Higginsville Expansion Plan
| Stock | Westgold Resources Ltd (WGX.ASX) |
|---|---|
| Release Time | 28 Apr 2025, 8:34 a.m. |
| Price Sensitive | Yes |
Westgold to Expand Higginsville Processing Plant to 2.6Mtpa
- Expansion to increase steady state gold production from 87kozpa to 122-160kozpa
- Reduces operating costs from ~$36/t to ~$33/t and AISC by ~$142/oz
- Financially compelling with mid-point IRR of 37% and 2.1-year payback
Westgold Resources Limited (ASX | TSX: WGX) has completed a scoping study for the expansion of its existing 1.6Mtpa Higginsville Processing Plant in Western Australia to 2.6Mtpa. The Higginsville Expansion Plan (HXP) evaluates the potential to increase throughput, reduce operating costs, and enhance gold production at the company's Southern Goldfields operations. Key outcomes of the HXP scoping study include: a modest mid-point capital requirement of ~A$92M, an increase in steady state gold production from 87kozpa to 122-160kozpa, a reduction in processing costs from ~$36/t to ~$33/t, and a decrease in the Southern Goldfields AISC by ~$142/oz. The HXP is financially compelling, with a mid-point internal rate of return of 37% and a 2.1-year payback period at a gold price of A$3,200/oz. The expansion is designed to provide optionality for further growth as Westgold's regional mining operations expand. The company will now commence a more detailed engineering study on the 2.6Mtpa case, incorporating an updated reserve and resource statement, regional mining studies, and longer-term portfolio planning.
The HXP scoping study indicates that the expansion would increase steady state gold production at Higginsville from 87kozpa to between 122kozpa and 160kozpa, based on the historic 1 August 2024 Ore Reserve grade of 1.9g/t. This production increase would be achieved through the expansion of the processing plant capacity from 1.6Mtpa to 2.6Mtpa.
Westgold will now commence a more detailed engineering study on the 2.6Mtpa HXP case, which is expected to take approximately 6-8 months to complete. In parallel, the company has commenced debottlenecking and optimizing the existing 1.6Mtpa Higginsville Processing Plant to further improve performance. Westgold looks forward to providing an update on the progress of the Higginsville Expansion Plan during FY26.