Cue mine outputs lifting in FY27 deliver increased ore optionality and FY28 gold output
PERTH, Western Australia, Aug. 5, 2026 /CNW/ -- Westgold Resources Limited (ASX: WGX) (TSX: WGX), Westgold or the Company) is pleased to announce its commitment to the Cue Expansion Plan (CXP), a capital-light expansion of the Company's Cue processing hub from its current 1.4Mtpa run rate to 1.7Mtpa in FY28.
This plan reflects a deliberate shift towards processing hub optimisation across the wider business. The CXP is underpinned by increasing underground mine outputs from Westgold's Big Bell and Great Fingall mines near Cue.
Further upside may come from other ore sources currently in production including the operating Fender underground (≈0.2Mtpa) and smaller open pits near Cue. There is also potential for third-party ore supply via existing ore purchase agreements and if drilling is successful, from Westgold brownfields open pit resource targets at Big Bell South and Cuddingwarra.
CXP – 1.4Mtpa throughput to 1.7Mtpa in FY28
The CXP is a capital-light pathway to increase Cue processing hub throughput from 1.4Mtpa to 1.7Mtpa in FY28 by debottlenecking the existing circuit. Study work indicates increasing the mill motor power from 2.9MW to 4.2MW through a replacement liquid-cooled motor and variable speed drive, together with associated system and pumping upgrades will support operation at the higher duty.
The process plant upgrade is designed to increase the milling circuit throughput from the current nominal 170 t/h to 200 t/h. This expansion is scheduled to be complete in late FY27, with the higher installed capacity supporting an increase of approximately 15kozpa from the Cue hub from FY28 onwards.
Westgold will now progress detailed engineering, procurement planning and execution sequencing for the CXP while continuing brownfields drilling at near-mill opportunities to define future ore optionality.
Westgold Managing Director and CEO Wayne Bramwell commented:
"Bigger mines need bigger mills. Westgold's underground mine outputs are growing across all the Murchison operations and building ore stockpiles from FY27 onwards.
In addition, open pit mining is now underway at Cue and Meekatharra, with this organic growth underpinning the incremental expansion of our Cue business. This simple upgrade and modest capital investment at the Cue hub reflects a deliberate shift towards processing hub optimisation and expansion, with lower operating costs and higher cashflow the objective.
At Cue, small open pits are being developed now and additional near-hub open pit resource development opportunities at Big Bell South and Cuddingwarra exist. These targets are larger, are within approximately 50km of our Cue hub and if drilling is successful, can add significant additional ore sources in FY28."
Highlights
CXP sees Cue hub throughput increase from 1.4Mtpa to 1.7Mtpa
~21% increase in Cue processing capacity by FY28
Baseline production uplift – CXP adds ≈ 15kozpa to Cue once commissioned
Supported by increasing outputs from Big Bell and Great Fingall underground mines and new regional open pits currently operating
Brownfields resource definition drilling and open pit optimisations commenced
Big Bell South and Cuddingwarra (near Cue) drilling has begun
Key CXP Scoping Study outputs include:
Indicative capital of $22M – commissioning in FY27
Payback period of 10 months
Life of Mine (LoM) gold production 1.1 – 1.3 Moz
at All in Sustaining Cost (AISC) range of $2,916 - $3,564/oz
NPV of Cue improves by ~$400M at a gold price of $5,500/oz
Cautionary Statement
The Scoping Study referred to in this report is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. The information in this announcement relating to processing expansion concepts, study outcomes, resource definition work, potential brownfields opportunities and indicative financial metrics is based on preliminary internal and consultant study work.
The CXP study is at scoping-study level and associated capital estimates are described as having estimate accuracy of ±35%. The expansion studies are also preliminary in nature.
The financial metrics presented in this announcement are indicative study-stage ranges only, are provided to illustrate the potential scale of the opportunities under internal development scenarios and should not be interpreted as a Final Investment Decision or an Ore Reserve statement. Any future public reporting of Mineral Resources, Ore Reserves, production targets or forecast financial information will be made in accordance with the ASX Listing Rules and the JORC Code (2012), where applicable.
The production target is predominantly sourced from Ore Reserves and Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources for the current Inferred portion, or that the production target itself will be realised.
A minor portion of the production target during FY32-FY33 is sourced from the Big Bell South Exploration Target. The Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Company believes there is a reasonable basis for the inclusion of the Exploration Target given its limited contribution to the overall production target and the supporting geological evidence.
The Scoping Study referred to in this announcement has been undertaken to evaluate the potential expansion of the Cue processing facility. It is a preliminary technical and economic study of the potential viability of increasing throughput at Westgold's Cue hub, based on low level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves. Further evaluation work and appropriate studies are required before Westgold will be in a position to estimate any Ore Reserves or to provide any assurance of an economic development case.
The Scoping Study is based on the material assumptions outlined below. These include assumptions about the availability of funding. While Westgold considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.
The forecast capital payback period of approximately 10 months occurs prior to the scheduled extraction of the majority of Inferred Mineral Resources and before any reliance on the Big Bell South Exploration Target. As a result, recovery of the expansion capital is supported predominantly by Ore Reserves and existing operating inventory. Westgold believes that it has a reasonable basis for providing these forward-looking statements and the forecast financial information based on material assumptions outlined in this release.
While Westgold considers all the material assumptions used in the Scoping Study to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.
Mining areas within the production target are fully permitted and available for ongoing resource definition and eventual mining. To achieve the range of outcomes indicated in the Scoping Study, funding in the order of $22M will likely be required. The Company as at 30 June 2026 had $939M of cash, bullion and liquid investments (refer ASX – 22 July 2026, June 2026 Quarterly Report). Additionally, Westgold announced it had executed a commitment letter with its existing lenders to increase its Syndicated Facility Agreement to $600M which remained undrawn as at the date of this announcement.
Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.
Readers should not assume that the brownfields opportunities described at Big Bell South will necessarily be converted into future Ore Reserves for the expanded processing hubs. Advancement of any of these opportunities remains subject to drilling results, geological interpretation, mine design, mine planning, technical and commercial studies, approvals, stakeholder engagement and all applicable regulatory and disclosure requirements.
1.0 Cue Expansion Project (CXP) – 1.4Mtpa to 1.7Mtpa in FY28
Westgold's Murchison expansion strategy reflects a deliberate shift towards processing hub optimisation from FY27 onwards, using established infrastructure to convert increasing mine outputs into higher throughput and cash generation.
Rather than treating each ore source or processing opportunity in isolation, Westgold is pursuing regional development logic to maximise throughput, lower costs and lift free cash flow from established infrastructure across the Murchison operating footprint (Figure 1).
This approach materially improves capital productivity by leveraging existing infrastructure, reducing haulage costs, shortening execution pathways and positioning the business to convert production growth into cash generation at a lower marginal capital cost than a greenfields solution.
This strategy is also aligned with Westgold's broader self-funded growth model.
In practical terms, the ability to pursue growth through brownfields infrastructure upgrades provides a lower-risk pathway to accelerate production, lower processing unit costs and increase free cash flow without relying on external financing or long development timelines.
At the Cue processing hub, the preferred expansion pathway targets debottlenecking of the existing circuit (Figure 2).
Existing study work indicates that the core constraint to materially increasing throughput at the plant is installed mill power. The selected concept therefore focuses on increasing mill motor power from 2.9MW to 4.2MW through a replacement liquid-cooled motor and variable speed drive, together with associated system upgrades to support operation at the higher duty.
The process plant upgrade is designed to increase the milling circuit throughput from the current nominal 170t/h to 200t/h by:
Replacing the 2.9MW mill motor with a 4.2MW motor;
Reconfiguring the internal mill lining to accommodate a grate wall discharge system;
Replacing the gearbox pinions, drive pinion and ring gear with a higher specification alloy;
Replacing the carbon safety screen with a larger screen;
Replacing the cyclone feed pumps;
Upgrading the plant and booster tailings pumps;
Upgrading the process water pumps; and
Upgrading the power distribution networks and hardware to accommodate the higher power draw.
By increasing available power and improving driveline control through a variable speed drive, Cue can operate at a higher sustained throughput target of approximately 1.7Mtpa. The use of an interchangeable motor and retrofitting the existing switch room lowers civil and structural disruption, reduces schedule risk and installation complexity, and improves overall capital efficiency.
The CXP takes advantage of the increased ore supply provided by growing production at Big Bell and the ramp-up at Great Fingall. The upgrade is expected to require only limited downtime for tie-in, allowing Westgold to increase throughput with a modest capital requirement and lower execution risk than a new plant build.
CXP Scoping Study Summary
Note that all Scoping Study values represented are mid-point. Ranges are provided in Table 2.
Average annual gold production of approximately 122koz (an increase of 15koz) - for total gold production of 1.2Moz over 10 years (an increase of 134koz)
Processing underpinned by the long-life (>16 years) Big Bell underground mine - with supplementary high-grade feed from the historic Great Fingall mine
Scoping study assumes an upgrade of the current Cue 1.4Mtpa plant to 1.7Mtpa - for a capital cost of $22M (upper range)
Life of mine AISC of approximately $3,240/oz
Pre-tax undiscounted cashflow of approximately $1.7B - at a gold price of $5,500/oz increasing to $2.3B at Spot Gold Price ($6,000/oz)
NPV of approximately $1.1B - at a gold price of $5,500/oz.
An indicative comparison between the midpoints of the CXP and current operating plan (without CXP case) is shown below in Table 1 (gold price $5,500/oz). This highlights the substantially improved economics and processing capability within the region at only a slight reduction in grade.
Metric
Units
Current
CXP
Mined Tonnes
kt
14,552
16,537
Mined Grade
g/t
2.52
2.49
Mined Ounces
koz
1,180
1,323
Recovered Ounces
koz
1,081
1,198
Free Cashflow
$M
1,121
1,729
NPV
$M
674
1,075
Table 1: CXP comparison against current mine plan
Preliminary Financial Overview
The key physical and financial metrics in Table 2 and 3 below are presented as indicative study-stage ranges reflecting the preliminary nature of the current work, including scoping-level estimate accuracy, study assumptions and internal scenario sensitivity. They are shown to illustrate the potential scale of value creation from the expansion pathway and should not be interpreted as a Final Investment Decision.
The production targets outlined in Table 2 below are at a Scoping Study level and should be read together with the cautionary statements in this announcement.
Table 2: Key Physical Assumptions
Metric
Units
Outputs
Life of Mine
Years
10
Installed Throughput
Mtpa
1.7
Material Mined
Mt
15 – 18
Mined Grade
g/t
2.2 – 2.7
Mined Ounces
Moz
1.2 – 1.5
Material Processed
Mt
15 – 18
Payable Metal (post recovery)
Moz
1.1 – 1.3
A gold price of $5,500/oz has been used to assess the indicative economics of the CXP, which is forecast to generate an unleveraged NPV of approximately $1.1B.
Table 3: Financial Results Summary
Financials at 7.3% Discount Factor
Units
Output
Gold Price
$/oz
5,500
Project Free Cash flow pre-tax
$B
1.6 – 1.9
Project NPV
$B
1.0 – 1.2
AISC
$/oz
2,916 – 3,564
Sensitivity Analysis
Figure 3 depicts sensitivity analysis for CXP. It shows that while sensitive to gold price, the project NPVs are resilient to both discount rate and cost.
CXP Basis for Production Target
The Production Target for CXP is underpinned predominantly by a combination of Ore Reserves at Big Bell and Great Fingall, together with Inferred Mineral Resources at Great Fingall (Figure 4).
The production schedule shows a temporary dip in FY32 from Big Bell. This reflects conservative development rates assumed in the Big Bell Deeps life of mine plan, which are designed to establish the number of production fronts required to sustain full production rates. Westgold expects the Cue hub to have several potential ore sources that could help offset this dip and support utilisation of the expanded mill.
These include:
Big Bell South and the broader Big Bell trend – priority near-mine targets currently the subject of substantial resource definition drilling (Figure 5);
Cuddingwarra – an additional brownfields opportunity near Cue, also being assessed as part of Westgold's resource definition and optimisation program;
regional low-grade surface stockpiles – approximately 3.8Mt at 0.7g/t, available for reclaim and processing, providing a flexible source of supplementary feed; and
existing ore purchase agreements – which may provide further third-party ore feed into the expanded Cue processing hub.
The Big Bell South Exploration Target and identified mining stockpiles (mined material in excess of milling capacity in FY27) have been included within the production target. Other opportunities including Cuddingwarra, low-grade surface stockpiles and third-party ore have not been included in the physical or financial assessment.
CXP Capital Costs
The CXP capital cost estimate in Table 4 is derived based on mechanical equipment lists from several sources such as quotes, and actual prices used from Westgold's current operating mines. The study-level capital estimate for CXP has been determined at approximately $14M-$22M.
Whilst overall contingency has been determined as a single line-item related to the total cost, additional contingency has been built into the individual cost estimates reflecting the high-level scoping nature of the study.
Table 4: Capital Cost Estimate – CXP
Equipment Name
Units
Cost
Milling
$M
5.9 – 9.0
Cyclones
$M
0.2 – 0.3
Leach and Adsorption
$M
0.4 – 0.6
Water Supply
$M
0.5 – 0.7
Power Distribution
$M
1.8 – 2.7
Total Equipment
$M
8.6 – 13.3
Direct Costs
$M
3.2 – 4.9
Indirect Costs
$M
0.7 – 1.1
Contingency
$M
1.8 – 2.7
Total Costs
$M
14.4 – 22.1
Risks, Study Maturity and Mitigation Pathway
As with any processing expansion at this maturity, it remains subject to the risks and uncertainties typical of study-stage brownfields developments.
For CXP, the key execution sensitivities relate to timely procurement of long lead electrical and mechanical components, outage planning, installation sequencing and commissioning reliability once the upgraded drive system is introduced.
The mill motor has been ordered and delivery is scheduled in Q4, FY27.
Westgold's portfolio review identified and ranked multiple mature assets within the Murchison that could deliver incremental open pit ore sources into existing regional operating centres. With disciplined capital allocation these opportunities can be progressively tested through resource definition, mine design and economic evaluation across the three-year outlook (3YO).
These opportunities are all located within the broader Murchison operating footprint and sit within short haulage distance of Westgold's Cue and Meekatharra processing hubs. Each area also benefits from historical mining activity, existing or legacy infrastructure and established geological knowledge, making them attractive brownfields targets for further evaluation.
One such opportunity identified was Big Bell South, and the resource definition and open pit optimisation work underway could deliver improved CXP outcomes. Big Bell South (Figure 5) is being assessed as a potential open pit extension of the wider Big Bell mineralised trend.
Drilling of the Big Bell South trend from surface has begun with multiple rigs located at 1600 and Shocker drilling the potential extensions.
This will encompass Stage One of drilling at Big Bell South which will be ongoing throughout the first half of FY27, with Stage Two toward the end of FY27. It is expected an initial Scoping Study will be completed at the conclusion of Stage One.
This brownfields work is especially relevant because it strengthens the strategic rationale for higher installed processing capacity at Cue.
Further portfolio analysis across Cue is ongoing, with additional opportunities around the historic Cuddingwarra trend (Figure 1) being assessed for potential future advancement. If the current drilling and optimisation programs are successful, they have potential to supplement underground feed sources, improve ore blend management and support sustained high utilisation across the expanded mills.
3.0 Next Steps
Organic growth from Westgold's existing Cue mines and the proposed brownfields resource definition program outline a regional growth strategy for Westgold's Cue operations with multiple advantages.
The CXP is underpinned by this organic growth and:
materially lifts installed processing capacity at the Cue hub to 1.7Mtpa by FY28;
utilises the expansion of existing infrastructure, which is lower risk and more capital efficient relative to a new plant build;
creates an incremental, lower-risk and near-term pathway to higher gold production, lower processing unit costs and enhanced free cash flow - leveraging assets Westgold already owns and operates; and
provides management with a broader suite of future ore-source options to improve regional scheduling flexibility, plant utilisation and cash flow generation.
The next phases of work are expected to include additional engineering definition, sundry procurement planning, vendor engagement and more detailed execution sequencing so that shutdowns can be managed efficiently and long lead items can be secured where appropriate.
In parallel, Westgold will continue to advance the brownfields resource definition work so that future ore optionality can be assessed against haulage, mine design, processing fit and capital intensity.
Compliance Statements Competent/Qualified Person Statements
Exploration Results and Mineral Resources Estimates
The information in this release that relates to Exploration results and Mineral Resource Estimates is compiled by Westgold technical employees and contractors under the supervision of 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 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 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 release 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.
Ore Reserves
The information in this release that relates to Ore Reserve is based on information compiled by Mr. Leigh Devlin B.Eng. FAusIMM, 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 release 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.
General
Mineral Resources, Ore Reserve Estimates and Exploration Targets and Results are calculated in accordance with the JORC Code. Investors outside Australia should note that while Ore Reserve and Mineral Resource estimates of the Company in this announcement comply with the JORC Code (such JORC Code-compliant Ore Reserves and Mineral Resources being "Ore Reserves" and "Mineral Resources" respectively), they may not comply with the relevant guidelines in other countries. The JORC Code is an acceptable foreign code under NI 43-101. Information contained in this release 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 release 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 release 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.
Forward Looking Statements
These materials prepared by Westgold Resources Limited 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 the Company's 3YO, including estimates of gold production, grades, recoveries and its expectations regarding AISC, the timing of updates to Mineral Resource estimates or Ore Reserves, 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's 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 1: Mineral Resource Basis
The Mineral Resource and Ore Reserve that underpin the CXP is shown below. This is based on the current statement provided by Westgold on 3 September 2025 – 2025 Mineral Resource Estimate and Ore Reserves.
Table 5: Ore Reserve Statement
Ore Reserve Statement at 30/06/2025
Proven
Probable
Total
Operating Mine
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Big Bell UG
11,551
1.36
504
4,776
2.90
446
16,326
1.81
950
Great Fingall UG
0
0.00
0
1,951
3.51
220
1,951
3.51
220
Golden Crown UG
0
0.00
0
413
3.26
43
413
3.26
43
Table 6: Mineral Resource Statement
Mineral Resource Statement at 30/06/2025
Measured
Indicated
Inferred
Total
Project
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Tonnes ('000)
Grade (g/t)
Ounces ('000)
Big Bell District
38
2.82
3
771
2.61
65
1,843
2.94
174
2,652
2.84
242
Big Bell UG
11,563
1.71
634
8,216
3.10
819
7,414
2.90
691
27,193
2.45
2,144
Great Fingall UG
0
0.00
0
2,202
4.25
301
955
2.96
91
3,157
3.86
392
Golden Crown UG
0
0.00
0
540
5.25
91
2,279
3.05
224
2,819
3.47
315
Appendix 2: CXP Technical Detail and Assumptions
The process design basis for CXP is built around Westgold's established Cue processing plant. The CXP is targeted and brownfields in nature. The project seeks to maintain existing operations at current throughput until a short, controlled shutdown window is used to install the upgraded motor, variable speed drive and associated supporting systems. This minimises production interruptions.
Long lead vendor items have been secured or otherwise sourced to ensure a seamless transition to the expanded capacity.
At Cue, underground mining is done via longhole open stoping at Great Fingall, and sub-level caving at Big Bell. Production under Westgold ownership at both of these mines has been ongoing since 2019 at Big Bell, and since 2025 at Great Fingall. Modifying factors such as minimum mining widths, dilution, cut-off grades, stope sizes and ore loss are all included within the Scoping Study and based on current operational experience at these existing operating mines.
Westgold has carried out processing at the Cue hub since 2016. The production target in the Scoping Study assumes processing recovery rates consistent with current achievements. It is assumed that an increase in throughput at the Cue processing plant, as determined within the Scoping Study, will not adversely affect the recovery of the processed material.
Of the Mineral Resources scheduled for extraction in this Scoping Study production target, 100% is classified in Ore Reserves at Big Bell and 21% at Great Fingall. At Great Fingall the remaining mine plan sits within the Inferred Resource (79%) from year four onwards. While the Inferred Resource contributes significantly to the production target at Great Fingall specifically, Westgold is currently undertaking a major resource definition program across Cue to de-risk this plan. Additionally, the Big Bell South Exploration Target sits within years six and seven. This constitutes 3% of the LoM plan surrounding the CXP.
Appendix 3 – JORC 2012 Table 1– Gold Division
SECTION 1: SAMPLING TECHNIQUES AND DATA
(Criteria in this section apply to all succeeding sections.)
Criteria
JORC Code Explanation
Commentary
Sampling techniques
Drilling techniques
Drill sample recovery
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).
Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Diamond Drilling
A significant portion of the data used in resource calculations has been gathered from diamond core. Multiple core sizes have been used historically. This core is geologically logged and subsequently halved for sampling. Grade control holes may be whole-cored to streamline the core handling process if required.
Face Sampling
At each of the major past and current underground producers, each development face / round is chip sampled perpendicular to the mineralisation. The sampling intervals are domained by geological constraints (e.g. rock type, veining and alteration / sulphidation etc.). The majority of exposures within the orebody are sampled.
Sludge Drilling
Sludge drilling is performed with an underground production drill rig. It is an open hole drilling method using water as the flushing medium, with a 64mm (nominal) hole diameter. Sample intervals are ostensibly the length of the drill steel. Holes are drilled at sufficient angles to allow flushing of the hole with water following each interval to prevent contamination. Sludge drilling is not used to inform resource models.
RC Drilling
Drill cuttings are extracted from the RC return via cyclone. The underflow from each interval is transferred via bucket to a four-tiered riffle splitter, delivering approximately three kilograms of the recovered material into calico bags for analysis. The residual material is retained on the ground near the hole. Composite samples are obtained from the residue material for initial analysis, with the split samples remaining with the individual residual piles until required for re-split analysis or eventual disposal. Samples too wet to be split through the cone splitter are taken as grabs from the bucket and are recorded as such.
RAB / Aircore Drilling
Combined scoops from bucket dumps from cyclone for composite. Split samples taken from individual bucket dumps via scoop. RAB holes are not included in the resource estimate.
Blast Hole Drilling
Cuttings sampled via splitter tray per individual drill rod. Blast holes are not included in the resource estimate.
All geology input is logged and validated by the relevant area geologists, incorporated into an assessment of sample recovery. No defined relationship exists between sample recovery and grade. Nor has sample bias due to preferential loss or gain of fine or coarse material been noted.
Logging
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
The total length and percentage of the relevant intersections logged
Westgold drill-holes are all orientated and have been logged in detail for geology, veining, alteration, mineralisation and orientated structure. Westgold underground drill-holes are logged in detail for geology, veining, alteration, mineralisation and structure. Core has been logged in enough detail to allow for the relevant mineral resource estimation techniques to be employed.
Surface core is photographed both wet and dry and underground core is photographed wet. All photos are stored on the Company's servers, with the photographs from each hole contained within separate folders.
Development faces are mapped geologically.
RC, RAB and Aircore chips are geologically logged, and retained in chip trays for reference
Sludge drilling is logged for lithology, mineralisation and vein percentage.
Logging is both qualitative and quantitative in nature. Structure and geotechnical logging is quantitative in nature.
100% of drillcore is logged.
Geotechnical logging is undertaken over all relevant areas of drill core.
Sub-sampling techniques and sample preparation
If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.
Blast holes -Sampled via splitter tray per individual drill rods.
RAB / AC chips - Combined scoops from bucket dumps from cyclone for composite. Split samples taken from individual bucket dumps via scoop.
RC - Three tier riffle splitter (approximately 5kg sample). Samples are generally dry.
Face Chips - Nominally chipped across the face from left to right, sub-set via geological features as appropriate.
Diamond Drilling - Half-core niche samples, sub-set via geological features as appropriate. Grade control holes may be whole-cored to streamline the core handling process if required.
Chips / core chips undergo total preparation.
At external Laboratories samples undergo fine pulverisation of the entire sample by an LM5 type mill to achieve a 75µ product prior to splitting. At the internal Bluebird Laboratory a 650g samples of 3mm sample sizing, undergoes fine pulverization by a LM2 type mill to achieve a 75µ product prior to sub splitting.
QA/QC is currently ensured during the sub-sampling stages process via the use of the systems of an external independent NATA or internal ISO accredited laboratory contractor. A significant portion of the historical informing data has been processed internally.
Sample representativity and possible relationship between grain size and grade are checked by re- sampling the relevant intervals and resubmitting new samples for assay.
The sample size is considered appropriate for the grain size of the material being sampled.
The un-sampled half of diamond core is retained for check sampling if required. For RC chips regular field duplicates are collected and analysed for significant variance to primary results.
Sample size follows industry standard best practice and is considered appropriate for these style(s) of mineralisation.
The Competent Person considers the sub-sampling techniques and sample preparation processes of current and historical RC and DDH drilling is appropriate for the Mineral Resource estimates (MREs).
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
All samples have been prepared and analysed via NATA accredited or AS/NZS ISO 9001:2000 compliant Laboratories, who conduct their own internal QA/QC processes.
At the inhouse Bureau Veritas Laboratory samples are dried at 105°C for 1 to 2 hours until passing a moisture check. Samples are then crushed to <3mm in the Boyd Elite Crusher and split using a linear sample divider. A split of 650g undergoes pulverisation to 90% passing a size fraction of <75µm. This material is then split into a 300g pulp for Fire Assay analysis.
Offsite NATA accredited Laboratory sample preparation is by way of drying and full core crushing and then pulverisation via a LM5 style mill to 90% passing a size fraction of <75µm. This material is then split into a 250g pulp for Fire Assay analysis.
All recent samples were analysed by fire assay. A 40g sample undergoes fire assay lead collection followed by flame atomic adsorption spectrometry (0.01ppm lower detection limit). The Laboratory manages internal QAQC via the insertion of two pulp repeats, two standards and one blanks for each 50-sample batch.
Photon Assay was introduced in 2023 for Beta Hunt grade control samples and subsequently discontinued in 2024. PhotonAssay™ technology (Chrysos Corporation Limited) is a rapid, non-destructive analysis of gold and other elements in mineral samples. Photon assay size is approximately 500 g of crushed product.
Historical drilling has used a combination of Fire Assay, Aqua Regia and PAL analysis.
Westgold Quality control is ensured via the use of standards, blanks and repeats.
Standards and Blanks were used by the laboratory for all post-1990 sampling, and duplicates were routinely analysed, with check assay programs sent to an alternate laboratory on a program basis. All drilling since 2005 has used standards and certified blanks submitted to the laboratory by the Company. No evidence of analytical bias exists for drilling where acceptable standards of QC were adopted and no bias is evident between these sampling programs and those of earlier generations of drilling.
No significant QA/QC issues have arisen in recent drilling results.
These assay methodologies are appropriate for the resources in question.
Verification of sampling and assaying
The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
All significant intersections are verified by the Senior Geologist during the drillhole validation.
Twinned holes (<5m separation) have been drilled in several instances across all sites with no significant issues identified. Drillhole data is routinely confirmed by development assay data in the operating environment.
Primary data is collected utilising LogChief. The information is imported into a SQL database server and verified.
All data used in the calculation of Mineral Resources and Ore Reserves are compiled in databases (underground and open pit) which are overseen and validated by senior geologists. Holes that do not meet Westgold quality standards are excluded prior to Mineral Resource estimation.
No adjustments have been made to any assay data.
Location of data points
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
All data is spatially oriented by survey controls via direct pickups by the survey department. Drillholes are all surveyed downhole, deeper holes with a Gyro tool if required, the majority with single / multishot cameras. Surveys are verified during drillhole validation and poor surveys resurveyed.
If survey data is missing or quality is suspect, then the data is excluded from estimation.
All drilling and resource estimation is preferentially undertaken in local mine grid at the various sites.
Topographic control is generated from a combination of remote sensing methods and ground-based surveys. This methodology is adequate for the resources in question.
The Competent Person considers the accuracy and quality of survey data for historical RC and DDH drilling is appropriate for Mineral Resource estimates.
Data spacing and distribution
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
Data spacing is variable dependent upon the individual orebody under consideration. A lengthy history of mining has shown that this approach is appropriate for the Mineral Resource Estimation process and to allow for classification of the resources as they stand.
No sample compositing has been applied to the database. For grade estimation compositing is undertaken on datasets based upon the modal sample length of each individual domain.
Orientation of data in relation to geological structure
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Drillholes are designed to intersect the mineralisation as close as practical to the true thickness of the orebody subject to underground infrastructure and topography constraints.
Development sampling is nominally undertaken normal to the various orebodies.
Where drilling angles are sub optimal the number of samples per drill hole used in the -estimation has been limited to reduce any potential bias.
It is not considered that drilling orientation has introduced an appreciable sampling bias.
Sample security
The measures taken to ensure sample security.
For samples assayed at on-site laboratory facilities, samples are delivered to the facility by Company staff. Upon delivery the responsibility for sample security and storage falls to the independent third-party operators of these facilities.
For samples assayed off-site, samples are delivered to a third-party transport service, who in turn relay them to the independent laboratory contractor. Samples are stored securely until they leave site.
Chain of custody is demonstrated by Westgold and the Bureau Veritas in the delivery and receipt of samples.
All retained core, RC chip trays and pulp samples are currently stored onsite by Westgold and are available for verification if required.
Audits or reviews
The results of any audits or reviews of sampling techniques and data
Site generated Mineral Resources and Ore Reserves and the parent geological data is routinely reviewed by the Westgold Corporate technical team.
In March 2025 a health check of the Company's drill databases was undertaken resulting in a process to upgrade the Datashed Database to a more recent platform.
Routine audits of the Bureau Veritas Laboratories are undertaken by Westgold staff, to confirm compliance to process.
SECTION 2: REPORTING OF EXPLORATION RESULTS
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code Explanation
Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.
Native title interests are recorded against several Westgold tenements.
The CMGP tenements are held by the Big Bell Gold Operations (BBGO) of which Westgold has 100% ownership.
Several third-party royalties exist across various tenements at CMGP, over and above the state government royalty.
The Fortnum Gold Project tenure is 100% owned by Westgold through subsidiary company Aragon Resources Pty. Ltd. Various Royalties apply to the package. The most pertinent being;
State Government – 2.5% NSR
Beta Hunt is owned by Westgold through a sub-lease agreement with St Ives Gold Mining Company Pty Ltd (SIGMC), which gives Westgold the right to explore and mine gold and nickel.
Royalties on gold production from Beta Hunt are as follows:
A royalty to the state government equal to 2.5% of the royalty value of gold metal produced; and
Royalties to third parties equal to 4.75% of recovered gold less allowable deductions.
The Higginsville Operations include the Higginsville Mill and associated infrastructure, mining operations and exploration prospects which are located on 194 tenements owned by Westgold and covers approximately 1,700km2 total area.
Royalties on the HGO gold production are as follows:
Production payments of up to 1% of gross gold revenue over various tenements to traditional land owners.
Royalty equal to 2.5% of recovered gold to the Government of Western Australia; and
Various third parties hold rights to receive royalties in respect of gold (and in some cases other minerals or metals) recovered from the tenements.
The tenure is currently in good standing.
There are no known issues regarding security of tenure.
There are no known impediments to continued operation.
Westgold operates in accordance with all environmental conditions set down as conditions for grant of the leases.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties
The CMGP tenements have an exploration and production history in excess of 100 years.
The FGO tenements have an exploration and production history in excess of 30 years.
BHO tenements have an exploration and production history in excess of 60 years.
HGO tenements have an exploration and production history in excess of 40 years.
Westgold work has generally confirmed the veracity of historic exploration data.
Geology
Deposit type, geological setting and style of mineralisation.
BHO
Beta Hunt is situated within the central portion of the Norseman-Wiluna greenstone belt in a sequence of mafic/ultramafic and felsic rocks on the southwest flank of the Kambalda Dome.
Gold mineralisation occurs mainly in subvertical shear zones in the Lunnon Basalt and is characterised by shear and extensional quartz veining within a halo of biotite/pyrite alteration. Within these shear zones, coarse gold sometimes occurs where the shear zones intersect iron-rich sulphidic metasediments in the Lunnon Basalt or nickel sulphides at the base of the Kambalda Komatiite (ultramafics). The mineralised shears are represented by A-Zone, Western Flanks, Larkin and Mason zones.
CGO
CGO is located in the Achaean Murchison Province, a granite-greenstone terrane in the northwest of the Yilgarn Craton. Greenstone belts trending north-northeast are separated by granite-gneiss domes, with smaller granite plutons also present within or on the margins of the belts.
Mineralisation at Big Bell is hosted in the shear zone (Mine Sequence) and is associated with the post-peak metamorphic retrograde assemblages. Stibnite, native antimony and trace arsenopyrite are disseminated through the K-feldspar-rich lode schist. These are intergrown with pyrite and pyrrhotite and chalcopyrite. Mineralisation outside the typical Big Bell host rocks (KPSH), for example 1,600N and Shocker, also display a very strong W-As-Sb geochemical halo.
Numerous gold deposits occur within the Cuddingwarra Project area, the majority of which are hosted within the central mafic-ultramafic ± felsic porphyry sequence. Within this broad framework, mineralisation is shown to be spatially controlled by competency contrasts across, and flexures along, layer-parallel D2 shear zones, and is maximised when transected by corridors of northeast striking D3 faults and fractures.
The Great Fingall Dolerite hosts the majority gold mineralisation within the portion of the greenstone belt proximal to Cue (The Day Dawn Project Area). Unit AGF3 is the most brittle of all the five units and this characteristic is responsible for its role as the most favourable lithological host to gold mineralisation in the Greenstone Belt.
FGO
The Fortnum deposits are Paleoproterozoic shear-hosted gold deposits within the Fortnum Wedge, a localised thrust duplex of Narracoota Formation within the overlying Ravelstone Formation. Both stratigraphic formations comprise part of the Bryah Basin in the Capricorn Orogen, Western Australia.
The Horseshoe Cassidy deposits are hosted within the Ravelstone Formation (siltstone and argillite) and Narracoota Formation (highly altered, moderate to strongly deformed mafic to ultramafic rocks). The main zone of mineralisation is developed within a horizon of highly altered magnesian basalt. Gold mineralisation is associated with strong vein stock works that are confined to the altered mafic. Alteration consists of two types: stockwork proximal silica-carbonate-fuchsite-haematite-pyrite and distal silica-haematite-carbonate+/- chlorite.
HGO
The Higginsville Gold Operation is located in the Eastern Goldfields Superterrane of the Archean Yilgarn Craton. The bulk of the Higginsville tenement package is located almost entirely within the well-mineralised Kalgoorlie Terrane, between the gold mining centres of Norseman and St Ives. HGO can be sub-divided into five major geological domains: Trident Line of Lode, Lake Cowan, Southern Paleo-channels, Polar Bear Group and Spargo's Project area.
Majority of mineralisation along the Trident Line of Lode are hosted within the Poseidon gabbro and high-MgO dyke complexes in the south. The Poseidon Gabbro is a thick, weakly-differentiated gabbroic sill, which strikes north-south and dips 60° to the east, is over 500 m thick and 2.5 km long. The mineralisation is hosted within or marginal to quartz veining and is structurally and lithologically controlled.
The Lake Cowan project area is situated near the centre of a regional anticline between the Zuleika and Lefroy faults, with the local geology of the area made more complex by the intrusion of the massive Proterozoic Binneringie dyke. The majority of mineralisation at the Lake Cowan Mining Centre is hosted within an enclave of Archaean material surrounded by the Binneringie dyke.
Mineralised zones within the Southern Paleo Channels network comprise both placer gold, normally near the base of the channel-fill sequences, and chemically-precipitated secondary gold within the channel-fill materials and underlying saprolite. These gold concentrations commonly overlie, or are adjacent to, primary mineralised zones within Archaean bedrock.
The Polar Bear project is situated within the Archaean Norseman-Wiluna Belt which locally includes basalts, komatiites, metasediments, and felsic volcaniclastics. The primary gold mineralisation is related to hydrothermal activity during multiple deformation events. Indications are that gold mineralisation is focused on or near to the stratigraphic boundary between the Killaloe and Buldania Formation.
The Spargo's Project occurs within Coolgardie Domain of the Kalgoorlie Terrane. The area is bounded by the Zuleika Shear to the east and the Kunanalling Shear to the west. The geological setting comprises tightly-folded north-south striking ultramafic and mafic volcanic rocks at the northern closure Widgiemooltha Dome. The project lies on the general trend of the Kunanalling / Karramindie Shear corridor, a regional shear zone that hosts significant mineralisation to the north at Ghost Crab (Mount Marion), Wattle Dam to the south, the Penfolds group and Kunanalling. The regional prospective Zuleika Shear lies to the east of the project. The tenements are prospective for vein and shear hosted gold deposits as demonstrated by Spargo's Reward and numerous other gold workings and occurrences. Gold mineralisation at Spargo's Reward is hosted by a coarse-grained pyrite-arsenopyrite lode in quartz-sericite schists, between strongly biotitic altered greywacke to the east and quartz-sericite-fuchsite-pyrite altered felsic tuff to the west. Gold mineralisation is associated with very little quartz veining which is atypical for many deposits in region. The Spargo's Reward setting has been described variously as a low-quartz sulphidic mesothermal gold system or as a Hemlo style syn-sedimentary occurrence.
MGO
MGO is located in the Achaean Murchison Province, a granite-greenstone terrane in the northwest of the Yilgarn Craton. Greenstone belts trending north-northeast are separated by granite-gneiss domes, with smaller granite plutons also present within or on the margins of the belts.
The Paddy's Flat area is located on the western limb of a regional fold, the Polelle Syn- cline, within a sequence of mafic to ultramafic volcanics with minor interflow sediments and banded iron-formation. The sequence has also been intruded by felsic porphyry dykes prior to mineralisation. Mineralisation is located along four sub-parallel trends at Paddy's Flat which can be summarized as containing three dominant mineralisation styles:
Quartz-carbonate-sulphide stockwork vein and alteration related gold.
The Yaloginda area which host Bluebird – South Junction, is a gold-bearing Archaean greenstone belt situated ~15km south of Meekatharra. The deposits in the area are hosted in a strained and metamorphosed volcanic sequence that consists primarily of ultramafic and high-magnesium basalt with minor komatiite, peridotite, gabbro, tholeiitic basalt and interflow sediments. The sequence was intruded by a variety of felsic porphyry and intermediate sills and dykes.
Drill hole Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Exploration results are not being reported in this release.
Data aggregation methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
Exploration results are not being reported in this release.
Relationship between mineralisation widths and intercept lengths
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g., 'down hole length, true width not known').
Exploration results are not being reported in this release.
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Exploration results are not being reported in this release.
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Exploration results are not being reported in this release.
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
There is no other substantive exploration data associated with this release.
Further work
The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Ongoing surface and underground exploration activities will be undertaken to support continuing mining activities at Westgold Gold Operations.
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria
JORC Code Explanation
Commentary
Database integrity
Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.
Data validation procedures used.
The database used for the estimation was extracted from the Westgold DataShed database management system stored on a secure SQL server.
As new data is acquired it passes through a validation approval system designed to pick up any significant errors before the information is loaded into the master database.
Geological data is collected with Logchief software and uploaded digitally. The software utilises lookup tables, fixed formatting, and validation routines to ensure data integrity prior to upload to the central database.
Westgold utilises the QAQC Reporting system within Datashed to analyse QA/QC data, and batches which do not meet passing criteria are requested to be re‐assayed. Sample grades are checked visually in three dimensions against the logged geology and geological interpretation. Drill hole collar pickups are checked against planned and/or actual collar locations.
Site visits
Comment on any site visits undertaken by the Competent Person and the outcome of those visits.
If no site visits have been undertaken indicate why this is the case.
Mr. Russell visits Westgold Gold Operations regularly.
Geological interpretation
Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.
Nature of the data used and of any assumptions made.
The effect, if any, of alternative interpretations on Mineral Resource estimation.
The use of geology in guiding and controlling Mineral Resource estimation.
The factors affecting continuity both of grade and geology.
Mining in the Murchison and Goldfields districts has occurred since 1800's providing significant confidence in the current geological interpretation across all projects.
For all deposits the geological interpretations have been completed in 3D using Leapfrog software. All available data has been used to help build the geological interpretation, with the integration of geological logging, mapping, structural measurements and drill hole assay data.
Geology (lithological units, alterations, structure, veining) have been used to guide and control domain interpretation.
Overall, there is confidence at a global (domain-level) scale of the interpretations, with the expectation that they will continue to be refined following the collection of additional data.
No alternative interpretations are currently considered viable.
The structural regime is the dominant control on geological and grade continuity in the Murchison and Goldfields. Lithological factors such as rheology contrast are secondary controls on grade distribution. Cross cutting relationships including barren dykes, porphyries and faults have been incorporated into the geological model and removed from estimation where known to exist
The mineralised interpretation was based upon sampled intervals, and any drilled intervals that were not sampled have been treated as absent data.
Low-grade stockpiles are derived from previous mining of the mineralisation styles outlined above.
The data is considered robust due to effective database management, and validation checks to verify the quality of the data.
Diamond drill holes have provided detailed information to assist in the development of the geological and mineralisation interpretation. The confidence in type, thickness and location of host lithologies and mineralised structures are well understood.
Dimensions
The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the mineral Resource.
BHO
A-Zone extends over 2.2km strike length and is modelled to a vertical depth of 960m. It has variable thickness from 2m to 20m thick.
Western Flanks has a strike extent of 1.8km and is modelled to a vertical extent of 450m, with average thickness of the shear around 10m.
Larkin extends over 1.1km in strike length and is modelled to 400m vertical extent, with variable thickness ranging from 2m to 15m thick.
Mason has a strike extent of 1.1km and is modelled to 455m vertical extent with variable thickness between 7 to 15m.
Fletcher has a strike extent of 2 km and is modelled over an 800m vertical extent with variable thickness of individual lodes over a 500m lateral extent.
CGO
The Big Bell Trend is mineralised a strike length of >3,900m, a lateral extent of up +50m and a depth of over 1,500m.
Great Fingall is mineralised a strike length of >500m, a lateral extent of >600m and a depth of over 800m.
Black Swan South is mineralised a strike length of >1,700m, a lateral extent of up +75m and a depth of over 300m.
FGO
The Yarlarweelor mineral resource extends over 1,400m in strike length, 570m in lateral extent and 190m in depth.
The Tom's and Sam's mineral resource extends over 650m in strike length, 400m in lateral extent and 130m in depth.
The Eldorado mineral resource extends over 240m in strike length, 100m in lateral extent and 100m in depth.
HGO
Trident, Fairplay, Vine and Two Boy's deposits form the Line of Lode system and extends over 5km of strike.
The Pioneer resource area extends over a strike length of 860m from 6,474,900mN to 6,475,760mN. The multiple NS striking parallel lodes occur within a narrow EW extent of 190m from 374,970mE to 375,160mE. Mineralisation has been modelled from surface at 291mRL to a vertical depth 208m to the 83mRL.
Southern paleochannels gold mineralisation is interpreted to have a strike length around 4km and is predominantly flat lying.
The Wills deposit extends over 900m in an ENE-WSW direction and is up to 200m wide. Pluto is confirmed between sections 6,480,100mN and 6,481,800mN. Nanook is confirmed between sections 6,469,300mN and 6,472,500mN.
Lake Cowan: Atreides mineralisation is contained within flat lying lodes located within the weathered zone. The mineralizing strike extents vary between 100m to 300m long, with an average thickness of 2 to 3 m thick. Josephine has a strike length greater than 450m and >10m across strike and modelled to >90m at depth. Louis has a strike extent of 310m long and is interpreted to a depth of 170m below surface. Napoleon: ~220m strike and up to ~90m (individual mineralised lodes maximum of 12m) across strike to an interpreted depth of ~80m m below surface. Rose's dimension is 150m x 120m (X, Y), to an interpreted depth of +20-25m below surface.
The Spargos resource area extends over a strike length of 330m from 6,542,980mN to 6,543,310mN. The parallel lodes occur within a narrow EW extent of 95m from 354,120mE to 354,215mE. Mineralisation has been modelled from surface at 425mRL to a vertical depth 525m to -100mRL.
MGO
The Paddy's Flat Trend is mineralised a strike length of >3,900m, a lateral extent of up +230m and a depth of over 500m.
Bluebird – South Junction is mineralised a strike length of >1,800m, a lateral extent of up +50m and a depth of over 500m.
STOCKPILES
Low-grade stockpiles are of various dimensions. All modelling and estimation work undertaken by Westgold is carried out in 3D via Surpac Software.
Estimation and modelling techniques.
The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters, maximum distance of extrapolation from data points.
The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.
The assumptions made regarding recovery of by-products.
Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).
In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.
Any assumptions behind modelling of selective mining units.
Any assumptions about correlation between variables.
The process of validation, the checking process used, the comparison of model data to drillhole data, and use of reconciliation data if available.
Software used:
Datashed – front end to a SQL Database,
Leapfrog - Drill hole validation, structural analysis and stereonets, material type, lithology, alteration and faulting wireframes, domaining and mineralisation wireframes, geophysics and regional geology.
Surpac - drill hole validation, block modelling, geostatistics, CIK, OK estimation, block model validation, classification, depletion and reporting.
Drillholes are flagged to mineralised domains and composited to provide equal support for grade estimation.
Statistical analysis by domain is undertaken to assist with determining estimation approach, search parameters, top-cuts etc.
Treatment of extreme grade values – Top-cuts were applied to composites within mineralised wireframes to manage the influence of extreme grade values. In selected domains, additional grade and distance restrictions were applied during interpolation to produce a more localised estimate and limit the influence of high-grade outliers.
Top-cut analysis was carried out on the composited gold values using histograms, log probability and mean-variance plots, and where possible validated with production data.
Kriging Neighbourhood Analysis (KNA) is undertaken to optimise the search neighbourhood used for the estimation and to test the parent block size.
Search ellipse orientation was taken directly from the variogram orientation for each domain/sub-domain. The search ellipse sizes were based on a combination of drillhole spacing and variographic analysis where the first search ellipse range was approximately two-thirds that of the variogram. Various minimum and maximum samples were used in the first search. Three search passes are used each with increasing search ellipse sizes.
The search ellipse and selected samples by block were viewed in three dimensions to verify the parameters. Final parameters are incorporated with observed geological and geometrical features to determine the most appropriate search parameters.
Parent block and sub-cell sizes vary depending on orebody geometry, minimum mining units, estimation parameters and levels of informing data available. Estimation is into the parent block with full subset of points.
Grade estimation is undertaken, with Ordinary Kriging (OK) considered as standard due to observed continuity of mineralisation, low coefficient of variation and population skew. Where sample populations are small, or domains are unable to be accurately defined, inverse distance weighting techniques are used. For poorly informed lodes, average grade is assigned.
No selective mining units are assumed.
Both by-product and deleterious elements are estimated at the time of primary grade estimation if required. It is assumed that by- products correlate well with gold. There are no assumptions made about the recovery of by-products.
At Beta Hunt and Starlight gold mineralisation exhibits moderate to high grade variability with localised high-grade clusters. Internal low grade sub-domains were defined using Categorical Indicator Kriging (CIK). Gold within the high and low-grade domains are then estimated separately using OK with grade capping and distance limiting applied to manage the influence of high-grade samples.
Densities are assigned to a base block model which includes lithology, weathering, and depletion models. The average density for each lithology is applied to each lithological unit. The regolith densities overprint the lithology where applicable.
Block model validation is undertaken globally by comparing the mean block grade estimates to the declustered and top-cut mean of the informing composite grades on a domain basis. Local validation, via swath plots, is carried out for all domains. Local visual validation of blocks against sample data is also undertaken.
Estimation results are routinely validated against, previous estimates, local and global mining output. All validation checks gave appropriate results and confirmed the validity of the estimation.
Mining voids are coded in the model and used for depletion.
Good reconciliation between mine production and mill performance has been routinely achieved, providing confidence in the estimation and modelling approach.
Moisture
Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.
Tonnage estimates are dry tonnes.
Cut-off parameters
The basis of the adopted cut-off grade(s) or quality parameters applied.
The cut-off grades used for the reporting of the Mineral Resources have been selected based on the style of mineralisation, depth from surface of the mineralisation and the most probable extraction technique and associated costs.
Mining factors or assumptions
Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.
Variable by deposit.
No mining assumptions have been made during the resource wireframing or estimation process.
Metallurgical factors or assumptions
The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.
No metallurgical assumptions are made for the Mineral Resource.
The current metallurgical recoveries are used in the calculation of the cut-off grade for Resource purposes.
Environmental factors or assumptions
Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.
Westgold operates in accordance with all environmental conditions set down as conditions for grant of the respective leases.
Bulk density
Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.
The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc.), moisture and differences between rock and alteration zones within the deposit.
Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.
Specific gravity values have been measured based on the Archimedean Principle using the immersion method for individual core and rock samples. A large suite of bulk density determinations has been carried out across the project areas.
Bulk densities are reviewed by separating into different weathering domains and lithological domains for analysis and confirmation of bulk density values applied to the Resource.
Bulk density is predominately controlled by lithology and weathering/oxidation, rather than mineralisation, and varies accordingly across the deposit.
No/minimal voids are encountered in the ore zones and underground environments.
A significant past mining history has validated the assumptions made surrounding bulk density.
Classification
The basis for the classification of the Mineral Resources into varying confidence categories.
Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).
Whether the result appropriately reflects the Competent Person's view of the deposit.
Mineral Resources are classified in line with JORC 2012 guidelines.
Classification was undertaken on an individual lode basis. The principal criteria for classification is drill hole spacing, kriging quality, and overall geological continuity of the respective lodes. Classification incorporated all relevant factors relating to data quality, grade and geological continuity, distribution of the data, and current geological understanding.
Drillhole spacing to support classification varies based upon lode characteristics. Measured ranges from 15-35m, Indicated from 10-180m and Inferred from 10-200m.
This approach considers all relevant factors and reflects the Competent Person's view of the deposit.
Audits or reviews
The results of any audits or reviews of Mineral Resource estimates.
All Mineral Resource models are peer reviewed by the Corporate technical team.
No external reviews have been undertaken.
Discussion of relative accuracy/confidence
Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.
The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.
These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.
All currently reported resource estimates are considered robust, and representative on both a global and local scale.
A continuing history of mining with good reconciliation of mine claimed to mill recovered provides confidence in the accuracy of the estimates.
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.)
Criteria
JORC Code Explanation
Commentary
Mineral Resource estimate for conversion to Ore Reserves
Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.
Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.
At all Operations the Ore Reserve is based on the corresponding reported Mineral Resource Estimate.
Mineral Resource Estimates reported are inclusive of those Mineral Resources Estimates modified to produce the Ore Reserve.
At all projects, all Mineral Resources Estimates that have been converted to Ore Reserve are classified as either Indicated or Measured.
Site visits
Comment on any site visits undertaken by the Competent Person and the outcome of those visits.
If no site visits have been undertaken indicate why this is the case.
Mr. Leigh Devlin has over 15 years' experience in the mining industry. Mr. Devlin visits the mine sites on a regular basis and is one of the primary engineers involved in mine planning, site infrastructure and project management.
Study status
The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.
The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered
Processing at the Murchison operations has occurred continuously since 2015, with previous production occurring throughout 1800's, 1900's and 2000's. Processing at the Southern Goldfields operations has occurred intermittently since the 1980's and continuously since 2008 at Higginsville.
Various mineralisation styles and host domains have been mined since discovery. Mining during this time has ranged from open pit cutbacks, insitu surface excavations to extensional underground developments.
Budget level, 24 month projected, forecasts are completed on a biannual basis, validating cost and physical inventory assumptions and modelling. These updated parameters are subsequently used for the basis of the Ore Reserve modification and financial factors.
Following exploration and infill drilling activity, resource models are updated on both the estimation of grade and classification. These updated Mineral Resources Estimates then form the foundation for the Ore Reserve.
Cut-off parameters
The basis of the cut-off grade(s) or quality parameters applied.
Underground Mines - Cut off grades are used to determine the economic viability of the convertible Mineral Resources Estimates. COG for underground mines incorporates operational development and production costs, grade control, haulage, milling, administration, along with state and private royalty conditions. Where an individual mine has different mining methods and or various orebody style, COG calculations are determined for each division. These cuts are applied to production shapes (stopes) as well as high grade development. Additionally, an incremental COG is applied to low grade development, whereby access to a high-grade area is required.
On the basis of above process, the COG is split into Mine Operating COG (incremental grade) Fully Costed COG (inclusive of capital)
Open Pit Mines - The pit rim cut-off grade (COG) was determined as part of the Ore Reserve. The pit rim COG accounts for grade control, haulage, milling, administration, along with state and private royalty conditions. This cost profile is equated against the value of the mining block in terms of recovered metal and the expected selling price. The COG is then used to determine whether or not a mining block should be delivered to the treatment plant for processing, stockpiled as low- grade or taken to the waste dump.
On the basis of above process, COGs for the open pit mines range from 0.6g/t (whereby the Mill is local to mine and Mill recoveries are greater than 90%) to 1.4g/t (regional pits with low Mill recoveries).
Stockpile COG – A marginal grade was determined for each stockpile inventory to ensure it was economically viable. The COG accounts for haulage, milling, administration, along with state and private royalty conditions and metallurgical recovery.
Mining factors or assumptions
The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).
The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.
The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc.), grade control and pre-production drilling.
The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).
The mining dilution factors used.
The mining recovery factors used.
Any minimum mining widths used.
The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.
The infrastructure requirements of the selected mining methods.
All Ore Reserve inventories are based upon detailed 3-dimensional designs to ensure practical mining conditions are met. Additionally, all Ore Reserve inventories are above the mine specific COG(s) as well as containing only Measured and Indicated material. Depending upon the mining method – modifying factors are used to address hydrological, geotechnical, minimum width and blasting conditions.
Open Pit Methodology
The mining shape in the Ore Reserve estimation is generated by a wireframe (geology interpretation of the mineralisation) which overlays the block model. Where the wire frame cuts the primary block, sub blocks fill out the remaining space to the wire frame boundary (effectively the mining shape). It is reasonable to assume that the mining method can selectively mine to the wire frame boundary with the additional dilution provision stated below.
Ore Reserves are based on pit designs – with appropriate modifications to the original Whittle Shell outlines to ensure compliance with practical mining parameters.
Geotechnical parameters aligned to the open pit Ore Reserves are either based on observed existing pit shape specifics or domain specific expectations / assumptions. Various geotechnical reports and retrospective reconciliations were considered in the design parameters. A majority of the open pits have a final design wall angle of 39-46 degrees, which is seen as conservative.
Dilution of the ore through the mining process has been accounted for within the Ore Reserve quoted inventory. Various dilution ratios are used to represent the style of mineralisation. Where continuous, consistent mineralisation boundaries and grade represent the mineralised system the following factors are applied: oxide 15%, transitional 17% and fresh 19%. In circumstances where the orebody is less homogenous above the COG then the following dilution factors are applied in order to correctly model the inherent variability of extracting discrete sections of the pit floor: oxide 17%, transitional 19% and fresh 21%. To ensure clarity, the following percentages are additional ore mined in relation to excavating the wire frame boundary as identified in point 1 above, albeit at a grade of 0.0 g/t. The amount of dilution is considered appropriate based on mineralisation geometry, historical mining performance and the size of mining equipment to be used to extract ore.
Expected mining recovery of the ore has been set at 93%.
Minimum mining widths have been accounted for in the designs, with the utilisation of 40t or 90t trucking parameters depending upon the size of the pit excavation.
No specific ground support requirements are needed outside of suitable pit slope design criteria based on specific geotechnical domains.
Mining sequence is included in the mine scheduling process for determining the economic evaluation and takes into account available operating time and mining equipment size and performance.
No Inferred material is included within the open pit statement, though in various pit shapes Inferred material is present. In these situations this Inferred material is classified as waste.
Underground Methodology
All underground Ore Reserves are based on 3D design strings and polygon derived stope shapes following the Measured and Indicated Mineral Resource Estimates (in areas above the Mine Operating COG). A complete mine schedule is then derived from this design to create a LoM plan and financial analysis.
Mining heights and widths are based on first principles and standardised mining methods employed widely throughout Western Australia.
Geotechnical evaluations have been used in determining the size and filling methodologies. Subsequent costs associated with these methods have been included within the study and budgeting formats.
In large, disseminated orebodies sub level caving, sub level open stoping or single level bench stoping production methodologies are used.
In narrow vein laminated quartz hosted domains, a conservative narrow bench style mining method is used.
In narrow flat dipping deposits, a flat long hole process is adopted (with fillets in the footwall for rill angle) and or jumbo stoping.
Stope shape parameters have been based on historical data (where possible) or expected stable hydraulic radius dimensions.
Stope inventories have been determined by cutting the geological wireframe at above the area specific COG and applying mining dilution and ore loss factors. The ore loss ratio accounts for pillar locations between the stopes (not operational ore loss) whilst dilution allows for conversion of the geological wireframe into a minable shape (planned dilution) as well as hangingwall relaxation and blasting overbreak (unplanned dilution).
Depending upon the style of mineralisation, sub level interval, blasthole diameters used and if secondary support is installed, total dilution ranges from 10 to 35%.
Minimum mining widths have been applied in the various mining methods. The only production style relevant to this constraint is 'narrow stoping' – where the minimum width is set at 1.5m in a 17m sub level interval.
Mining operational recovery for the underground mines is set at 85-100% due to the use of remote loading units as well as paste filling activities. Mining recovery is not inclusive of pillar loss – insitu mineralised material between adjacent stope panels.
Stope shape dimensions vary between the various methods. Default hydraulic radii (HR) are applied to each method and are derived either from historical production or geotechnical reports / recommendations. Where no data or exposure is available conservative HR values are used based on the contact domain type.
Mining sequence is included in the mine scheduling process for determining the economic evaluation and takes into account available operating time and mining equipment size and performance.
Metallurgical factors or assumptions
The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.
Whether the metallurgical process is well-tested technology or novel in nature.
The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.
Any assumptions or allowances made for deleterious elements.
The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.
For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?
BHO
A long history of processing through several CIL processing existing facilities demonstrates the appropriateness of the process to the styles of mineralisation considered.
No deleterious elements are considered, the long history of processing has shown this to be not a material concern.
CGO
CGO has an existing conventional CIL processing plant.
The plant has a nameplate capacity of 1.4Mtpa though this can be varied between 1.2- 1.6Mtpa pending rosters and material type.
Gold extraction is achieved using two staged crushing, ball milling with gravity concentration and Carbon in Leach.
Despite CGO having a newly commissioned processing plant (2012/13 and subsequently restarted in 2018) a high portion of the Ore Reserve mill feed have extensive data when processed at other plants in the past 2-3 decades. This long history of processing demonstrates the appropriateness of the process to the styles of mineralisation considered.
No deleterious elements are considered, as a long history of processing has shown this to be not a material concern.
For the Ore Reserve, Plant recoveries of 80-95% have been utilised.
FGO
FGO has an existing conventional CIL processing plant – which has been operational in various periods since the late 1980's. The plant has a nameplate capacity of 1.0Mtpa though this can be varied between 0.8-1.2Mtpa pending rosters and material type.
An extensive database of historical CIL recoveries as well as detailed metallurgical test work is available for the various deposits, and these have been incorporated into the COG analysis and financial models.
For the Ore Reserve, plant recoveries of 93-95% have been utilised.
HGO
Gold extraction is achieved using staged crushing, ball milling with gravity concentration and Carbon in Leach. The Higginsville plant has operated since 2008.
Treatment of ore is via conventional gravity recovery / intensive cyanidation and CIL is applied as industry standard technology.
Additional test-work is instigated where notable changes to geology and mineralogy are identified. Small scale batch leach tests on primary Louis ore have indicated lower recoveries (80%) associated with finer gold and sulphide mineralisation.
There have been no major examples of deleterious elements affecting gold extraction levels or bullion quality. Some minor variations in sulphide mineralogy have had short-term impacts on reagent consumptions.
No bulk sample testing is required whilst geology/mineralogy is consistent based on treatment plant performance.
MGO
MGO has an existing conventional CIL processing plant – which has been operational in various periods since the late 1980's.
The plant has a nameplate capacity of 1.6Mtpa though this can be varied between 1.2- 1.8Mtpa pending rosters and material type.
Gold extraction is achieved using single stage crushing, SAG and ball milling with gravity concentration and Carbon in Leach.
A long history of processing through the existing facility demonstrates the appropriateness of the process to the styles of mineralisation considered.
No deleterious elements are considered, as a long history of processing has shown this to be not a material concern.
For the Ore Reserve, plant recoveries of 85-92% have been utilised.
Environmental
The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.
BHO
BHO operates under and in compliance with a number of operating environmental plans, which cover its environmental impacts and outputs as well as reporting guidelines / frequencies.
Various Reserve inventories do not have current DMP / DWER licenses – though there are no abnormal conditions / factors associated with these assets which the competent person sees as potentially threatening to the particular project.
The operation is frequently inspected by the regulatory authorities of DMP and DWER with continual feedback on environmental best practice and reporting results.
Flood Management, Inclement Weather and Traffic Management Plans existing for the operation to minimise the risks of environmental impacts.
Standard Operating Procedures for the transfer of hazardous materials and restocking of Dangerous Goods existing on site to mitigate the risk of these materials entering the environment.
CGO
CGO operates under and in compliance with a number of operating environmental plans, which cover its environmental impacts and outputs as well as reporting guidelines / frequencies.
Various Reserve inventories do not have current DMP / DWER licenses – though there are no abnormal conditions / factors associated with these assets which the competent person sees as potentially threatening to the particular project.
The operation is frequently inspected by the regulatory authorities of DMP and DWER with continual feedback on environmental best practice and reporting results.
Flood Management, Inclement Weather and Traffic Management Plans existing for the operation to minimise the risks of environmental impacts.
Standard Operating Procedures for the transfer of hazardous materials and restocking of Dangerous Goods existing on site to mitigate the risk of these materials entering the environment.
FGO
FGO operates under and in compliance with a number of operating environmental plans, which cover its environmental impacts and outputs as well as reporting guidelines / frequencies.
Various Reserve inventories do not have current DMP / DWER licenses – though there are no abnormal conditions / factors associated with these assets which the competent person sees as potentially threatening to the particular project.
The operation is frequently inspected by the regulatory authorities of DMP and DWER with continual feedback on environmental best practice and reporting results.
Flood Management, Inclement Weather and Traffic Management Plans existing for the operation to minimise the risks of environmental impacts.
Standard Operating Procedures for the transfer of hazardous materials and restocking of Dangerous Goods existing on site to mitigate the risk of these materials entering the environment.
HGO
HGO operates under and in compliance with a number of operating environmental plans, which cover its environmental impacts and outputs as well as reporting guidelines / frequencies.
Various Reserve inventories do not have current DMP / DWER licenses – though there are no abnormal conditions / factors associated with these assets which the competent person sees as potentially threatening to the particular project.
The operation is frequently inspected by the regulatory authorities of DMP and DWER with continual feedback on environmental best practice and reporting results.
Flood Management, Inclement Weather and Traffic Management Plans existing for the operation to minimise the risks of environmental impacts.
Standard Operating Procedures for the transfer of hazardous materials and restocking of Dangerous Goods existing on site to mitigate the risk of these materials entering the environment.
MGO
MGO operates under and in compliance with a number of operating environmental plans, which cover its environmental impacts and outputs as well as reporting guidelines / frequencies.
Various Reserve inventories do not have current DMP / DWER licenses – though there are no abnormal conditions / factors associated with these assets which the competent person sees as potentially threatening to the particular project.
The operation is frequently inspected by the regulatory authorities of DMP and DWER with continual feedback on environmental best practice and reporting results.
Flood Management, Inclement Weather and Traffic Management Plans existing for the operation to minimise the risks of environmental impacts.
Standard Operating Procedures for the transfer of hazardous materials and restocking of Dangerous Goods existing on site to mitigate the risk of these materials entering the environment.
Infrastructure
The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided or accessed.
BHO
BHO is currently active and have substantial infrastructure in place including a large amount of underground infrastructure, major electrical, ventilation and pumping networks.
Airstrip facilities are available at nearby Kambalda.
CGO
CGO has an operating plant and tailings storage facility, along with extensive mechanical and electrical maintenance facilities.
The site also includes existing administration buildings as well as a 250-man accommodation camp facility.
Power is provided by onsite diesel generation, with potable water sourced from nearby bore water (post treatment).
Communications and roadways are existing.
Airstrip facilities are available at the local Cue airstrip (20km).
FGO
FGO has an operating plant and tailings storage facility, along with extensive mechanical and electrical maintenance facilities.
The site also includes existing administration buildings as well as a 200-man accommodation camp facility.
Power is provided by onsite diesel generation, with potable water sourced from nearby bore water (post treatment).
Communications and roadways are existing.
Airstrip facilities are available on site.
HGO
HGO is currently active and have substantial infrastructure in place including a large amount of underground infrastructure, major electrical, ventilation and pumping networks. The main Higginsville location has an operating CIL plant a fully equipped laboratory, extensive workshop, administration facilities and a 350-person single person quarters nearby.
Infrastructure required for open production is also in place.
Airstrip facilities are available at nearby Kambalda.
MGO
MGO has an operating plant and tailings storage facility, along with extensive mechanical and electrical maintenance facilities.
The site also includes existing administration buildings as well as a 300-man accommodation camp facility.
Power is provided by onsite diesel generation, with potable water sourced from nearby bore water (post treatment).
Communications and roadways are existing.
Airstrip facilities are available at the local Meekatharra airstrip (15km).
Costs
The derivation of, or assumptions made, regarding projected capital costs in the study.
The methodology used to estimate operating costs.
Allowances made for the content of deleterious elements.
The source of exchange rates used in the study.
Derivation of transportation charges.
The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.
The allowances made for royalties payable, both Government and private.
BHO
Processing costs are based on actual cost profiles with variations existing between the various oxide states.
Site G&A and portioned corporate overheads are included within the analysis (based upon previous Budget years actuals).
Mining costs are derived primarily from the current contractor and owner-operator cost profiles in the underground environment.
For the underground environment, if not site-specific mining rates are available, an appropriately selected operating mine is used for the basis of cost profiling.
Geology and Grade Control costs are incorporated in the overall cost profile and are based upon previously reconciled Budgetary forecasts.
Haulage costs used are either contractual rates or if in the case where a mine has none, a generic cost per tkm unit rate is utilised.
Both state government and private royalties are incorporated into costings as appropriate.
CGO
Processing costs are based on actual cost profiles with variations existing between the various oxide states.
Site G&A and portioned corporate overheads are included within the analysis (based upon previous Budget years actuals).
Mining costs are derived primarily from the current contractor and owner-operator cost profiles in the underground environment.
For open pits where no current mining cost profiles are available for a forecasted Reserve, a historically 'validated' pit cost matrix is used – with variation allowances for density, fuel price and gear size.
For the underground environment, if not site-specific mining rates are available, an appropriately selected operating mine is used for the basis of cost profiling.
Geology and Grade Control costs are incorporated in the overall cost profile and are based upon previously reconciled Budgetary forecasts.
Haulage costs used are either contractual rates or if in the case where a mine has none, a generic cost per tkm unit rate is utilised.
Both state government and private royalties are incorporated into costings as appropriate.
FGO
Processing costs are based on actual cost profiles with variations existing between the various oxide states.
Site G&A and portioned corporate overheads are included within the analysis (based upon previous Budget years actuals).
Mining costs are derived primarily from the current contractor and owner-operator cost profiles in the underground environment.
For open pits where no current mining cost profiles are available for a forecasted Reserve, a historically 'validated' pit cost matrix is used – with variation allowances for density, fuel price and gear size.
For the underground environment, if not site-specific mining rates are available, an appropriately selected operating mine is used for the basis of cost profiling.
Geology and Grade Control costs are incorporated in the overall cost profile and are based upon previously reconciled Budgetary forecasts.
Haulage costs used are either contractual rates or if in the case where a mine has none, a generic cost per tkm unit rate is utilised.
Both state government and private royalties are incorporated into costings as appropriate.
HGO
Processing costs are based on actual cost profiles with variations existing between the various oxide states.
Site G&A and portioned corporate overheads are included within the analysis (based upon previous Budget years actuals).
Mining costs are derived primarily from the current contractor and owner-operator cost profiles in the underground environment.
For open pits where no current mining cost profiles are available for a forecasted Reserve, a historically 'validated' pit cost matrix is used – with variation allowances for density, fuel price and gear size.
For the underground environment, if not site-specific mining rates are available, an appropriately selected operating mine is used for the basis of cost profiling.
Geology and Grade Control costs are incorporated in the overall cost profile and are based upon previously reconciled Budgetary forecasts.
Haulage costs used are either contractual rates or if in the case where a mine has none, a generic cost per tkm unit rate is utilised.
Both state government and private royalties are incorporated into costings as appropriate.
MGO
Processing costs are based on actual cost profiles with variations existing between the various oxide states.
Site G&A and portioned corporate overheads are included within the analysis (based upon previous Budget years actuals).
Mining costs are derived primarily from the current contractor and owner-operator cost profiles in the underground environment.
For open pits where no current mining cost profiles are available for a forecasted Reserve, a historically 'validated' pit cost matrix is used – with variation allowances for density, fuel price and gear size.
For the underground environment, if not site-specific mining rates are available, an appropriately selected operating mine is used for the basis of cost profiling.
Geology and Grade Control costs are incorporated in the overall cost profile and are based upon previously reconciled Budgetary forecasts.
Haulage costs used are either contractual rates or if in the case where a mine has none, a generic cost per tkm unit rate is utilised.
Both state government and private royalties are incorporated into costings as appropriate.
Revenue factors
The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.
The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.
Mine Revenue and royalties are calculated using an input price of $5,500/oz. COGs and open pit optimisations are based on the long-term forecast of A$4,800/oz.
No allowance is made for silver by-products.
Market assessment
The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.
A customer and competitor analysis along with the identification of likely market windows for the product.
Price and volume forecasts and the basis for these forecasts.
For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.
Detailed economic studies of the gold market and future price estimates are considered by Westgold and applied in the estimation of revenue, cut-off grade analysis and future mine planning decisions.
There remains strong demand and no apparent risk to the long-term demand for the gold.
Economic
The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.
NPV ranges and sensitivity to variations in the significant assumptions and inputs.
Each separate mine (open pit, underground or stockpile) has been assessed on a standard operating cash generating model. Capital costs have been included thereafter to determine an economic outcome.
Subsequently each Operating centre (MGO, CGO and FGP) has had a Discounted Cash Flow model constructed to further demonstrate the Reserve has a positive economic outcome.
A discount rate of 8% is allied in DCF modelling.
No escalation of costs and gold price is included.
Sensitivity analysis of key financial and physical parameters is applied to future development projects.
Social
The status of agreements with key stakeholders and matters leading to social license to operate.
BHO
BHO is fully permitted and a major contributor to the local and regional economy. It has no external pressures that impact its operation or which could potentially jeopardise its continuous operation.
CGO
CGO is fully permitted and a major contributor to the local and regional economy. It has no external pressures that impact its operation or which could potentially jeopardise its continuous operation.
As new open pits or underground operations develop the site will require separate environmental approvals from the different regulating bodies.
Where required, the operation has a Native Title and Pastoral Agreement.
FGO
FGO is fully permitted and a major contributor to the local and regional economy. It has no external pressures that impact its operation or which could potentially jeopardise its continuous operation.
As new open pits or underground operations develop the site will require separate environmental approvals from the different regulating bodies.
Where required, the operation has a Native Title and Pastoral Agreement.
HGO
HGO is fully permitted and a major contributor to the local and regional economy. It has no external pressures that impact its operation or which could potentially jeopardise its continuous operation.
•As new open pits or underground operations develop the site will require separate environmental approvals from the different regulating bodies.
MGO
MGO is fully permitted and a major contributor to the local and regional economy. It has no external pressures that impact its operation or which could potentially jeopardise its continuous operation.
As new open pits or underground operations develop the site will require separate environmental approvals from the different regulating bodies.
Where required, the operation has a Native Title and Pastoral Agreement.
Other
To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:
Any identified material naturally occurring risks.
The status of material legal agreements and marketing arrangements.
The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.
BHO is an active mining project.
CGO is an active mining project.
FGO is an active mining project.
HGO is an active mining project.
MGO is an active mining project.
Classification
The basis for the classification of the Ore Reserves into varying confidence categories.
Whether the result appropriately reflects the Competent Person's view of the deposit.
The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).
The basis for classification of the Mineral Resource into different categories is made in accordance with the recommendations of the JORC Code 2012. Measured Mineral Resources have a high level of confidence and are generally defined in three dimensions with accurately defined or normally mineralised developed exposure. Indicated Mineral Resources have a slightly lower level of confidence but contain substantial drilling and are in most instances capitally developed or well defined from a mining perspective. Inferred Mineral Resources always contain significant geological evidence of existence and are drilled, but not to the same density. There is no classification of any Mineral Resources that is not drilled or defined by substantial physical sampling works.
Some Measured Resources have been classified as Proven and some are defined as Probable Ore Reserves based on internal judgement of the mining, geotechnical, processing and or cost profile estimates.
No Indicated Mineral Resources material has been converted into Proven Ore Reserve.
The resultant Ore Reserve classification appropriately reflects the view of the Competent Person.
Audits or reviews
The results of any audits or reviews of Ore Reserve estimates.
Ore Reserves inventories and the use of appropriate modifying factors are reviewed internally on an annual basis.
Additionally, mine design and cost profiles are regularly reviewed by Westgold operational quarterly reviews.
Financial auditing processes, Dataroom reviews for asset sales / purchases and stockbroker analysis regularly 'truth test' the assumptions made on Ore Reserve designs and assumptions.
Discussion of relative accuracy/ confidence
Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.
The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.
Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.
It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.
Whilst it should be acknowledged that all Ore Reserves are based primarily upon an estimate of contained insitu gold (the Mineral Resources Estimate), it is the competent person's view that the consolidated Reserve inventory is highly achievable in entirety.
Given the entire Ore Reserves inventory is within existing operations, with budgetary style cost models and current contractual mining / processing consumable rates, coupled with an extensive historical knowledge / dataset of the Mineral Resources, it is the Competent Person's view that the significant mining modifying factors (COGs, geotechnical parameters and dilution ratio's) applied are achievable and or within the limits of 10% sensitivity analysis.
About Westgold Resources Limited Westgold is a leading, unhedged ASX200 gold producer, committed to unearthing enduring value for all its stakeholders. Westgold’s vision is to become the Australian gold company of choice, sustaining safe, responsible and profitable...
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