WESTGOLD RESOURCES LIMITED. (ASX:WGX) - Ann: Great Fingall Deeps - Outstanding Drill Results Continue, 67927073, page-12 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by wassa: ↑

“Find me another mid tier producer who has the ability to add (on top of) another 50k+ ounces per annum via an already developed decline?”

Hi Spec,
Interesting assumption. You are clearly an excited gold speculator by name and nature lol. I am probably more of a boring mining economist type so it’s probably why we see things a little different. It’s no so much I am against Great Fingal as a project but more about WGX strategy …. Or changing strategy … Or lack of the same one for more than a month.

We have had the whole “Less mines being bigger and better plan” by closing and consolidating and now there actively pursuing more mines. To answer your question above they don’t have the milling capacity to add your 50k+ ounces, it will simply be just spend more and substitute. They also probably don’t have the manpower in a skills shortage, it seems fiscally irresponsible to spend more capital to replace what you already can produce considering you still haven’t made any money for years and took a $175m write down as recent as last August on other failed capital expenditure projects.

When do these companies learn to actually make money and reward the shareholder rather than the “Big boys and more Toys” mindset. One could argue they need a new mill to process all this ore from the expansions but I won’t get into that … they completely massacred their GCY opportunities although I am not 100% that’s the right answer … in typical WGX fashion it seems they probably couldn’t decide that either.

Lastly, I am not convinced of your already developed decline statement , by looking at “ the Great Fingal mine schematic” you posted, it looks like to me a new decline being developed from lower in the open pit. ( proposed decline ) rather than the in pit wall ramp that Wayne is referencing to 160m depth. Either way the existing development isn’t below the open pit so a way to go yet.

Let’s hope the right timely decisions are made for the shareholders.

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Hey Wassa,

again, appreciate the reply, which has already caused me to curtail my excitement about the decline (but not the drill results and upside production).
As I read it, they finished off the open pit cut back, then.... began the portal/decline, but.... went no further?

As today's announcement is a little unclear.... 'recommence' implies it was already started.... so some sunken costs.. plus permitting must have already been completed, so... it does stack up that it can be quickly brought into the mine plan, all the more so if they can successfully mine the remanent ore as they head deeper. I do take your question as fair about just what constitutes this 'decline'.

In the end, I have very little to go off, though hopefully within the next 8 weeks, the company will provide all the details I am just speculating about.

My 50k+ call is hopefully not that bold. RMS down the road is trying to restart some of their old mines, but... the capex to do so is heavy though the grades are likely similar to that Great Fingall will likely be (yes... more assumptions/speculation).

Very similar wording to WGX regarding the decline at Hill 50.

Though... RMS have not yet made any sort of decision to mine...

I guess I am just trying to show that WGX are moving quite quickly, compared to RMS on what could average around 40k p.a over 5 years.

Regarding WGX mixed plans, I agree that if you look over the past 5 years, they have been quite a shambles.
But the new MD has been quite clear. If assets don't have critical mass in terms of ounces and profitability, they will be shut down, or not developed.
Since he took the job, he has done just that. Small U/G mines and open pits, have closed. 100% focus on bigger U/G mines.
Hence... Great Fingall fits the bill.

Again, you make a good point about WGX having a bad performance in the past, but... it's changing. This quarter should be quite good, the Sept Q better again. I think you might be surprised to see WGX start to outperform SLR (and perhaps RMS, but not this quarter, RMS has Penny's pile of ore to sweeten their cashflow).

As for WGX not having processing capacity, to be fair, they probably do at Bluebird plant, but.. not for long if the Bluebird U/G mine keeps outperforming. A good problem to have where they can simply stack lower grade ore if needed, or... even toll treat with GCY for example.

Anyway, I can only hope my thoughts prove correct and I see a good return on my investment. I bought in because I view WGX as a long term (5-10 year hold). As I genuinely believe I will see sustainable dividends by FY2025. More bold calls I know