Resources & Reserves

Summary of Resources and Reserves

Westgold’s two main gold projects at Rover in the Northern Territory and Central Murchison in Western Australia, have a combined resource base of 3.92 million gold equivalent ounces and significant potential for additional growth. Additional base metal resources are also defined at Explorer 108 within the Rover project.

The company is now highly focussed on re-establishing production from the new extensions at various past mines in the Central Murchison Project and development of the first underground mine in the Rover Field at Rover 1. During 2011/2012 emphasis will be placed on commencing development of the longer-term production assets at Big Bell, Great Fingall/Golden Crown and Rover 1, while building an early cashflow from the near surface open pit potential that remains to be fully assessed in the Central Murchison region.

The Company is confident the resource base will continue to grow with further exploration. The JORC compliant resources identified at the projects are listed below.

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Rover 1 Resources

^{Gold Equivalence used in the 2010 Rover 1 Resource Statement (dated 23 February 2010)}

^{The Gold Equivalence calculation represents total metal value for each metal assuming 100% recovery, summed and expressed in equivalent gold grade or ounces.
The metal prices used in the calculation being US$1100/oz Au, US$7000/t Cu, US$21.0/lb Co, US$7.5/lb Bi and US$15.0/oz Ag and approximate metal prices as at 18 Feb 2010. The gold equivalent formula is AuEq=Au+0.014*Ag+4.675*Bi+13.091*Co+1.979*Cu}

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Central Murchison Resources

Probable Mining Reserve Estimates

^{Modifying Factors
The Mining Reserve Estimates (Probable JORC Classification) include mining dilution and ore extraction factors.
The mine evaluation studies conducted or commissioned by Aragon apply a gold price of AU$1,250 and state royalty of 2.5%. Nominal ore process operating unit cost of $25 per tonne have been used in the studies and metallurgical recoveries are based on actual historical data for the mines when in operation:
Big Bell –Mining dilution of 20% and mining recovery of 85% are estimated.
Metallurgical recoveries of 90% are applied.
Golden Fingall -Mining dilution of 10% applied and mining recovery of 80% are estimated.
Metallurgical recoveries of 95% have been applied.
The parameters applied during the conversion of resources into reserve estimates (modifying factors) are estimates and assumptions made only for the purposes of the mining studies and preparation of the Mining Reserve estimates (Probable Classification under JORC). They should not be relied upon in any way as reliable forecasts or indications of future actual costs or recoveries. Further, the assumptions relating to metallurgical process recovery represent a conceptual recovery applied after analysis of historical performance during the operating phases of the mines. Actual metallurgical performance contains significant risk and multiple operating functions to ensure maximisation of recoverable gold.}
 

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Explorer 108

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Competent Person's Statements

^{Central Murchison Project
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Jake Russell B.Sc. (Hons), who is a Member of the Australian Institute of Geoscientists. Mr Russell is a full-time employee of the company. Mr Russell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Russell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.}

^{The information in this report that relates to Ore Reserves is based on information compiled under the direction of Mr. Paul Hucker B. Eng (Hons), who is a Member of the AusIMM. Mr Hucker is a full-time employee of the company. Mr Hucker has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hucker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.}

^{Rover Project
The information that relates to Rover 1 and Explorer 108 exploration results and mineral resources is based on information compiled by Mr Andrew Beckwith who is a full time employee of Westgold Resources Limited and a member of the Australian Institute of Mining and Metallurgy. Mr Beckwith has sufficient industry experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Beckwith consents to the inclusion in the document of the matters based on his information in the form and context in which it appears.}