Westgold Plans 61% Processing Boost at Meekatharra with $100M Expansion
Westgold Resources outlines a $100 million brownfields expansion to raise Meekatharra processing capacity to 2.9Mtpa, aiming to add 47,000 ounces of annual gold production by FY28 and lift project NPV by up to $1.6 billion at spot gold prices.
- Meekatharra throughput to rise 61% to 2.9Mtpa by FY28
- Additional 47kozpa gold production targeted post-expansion
- Capital cost estimated at $65M–$100M with nine-month payback
- Project NPV increases by ~$1.1B at $5,500/oz gold price
- Brownfields expansion leverages existing infrastructure and pre-purchased equipment
Capital-Efficient Expansion to Unlock Ore Supply
Westgold Resources Limited (ASX:WGX) is moving to lift the processing capacity at its Meekatharra hub by 61%, from 1.8 million tonnes per annum (Mtpa) to 2.9Mtpa, through a $65 million to $100 million brownfields expansion dubbed the Meekatharra Expansion Plan (MXP). The scoping study released on 25 August 2026 lays out a staged, capital-efficient approach that taps into existing infrastructure and long-lead equipment already procured, avoiding the cost and complexity of building a new standalone plant.
The MXP aims to alleviate a growing processing bottleneck as ore supply from the nearby Bluebird–South Junction underground mine and a suite of open pits in the Murchison Open Pit program ramps up. Westgold expects the expansion to add approximately 47,000 ounces per annum (kozpa) to baseline gold production, lifting total output over 10 years by 424,000 ounces to 1.6 million ounces.
Financial Upside and Payback
At a gold price of $5,500 per ounce, the MXP scoping study estimates a project net present value (NPV) uplift of about $1.1 billion, rising to approximately $1.6 billion at spot prices near $6,000 per ounce. The life of mine (LoM) production is forecast between 1.5 and 1.8 million ounces with all-in sustaining costs (AISC) ranging from $1,968 to $2,406 per ounce. Crucially, the capital payback period is projected at a brisk nine months, underscoring the project's potential to rapidly enhance free cash flow.
Westgold’s Managing Director Wayne Bramwell emphasised the strategic significance of Meekatharra as the growth engine for the company’s Murchison operations. "As Bluebird–South Junction expands and the open pit program ramps up, the hub is shifting from mine-constrained to processing-constrained," Bramwell said. "MXP offers a low-risk, capital-efficient solution that leverages existing assets to unlock additional ore supply and improve cash generation."
Technical Configuration and Ore Sources
The expansion involves installing a parallel crushing circuit and a single-stage SAG mill, integrated with Westgold’s existing downstream leach, adsorption, and gold recovery infrastructure. This configuration is designed to maximise utilisation of current plant assets while reducing execution complexity and timeline. Notably, key processing equipment such as the crusher and SAG mill have already been purchased, originally intended for the Higginsville Expansion.
The MXP will process a diversified ore blend including the long-life Bluebird underground mine, which has ramped from 250,000 tonnes per annum in FY22 to an expected 1.2Mtpa by FY27, supplemented by open pit feed from the Murchison Open Pit Program and third-party ore under binding purchase agreements. The production target comprises 31% Ore Reserves, 44% Measured and Indicated Mineral Resources, 14% Inferred Mineral Resources (scheduled post-FY35), and 11% third-party ore, with the initial schedule excluding Inferred Mineral Resources to support the capital payback forecast.
Ongoing Resource Definition and Brownfields Opportunities
Westgold has commenced brownfields resource definition drilling and open pit optimisations near the Meekatharra hub, focusing on targets such as the Polar Star Lode within Bluebird-South Junction, and satellite open pits at Nannine and Paddy’s Flat. These efforts aim to sustain feedstock for the expanded plant and enhance mine flexibility. The Paddy’s Flat area, for example, is being drilled to test extensions of historically productive pits like Halcyon and Democrat, which together produced nearly 80,000 ounces before mining ceased in the 1990s.
Beyond MXP, Westgold sees a pipeline of brownfields growth opportunities across its Murchison portfolio, leveraging historical mining knowledge and existing infrastructure to deliver incremental ore sources within haulage distance of its Cue and Meekatharra hubs.
Risks and Next Steps
The company cautions that the scoping study is preliminary, with capital estimate accuracy at ±35%, and the outcomes contingent on further feasibility work, ore source validation, and funding availability. Westgold had $939 million in cash and liquid assets as of 30 June 2026 and has secured a commitment to increase its syndicated facility to $600 million, providing a solid financial foundation for the project.
Next steps include detailed feasibility studies, front-end engineering design, procurement planning, and execution sequencing, with a potential investment decision targeted for late FY27. The company plans to integrate MXP into its next strategic outlook, with FY28 as the indicative commissioning timeline, subject to study outcomes and approvals.
Bottom Line?
Westgold’s Meekatharra Expansion Plan offers a compelling, low-risk path to scale production and cash flow, but its delivery hinges on validating ore supply and refining capital estimates through feasibility work.
Questions in the middle?
- Will feasibility studies confirm the scoping study’s optimistic capital and payback estimates?
- How will ongoing resource drilling at Paddy’s Flat and other brownfields targets impact the long-term feed profile?
- What funding strategy will Westgold pursue to finance the $100 million expansion amid market uncertainties?
