PriceSensitive

Westgold Resources (ASX:WGX) progresses Big Bell output despite delays

Mining
ASX:WGX      MCAP $1.025B
30 June 2021 15:30 (AEST)

Source: Westgold Resources

Westgold Resources (WGX) believes it’s on track to meet its target output of 80,000 tons per month from its Big Bell underground operation.

Located near Cue, WA, WGX had been hoping to reach its target output for the historic mine by the end of 2020.

To achieve this, the company began ramping up production at Big Bell, with 110,000 tons of ore produced in Q1 and 185,000 tons of ore recorded in Q4.

However, WGX admitted the ramp-up had progressed slower than originally anticipated, with a mine incident slowing output in Q3.

The company said the issue had since been worked through and told shareholders it had moved past the “difficult phase” of the ramp-up.

It explained it had commissioned a new underground production fleet and begun
optimising in-mine production processes to sustain the longer-term higher production rate.

Going forward, WGX said it would continue focusing on optimising production and in-mine processes at Big Bell.

This includes improving blast and exclusion zone management, planning for the management of future pegmatite intrusions and equipment utilisation.

With these plans in mind, as well as consistent increase in Big Bell’s output, Westgold said it was confident it would reach its targeted run-rate of 80,000
tonnes per month by year-end.

At the close of market on Wednesday, Westgold Resources shares were trading down 0.53 per cent at $1.87 each.

Related News