Westgold Boosts Gold Ore Reserves 41% at $27/Oz Addition Cost

Sharp Reserve Growth Defies Mining Depletion

Westgold Resources Limited (ASX:WGX) has delivered a robust update to its Mineral Resource and Ore Reserve statement as at 30 June 2026, reporting a 41% surge in Ore Reserves to 4.1 million ounces of gold. This leap comes alongside a 15% improvement in reserve grade to 2.22 grams per tonne (g/t), marking the third consecutive year of reserve growth despite ongoing mining depletion and the divestment of non-core assets.

Remarkably, this reserve expansion was achieved organically at a reserve addition cost of just $27 per ounce, a figure that stands out as highly competitive in the gold mining sector. Westgold’s Managing Director Wayne Bramwell emphasised the quality of this growth, noting that it was not driven by adding lower-grade ounces but by converting higher-confidence, higher-grade Mineral Resources into Reserves.

Resource Base Strengthened Post Divestments

The company’s total Mineral Resource Estimate climbed 8% to 14.4 million ounces at a grade of 2.30 g/t, after adjusting for the sale of 3 million ounces of non-core assets including Peak Hill, Reedy’s, Comet, Chalice, and Mount Henry. This increase was underpinned by strong resource development activities, with 1.1 million ounces added across the portfolio post-depletion.

Measured and Indicated Resources now comprise 62.6% of the total resource inventory, up from 56.6% in FY25, reflecting improved geological confidence. The Murchison and Southern Goldfields operations remain the core of Westgold’s portfolio, with significant resource additions at Beta Hunt’s Fletcher deposit (+700koz), Bluebird-South Junction (+137koz), and Fortnum’s Starlight deposit (+100koz).

Sustained Investment Fuels Growth and Mine Life

Westgold maintains a circa 10-year Reserve life at current installed processing capacity, signalling a stable production runway. The company currently operates 26 drill rigs across its portfolio, targeting both near-term reserve growth and medium-term organic expansion options.

For FY27, Westgold plans to invest between $50 million and $75 million in exploration and resource development drilling, subject to operational priorities and market conditions. This substantial budget aims to convert the large Mineral Resource base into higher-confidence Ore Reserves, extend mine life, and enhance future production options.

Key Contributions from Maiden Fletcher Ore Reserve

A standout contributor to the Reserve growth was the maiden Ore Reserve declaration at the Fletcher deposit within Beta Hunt, adding 1.1 million ounces year-on-year. This milestone complements ongoing drilling efforts focused on expanding the Fletcher and Mason mineralised systems, which remain open in multiple directions and represent one of the most significant organic growth opportunities within Westgold’s portfolio.

Conversely, some reductions were noted, including a 166,000-ounce decrease at Big Bell following a remnant cave re-evaluation and mining depletions across major mines such as Starlight (-79koz), Bluebird-South Junction (-63koz), Big Bell (-69koz), and Beta Hunt (-103koz).

Technical Rigor and Compliance Underpin Estimates

Westgold’s Mineral Resource and Ore Reserve estimates are grounded in comprehensive geological, mining, metallurgical, and environmental data, adhering to JORC 2012 and NI 43-101 standards. All Ore Reserves are based on Pre-Feasibility or Feasibility studies incorporating practical mining designs, cost modelling, and modifying factors such as dilution and recovery.

The company’s approach includes detailed mine scheduling, geotechnical evaluations, and cut-off grade analyses, with a long-term gold price assumption of $4,800 per ounce used for Reserve determination. Metallurgical recoveries are based on extensive operational experience and test work, with processing via conventional Carbon in Leach (CIL) plants across the portfolio.

Nickel Resources Static, No Ore Reserves Declared

While Westgold’s nickel Mineral Resources at Beta Hunt remain static year-on-year, no nickel Ore Reserves were declared in this update. Nickel mineralisation continues to be well understood geologically and structurally, with mining conducted via underground methods and processing governed by existing tolling agreements.

Balancing Growth with Operational Efficiency

Westgold views ongoing Reserve growth as pivotal to its long-term strategy of enhancing processing hub efficiency and maximising returns from existing infrastructure. As Mineral Resources convert to Reserves and inventories grow, the company anticipates unlocking opportunities to increase mining and processing rates, supporting future mill expansion studies and optimisation of hub-scale operating plans.

This disciplined organic growth strategy, backed by substantial exploration investment and a broad portfolio of assets, positions Westgold to sustain and potentially elevate its production profile in the years ahead.