grading 3.1 g/t gold for 465,000 ounces. This figure surpasses Westgold’s interim estimate from March 2024 by 130,000 ounces, despite accounting for the depletion of 14,000 ounces during the same period.
Bramwell also highlighted the company’s commitment to ongoing exploration and drilling activities. Westgold plans to continue investing in its drilling programs throughout fiscal 2025, with two surface rigs and two underground drill rigs currently active in extending and infilling the Bluebird-South Junction resource.
Portfolio Expansion and Strategic Acquisitions
Westgold’s recent expansion efforts have not been limited to organic growth. The company recently completed the takeover of Canada’s Karora Resources (TSX: KRR), acquiring key assets such as the Beta Hunt and Higginsville gold mines. These acquisitions, located in the same region as the Bluebird mine, further strengthen Westgold’s position in the Australian gold mining sector.
With the addition of Karora’s assets, Westgold now operates six underground mines and five processing plants across the Murchison and Southern Goldfields regions. The company’s tenure covers more than 3,200 square kilometers, and its processing facilities boast a combined capacity of approximately 6.6 million tonnes per annum.
The successful integration of these new assets, combined with the expansion of the Bluebird-South Junction complex, positions Westgold for continued growth in the coming years. The company’s strategy of aggressive exploration, coupled with strategic acquisitions, is expected to drive further reserve increases and production capacity, ensuring that Westgold remains a key player in the Australian gold mining industry.
As Westgold moves forward, the developments at South Junction will play a crucial role in shaping the company’s future. The expanded reserves and increased production capacity underscore the value of sustained investment in exploration and highlight the potential for further discoveries within Westgold’s extensive portfolio.
Source: Mining.com
