Westgold Resources Limited: The Skillings Review This Week

Highlights:

• 1. High-grade spur and channel lode intersections found within a broad 15.77m @ 47.22g/t Au
• 2. Parallel lodes 5.2m at 3.28g/t Au and 5.3m at 8.24g/t Au intersected in the same hole.
• 3. Sampling throughout development reinforced drill results, with a spot sample from the structure grading 285.86g/t Au being reported.

Wayne Bramwell, managing director of Westgold, said: “These findings show the potential of Paddy’s Flat’s high-grade Fenians-Consols mineralization. Due to the restricted geometry of the lodes, it is challenging to assess these spur and channel lodes prior to mining, but large past production gives us a lot of confidence in this bonanza system.

Due to these outstanding drill results, development in this area is moving quickly, and stopping will start in the upcoming quarter. The overall grade of ore produced should rise as a result of increasing the proportion of Consols ore in the Paddy Flat mine output. It also gives Paddy’s Flat the option to be reconfigured to produce the most profitable ounces.

This represents yet another concrete step in our plan to concentrate on commodities that are lucrative, offset the effects of cost inflation, and increase value for our shareholders.”

Overview of Paddy’s Flat

From underground and open pit mining at Paddy’s Flat, Westgold has so far produced over 519,000 oz.

One of two important underground mines that supply ore to Westgold’s 1.8Mtpa Bluebird processing hub at Meekatharra is the Paddy’s Flat Mine. Within the Murchison tenure, Paddy’s Flat is a significant, historic gold field that has produced more over 1.5Moz, including 832,000oz from numerous historic underground mines and 293,000oz from numerous open pits.

Westgold has invested in Paddy’s Flat in an effort to create a sizable, cutting-edge, long-lasting underground mining hub with a current production rate of 60,000 tonnes per month at 3.1g/t Au since consolidating ownership in this area. There is room to streamline this operation because there are now four declines that access different ore lodes along the roughly 4.5 km stretch of lodes that roughly defines the Paddy’s Flat gold field.

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The Fenians’ Deposit in Consols

Prior to 1984, the Fenian and Consols Mines were the Paddy’s Flat field’s most productive producers, producing 832,000 oz of gold from 1.5Mt of ore at a grade of 16.8g/t. Westgold was successful in December 2021 in gaining access to the ancient workings’ base, which was located about 400 meters below the surface.

Westgold exposed the remaining mineralization on three levels in 2022.

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Future

As virgin levels are further developed and stopping occurs during FY23, the percentage of Consols ore from Paddy’s Flat will gradually rise. Despite having a volumetrically lower size than the nearby Prohibition lodes, Paddy’s Flat ounce output can increase thanks to Consols’ considerable grade endowment without needing more fleet or personnel.

Additionally, the increased endowment provides the flexibility to maintain the planned ounces supplied to Group output while reducing Paddy’s Flat volume output and cost structure. Westgold promises to share more updates on this approach over the coming months as work to optimize mine costs and output profiles continue, and Skillings has an eye to updating its readers accordingly.

Shall be sharing more from the Skillings Commodities Section soon!