WGX Westgold Resources Limited

$1.4B merger lifts Westgold into ASX 200

ASX Release

Westgold is an agile ASX200 Australian gold company. With six operating mines and combined processing capacity of ~7Mtpa across two of Western Australia's most prolific gold regions – we have a clear vision and strategy to sustainably produce +500,000 ozpa from FY26/27.

PERTH, Western Australia, Oct. 31, 2024 /CNW/ - Westgold Resources Limited (ASX: WGX) (TSX: WGX) (OTCQX: WGXRF) - Westgold or the Company) is pleased to report results for the period ending 30 September 2024 (Q1 FY25).

Westgold Managing Director and CEO Wayne Bramwell commented:

"Q1 FY25 represents both a transformational and a transitional period for Westgold.

On 1 August Westgold completed a $1.4B merger with Karora Resources that has transformed Westgold into a 400,000+ ozpa, top five Australian gold producer. On 6 August we commenced trading on the Toronto Stock Exchange and in September, Westgold joined the ranks of S&P's ASX200.

Six quarters of disciplined and sustained cash-build from our Murchison operations delivered free cash and drove the value in Westgold's scrip that allowed us to complete the merger without a capital raise or debt draw down debt. Importantly at the end of the quarter, Westgold remained unhedged and debt free, with its $100M Revolving Corporate Facility undrawn.

The operating results for this quarter mark a transition in scale for Westgold and include three months of gold production from the Murchison operations, but only two months' production from the Southern Goldfields. The expanded business delivered a record 77,369 ounces (~90koz normalised for a full quarter of Southern Goldfields production) at an AISC of $2,422/oz, generating $29M in net mine cashflow.

Our focus post-merger has been to rapidly identify, then address key risks and opportunities across the Southern Goldfields operations. Early activities include deploying additional safety and operational management to supplement the site teams and expedite remedial maintenance and upgrades in basic mine infrastructure (water, ventilation, power). These changes have had immediate positive impact on mine outputs at both Beta Hunt and Higginsville late in the quarter and will see productivity improve as each area is addressed.

Integration across the business continues and importantly, Westgold remains on track to meet our FY25 guidance. Production and cost guidance is geared to the second half of the year as Bluebird South-Junction ramps up to a run rate of more than 1Mtpa, Beta Hunt delivers consistent output of more than 2Mtpa run rate and mining commences at Great Fingall.

Westgold now has an extensive, pipeline of projects with a landholding of more than 3,200km² across two of Australia's most prolific gold regions. Drilling will unlock value and as planned we have rapidly mobilised additional drills to Beta Hunt and prioritised targets across Higginsville.

The 100 day integration plan will be complete during Q2 FY25 and we are confident in higher mine outputs and reduced costs across the business as these programmes are systematically rolled out and synergies delivered."

ENDS

Executive Summary

Cash Position at 30 September 2024

Westgold closed the quarter with cash, bullion and liquid investments of $103M (see Figure 1). Notably, this result was net of the significant cash component and major once-off costs relating to the Company's $1.4B merger with TSX listed Karora Resources Inc (Karora) during the period.

Costs relating to the transaction include $125M cash payment to Karora shareholders, $28M in change of control payments to Karora's directors, executives and advisor fees.

Notes

• Cash acquired of $32M from Karora on 1 August is net of the Macquarie debt repayment of $44M and Culico Metals and Kali Metals contributions of $11M.
• Operating Cash Flows includes:
  • Southern Goldfields for August and September only
  • Merger Costs of $153M relates to:
    • $125M cash consideration paid to Karora Resources shareholders,
    • $21M change of control payments to Karora's Executives and Directors,
    • $7M to advisors' costs (legal, financial, taxation and corporate advisory).

Group Production Highlights – Q1 FY25

Westgold produced 77,369 ounces of gold in Q1 FY25, its highest quarterly gold production yet, returning net mine cashflow of $29M. This result was from three months of production from the Murchison (52,889 ounces) but only two months of production from the Southern Goldfields operations (24,480 ounces).

All-In Sustaining Cost (AISC) for the quarter was $2,422/oz (Q4 FY24 $2,041/oz).

The elevated costs in Q1 FY25 reflect the transitional nature of the quarter. In the Southern Goldfields production was impacted by the poor performance of the Pioneer Open Pit at Higginsville and lower than expected ounce production from Beta Hunt.  

Capital growth projects continued to advance across the Group whilst the Fender underground at Cue transitioned to commercial production during the quarter.

The Company sold 72,202 oz of gold for the quarter achieving a record price of $3,723/oz, generating $269M in revenue. With Westgold free of any fixed forward sales contracts, the Company continues to offer shareholders full exposure to record spot gold prices.

Westgold's operations generated $101M of mine operating cashflows with the achieved gold price $1,301/oz over AISC. AISC for Q1 FY25 of $187M (Q4 FY24 of $108M) was impacted by $65M in additional costs from the Southern Goldfields and Fender transitioning to commercial production.

Capital expenditure during Q1 FY25 of $58M (Q4 FY24 $64M) includes $39M investment in growth projects (Bluebird-South Junction and Big Bell expansions and the Great Fingall development), and upgrading processing facilities and infrastructure.

Investment in exploration and resource development of $14M for the quarter was focussed on Bluebird-South Junction and Starlight in the Murchison, and the Fletcher Zone and Two Boys underground in the Southern Goldfields.

The net mine cash inflow for Q1 FY25 was $29M (refer Table 1 under Group Performance Metrics).

Environmental, Social and Governance (ESG)

People

During the quarter female participation in the workforce increased from 12.5% to 14.6%. Family and medical leave guidelines were rolled out to the wider business, with a pleasing increase in men utilising paternal leave as either the primary or secondary carer.

Staff retention continued to improve, with record low turnover.

At the end of the quarter, Westgold employed 2,100 employees and contractors. Integration of the Southern Goldfields was a major focus as policies, procedures and processes were aligned.

Safety, Health, the Environment and Community

Westgold's Murchison business achieved a 16.44% reduction in its key safety metric for the full FY24 financial year. With the integration of the Southern Goldfields assets, the Total Recordable Injury Frequency Rate (TRIFR) increased to 7.37 injuries per million hours worked, representing an increase of 7.59% quarter on quarter.

The business incurred two Lost Time Injuries, increasing the Lost Time Injury Frequency Rate (LTIFR) by 61.29% to 1.00. The High Potential Incident frequency decreased by 24.17% to 5.18. Significant Psychosocial Harm Events remains at 0.00.

One Significant Environmental Incident was recorded during the quarter with a pipeline break at the Higginsville processing facility resulting in a tailings spill. The spill was reported to the regulator and immediately remediated to minimise environmental impact.

Group Performance Metrics

Westgold's quarterly physical and financial outputs for Q1 FY25 are summarised below. The Group operates across the Murchison and Southern Goldfields regions of Western Australia with the Murchison Operations incorporating four underground mines (Bluebird-South Junction, Starlight, Big Bell, and Fender) and three processing hubs (Fortnum, Tuckabianna and Bluebird).

Westgold's merger with Karora Resources completed on 1 August 2024. The Karora assets are grouped and reported as Westgold's Southern Goldfields operations – incorporating the Beta Hunt and Two Boys underground mines (Pioneer open pit closed in September) and two processing hubs (Higginsville and Lakewood).

Table 1:  Westgold Q1 FY25 Performance

Q1 FY25 Group Performance Overview

Westgold processed 1,289,561t (Q4 FY24 – 862,889t) of ore in total at an average grade of 2.1g/t Au (Q4 FY24 – 2.1g/t Au), producing 77,369oz of gold (Q4 FY24 – 52,795oz). Group AISC in Q1 FY25 was $187M (Q4 FY24 - $108M). The $79M increase reflects the enlarged Westgold post-merger (Southern Goldfields $66M).

MURCHISON

Mining costs in the Murchison were $1,074/oz (Q4 FY25 $817/oz) coinciding with the Fender mine achieving commercial production on 1 July 2024.

Ore stockpiles built-up during Q4 FY24 as a result of atypical rainfall in the Murchison were processed in Q1 FY25. As Bluebird-South Junction ramps up from 500kt to >1Mtpa during the year, the current reliance on hauling comparatively lower-grade, stockpiled ore from Fortnum and Cue will reduce accordingly, improving both economic performance and gold production from the Murchison operations.

The Bluebird mill commenced planned maintenance on crushing and milling circuits in September to prepare the processing hub for higher throughputs and increased delivery of higher grade ore from an expanded Bluebird-South Junction in H2 FY25.

Total Capital expenditure of $45M, included Growth Capital ($34M) and Plant and Equipment ($11M) across the Murchison operations. Growth Capital related to planned expansions at Big Bell, Great Fingall development, Bluebird – South Junction and Starlight mine sites. Plant and Equipment capital related to Processing facilities ($5M), Paste plant ($5M) and Camp upgrades ($1M) during the quarter.

SOUTHERN GOLDFIELDS

Equipment, personnel availability, power, water and ventilation issues combined to impact mine production performance at Beta Hunt and Two Boys in August. These issues are being systematically addressed with operational outputs beginning to improve from October.

The Pioneer open pit at Higginsville ceased operations during the quarter.  An estimated 1,000oz from the pit was unable to be recovered following failure of the eastern wall immediately following the final blast, impacting revenue for the quarter.

Total Capital Expenditure of $13M, included Growth Capital ($5M) and Plant and Equipment ($8M) across the Southern Goldfields operations relating to Beta Hunt mine, processing facilities and underground equipment.

Table 2: Q1 FY25 Group Mining Physicals

Table 3: Q1 FY25 Group Processing Physicals

Operations Summary

Murchison

• Bluebird – South Junction Underground Mine (Meekatharra)
  
  The first South Junction stope was successfully fired in August, with stopes on PHO_1095 and BLU_1065 levels mined during the quarter. Production ramp up slowed temporarily due to equipment availability and resourcing issues, however these were resolved by the end of the quarter, with the stoping sequence re-established and production resuming at the planned rates.
  
  Orders have been placed for additional mobile equipment to support the ramp up of production into H2 FY25, and the focus remains on the South Junction Decline and advancing to the next production SOU_1036 level to expand Bluebird's production to a run rate of 1.2Mtpa in the second half of the financial year.
  
  The Bluebird-South Junction mining complex is growing with the current expansion of mine outputs driven by the commencement of mining the South Junction lodes. This expansion has required investment into an upgrade in the primary ventilation system, the introduction of paste fill for full resource extraction and additional mobile equipment. Larger tonnages per vertical metre of advance will significantly improve the capital intensity of the mine once the initial capital investment phase has been completed.
  
  
• Bluebird Mill (Meekatharra)
  
  The Bluebird-South Junction and Fender underground mines were primary sources of ore feed to the Bluebird processing hub. Plant throughput of ~349,000t was slightly lower (-5%) compared to the previous quarter due to planned maintenance.  Work was carried out on crushing and milling components in preparation for the ramp up and higher tonnages of higher-grade ore from Bluebird – South Junction underground operations.
  
  The works undertaken will increase the availability and reliability of the plant as ore production from Bluebird South-Junction ramps up from 500ktpa to a run rate of 1.2Mtpa in H2 FY25.
  
  
• Fender Underground Mine (Cue)
  
  Production was steady throughout the quarter averaging 25kt per month and outperforming the project's Ore Reserve in terms of ounces by 16%. Improvement in output was the result of focus on mine production efficiency and maintaining multiple stopes online. Fender continues to take advantage of synergies with Big Bell to ensure production forecast is achieved.
  
  Westgold expects this trend to continue into the coming quarter as the remainder of the 175 level stopes are extracted. Accelerating the decline to bring online an additional production level on the 205L was also a priority during the reporting period.
  
  
• Big Bell Underground Mine (Cue)
  
  Production from the cave was steady throughout the quarter averaging 102kt per month. High grade drawpoints in the 685S and 710N levels resulted in an improvement of mine grade from the previous quarter. Changes to the operating strategy have delivered an improvement in underground equipment availability and steadied production.
  
  
• Tuckabianna Processing Hub (Cue)
  
  Big Bell underground ore was the primary source of ore feed to the Tuckabianna processing hub. Throughput increase by 7% compared to the previous quarter due to a consistent ore blend from Big Bell. Recovery was 88.7%. This is the highest it has been since Sept 2022, as a result of maintaining consistent mill operating parameters.
  
  Construction of the Tuckabianna West in-pit tailing storage facility is progressing to plan, with earthworks, piping, and power lines complete.
  
  
• Starlight Underground Mine (Fortnum)
  
  Production increased by 16% compared to the previous quarter due to multiple work areas available in the Starlight and Nightfall lodes. Nightfall continues delivering strong production results with stopes on NF 1160 level exceeding planned mine grades. Development continues to accelerate with the top down and bottom-up access to the Nightfall area.
  
  Mining scale studies have also commenced at Starlight, with modelling and evaluation of differing endowment and production points along the continuum between selective mining and more comprehensive resource extraction. This work is expected to progress over the coming quarters. In addition, to support the outcome of this evaluation, ventilation network expansion and upgrade studies are currently progressing which will allow for anticipated increased production levels from the mine.
  
  
• Fortnum Processing Hub (Fortnum)
  
  Starlight underground material contributed 90% of the ore feed to the Fortnum processing hub, with the remaining 10% sourced from low grade stockpiles. Installation of a pebble crusher in July has resulted in a 3% increase in the mill throughput rate compared to the previous quarter.
  
  
• Great Fingall Underground Mine (Cue)
  
  Great Fingall is currently in development and achieved a record month for development advancement in August. The decline is tracking well against plan.
  
  Mining evaluations continued on the Great Fingall Flats and other early production opportunities. Installation of LOM mine infrastructure is progressing to plan, including an upgrade of the dewatering infrastructure to expediate dewatering of the Great Fingall Reef.
  
  Preparations are underway for the return of an underground diamond drilling rig to the mine. The initial target of drilling will be the upper extensions to the Golden Crown orebody which is anticipated to present an additional early production opportunity if assay results are in line with historic performance. The site team will also take the opportunity to undertake an early test of remnant portions of the Great Fingall Reef.
  
  Importantly, both of these projects if successfully converted into mining opportunities, will not detract from the current operational plan which is focused on accessing the high-value Great Fingall Reef extensions in the shortest possible time. They will be assessed and resourced as additional opportunities outside of the existing plan.

Southern Goldfields

• Beta Hunt Underground Mine (Kambalda)
  
  Q1 FY25 saw two months of Beta Hunt production included within Westgold's result, with poor mine productivity in August. Development advanced during the quarter and was nearing completion in AZ 19L, where coarse gold from the Father's Day lode was forecast, however, was not mined during the quarter.
  
  Westgold is currently developing a comprehensive infrastructure replacement and upgrade plan to support the projected increased levels of production from the mine, focussing primarily on electrical, ventilation and water distribution networks.
  
  Mine productivity began to lift during the quarter as Westgold:
  • supplemented the site operational team with additional safety and production management resources;
  • implemented surface digital tele-remote bogging, a key element underpinning improving underground production efficiencies;
  • focussed on truck utilisation – this began to improve post-merger due to synergies of a larger workforce across the business, this resulted in increased production towards the end of the quarter, with the full benefits expected to be evidenced quarter on quarter; and
  • commenced upgrading the mine capital infrastructure to support a ramp up to 2.0Mtpa and further improve mining efficiencies – this included pumping infrastructure, power reticulation and ventilation.

Westgold has lifted the intensity of geological work at Beta Hunt, with two Westgold diamond drill rigs mobilised to site to complement the four contractor drill rigs currently operating at the mine. The focus of the Westgold-owned rigs is the Fletcher zone where a Global Exploration Target of 23-27Mt at 2.1-2.5g/t Au for 1.6-2.1Moz. has been defined (refer ASX 16 September 2024 - Fletcher Exploration Target Defined at 1.6 - 2.1Moz Au).

Work is currently underway to integrate disparate areas of the Beta Hunt mine into a single geological structural and resource framework. This will allow more comprehensive mining evaluations and planning, to inform more efficient mining outcomes. The process continues into the coming quarter.

• Lakewood Processing Hub (Kalgoorlie)
  
  Beta Hunt underground material was the primary ore feed for the 1.2Mtpa Lakewood Mill at Kalgoorlie. Mill throughput was up 5% against forecasts for the two months of operation under Westgold's control.
  
  
• Two Boys Underground Mine (Higginsville)
  
  Production at the Two Boys underground mine was steady averaging a monthly production rate of 21kt. Plans have been finalised to upgrade the primary ventilation system to de-constrain development activities, with works planned for early Q2.
  
  Initial technical work has focused on extending the life of the Two Boys underground mine beyond its previously projected end of calendar year closure date. Pleasingly, mining has already been pushed beyond the boundaries of the previously defined mine plan, with production rates now at sustainable levels and drill platform development underway to allow for extensional drilling.
  
  
• Pioneer Open Pit (Higginsville)
  
  The completion of the Pioneer pit post-merger was delayed due to a slip on the eastern wall which pushed out the completion date to late August. All open pit contractors were demobilised in early September.
  
  
• Higginsville Processing Hub (Higginsville)
  
  Operations within the Higginsville hub include a 1.6Mtpa processing plant, the Two Boy underground mine, and the Pioneer open pit which was closed in September. A tailing storage facility lift is in progress at Higginsville, to provide additional required storage capacity from Q2, FY25 onwards.
  
  Throughput was slightly lower than planned due to a mill shutdown for a ball mill reline which had been budgeted in July, however was rescheduled into August due to limited availability of third party maintenance resources. Following depletion of Pioneer ore stock, ore feed into the mill was supplemented with the introduction of other lower grade stockpiled ore from September.

Exploration and Resource Development

Westgold continues to invest in exploration and resource development across the Company's highly prospective tenement portfolio. Key activities included:

Murchison

RESOURCE DEVELOPMENT ACTIVITIES

Starlight (Fortnum)

Resource drilling continued in the Nightfall Deeps and the Galaxy lode to expand the Starlight resource and provide further mining optionality. Work at Starlight this quarter has focussed on infilling and extending the mine plan for the high-grade Nightfall area.

Pleasing results continue to be returned both within and adjacent to the mine plan area, such as:

• 2m at 51.98g/t Au from 71m in NF875RD04,
• 3.69m at 21.17g/t Au from 138m in NF900RD02A and
• 2.59m at 42.2g/t Au from 73m in NF900RD04.

Westgold has continued to aggressively drill the Bluebird - South Junction system with multiple drill rigs active on surface and underground. Assay results continue to be highly encouraging with updates provided through ASX releases dated 14 May 2024, 2 July 2024 and 5 September 2024. Please refer to these releases for the most recent drill results.

The continuation of the South Junction drilling program culminated in the declaration of a maiden South Junction Ore Reserve, with the combined Bluebird - South Junction Ore Reserve now 3.0Mt at 2.8 g/t Au for 277koz (refer ASX 14 August 2024 - Westgold Declares Maiden South Junction Ore Reserve).

The significant width of the South Junction orebody enables a highly productive primary / secondary transverse stoping method which could significantly increase production from MGO. The Ore Reserve is underwritten by an updated Mineral Resource Estimate of 11Mt at 2.8g/t for 950koz (refer ASX Announcement on16 April 2024 - Bluebird-South Junction Increases to 6.4Mt at 3.1 g/t Au).

In the Murchison, resource drilling at Big Bell remains ongoing, and continues to infill zones within the near term portion of the Longhole Open Stoping mine plan. Results such as:

• 10m at 7.04g/t Au from 224m in 24BBDD0011,
• 23.01m at 3.4g/t Au from 221m in 24BBDD0015 and
• 8m at 11.15g/t Au from 203m in 24BBDD0017

hint at the grade flexibility selective mining of this large system will allow.

GREENFIELDS ACTIVITIES

Greenfields activities in the Murchison included 10,686m of aircore (AC) drilling testing early stage targets in the Nannine (Meekatharra) and Labouchere (Fortnum) regions during August and September with assay results now starting to be returned with some early encouragement.

These results will be reported in detail in Q2.

Development of various Reverse Circulation (RC) drilling programs to test more advanced targets continued during the period including for Mountain View (Cue), Champion (Meekatharra) and Peak Hill (Fortnum). Drilling is planned to commence on these targets towards the end of October 2024.

Southern Goldfields

RESOURCE DEVELOPMENT ACTIVITIES

Drilling of the Fletcher Zone was accelerated during the quarter with the addition of two Westgold owned drill rigs to complement the existing single contract drill rig.  Better results this quarter included 4.00m at 22.45g/t Au from 421m in WF440N1-01AR (refer ASX – 16 September 2024 - 2024 Mineral Resource Estimate and Ore Reserves) and 1.95m at 144.60g/t Au from 518m in WF440N1-05AE.

Resource development works also continued in other areas of the mine, with high-grade results such as 3.00m at 31.97g/t Au from 63 in BL1740-27AR in the Larkin zone and 6.00m at 17.25g/t Au from 483m in BM1740-19AE in the Mason zone reported.

In the Lake Cowan district work is underway evaluating an open pit campaign to provide supplemental feed to the Higginsville mill now that the Pioneer open pit project has been completed. The Lake Cowan project as contemplated has a short lead time and a very modest capital outlay, and as such it is anticipated that a decision on mining can be made in Q2, subject to sufficiently compelling commercial metrics.

In the medium-term work will commence on the assessment of the Higginsville Line of Lode underground targets. In close proximately of the operating Two Boys mine there are several prospective underground mining targets including the dormant Aquarius mine, the continuations of the historic Vine mine, the Fairplay group of mines and the southern extensions to the +1Moz Trident underground mine.

Westgold will systematically evaluate these options in order to develop a mine plan that will progressively exploit these deposits, sharing infrastructure and resourcing to limit commercial exposure.

GREENFIELDS ACTIVITIES

Greenfields activities in the Southern Goldfields region focused on development of accelerated exploration plans for both Beta Hunt and the Higginsville region with planning, target reviews and the ongoing development of drilling programs for execution during Q2 FY24 which will kick-off with a RC drilling program at the Vines- Erin Target proximal to the Higginsville mill in November 2024.  

In addition, a single diamond hole was drilled at the Barcelona Prospect, which while did intersect the targeting vein system, failed to return any significant assay results.

Corporate

At the end of Q1 FY25, Westgold's total cash, bullion and investments totalled $103M.

Cash, Bullion and Investments

Debt

Westgold executed the Syndicated Facility Agreement (SFA) with ING Bank and Societe Generale on 22 November 2023. The SFA provides Westgold with a A$100 million revolving corporate facility with a three-year term, which the Company is able to utilise for general corporate purposes.

The Company has equipment financing arrangements on acquired plant and equipment under normal commercial terms with expected repayments of approximately $41M for the financial year.

Subsequent to the end of the quarter, on 28 October 2024 Westgold announced it had executed a commitment letter with its existing lenders to increase its $100M SFA to $300M through the addition of a new $200M facility. The new $200M facility strengthens the Company's balance sheet by providing access to a total of $300M of undrawn facilities that may be utilised for general corporate purposes.

Gold Hedging

Westgold is fully unhedged and completely leveraged to the gold price.

Strategic Review

The merger with Karora has created the opportunity to review all assets within our expanded portfolio.

The breadth of opportunities available to the enlarged Westgold was highlighted by the release of the annual Mineral Resource and Ore Reserve Statement in September (refer ASX Announcement on16 September 2024 - 2024 Mineral Resource Estimate and Ore Reserves). Westgold's total Mineral Resource Estimate now stands at 179Mt at 2.29g/t Au for 13.2Moz of gold, with Ore Reserves of 50Mt at 2.05g/t Au for 3.3Moz of gold.

This study will technically and commercially re-evaluate the Company's operating assets, re-informing strategies for each, and prioritising the deployment of growth capital to those assets that can deliver the highest returns.

Share Capital

Westgold closed the quarter with the following capital structure:

Compliance Statements

Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves

The information in this report that relates to Mineral Resources is compiled by Westgold technical employees and contractors under the supervision of GM Technical Services, Mr. Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists and who has verified, reviewed, and approved such information. Mr Russell is a full-time employee to the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code") and as a Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Russell is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr Russell consents to and approves the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Russell is eligible to participate in short- and long-term incentive plans of the Company.

The information in this report that relates to Ore Reserve Estimates is based on information compiled by Mr. Leigh Devlin, B. Eng MAusIMM, who has verified, reviewed and approved such information. Mr. Devlin has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr. Devlin is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr. Devlin consents to and approves the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr. Devlin is a full time senior executive of the Company and is eligible to, and may participate in short-term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents.

The information in this report that relates to Exploration Targets and Results is compiled by the Westgold Exploration Team under the supervision of Chief Growth Officer, Mr. Simon Rigby B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists and who has verified, reviewed, and approved such information. Mr Rigby is a full-time employee of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr. Rigby is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr Rigby consents to and approves the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Rigby is eligible to participate in short-term and long-term incentive plans of the Company.

Mineral Resources, Ore Reserve Estimates and Exploration Targets and Results are calculated in accordance with the JORC Code. The JORC Code is an acceptable foreign code under NI 43-101. Information contained in this report describing mineral deposits may not be comparable to similar information made public by companies subject to the reporting and disclosure requirements of US securities laws, including Item 1300 of Regulation S-K. All technical and scientific information in this report has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and has been reviewed on behalf of the Company by Qualified Persons, as set forth above.

This report contains references to estimates of Mineral Resources and Ore Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may require re-estimation based on, among other things: (i) fluctuations in the price of gold; (ii) results of drilling; (iii) results of metallurgical testing, process and other studies; (iv) changes to proposed mine plans; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses.

Technical reports

NI 43-101 compliant technical reports for each of Fortnum, Meekatharra and Cue operations are available under the Company's SEDAR+ profile at www.sedarplus.ca and the Company's website at www.westgold.com.au. 

Forward Looking Statements

These materials prepared by Westgold Resources Limited (or the "Company") include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. In addition, the Company's actual results could differ materially from those anticipated in these forward looking statements as a result of the factors outlined in the "Risk Factors" section of the Company's continuous disclosure filings available on SEDAR+ or the ASX, including, in the company's current annual report, half year report or most recent management discussion and analysis.

Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances.

Appendix A - Previously Unreported Significant Intersections Depicted in Release

SOUTHERN GOLDFIELDS

All widths are downhole. Coordinates are collar. Grid is MGA 1994 Zone 51 Significant = >5g/m for resources.

MURCHISON

All widths are downhole. Coordinates are collar. Grid is MGA 1994 Zone 50 for the Murchison. Significant = >5g/m for resources.

Appendix B – JORC 2012 Table 1– Gold Division

SECTION 1: SAMPLING TECHNIQUES AND DATA

(Criteria in this section apply to all succeeding sections.)

SECTION 2: REPORTING OF EXPLORATION RESULTS

(Criteria listed in the preceding section also apply to this section.)

 

 

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

SECTION 4: ESTIMATION AND REPORTING OF ORE RESERVES

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

 

Appendix C – JORC 2012 Table 1– Nickel Division

SECTION 1: SAMPLING TECHNIQUES AND DATA

(Criteria in this section apply to all succeeding sections.)

SECTION 2: REPORTING OF EXPLORATION RESULTS

(Criteria listed in the preceding section also apply to this section.)

SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

SECTION 4: ESTIMATION AND REPORTING OF ORE RESERVES

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

 

This announcement is authorised for release to the ASX by the Board.

 

SOURCE Westgold Resources Limited