PERTH, Western
Australia, Dec. 12, 2024 /CNW/ - Westgold
Resources Limited (ASX: WGX) (TSX: WGX) (OTCQX: WGXRF)
(Westgold or the Company) is pleased to advise it has
executed a gold ore purchase agreement (OPA or
Agreement) between its subsidiary, Big Bell Gold Operations
Pty Ltd, and Zeus Mining Pty Ltd, an entity owned by New Murchison
Gold Limited (ASX: NMG).
The OPA remains subject to NMG shareholder approval as Westgold
owns 18.7% of NMG and is therefore deemed a related party under the
ASX Listing Rules. NMG will seek the requisite approval from its
shareholders at a general meeting which will be called in
January/February 2025.
Crown Prince, which is located 33kms by road from Westgold's
1.6-1.8Mtpa Bluebird processing plant, has a current JORC (2012)
Indicated and Inferred Mineral Resource of 2.21Mt @ 3.9g/t Au for
279Koz Au (refer NMG ASX Release of 28
November 2024 for details). Under the terms of the OPA,
Westgold has agreed to purchase between 30,000 and 50,000 tonnes of
gold ore per month from NMG's planned open pit operation at Crown
Prince.
Subject to final regulatory permitting, NMG are targeting the
commencement of open pit mining, and hence the OPA, in mid-2025. It
is envisaged that most of the Crown Prince ore will be processed in
the first two years of the Agreement (being FY26 and FY27), with
potential ongoing terms to be agreed on a rolling,
quarter-by-quarter basis following the two-year initial term.
Westgold Managing Director and CEO Wayne Bramwell commented:
"Westgold is delighted to have achieved a mutually beneficial
outcome for both the New Murchison Gold and Westgold shareholders.
This type of commercial arrangement is capital efficient for both
companies as it leverages the existing processing infrastructure
Westgold has at Meekatharra.
The introduction of softer oxide ore from Crown Prince in FY26
effectively increases throughput at the Westgold's Bluebird plant –
growing production and reducing our cost per ounce. At the same
time, NMG realise value for its shareholders by unlocking a pathway
to production for its Crown Prince deposit without the capital
impost and execution risk of building a processing plant.
As such this is a win-win for all shareholders and Westgold
looks forward to working with New Murchison Gold in the development
of the Crown Prince deposit."
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 plans, strategies and
objectives of management, anticipated production or construction
commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licenses and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the Company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the Company's business and operations in the future. The
Company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the Company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the Company or management or beyond the Company's
control.
Although the Company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the Company. In addition, the Company's
actual results could differ materially from those anticipated in
these forward looking statements as a result of the factors
outlined in the "Risk Factors" section of the Company's continuous
disclosure filings available on SEDAR+ or the ASX, including, in
the Company's current annual report, half year report or most
recent management discussion and analysis.
Accordingly, readers are cautioned not to place undue reliance
on forward looking statements. Forward looking statements in these
materials speak only at the date of issue. Subject to any
continuing obligations under applicable law or any relevant stock
exchange listing rules, in providing this information the Company
does not undertake any obligation to publicly update or revise any
of the forward-looking statements or to advise of any change in
events, conditions or circumstances.
This announcement is authorised for release to the ASX by the
Board.
SOURCE Westgold Resources Limited
