Western Gold Resources Limited (ASX:WGR) Announces Gold King Resource Update
Resource Estimate Highlights
Western Gold Resources Limited (ASX:WGR) has announced a substantial update to the Mineral Resource Estimate (MRE) at its Gold Duke Project, specifically for the Gold King deposit. The updated resource reveals an Indicated Resource for the first time, comprising 251,000 tonnes at 2.02 grams per tonne (g/t) Au for a total of 16,000 ounces. The Inferred Resource stands at 176,000 tonnes at 1.76 g/t Au for 10,000 ounces, leading to a total MRE of 427,000 tonnes at 1.91 g/t Au, equating to 26,000 ounces.
Increased Confidence and Future Plans
The updated MRE marks a significant improvement in geological knowledge, providing increased confidence in the mineralisation’s structural controls and the overall resource estimate. The total global measured, indicated, and inferred resource at the Gold Duke Project now stands at 3.25 million tonnes at 2.1 g/t Au, equating to approximately 214,000 ounces of gold. This enhanced resource confidence will bolster ongoing technical and economic studies as WGR prepares for potential production.
Managing Director Warren Thorne expressed optimism regarding the economic viability of the Gold Duke Project, stating, “The updated Mineral Resource Estimate… further validates the economic viability of the Gold Duke Project as the Company looks to move the Gold Duke Project into production.”
Future Developments
The company is actively progressing discussions with various stakeholders regarding ore purchase agreements and mining contracts. Additionally, a recent scoping study indicated a production target of 34,000 ounces, suggesting a potential cash surplus of A$38.1 million based on a gold price of A$3,500 per ounce, following all pre-mining cost deductions.
More updates on the Gold Duke Project and its developments will be provided as discussions and analyses continue.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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