Westar Advances Gidgee North Exploration as Mindoolah Acquisition Falls Through
Westar Resources wraps up low-grade drilling at Mindoolah, opts out of acquisition, while progressing exploration at Gidgee North with promising geophysical targets and pending assay results.
- Mindoolah RC drilling completed with low gold grades
- Option to acquire Mindoolah Project not exercised
- Two RC holes drilled at Gidgee North targeting magnetic and gravity anomalies
- Pending assay results from Gidgee North’s Mageye Prospect
- Board changes with CEO and two directors stepping down; two new non-executive directors appointed
- Cash reserves stand at $1.56 million
Mindoolah Drilling Results and Project Decision
Westar Resources Limited (ASX: WSR) has concluded its reverse circulation (RC) drilling program at the Mindoolah Mining Centre in Western Australia’s Murchison region. The campaign, comprising 10 holes totaling 1,166 metres, targeted gold mineralisation beneath historic open pits and quartz reefs. While some intersections returned gold values, including a standout 1 metre at 6.1 g/t Au from 10 metres, overall grades were deemed insufficient to justify further investment.
Consequently, Westar elected not to exercise its option to acquire the Mindoolah Project, returning the asset to the vendor in good standing. This decision reflects a pragmatic approach by the company’s technical team and board, prioritising capital allocation toward higher-potential opportunities.
Exploration Progress at Gidgee North
In contrast, exploration at the Gidgee North Project, also in the Murchison region, continues to gather momentum. During the quarter, Westar drilled two RC holes (439 metres combined) targeting a distinctive ‘bullseye’ geophysical anomaly identified through historic aeromagnetic and gravity data. This anomaly correlates with elevated levels of bismuth, molybdenum, tungsten, and tellurium, elements often associated with complex mineral systems.
Assay results from these holes were pending at quarter-end, but the company expressed optimism about the potential for orogenic gold deposits within the broader Gidgee North tenure. Westar is compiling all historical and recent data to refine its geological models and guide future drilling campaigns.
Joint Venture and Corporate Developments
Westar maintains a 25% free-carried interest in the Mt Finnerty Project, a joint venture with gold producer Ramelius Resources Ltd (ASX: RMS). Ramelius continues to progress exploration activities, pending completion of heritage surveys with local native title groups. This JV provides Westar exposure to a well-established gold district with ongoing high-grade intercepts reported by Ramelius.
On the corporate front, the company underwent significant board changes during the quarter. CEO Jason Boladeras, Non-Executive Chairman Simon Eley, and Non-Executive Director Chris Newman stepped down, replaced by new Non-Executive Directors Eddie King and Ashley Hood. These changes signal a potential strategic refresh as Westar evaluates new project acquisitions.
Financial Position and Outlook
Westar ended the quarter with $1.56 million in cash reserves, providing a solid foundation to fund ongoing exploration and project assessments. The company continues to actively review advanced gold and copper projects in Western Australia and internationally, although no new acquisitions were finalized during the quarter.
With assay results from Gidgee North imminent and a refreshed board in place, Westar appears poised to recalibrate its exploration focus and capital deployment strategy in the near term.
Bottom Line?
Westar’s pivot from Mindoolah to Gidgee North and board renewal sets the stage for a critical exploration phase ahead.
Questions in the middle?
- What do the pending assay results from Gidgee North’s Mageye Prospect reveal about its mineral potential?
- How will the new board members influence Westar’s strategic direction and project acquisition plans?
- What timeline and funding will Ramelius Resources allocate to advancing the Mt Finnerty JV?