WGR’s Gold Duke Project Sees 47% Cash Surplus Boost and Strong Drilling Results
Western Gold Resources reports promising early drilling results and a significant upgrade to its Gold Duke Project economics, supported by a $6.75 million capital raise to fund production.
- Completed 35,300m grade control and infill drilling with strong early assay results
- Updated scoping study shows 47% increase in cash surplus to A$56.1 million
- Production target increased by 53% in tonnage and 26% in gold ounces
- Raised $3 million via secured loan and $6.75 million through institutional placement
- Fully funded through to production with near-term decision to mine planned
Strong Drilling Results Confirm Gold Continuity
Western Gold Resources Limited (ASX – WGR) has made significant strides at its 100% owned Gold Duke Project during the September 2025 quarter. The company completed a 35,300-metre grade control and infill drilling program across the Eagle and Emu deposits, with early results from the first 50 holes confirming the continuity of high-grade gold mineralisation both along strike and at depth. Notable intersections include 9 metres at 4.98 grams per tonne gold at Eagle and 5 metres at 5.16 grams per tonne at Emu, underscoring the project's robust resource potential.
Revised Scoping Study Enhances Project Economics
The updated scoping study delivers a compelling uplift in the Gold Duke Project’s economic outlook. The production target now stands at 686,000 tonnes at 2.1 grams per tonne gold, equating to 42,800 ounces of gold recovered. This represents a 53% increase in tonnage and a 26% increase in gold ounces compared to previous estimates. Financially, the project’s undiscounted cash surplus is estimated at A$56.1 million at a gold price of A$4,500 per ounce, a 47% improvement from the prior $38.1 million estimate. The study also highlights a relatively short 14-month mine life, pointing to near-term production potential and rapid payback.
Capital Raising Fully Funds Path to Production
To support ongoing development, WGR secured $3 million through a 12-month secured non-converting loan facility in August, specifically to fund the drilling program. Following the quarter’s end, the company raised a further $6.75 million via a two-tranche placement at $0.12 per share, strongly backed by both domestic and international institutional investors. This capital injection leaves WGR fully funded through to production, a critical milestone for advancing the project’s next phases.
Looking Ahead – Assays, Modelling, and Decision to Mine
With drilling now complete, WGR plans to finalize all outstanding assay results and undertake resource modelling in the coming quarter. The company is also preparing for a formal Decision to Mine process, which, if positive, will trigger pre-mining planning and mobilisation activities, including binding mining agreements. Cash on hand stood at $2.78 million at quarter’s end, providing a solid financial base for these next steps.
Broader Portfolio and Corporate Updates
While the focus remains on Gold Duke, WGR continues to review its Sandstone tenements and exploration permits in Sweden, where work is ongoing. The company also issued 17 million unlisted performance rights to directors earlier in the year, aligning management incentives with project success. Operationally, exploration expenditure was $198,000 for the quarter, with no mining development or production activities yet undertaken.
Bottom Line?
WGR’s enhanced project metrics and solid funding position set the stage for a pivotal decision on mining commencement in the near term.
Questions in the middle?
- Will further assay results confirm and extend the high-grade mineralisation seen in early drilling?
- How will the company manage the transition from inferred to indicated resources to increase confidence in the production target?
- What are the potential risks or delays associated with the upcoming Decision to Mine and shareholder approval for the second placement tranche?
