Westgold Resources Limited (ASX: WGX) Secures Gold Ore Agreement
Westgold Resources Limited (ASX: WGX) has announced the execution of a gold ore purchase agreement with Zeus Mining Pty Ltd, a subsidiary of New Murchison Gold Limited (ASX: NMG). This agreement is contingent on NMG shareholder approval, expected at a general meeting in January or February 2025.
The Crown Prince site, located 33 kilometers from Westgold’s Bluebird processing plant, boasts a JORC-compliant resource of 2.21 million tonnes at 3.9 grams per tonne gold, amounting to 279,000 ounces. The deal allows Westgold to acquire between 30,000 and 50,000 tonnes of gold ore monthly from NMG’s forthcoming open pit mining operation at Crown Prince, set to commence mid-2025, subject to regulatory approvals.
Managing Director and CEO Wayne Bramwell highlighted, “This arrangement is capital efficient, leveraging Westgold’s existing processing infrastructure.” He noted that the introduction of softer ore from Crown Prince would enhance throughput at the Bluebird plant, leading to increased production and reduced costs per ounce.
Bramwell further stated, “This is a win-win for all shareholders, and Westgold looks forward to collaborating with New Murchison Gold in developing the Crown Prince deposit.”
The agreement is expected to positively impact production levels in the FY26 and FY27 periods.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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