Western Gold Resources’ drilling results confirms Gold Duke resource model ahead of mining decision

• Grade control drilling results validates geological model at Eagle South and Gold King areas within Gold Duke project
• Early assays match scoping study grades and confirm mineralisation continuity ahead of decision to mine
• Stage 1 results to guide follow-up drilling in stage 2, which targets potential resource growth

Special Report: Western Gold Resources’ pending decision to mine its Gold Duke in WA is looking to be an easy one after early grade control drilling results confirmed the accuracy of its geological model.

Assays from the Eagle South and Gold King closely match the scoping study grades and validate mineralisation continuity at depth and along strike.

Notable results to date from the 35,300m program, which has delivered high-grade, continuous intersections consistent with modelled expectations, include the following Eagle South hits:

• 10m grading 3.78g/t gold from a down-hole depth of 30m;
• 9m at 3.75g/t Au from 17m; and
• 8m at 3.06g/t Au from 18m.

Likewise, drilling at Gold King also delivered consistent results such as:

• 9m at 1.57g/t Au from 12m;
• 7m at 2.06g/t Au from 18m; and
• 5m at 3.99g/t Au from 40m.

Western Gold Resources (ASX:WGR) notes the tight 5m by 10m drilling pattern has verified orebody continuity and grade consistency, reinforcing confidence in production, design and cash-flow forecasts.

Under the scoping study, stage one of Gold Duke is expected to generate undiscounted, pre-tax cash surpluses of $56m at an Australian gold price of $4500/oz to $97m using a $5500/oz gold price.

This is somewhat conservative given the current gold price of $6070/oz.

“These results from the Gold Duke grade control drilling program mark a major technical milestone for Western Gold Resources,” managing director Cullum Winn said.

“The strong correlation between new assays and our scoping study model confirms the robustness of the orebody and underpins the integrity of our mine design and financial forecasts.

“With a fully funded development plan, low start-up capital, and rapid payback, we are exceptionally well positioned to move into production at a time of record Australian gold prices — further strengthening the upcoming decision to mine process.”

Drill results

The now completed stage 1 drill program totalling 35,300m targeted near-surface mineralisation envelopes identified in previous resource definition campaigns.

It was aimed at providing precise ore delineation and grade distribution data within the open-pit mining zones.

This will underpin mine planning, resource estimation and reserve definition across the Eagle, Emu, Golden Monarch and Gold King deposits.

Early assays from 28 holes totalling 986m have reinforced the robustness of the geological model and suggest potential pit extensions and resource growth opportunities within the broader Gold Duke corridor.

It allows WGR to progress towards a resource model update that will underpin the decision to mine.

Gold mineralisation at Eagle South and Gold King occurs within the Joyners Find shear zone, hosted primarily in steeply west-dipping banded iron formation units enveloped by highly weathered mafic and ultramafic rocks.

At Eagle South, mineralisation remains open along strike and down-plunge to the south, with several high-grade zones demonstrating continuity beyond the pit shell defined in the scoping study.

Likewise, the drilling at Gold King confirms persistent mineralisation within steeply dipping BIF horizons, extending below the existing pit design and suggesting the potential for expanded mining envelopes.

WGR says the consistent grade tenor and geological uniformity observed across both deposits are highly encouraging, indicating a robust mineralised system with strong potential for resource growth at depth and along strike.

It adds that while results represent a small portion of the overall drilling, it supports the broader development strategy outlined in the scoping study.

More from WGR: Western Gold Resources turns to first Wiluna gold dig

Road ahead

The company will continue to receive assays from the drill program in the coming weeks.

All data will then be incorporated into an updated resource model to capture the improved geological definition achieved through grade control drilling.

This will directly inform pit design optimisation, mine scheduling and refined cash-flow forecasting.

Updated block models and detailed mine schedules will feed into the decision to mine process.

The high-resolution dataset from stage 1 will also guide follow-up drilling across the stage 2 prospects.

Stage 2 drilling will target expanding resources across the southern and peripheral targets as Stage 1 mining develops.

This article was developed in collaboration with Western Gold Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.