Western Gold Resources has secured board approval to mine its wholly owned Gold Duke Project, backed by a $6.75 million oversubscribed placement and a robust updated resource estimate of 277,000 ounces of gold. Mobilisation is set for early 2026 as the company advances towards production.
- Board approves mining at 100% owned Gold Duke Project
- Oversubscribed $6.75 million capital raising completed
- Updated Mineral Resource Estimate totals 4.8 Mt at 1.8 g/t Au for 277,000 ounces
- Grade control drilling validates geological model and mineralisation continuity
- Scoping Study projects 42.8koz gold production with $109.7M undiscounted cash surplus
Board Approval and Funding Milestone
Western Gold Resources Limited (ASX – WGR) has reached a pivotal milestone with its board formally approving the commencement of mining at the 100% owned Gold Duke Project, located in Western Australia’s Joyners Find Greenstone Belt. This decision follows a heavily oversubscribed capital raising of $6.75 million, supported by both domestic and international institutional investors, alongside a deferred payment facility from preferred mining contractor SSH Mining. Together, these funding sources fully finance the project through to production, with mobilisation and site establishment planned for the first quarter of 2026.
Robust Updated Mineral Resource Estimate
The company released an updated Mineral Resource Estimate (MRE) for the Gold Duke Project, reporting a total of 4.8 million tonnes at an average grade of 1.8 grams per tonne gold, equating to 277,000 ounces. Notably, the Measured and Indicated categories alone account for 2.0 million tonnes at 1.6 g/t for 104,000 ounces, providing a solid foundation for potential Ore Reserve conversion and early production scheduling. This update incorporates extensive close-spaced drilling and refined geological modelling, enhancing confidence in the resource’s continuity and economic viability.
Grade Control Drilling Validates Project Potential
Grade control and infill drilling totalling over 35,000 metres have confirmed the accuracy of the geological model across key deposits including Eagle South, Gold King, and Golden Monarch. High-grade, continuous intersections closely match the grades used in the recent Scoping Study, reinforcing the reliability of the mineralisation continuity along strike and at depth. For example, intercepts such as 10 metres at 3.78 g/t gold at Eagle South and 5 metres at 11.67 g/t at Golden Monarch Pit 5 highlight the project’s promising grade tenor.
Scoping Study Highlights Strong Economics
The updated Scoping Study outlines a production target of approximately 42,800 ounces of gold from 686,000 tonnes at 2.1 g/t. At a gold price of A$5,800 per ounce, the project is estimated to generate an undiscounted cash surplus of $109.7 million, representing a 64% increase over previous estimates. While these figures are illustrative and not a formal production forecast, they underscore the strong value potential of the Gold Duke Project as it transitions from exploration to development.
Strategic Outlook and Next Steps
Looking ahead, Western Gold Resources plans to accelerate pre-mining activities, including finalising binding mining agreements and updating mine designs and life-of-mine plans based on the new resource data. The company is also reviewing nearby brownfields prospects within approved disturbance areas to potentially extend mine life and enhance production flexibility. With cash on hand of $5.43 million at quarter-end and a clear funding pathway, WGR is well positioned to advance towards first production in 2026.
Bottom Line?
With funding secured and resource confidence high, WGR is poised to shift gears from explorer to producer, but market and operational risks remain to be navigated.
Questions in the middle?
- How will WGR convert Measured and Indicated Resources into Ore Reserves and what timeline is expected?
- What are the key risks that could impact the planned mobilisation and production schedule in 2026?
- How might ongoing exploration of brownfields prospects influence the project’s life and economics?