Announcement PDF ASX Announcement 14 March 2024 Starlight Exploration Update Exceptional drilling results extend the Nightfall lode Westgold Resources Limited (ASX: WGX / OTCQX: WGXRF – Westgold or the Company) is pleased to provide this operational update from the Starlight underground mine at the Company’s Bryah Operation. Highlights Results extending the Nightfall lodes include: ■ 16.39m at 7.05g/t Au from 272m in NF1130RD11 ■ 9.65m at 10.37g/t Au from 145.35m in NF1125RD12 Impressive in fill result from Nightfall lodes include: ■ 3.5m at 64.53g/t Au from 111.5m in NF1125RD03. Production from Nightfall lode to accelerate – the Starlight 890 link development drive is underway, allowing concurrent bottom-up and top-down mining of Nightfall. Inhouse underground drilling capability expands – Westgold to purchase six additional underground drill rigs for delivery prior to the end of FY24, taking its wholly owned fleet size to 13 and vastly improving future drilling rates and efficiencies. Westgold Managing Director and CEO Wayne Bramwell commented: “Westgold’s investment in drilling across our mines continues to bear fruit at Starlight. Our highgrade Nightfall lode continues to expand, with our Geology team expecting further Mineral Resource growth over the coming quarters. Key to our resource development success is Westgold’s drilling division. Our inhouse capability continues to expand with the purchase of six state of the art underground drill rigs, taking our drill fleet to 13 and reducing our need for contractor support across the Group. This is an incredible time to be an unhedged, Australian gold producer. With a clear focus on enhancing mine life and shareholder value we continue to invest drill metres at Starlight, are advancing a significant surface and underground resource definition drilling campaign at Bluebird - South Junction and are concurrently testing an early production opportunity at Great Fingall.” Westgold Resources Limited ABN 60 009 260 306 ASX: WGX / OTC: WGXRF westgold.com.au T: +61 8 9462 3400 E: perth.reception@westgold.com.au Level 6, 200 St Georges Terrace Perth WA 6000 PO Box 7068, Cloisters Square WA 6850 Bryah Overview Westgold’s Bryah Operation, located in the Bryah Basin of Western Australia, is approximately 140km north of Meekatharra and encompasses the 0.9Mtpa Fortnum processing plant, and Fortnum, Horseshoe and Peak Hill mining areas [Figure 1]. The Starlight underground mine is the predominant feed source [90% of all processed tonnes with the additional 10% of ore sourced from surface stockpiles] to Westgold’s Fortnum processing hub. Figure 1 – Westgold’s Bryah Operation. Homestake Gold Mines (Homestake) developed the Fortnum mineral field during the 1980s, after regional reconnaissance work discovered gold mineralisation in outcrop at Tom’s Hill. The Trev’s, Dougie’s and Twilight gold deposits (all part of the Starlight Mineralisation Complex) were mined as open pits by Homestake from 1989 to 1993. In total ≈525,000 ounces of gold have been produced from Starlight at ≈3.1g/t Au to a total depth of 260m by previous open pit and shallow underground operators (+2,000 ounces per vertical metre) before mining ceased. Between 1994 and 1998 Perilya Gold Mines subsequently mined the Trev’s – Starlight open pits, then the Starlight-Twilight underground from 1999 to 2001. Westgold has subsequently mined +266koz from the Starlight underground. Starlight Exploration Update 14 March 2024 2 Latest Nightfall Drilling The Nightfall lodes are the continuation of the Starlight lodes to the north, with a zone of complex faulting marking the boundary between the two and previously limiting the northern extent of Starlight development. As with all Starlight lodes, Nightfall exhibits exceptional grade and a high level of grade variability. As a result of these factors, attaining sufficient definition of these lodes for operational certainty is an intensive exercise, requiring a significant commitment of drilling resources. Figure 2 – Current Starlight Life of Mine plan and recent drilling Results such as 16.39m at 7.05g/t Au from 272m in NF1130RD11, 9.65m at 10.37g/t Au from 145.35m in NF1125RD12 and 3.5m at 64.53g/t Au from 111.5m in NF1125RD03 at Nightfall demonstrate the value that this intensive geological effort brings [Figure 2]. Westgold’s In-house Drilling Capability Ongoing success across our portfolio has driven the decision by Westgold to significantly upscale its internal drilling division via the addition of six highly productive Epiroc mobile diamond drill rigs. These rigs will expand Westgold’s internal drilling division, bringing the total number of wholly owned machines within the fleet to 13. Starlight Exploration Update 14 March 2024 3 The growth in the fleet increases productivity and operational flexibility, lowers unit rates for drilling and drives cost out of the business as we reduce third party supply of drill services. Looking Forward Since the Starlight operational re-set, the site has seen a return to profitability, consistent outperformance against budget production outcomes, and continual expansion of the mine’s Mineral Resource base and footprint. Profitability at Starlight is expected to further improve with the decision to mine Nightfall via two concurrent approaches, from bottom-up and top-down. Nightfall is currently being mined, topdown from the 1160 level. The Starlight 860 link (expected to be complete in Q4, FY24) will connect the current deeper decline at Starlight to the lower extensions of Nightfall, thus allowing the mining of Nightfall from the bottom-up in parallel and increase the Nightfall mining rate. This announcement is authorised for release to the ASX by the Board. Investor and media relations enquiries Investor Relations Kasun Liyanaarachchi | Investor Relations Manager investor.relations@westgold.com.au +61 458 564 483 Starlight Exploration Update 14 March 2024 Media Peter Knight | Communications Manager peter.knight@westgold.com.au +61 459 980 481 4 Competent Person Statements Exploration Results and Mineral Resource Estimates The information in this report that relates to Exploration results and Mineral Resource Estimates is compiled by Westgold technical employees and contractors under the supervision of 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 and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Russell is eligible to participate in short- and long-term incentive plans of the company. Ore Reserves The information in this report that relates to Ore Reserve is based on information compiled by Mr. Leigh Devlin B.Eng. MAusIMM. Mr. Devlin has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the 2012 Editions of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012)”. Mr. Devlin consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr. Devlin is a full-time senior executive of the Company and is eligible to and may participate in shortterm and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents. Forward looking statements Certain statements in this report relate to the future, including forward looking statements relating to Westgold’s financial position and strategy. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements of Westgold to be materially different from future results, performance or achievements expressed or implied by such statements. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement and deviations are both normal and to be expected. Other than required by law, neither Westgold, their officers nor any other person gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. You are cautioned not to place undue reliance on those statements. Starlight Exploration Update 14 March 2024 5 APPENDIX A – Recent Drill Results Lode Hole Nightfall NF1125RD03 7,198,905 636,459 119 3.5m at 64.53g/t Au NF1130RD11 7,198,879 636,383 140 16.39m at 7.05g/t Au NF1125RD12 7,198,907 636,458 120 9.65m at 10.37g/t Au Starlight Exploration Update 14 March 2024 Collar N Collar E Collar RL Intercept (Downhole) From (m) Dip Azi 111.5 -27.8 60.7 272 -8.4 44.3 145.35 -34.9 34.7 6 APPENDIX B – JORC 2012 TABLE 1 – GOLD DIVISION SECTION 1: SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding sections.) Criteria Sampling techniques JORC Code Explanation • • • • Drilling techniques • Drill sample recovery • • • Logging • Starlight Exploration Update 14 March 2024 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Commentary Diamond Drilling • A significant portion of the data used in resource calculations has been gathered from diamond core. Multiple sizes have been used historically. This core is geologically logged and subsequently halved for sampling. Grade control holes may be whole-cored to streamline the core handling process if required. Face Sampling • At each of the major past and current underground producers, each development face / round is horizontally chip sampled. The sampling intervals are domained by geological constraints (e.g. rock type, veining and alteration / sulphidation etc.). The majority of exposures within the orebody are sampled. Sludge Drilling • Sludge drilling at is performed with an underground production drill rig. It is an open hole drilling method using water as the flushing medium, with a 64mm (nominal) hole diameter. Sample intervals are ostensibly the length of the drill steel. Holes are drilled at sufficient angles to allow flushing of the hole with water following each interval to prevent contamination. Sludge drilling is not used to inform resource models. RC Drilling • Drill cuttings are extracted from the RC return via cyclone. The underflow from each interval is transferred via bucket to a four-tiered riffle splitter, delivering approximately three kilograms of the recovered material into calico bags for analysis. The residual material is retained on the ground near the hole. Composite samples are obtained from the residue material for initial analysis, with the split samples remaining with the individual residual piles until required for resplit analysis or eventual disposal. RAB / Aircore Drilling • Combined scoops from bucket dumps from cyclone for composite. Split samples taken from individual bucket dumps via scoop. RAB holes are not included in the resource estimate. Blast Hole Drilling • Cuttings sampled via splitter tray per individual drill rod. Blast holes not included in the resource estimate. • All geology input is logged and validated by the relevant area geologists, incorporated into this is assessment of sample recovery. No defined relationship exists between sample recovery and grade. Nor has sample bias due to preferential loss or gain of fine or coarse material been noted. Whether core and chip samples have been geologically and • Westgold surface drill-holes are all orientated and have been logged in detail for geology, veining, 7 Criteria JORC Code Explanation • • Sub-sampling techniques and sample preparation • • • • • • Commentary geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or • costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the insitu material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. • alteration, mineralisation and orientated structure. Westgold underground drill-holes are logged in detail for geology, veining, alteration, mineralisation and structure. Core has been logged in enough detail to allow for the relevant mineral resource estimation techniques to be employed. Surface core is photographed both wet and dry and underground core is photographed wet. All photos are stored on the Company’s servers, with the photographs from each hole contained within separate folders. Development faces are mapped geologically. • • • RC, RAB and Aircore chips are geologically logged. Sludge drilling is logged for lithology, mineralisation and vein percentage. Logging is quantitative in nature. • All holes are logged completely, all faces are mapped completely. • • Blast holes -Sampled via splitter tray per individual drill rods. RAB / AC chips - Combined scoops from bucket dumps from cyclone for composite. Split samples taken from individual bucket dumps via scoop. RC - Three tier riffle splitter (approximately 5kg sample). Samples generally dry. • • • • • • • • Quality of assay data and laboratory tests • • Starlight Exploration Update 14 March 2024 The nature, quality and appropriateness of the assaying and laboratory • procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors • applied and their derivation, etc. Face Chips - Nominally chipped horizontally across the face from left to right, sub-set via geological features as appropriate. Diamond Drilling - Half-core niche samples, sub-set via geological features as appropriate. Grade control holes may be whole-cored to streamline the core handling process if required. Chips / core chips undergo total preparation. Samples undergo fine pulverisation of the entire sample by an LM5 type mill to achieve a 75µ product prior to splitting. QA/QC is currently ensured during the sub-sampling stages process via the use of the systems of an independent NATA / ISO accredited laboratory contractor. A significant portion of the historical informing data has been processed by in-house laboratories. The sample size is considered appropriate for the grain size of the material being sampled. The un-sampled half of diamond core is retained for check sampling if required. For RC chips regular field duplicates are collected and analysed for significant variance to primary results. Recent drilling was analysed by fire assay as outlined below; ¨ A 40g sample undergoes fire assay lead collection followed by flame atomic adsorption spectrometry. ¨ The laboratory includes a minimum of 1 project standard with every 22 samples analysed. ¨ Quality control is ensured via the use of standards, blanks and duplicates. No significant QA/QC issues have arisen in recent drilling results. 8 Criteria Verification of sampling and assaying JORC Code Explanation Commentary • Nature of quality control procedures adopted (e.g. standards, blanks, • duplicates, external laboratory checks) and whether acceptable levels • of accuracy (i.e. lack of bias) and precision have been established. Historical drilling has used a combination of Fire Assay, Aqua Regia and PAL analysis. These assay methodologies are appropriate for the resources in question. • The verification of significant intersections by either independent or • alternative company personnel. • The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • No independent or alternative verifications are available. • • • • Location of data points • • • Data spacing and distribution Sample security Accuracy and quality of surveys used to locate drill holes (collar and • down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. • Quality and adequacy of topographic control. • All data is spatially oriented by survey controls via direct pickups by the survey department. Drillholes are all surveyed downhole, deeper holes with a Gyro tool if required, the majority with single / multishot cameras. All drilling and resource estimation is preferentially undertaken in local mine grid at the various sites. Topographic control is generated from a combination of remote sensing methods and groundbased surveys. This methodology is adequate for the resources in question. • Data spacing is variable dependent upon the individual orebody under consideration. A lengthy history of mining has shown that this approach is appropriate for the Mineral Resource estimation process and to allow for classification of the resources as they stand. Compositing is carried out based upon the modal sample length of each individual domain. • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and • classifications applied. Whether sample compositing has been applied. • Orientation of data in relation to geological structure • • Whether the orientation of sampling achieves unbiased sampling of • possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation • of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • Drilling intersections are nominally designed to be normal to the orebody as far as underground infrastructure constraints / topography allows. Development sampling is nominally undertaken normal to the various orebodies. Where drilling angles are sub optimal the number of samples per drill hole used in the estimation has been limited to reduce any potential bias. It is not considered that drilling orientation has introduced an appreciable sampling bias. • The measures taken to ensure sample security. • For samples assayed at on-site laboratory facilities, samples are delivered to the facility by Company staff. Upon delivery the responsibility for sample security and storage falls to the independent third-party operators of these facilities. For samples assayed off-site, samples are delivered to a third-party transport service, who in turn relay them to the independent laboratory contractor. Samples are stored securely until they leave site. • Audits or reviews Virtual twinned holes have been drilled in several instances across all sites with no significant issues highlighted. Drillhole data is also routinely confirmed by development assay data in the operating environment. Primary data is collected utilising LogChief. The information is imported into a SQL database server and verified. All data used in the calculation of resources and reserves are compiled in databases (underground and open pit) which are overseen and validated by senior geologists. No adjustments have been made to any assay data. • Starlight Exploration Update 14 March 2024 The results of any audits or reviews of sampling techniques and data • Site generated resources and reserves and the parent geological data is routinely reviewed by the Westgold Corporate technical team. 9 SECTION 2: REPORTING OF EXPLORATION RESULTS (Criteria listed in the preceding section also apply to this section.) Criteria Mineral tenement and land tenure status JORC Code Explanation • • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Commentary • • • • Native title interests are recorded against several WGX tenements. The CMGP tenements are held by the Big Bell Gold Operations (BBGO) of which Westgold has 100% ownership. Several third-party royalties exist across various tenements at CMGP, over and above the state government royalty. The Fortnum Gold Project tenure is 100% owned by Westgold through subsidiary company Aragon Resources Pty. Ltd. Various Royalties apply to the package. The most pertinent being; ¨ • • • Westgold work has generally confirmed the veracity of historic exploration data. • • • • Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties Geology • Deposit type, geological setting and style of mineralisation. MGO • MGO is located in the Achaean Murchison Province, a granite-greenstone terrane in the northwest of the Yilgarn Craton. Greenstone belts trending north-northeast are separated by granite-gneiss domes, with smaller granite plutons also present within or on the margins of the belts. • The Paddy’s Flat area is located on the western limb of a regional fold, the Polelle Syn- cline, within a sequence of mafic to ultramafic volcanics with minor interflow sediments and banded iron-formation. The sequence has also been intruded by felsic porphyry dykes prior to mineralisation. Mineralisation is located along four sub-parallel trends at Paddy’s Flat which can be summarized as containing three dominant mineralisation styles: ¨ • Starlight Exploration Update 14 March 2024 $10/oz after first 50,000oz (capped at $2M)- Perilya ¨ State Government – 2.5% NSR The tenure is currently in good standing. There are no known issues regarding security of tenure. There are no known impediments to continued operation. WGX operates in accordance with all environmental conditions set down as conditions for grant of the leases. The CMGP tenements have an exploration and production history in excess of 100 years. The FGP tenements have an exploration and production history in excess of 30 years. Sulphide replacement BIF hosted gold. Quartz vein hosted shear-related gold. ¨ Quartz-carbonate-sulphide stockwork vein and alteration related gold. The Yaloginda area is a gold-bearing Archaean greenstone belt situated ~15km south of Meekatharra. The deposits in the area are hosted in a strained and metamorphosed volcanic sequence that consists primarily of ultramafic and high-magnesium basalt with minor 10 Criteria JORC Code Explanation Commentary • komatiite, peridotite, gabbro, tholeiitic basalt and interflow sediments. The sequence was intruded by a variety of felsic porphyry and intermediate sills and dykes. The Reedy’s mining district is located approximately 15 km to the south-east to Meekatharra and to the south of Lake Annean. The Reedy gold deposits occur with- in a north-south trending greenstone belt, two to five kilometres wide, composed of volcano-sedimentary sequences and separated multiphase syn- and post-tectonic granitoid complexes. Structurally controlled the gold occur. CGO • CGO is located in the Achaean Murchison Province, a granite-greenstone terrane in the northwest of the Yilgarn Craton. Greenstone belts trending north-northeast are separated by granite-gneiss domes, with smaller granite plutons also present within or on the margins of the belts. • Mineralisation at Big Bell is hosted in the shear zone (Mine Sequence) and is associated with the post-peak metamorphic retrograde assemblages. Stibnite, native antimony and trace arsenopyrite are disseminated through the K-feldspar-rich lode schist. These are intergrown with pyrite and pyrrhotite and chalcopyrite. Mineralisation outside the typical Big Bell host rocks (KPSH), for example 1,600N and Shocker, also display a very strong W-As-Sb geochemical halo. • Numerous gold deposits occur within the Cuddingwarra Project area, the majority of which are hosted within the central mafic-ultramafic ± felsic porphyry sequence. Within this broad framework, mineralisation is shown to be spatially controlled by competency contrasts across, and flexures along, layer-parallel D2 shear zones, and is maximised when transected by corridors of northeast striking D3 faults and fractures. • The Great Fingall Dolerite hosts the majority gold mineralisation within the portion of the greenstone belt proximal to Cue (The Day Dawn Project Area). Unit AGF3 is the most brittle of all the five units and this characteristic is responsible for its role as the most favourable lithological host to gold mineralisation in the Greenstone Belt. FGP • The Fortnum deposits are Paleoproterozoic shear-hosted gold deposits within the Fortnum Wedge, a localised thrust duplex of Narracoota Formation within the overlying Ravelstone Formation. Both stratigraphic formations comprise part of the Bryah Basin in the Capricorn Orogen, Western Australia. • The Horseshoe Cassidy deposits are hosted within the Ravelstone Formation (siltstone and argillite) and Narracoota Formation (highly-altered, moderate to strongly deformed mafic to ultramafic rocks). The main zone of mineralisation is developed within a horizon of highly altered magnesian basalt. Gold mineralisation is associated with strong vein stock works that are confined to the altered mafic. Alteration consists of two types; stockwork proximal silicacarbonate-fuchsite-haematite-pyrite and distal silica-haematite-carbonate+/- chlorite. • The Peak Hill district represents remnants of a Proterozoic fold belt comprising highly deformed trough and shelf sediments and mafic / ultramafic volcanics, which are generally moderately metamorphosed (except for the Peak Hill Metamorphic Suite). Starlight Exploration Update 14 March 2024 11 Criteria Drill hole Information JORC Code Explanation • • Data aggregation methods • • • Relationship between mineralisation widths and intercept lengths • • • Diagrams • Balanced reporting • Other substantive exploration data • Starlight Exploration Update 14 March 2024 Commentary A summary of all information material to the understanding of the • exploration results including a tabulation of the following information for all Material drill holes: ¨ easting and northing of the drill hole collar ¨ elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar ¨ dip and azimuth of the hole ¨ down hole length and interception depth ¨ hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggre