This nearly caused Silver Lake Resources to go broke, why and why did they sell? Answer this question and you will know if Westgold is dreaming or not, unfortunately risk here is to great!
Grade for an underground mine at this depth is pretty low. Risk of collapse is high.
Is this just a dream?
Westgold Resources expects to have the historic Big Bell gold mine near Cue in development in 12 months, as the Peter Cook-led gold miner continues to increase its production profile a year on from its spin-out from Metals X.The 100,000 ounce-a-year Big Bell is expected to be the centrepiece of Westgold’s main Cent-ral Murchison gold project after it completed dewatering of the decline in the December quarter.It came as production and costs rose across Westgold’s Mid West and Goldfields portfolios, with the company turning out 68,094oz at all in sustaining costs of $1420/oz, generating earnings before interest, tax, depreciation and amortisation of $19.84 million, with gold sales up 25 per cent quarter-on-quarter to 73,317oz.Up to 36,363 of those ounces came from Central Murchison, currently being processed through the 1.8 million tonne a year Bluebird plant, at costs of $1387/oz.At its other operations, the new Fortnum mine in the Mid West is ramping up, although issues with Westgold’s processing plant at its Higginsville operations, north of Norseman, weighed on costs.The South Kalgoorlie operations produced a solid 12,711oz at $1291/oz.The gold miner is nearing the commissioning of the Tuckabianna Mill, acquired last year from Silver Lake Resources.Tuckabianna had been part of Silver Lake’s aborted move into the Murchison gold district in 2013 under former managing director Les Davis.Meanwhile, Mr Davis returned to the boards of the Australian Securities Exchange this week as a non-executive director of new float Black Cat Syndicate.The gold explorer, which is hoping to revive the historic Queen Margaret mine at Bulong, east of Kalgoorlie-Boulder, had a heavily oversubscribed initial public offering, handled by brokerage house DJ Carmichael.Black Cat, which will be led by former Silver Lake and Saracen geologist and mine manager Gareth Solly, closed at 30¢ on Tuesday, a 50 per cent premium to its 20¢-a-share IPO.Black Cat stock closed yesterday down 5 per cent or 1.5¢ to 28.5¢, while Westgold was down 1.9 per cent, or 3¢, at $1.57.Get the latest news from thewest.com.au in your inbox
WGX Price at posting:
$2.18 Sentiment: None Disclosure: Not Held
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