Westgold has lifted the estimated mineral resource of its emerging Great Fingall deep prospect in WA by 49% to more than half a million ounces and started work on a mine restart which is expected to be “completed within the coming weeks”.
The company said in a statement to the ASX on Wednesday that the mineral resource estimate (MRE) for the Great Fingall deeps prospect was now 4.26 million tonnes at 4.29 grams of gold to the tonne for 588,000 ounces.
That’s up from an earlier MRE of 1.112 million tonnes at 8.52 grams to the tonne gold for 304,000 ounces.
The boost has come after a solid drilling campaign under the existing area that found a split in the Great Fingall reef into upper and lower sections.
As well, slashing the assay grade cut off from 8.52 g/t to 4.29 g/t enabled the company to include more ore.
The new, higher MRE doesn’t include any measured reserves – just indicated and inferred, meaning more work needs to be done.
To that end, Westgold said it will start drilling in coming weeks “as a final drilling program is undertaken with clearly defined geological triggers to enable a Final Investment Decision (FID).”
“Pending drill program success, Westgold remains on track to make an FID on restart of Great Fingall in Q1, FY24,” the company said on Wednesday.
“In parallel and to ensure that the proposed mine plan and execution pathway can proceed as currently envisaged, several key geological aspects require confirmation. This drill program is due to commence in early June, and in order to reach a decision point in the shortest possible timeframe, two rigs will be engaged to undertake this work,” the company said.
As pointed out in its May 23 statement to the ASX by Westgold, “a shallow, dry and intact modern decline exists at Great Fingall to a depth of approximately 160m below surface.”
“Westgold has surplus underground fleet ready to rapidly deploy and pending a positive FID, development at Great Fingall could commence rapidly in Q1, FY24 (the three months to September)
Westgold CEO, Wayne Bramwell said in the statement that ““A forty-nine percent (49%) uplift from the last reported mineral resource estimate at Great Fingall is stunning. It shows the value that can be created when first principles geology is coupled with a corporate willingness to back geologists with drilling investment.
“Westgold is confident there is more upside at Great Fingall, as to date we have only focused on the better defined and therefore lower execution risk extensions to the known Great Fingall Reef.
“Importantly, the flat structures exploited in the historic Great Fingall open pit and the parallel and tantalisingly close, high-grade Golden Crown system remain largely untested.
“Great Fingall is just one of three multi-million-ounce historic producing mines within our portfolio. To bring this iconic, high grade mine back to life post a positive financial investment decision in Q1, FY24 will be a proud day for our team, shareholders, and stakeholders alike.”
Westgold shares rose 1.35 to 41.54. yesterday.
