Western Gold Resources has secured key approvals, funding, and contracts to fast-track its Gold Duke Project in Western Australia towards near-term gold production.
- Completed 35,300m grade control and infill drilling
- Binding toll milling agreement with nearby Wiluna Mining Corporation
- Full mining approvals for Stage 1 open pits secured
- Preferred mining contractor agreement with SSH Group finalized
- Project fully funded with $6.75 million capital raise and 3-month payback period
Project Momentum Builds
Western Gold Resources (ASX – WGR) is advancing rapidly towards production at its Gold Duke Project, located in the heart of Western Australia's prolific Goldfields region. The company has completed a critical 35,300-metre grade control and infill drilling program focused on the four Stage 1 pits; Eagle, Emu, Gold King, and Golden Monarch; providing a solid foundation for mine scheduling and operational planning.
With all necessary mining approvals in place for these pits, Western Gold Resources is positioned among Australia's leading junior gold developers. The project benefits from a binding toll milling agreement with Wiluna Mining Corporation, whose fully operational processing plant lies just 46 kilometres from the site, enabling a streamlined path to near-term gold production.
Financial Strength and Operational Readiness
The company’s recent $6.75 million capital raise has fully funded the project through to production, underpinning a low capital requirement of approximately $2.6 to $2.8 million for pre-mining and setup. The scoping study projects a production target of 42,800 ounces of gold from 686,000 tonnes at an average grade of 2.1 grams per tonne, with an estimated payback period of just three months; an attractive metric in the current gold price environment.
Western Gold Resources has also selected SSH Group Limited as its preferred mining contractor. SSH Group will provide a comprehensive turnkey solution covering site establishment, mining, and ore haulage, supported by a deferred payment facility designed to ease cash flow during the initial operational phase. The final investment decision by the board remains the last internal hurdle before full execution of the mining services agreement.
Exploration Upside and Future Growth
Beyond Stage 1, the company is actively reviewing several brownfields prospects within the Gold Duke tenement package, including Joyners Find, Bottom Camp, and the Emu/Eagle Saddle. These targets lie within approved disturbance areas and offer potential to extend the life of mine and production profile. Historical data and recent drilling suggest significant upside, with some deposits remaining open along strike and at depth.
Western Gold Resources’ strategy to fast-track production while simultaneously exploring expansion opportunities reflects a balanced approach to value creation. The company’s proximity to existing infrastructure and the toll milling arrangement further de-risks the project timeline, positioning it well to capitalise on record gold prices.
Bottom Line?
With approvals, funding, and contracts aligned, Western Gold Resources is poised to deliver near-term gold production while exploring growth avenues.
Questions in the middle?
- When will the board make the final investment decision to commence mining?
- How will pending assay results from the recent drilling impact resource estimates and mine planning?
- What are the operational risks associated with reliance on third-party toll milling and contractor performance?