Australian gold mining group Westgold Resources [ASX:WGX] wished to update its investors on its drilling program at the high-grade Great Fingall gold deposit in WA.
In sharing its positive news this morning, the gold miner had an increase applied to its stock value and was up by more than 3% on Tuesday lunchtime — trading for around $1.57 each share.
WGX is leading in its sector by almost 7% and nearly 8% above the market’s annual trajectory:
Source: TradingView
Westgold updates on ‘outstanding’ assays at Great Fingall
Earlier on Tuesday, the gold mining group provided its most recent update for the drilling program at Great Fingall — the gold deposit in WA that boasts a fair deposit of high-grade resources. It’s hoped to increase the gold miner’s prospects in the region.
The group said that there have now been three drill holes included in support of its recently revised geological model. The deposit is interpreted as splitting into two parallel reefs — named Upper and Lower Fingall — and are found below historical works.
It was in assaying mineralisation here that the group came up with the following results:
- 00m at 5.66g/t Au from 869.00m in hole GFD011_23W1 (Upper Fingall Reef)
- 20m at 5.46g/t Au from 912.80m in hole GFD011_23W1 (Lower Fingall Reef)
- 30m at 46.72g/t Au from 849.70m in hole GFD019_23W1 (Upper Fingall Reef)
- 50m at 16.68g/t Au from 925.00m in hole GFD019_23W1 (Lower Fingall Reef)
- 06m at 3.02g/t Au from 948.94m in hole GFD020_23W1 (Upper Fingall Reef)
- 50m at 2.58g/t Au from 997.00m in hole GFD020_23W1 (Lower Fingall Reef)
These results were classed as highly favourable, so much so that the group now anticipates a new Mineral Resource Estimation (MRE) which will be based on the revised geological model and the latest drilling results.
However, investors will have to wait a little longer to hear more as this new MRE is not expected to be announced until early June 2023.
The group did add, however, that pending a positive Final Investment Decision (FID), Westgold could go ahead and restart the existing shallow decline by Q1 FY24.
Westgold’s Managing Director, Wayne Bramwell commented:
‘Deep drilling has successfully returned high-grade intercepts and defined twin parallel reefs, rather than the previously interpreted single reef. This new interpretation significantly de-risks development plans and has the potential to materially increase Mineral Resources and improve potential mine economics above prior estimates.
‘Our confidence continues to grow in this near-term development target and pending a new Mineral Resource Estimate and a Final Investment Decision, we will be ready to recommence decline development in Q1, FY24.
‘Great Fingall is an icon in Western Australia that has historically produced more than 1.2Moz of gold. To see it restart under Westgold ownership and become a long-term sustainable and profitable operation is the objective. Most importantly, it would also show the quality of the organic growth opportunities within our portfolio that drilling can unlock.’
The region in which Westgold is focused has been dubbed by the company as ‘iconic’, particularly for its high-grade underground mine that consists of the Golden Crown (GC) and Great Fingall (GF) mines.
These mines are separated by 700 metres along the Great Fingall Dolerite and have hosted significant historic mine production since the late 1800s.
Source: WG
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