Operational Risks Loom as New Murchison Gold Prepares for Ore Sales
New Murchison Gold Limited reports strong operational progress at its Crown Prince Gold Mine, with mining underway and first ore parcel sales to Westgold’s Bluebird plant expected in September 2025.
- Mining commenced at Crown Prince Gold Mine in July 2025
- Ore stockpiling and site infrastructure completed ahead of crushing
- First ore parcel sales to Westgold’s Bluebird Gold Processing Plant expected September
- Targeting 40,000 tonnes of high-grade ore per month at +4g/t gold for 24 months
- Contracts with Ozland Mining and MLG Oz Limited supporting operations
Operational Momentum Builds at Crown Prince
New Murchison Gold Limited (ASX – NMG) has delivered a robust update on its Crown Prince Gold Mine near Meekatharra, Western Australia, marking a significant step towards becoming a gold producer. Mining activities commenced in early July 2025, and the company has rapidly established key site infrastructure including mine offices, workshops, and crucial crushing and run-of-mine (ROM) pads. This swift progress sets the stage for the company’s first ore sales, anticipated to begin in September.
Stockpiling and Crushing Preparations Underway
High-grade ore is currently being stockpiled on the ROM pad, with crushing and sampling operations scheduled to commence in the latter half of August. These preparatory steps are critical to ensuring the quality and quantity of ore parcels that will be delivered to Westgold Resources Limited’s Bluebird Gold Processing Plant (BBGO). The company expects to truck approximately 40,000 tonnes of crushed ore per month at an average grade exceeding 4 grams per tonne of gold, sustaining this output for at least two years.
Strong Contractor Support and Operational Execution
Operational execution has been bolstered by key contractors, notably Ozland Mining Services Pty Ltd, which has mobilised a substantial fleet of mining equipment including excavators, dump trucks, drill rigs, and support machinery. Meanwhile, MLG Oz Limited is delivering on the crushing and screening contract, providing a mobile crushing plant integrated with automated sampling systems. This collaboration is pivotal to meeting the company’s timeline for first ore crushing and subsequent sales.
Outlook and Strategic Implications
New Murchison Gold’s CEO, Alex Passmore, expressed confidence in the operational ramp-up, highlighting that broken and blasted ore stocks are ahead of plan, positioning the company well to meet its production targets. The existing Ore Purchase Agreement with Westgold underpins expected cash flow generation, with potential to expand the agreement as mine planning evolves. Importantly, the company confirmed no material changes to prior production targets or ore reserves, reinforcing the credibility of its feasibility study and resource estimates.
Context within the Murchison Goldfield
The Crown Prince deposit is part of New Murchison Gold’s broader Garden Gully Gold Project, a substantial tenure package in the prolific Murchison goldfield. The region’s geology, characterised by major north-trending structures and contact zones between metamorphosed rock types, continues to underpin exploration and development potential. The company’s progress at Crown Prince thus represents a critical milestone in unlocking value from this significant asset base.
Bottom Line?
As New Murchison Gold moves from development to production, the market will watch closely for delivery on its ore sales and operational targets.
Questions in the middle?
- Will New Murchison Gold expand its ore delivery agreement beyond the initial 24 months?
- How will contractor performance impact ongoing production ramp-up and costs?
- What are the implications of ore grade variability on cash flow and profitability?
