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- Cue hub throughput to increase from 1.4 Mtpa to 1.7 Mtpa
- Around 21% increase in Cue processing capacity by FY28
- Baseline production uplift once commissioned
- Supported by increasing outputs from BigBell and Great Fingall
Westgold Resources (ASX:WGX) has confirmed its commitment to the significant Cue Expansion Plan (CXP) in Western Australia.
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The capital-light expansion of the company’s Cue processing hub will lift output from a current 1.4 million tonnes per annum (Mtpa) run rate to 1.7 Mtpa in FY28.
MD and CEO, Wayne Bramwell, said the plan reflects a deliberate shift towards processing hub optimisation across the wider business.
The CXP is underpinned by increasing underground mine outputs from Westgold’s Big Bell and Great Fingall mines near Cue.
“Bigger mines need bigger mills. Westgold’s underground mine outputs are growing across all the Murchison operations and building ore stockpiles from FY27 onwards,” Mr Bramwell told shareholders.
“In addition, open pit mining is now underway at Cue and Meekatharra, with this organic growth underpinning the incremental expansion of our Cue business.
“This simple upgrade and modest capital investment at the Cue hub reflects a deliberate shift towards processing hub optimisation and expansion, with lower operating costs and higher cashflow the objective.”
The plan includes small open pits being developed at Cue and additional near-hub open pit resource development opportunities at Big Bell South and Cuddingwarra.
“These targets are larger, are within approximately 50km of our Cue hub and if drilling is successful, can add significant additional ore sources in FY28,” Mr Bramwell said.
Further upside may come from other ore sources currently in production including the operating Fender underground and smaller open pits near Cue.
Mr Bramwell said there is also potential for third-party ore supply via existing ore purchase agreements and if drilling is successful, from Westgold brownfields open pit resource targets at Big Bell South and Cuddingwarra.
Study work indicates increasing the mill motor power from 2.9MW to 4.2MW through a replacement liquid-cooled motor and variable speed drive, together with associated system and pumping upgrades, will support operation at the higher duty.
The process plant upgrade is designed to increase the milling circuit throughput from the current nominal 170 t/h to 200 t/h. This expansion is scheduled to be complete in late FY27, with the higher installed capacity supporting an increase of approximately 15kozpa from the Cue hub from FY28 onwards.
Westgold will now progress detailed engineering, procurement planning and execution sequencing for the CXP while continuing brownfields drilling at near-mill opportunities to define future ore optionality.
WGX is up by 2.27% at $4.96 with a Mkt cap of $4.557B.
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