A record-breaking final quarter from Westgold Resources’ Bluebird and Big Bell operations in Western Australia’s Murchison region, has helped it hit its upper production guidance for the financial year at an all-in sustaining cost (AISC) of $1999 per ounce.
According to the company’s June quarterly report, it produced 68,377 gold ounces for the period at just $1780 per ounce, representing a 13 per cent increase in production and a 15 per cent reduction in AISC when compared to its March quarter.
Westgold also doubled its mine operating cash flow to $64 million – up from $32 million from its March quarterly report.
Big Bell produced more than 290,000 tonnes at 2.8 grams per tonne gold for 26,000 mined ounces in the past three months, reporting record grades and tonnage at the site. The company’s September quarterly report shows the operation produced a previous record of 274,444 tonnes at a steady grade of 2.5g/t tonne gold for 22,100 ounces.
The September production figure was an improvement on the previous record quarter set at the end of the 2022 financial year when the company delivered 272,124 tonnes from Big Bell at a similar grade.
Bluebird also increased tonnage and grade to deliver 139,000 tonnes at 4.3g/t gold for 19,000 ounces. It included 48,000 tonnes at 3.7g/t for 5800 ounces throughout April.
The company achieved record production of 90,588 tonnes at 3.2g/t gold at its underground mine in the first quarter of the financial year. The figure increased again in the second quarter with the delivery of more than 110,000 tonnes at 3.47g/t.
We delivered the full year guidance as stated and start FY24 from a position of financial strength. With full exposure to the gold price from August and our organic growth opportunities advancing rapidly, we have growing confidence in our team’s ability to expand the scale and profitability of the business in the year ahead. Westgold Resources managing director Wayne Bramwell
With production continuing to set records for the company, it has not slowed down its exploration over the past three months.
It currently has seven drill rigs working on resource extensions at Big Bell, Bluebird, Starlight and Paddy’s Flat. Another two rigs are focusing on exploration and growth at its Great Fingall deposit, which is now understood to be two separate reefs that have been divided into Upper Fingall and Lower Fingall.
In May, the company announced it had increased the resource at Great Fingall by 49 per cent to 4.3 million tonnes at 4.3g/t gold for 588,000 ounces. A final investment decision on the site is expected this quarter.
Drilling at Bluebird continues to deliver impressive results, including a 5.19m hit at 30.91g/t gold from 231m, while Paddy’s Flat returned 6.81m grading 11.95g/t from 55m.
The company has also made significant progress with its operations with its first hybrid power station now in operation at its Tuckabianna site near the WA Mid West town of Cue. The facility uses a combination of solar, battery storage and liquefied natural gas to reduce carbon emissions while delivering a significant reduction in the cost of power.
When asked about potentially diversifying into other resources at the company’s latest investor webinar this morning, Mr Bramwell highlighted its successful year in gold and said the immediate focus is to leverage its skill set in relation to the precious yellow metal, with particular praise for its underground operations.
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