Can Western Gold Resources De-risk Operations Before Mining Starts?
Western Gold Resources has kicked off a major 35,300-metre grade control and infill drilling program at its Gold Duke Project, aiming to de-risk operations and support a mining start in late Q4 2025.
- 35,300 metres of grade control and infill drilling across four Stage 1 pits
- Drilling to be completed within eight weeks using advanced Epiroc Smartroc D65 rigs
- Pre-production program designed to eliminate grade control needs during mining
- Updated scoping study underway amid sustained gold prices above A$5,000/oz
- Miscellaneous licence application submitted to secure haulage route options
A Strategic Step Toward Production
Western Gold Resources (ASX – WGR) has commenced a significant pre-production drilling campaign at its Gold Duke Project, marking a pivotal milestone as the company accelerates toward first mining scheduled for late Q4 2025. The 35,300-metre grade control and infill drilling program, set to run across four key Stage 1 pits; Emu, Eagle, Golden Monarch, and Gold King; will provide critical data to refine mine planning and operational flexibility.
By undertaking this extensive drilling upfront, Western Gold Resources aims to de-risk its operations and avoid the need for grade control drilling during production, a move that promises to streamline mining activities and reduce capital intensity. The campaign is being executed by VM Drilling Pty Ltd using Epiroc Smartroc D65 rigs, which offer high penetration rates and approximately 30% lower fuel consumption, underscoring the company’s commitment to efficient and cost-effective operations.
Optimising Mine Scheduling and Financial Forecasting
The drilling program’s design allows for dynamic mine scheduling by delivering detailed visibility of mineralised zones ahead of production. Samples will be sent to assay laboratories every 7 to 8 days, enabling timely updates to resource models and mine designs. This approach is expected to improve the accuracy of financial forecasts and support Western Gold Resources’ low-cost, high-efficiency production strategy.
Managing Director Cullum Winn highlighted the importance of this initiative, stating that completing grade control and infill drilling now significantly strengthens mine scheduling flexibility and positions the company for a smooth transition to mining operations.
Favourable Market Conditions and Strategic Licence Applications
The company is also revisiting its Updated Scoping Study in light of gold prices that have remained above A$5,000 per ounce since April 2025. This sustained price environment could enhance the project’s economics, with the updated study expected within the next four weeks. Additionally, Western Gold Resources has submitted a Miscellaneous Licence application to secure optional haulage routes to the Wiluna Processing Plant, ensuring logistical flexibility and operational resilience.
These developments collectively underscore Western Gold Resources’ methodical approach to advancing the Gold Duke Project, balancing technical rigour with strategic foresight as it moves closer to production.
Looking Ahead
As drilling progresses over the coming weeks, investors and market watchers will be keenly awaiting assay results and the updated scoping study, both of which will provide clearer insights into the project’s potential and financial outlook. The company’s proactive measures to de-risk and optimise operations set a solid foundation for its ambitious production timeline.
Bottom Line?
Western Gold Resources’ upfront drilling campaign lays the groundwork for a streamlined, cost-efficient mining start in late 2025.
Questions in the middle?
- What will the upcoming assay results reveal about ore grade and distribution?
- How might the updated scoping study adjust project economics amid high gold prices?
- Will the miscellaneous licence application secure the most efficient haulage route?
