The key objective of Westgold is to build itself as a major player in the Australian gold sector as a pure-play gold producer. The foundation to this objective is in the continued build-up of production at higher levels from the CMGP and the impending re-start of the Fortnum Gold Project.
The funding for Westgold was put in place contemporaneously with the announcement of the intent to demerge with Metals X completing a placement to raise a gross $103 million plus and SPP which has subsequently added a further $15 million in overall funding. Consequently no capital raising is contemplated as part of the Demerger and re-listing on the ASX. As previously disclosed, funds will be transferred from the parent (Metals X) to Westgold with the objective that both companies are well funded for their impending business and development plans.
Westgold currently owns three operating gold projects with a fourth under refurbishment. The four processing facilities have a combined 5.5 million tonnes per annum treatment capacity. All are located in the prolific gold production belts of Western Australia. The Total Mineral Resource Estimate of these four projects contain an aggregate 15.4 million ounces of gold. The Ore Reserve subset of these totals 2.89 million ounces of gold.
The current annualised gold production will continue to build as the CMGP continues to ramp up and the Fortnum Gold Project approaches start-up (by the end of 2016). Westgold’s current operating strategy has this increasing to above 300,000oz per annum over the ensuing years.