Hey Wot, I won't lie, I do like that WGX has always had huge upside with the drill bit, just a shame it took a change of management to start allowing it to happen (cooky to WB). Beta Hunt is going to be a monster, I mean... why else was RMS also attempting to acquire it....
The current MRE is around 2.5m ounces. I expect they will be able to add upwards of 1m ounces from Fletcher and the best bit is... it's just not going to take that long in the scheme of exploration drilling. The drill drives are there, the development is there... just need more rigs, which WGX are sending as we speak.
WB mentions that they have basically not drilled Fletcher at all... yet if it meets their expectations, well... the visuals should give most a good idea of the upside, plus the grades look potentially better than the current mining fronts.
To be clear, this is the growth engine for half of their operations now. Any upside is significant.
The only thing that tempers my excitement is that Beta is still not yet at 2mtpa, but then... I guess that was the window of opportunity for WGX to have acquired Karora in the first place.
Cannot help but be looking forward to the MRE update.
I struggle to think of a mid tier producer that has as many rigs as WGX on the go, at so many different targets (outside of infill/extensional drilling). WGX is target rich and cashed up enough to actually fund it, for the first time in it's history really.
WGX Price at posting:
$3.00 Sentiment: Hold Disclosure: Held
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