Westgold Resources Limited (ASX: WGX) announced an exciting update today from its ongoing drilling program at the Bluebird-South Junction complex in Meekatharra, Western Australia. Record intercepts from the Polar Star Lode have generated strong investor interest, leading to a notable increase in the stock price, which rose to $3.205 – a 3.39% gain as of October 4th, 2024 (today). This surge reflects positive sentiment in light of Westgold’s promising resource development results.
Record-Breaking Polar Star Lode Intercept
The latest drilling at the Polar Star Lode yielded a standout intercept, recording 13.71 metres at 18.02 grams per tonne (g/t) of gold. This includes a particularly high-grade segment of 5.85 metres at 36.37 g/t from 567 metres, representing 247 gram-metres in drill hole 24SJDD028. The result outpaces previous significant intersections, solidifying Bluebird-South Junction as a crucial part of Westgold’s mining portfolio.
Westgold’s Managing Director and CEO, Wayne Bramwell, expressed optimism about the drilling results. “The Bluebird-South Junction mine is rapidly becoming the key growth driver of Westgold’s Murchison portfolio. Our team is mining the Bluebird and South Junction Lodes now and with intercepts like 13.71m @ 18.02g/t Au from the Polar Star Lode we see a third mining opportunity rapidly emerging. The system remains open and with further drilling Polar Star has the potential to expand mine outputs towards 1.5Mtpa”.
Key Drilling Results Bolster South Junction Potential
The Bluebird-South Junction mining complex continues to show promising developments. Additional highlights from the latest drill results include:
- 00m @ 3.61g/t Au from 737.0 metres in hole 24SJDD034_W1
- 00m @ 3.65g/t Au from 385.00 metres in hole 24SJDD032
- 80m @ 3.06g/t Au from 835.30 metres in hole 24SJDD033
- 58m @ 2.54g/t Au from 531.00 metres in hole 24SJDD031
- 80m @ 4.06g/t Au from 666.00 metres in hole 24SJDD028_W2
These results further confirm the Bluebird-South Junction site as a significant resource with the potential for high-grade gold production. With continuous drilling success, the area could produce up to 1.5 million tonnes per annum, according to Westgold’s projections.
Extended Drilling Program Supports Expansion
Following impressive results, Westgold has extended its resource definition drilling program at the Bluebird-South Junction complex. Since its commencement in mid-January 2024, the program has completed over 34,525 metres of drilling from surface. The goal is to explore down-plunge extensions of mineralised zones within the site, specifically targeting the South Junction and Polar Star Lodes.
The drilling program initially focused on infill drilling, but recent efforts have shifted to testing deeper targets between 700 and 800 metres below the surface. These new assays, coupled with earlier successful results, provide a solid foundation for an updated Mineral Resource Estimate for Bluebird-South Junction, expected to be released this November.
Westgold’s Operational Scale in Western Australia
Westgold’s operations span over 1,300 square kilometres in the Murchison and Bryah regions of Western Australia, where it manages four underground mines and three processing plants. The company’s combined processing capacity is around four million tonnes annually, positioning it as a major player in the Australian gold mining sector. This extensive operational scale, alongside the steady success of the Bluebird-South Junction complex, contributes to Westgold’s strong market presence and growth potential.
Market Reaction and Stock Price Surge
Investors responded positively to Westgold’s announcement, sending the stock price to $3.205, up by 3.39% today. Westgold’s recent drilling successes and promising potential at Bluebird-South Junction have heightened investor optimism about the company’s ability to expand production. Westgold’s current market capitalisation stands at approximately $2.92 billion, reflecting growing confidence in its resource expansion strategy.
Looking Ahead: November Resource Estimate Update
Westgold expects to release an updated Mineral Resource Estimate for Bluebird-South Junction later this month. This update will reflect the significant progress made through recent drilling and offer a clearer picture of the site’s long-term production potential. With the ongoing drilling program extended into the second quarter of FY25, the company’s commitment to further defining and expanding its resources remains evident.
As Westgold continues to explore deeper, high-grade gold zones at Bluebird-South Junction, the potential for further growth and increased production remains strong. The latest Polar Star intercept marks a major milestone for the company, with more updates expected as drilling progresses. Investors and stakeholders alike are keenly watching Westgold’s next moves as it pursues resource expansion in the highly productive Murchison region.