WGR Advances Gold Duke with Milling Extension and Pre-Mining Works

Toll Milling Extension Secures Processing Certainty

Western Gold Resources Limited (ASX:WGR) has locked in a six-month extension to its binding toll milling agreement with Wiluna Mining Corporation Limited, stretching processing arrangements through to December 2027. This move ensures that the entire currently defined Stage 1 ore inventory can be processed, underpinning the company's strategy to fully realise value from its flagship Gold Duke Project. The extension also bolsters confidence in the planned Life of Mine (LOM) extensional drilling campaign, which aims to grow the mine's tonnage and ounces beyond initial forecasts.

Pre-Mining Works and Mine Operator Appointment Accelerate Site Readiness

WGR has executed a Letter of Award with SSH Mining Australia Pty Ltd, a subsidiary of SSH Group Ltd (ASX:SSH), to commence critical pre-mining works at Gold Duke. These early activities include clearing, grubbing, haul road delineation, and site establishment, setting the stage for mining mobilisation. SSH Mining has also been appointed as the mine operator, partnering with LGIRS to deliver operational efficiency. Complementing this, a contract with Pennington Scott Pty Ltd and Delta Consultancy & Drilling Services facilitated the drilling and completion of the Bowerbird Production Bore in early April, securing a dedicated water supply essential for mining and dust suppression.

Life of Mine Drilling Program Targets Resource Growth

Capitalising on the favourable gold price environment and a robust cash balance of $4.5 million, WGR plans a 12,000-metre Life of Mine extensional drilling program. The campaign targets strike and downdip extensions of the Emu, Eagle, Joyners Find, and Gold King South deposits, aiming to add ounces beyond the ~43,000 oz Stage 1 plan. This drilling aligns with the December 2025 Mineral Resource Estimate, which reported 277,000 ounces at 1.8 g/t Au within a $7,000/oz RPEEE pit shell. The program is designed to run in parallel with Stage 1 mining activities, reflecting a dual operational approach to extend mine life and enhance grade continuity. The drilling grid and methodology mirror the successful 2025 grade control campaign, supporting realistic mine planning assumptions and operational selectivity. This approach is consistent with WGR’s earlier announcements about resource expansion efforts at Gold Duke 12,000m drilling push and pre-mining contracts awarded.

Infrastructure Access and Logistics Secured

Critical road user agreements have been successfully executed with the Shire of Wiluna and Main Roads WA, enabling ore haulage from Gold Duke to Wiluna Mining Corporation’s processing plant, located just 46 kilometres away. These agreements cover the Sandstone – Wiluna Road and the Goldfields Highway, and include collaboration on maintenance and safety inspections to ensure route reliability. This infrastructure access is a significant logistical milestone that supports the project’s development and operational timeline, building on prior progress securing haulage routes road access agreements.

Financial Position and Operational Spend

WGR closed the quarter with $4.54 million in cash, supported by the drawdown of a $3 million secured loan facility at 15% interest. The company reported $288,967 in exploration and evaluation expenditure and $144,671 in mining development costs, primarily focused on Gold Duke. No capital raising occurred during the period, though 2.39 million share options were exercised at prices between $0.08 and $0.15 per share. Payments to related parties, including directors’ remuneration, amounted to $134,398. These figures reflect a disciplined approach to funding project advancement while maintaining operational momentum.

Sweden Projects Under Review Amid Strategic Focus Shift

While the Gold Duke Project commands the company’s primary attention, WGR continues to hold a portfolio of exploration tenements in Sweden, including rare earth element and base metal prospects. Interest from an external party has been received under a non-disclosure agreement regarding these assets, and the company is actively exploring divestment options to sharpen its focus on gold in Western Australia. This strategic pivot underscores WGR’s commitment to advancing its core Australian assets.