Just when I thought I had been optimistic about Bluebird-South Junction being able to achieve 750kt p.a, the WGX team embarrass me and simply up the ante by a mere 60%!! I struggle to think of a more positive price sensitive announcement that WGX could make than this. Initial reserves basically give them a 3 year LOM plan, with.... I think they are trying to shout this to the market, so much more drilling and conversion to come (I mean, 930k MRE, 280k reserve.. lots more to come). The majority of the new reserve comes from South Junction anyway. Plus, as this is all net of depletion, they basically would have had 1.1m ounces in the MRE.
1.2mtpa from just Bluebird-South Junction means that, when you combine OAUs open pit in the future, plus just the small Fender U/G mine, they will be able to finally fill the Bluebird plant with ore (though it's still helpful to have the large stockpiles available). This excludes any other U/G mines they might bring back online in the future.
It is sort of incredible to think this will rival, no... I think it will actually be ever more profitable and longer life than Big Bell (the larger LHOS will only last for 3-4 more years, before the majority of ore sources from the deeps), in the sense that the Big Bell deeps is not going to be able to mine at 1.2mtpa, and is deeper.
I have clearly not been paying enough attention to just how thick and continuous the mineralisation is at South Junction!
So much drilling success that they are going to change the mining method all together. This is surely going to give a boost to their FY25 guidance? As the ramp up looks to be achieved within just 9 months....
You sum it up very well WB.
Btw - I wonder if the MoM team will notice how profession this MRE graph is.....
There is going to be a lot more gold to come from Bluebird-South Junction (who knows maybe they will end up just calling it South Junction).
Like WGX, I am also looking forward to future updates, as the Bluebird plant was the biggest laggard within the Murchison portfolio, but... in 12 months time, is going to be very different.
Well done to the whole team, this is an incredible result considering where the company was just 3 years ago.
WGX Price at posting:
$2.88 Sentiment: Hold Disclosure: Held
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