Gold Duke Project Fully Funded but Production Timing Faces Operational Risks

Strong Early Drilling Results at Gold Duke

Western Gold Resources Limited (ASX, WGR) has announced encouraging early results from its recently completed 35,300-metre grade control and infill drilling program at the 100% owned Gold Duke Project, located 35 kilometres southwest of Wiluna in Western Australia. Initial assays from the first 50 drill holes confirm the continuity of high-grade gold mineralisation within the Eagle and Emu deposits, two of the project's key prospects.

Among the notable intercepts reported are 9 metres at 4.98 grams per tonne (g/t) gold from 10 metres depth at Eagle, and 5 metres at 5.16 g/t gold from 31 metres at Emu. These results reinforce the geological model underpinning the project and support the recently updated scoping study and resource estimates.

Implications for Resource Expansion and Mine Planning

Drilling has confirmed that gold mineralisation at Emu extends beyond and below the current scoping study pit design, suggesting potential for additional resources and larger open pits. This will be further evaluated as assay results from the remaining 1,057 drill holes are progressively received and incorporated into an updated resource model.

The comprehensive drilling program was designed to provide detailed grade control data to support mine planning and ensure a high-confidence, low-risk mine plan ahead of the Decision to Mine process. The rapid turnaround of assay results will enable Western Gold Resources to refine its block models and optimise mine scheduling, aligning with its strategy for a capital-light, efficient operation.

Financial Strength and Path to Production

The Gold Duke Project boasts robust financial metrics, with the updated scoping study indicating an undiscounted pre-tax cash surplus of A$56.1 million at a gold price of A$4,500 per ounce, rising to A$97.3 million at A$5,500 per ounce. The project’s modest pre-mining capital expenditure of approximately A$2.6–2.8 million and a short 14-month mine life imply a rapid payback period of around three months.

Western Gold Resources recently secured full funding through to production, following a successful $6.75 million capital raising led by GTT Ventures and Taurus Capital, complemented by a deferred payment facility with preferred mining contractor SSH Mining, a subsidiary of SSH Group Ltd (ASX, SSH). This financial backing positions the company well to commence first ore mining in late Q4 2025 and capitalise on the current strength in the Australian gold price.

Looking Ahead

With drilling complete and assays flowing, Western Gold Resources is poised to update its resource model and advance confidently toward production. The company plans to integrate the new data into detailed mine scheduling and optimisation, supporting a fully de-risked mine plan that aligns with its low-cost operational strategy. Investors and stakeholders can expect regular updates as the project progresses through the final stages before mining commences.