Westgold pours first gold at Tuckabianna, completes asset sale to Northern Star

Image: Westgold

Westgold Resources has transitioned to commercial production at Tuckabianna, having poured first gold at the processing hub for its Cue Gold Operations (CGO), which encompasses the southern area of the larger Central Murchison gold project.

Westgold has also added 120,000 ounces (oz) of gold hedging at a price of $1763/oz for calendar year 2019. Total forward sales now stand at 232,500 oz at $1723/oz.

Tuckabianna is the company’s third processing plant in the Murchison Region following the Bluebird and Fortnum plants.

Peter Cook, managing director of Westgold, said he was pleased to bring Tuckabianna online on time and under budget.

“Our main operations at Meekatharra have now fully recovered from the severe flooding impacts in the last quarter and we look forward to continuing our ramp up of gold output with the addition of the third plant,” he said.

“Our new hedge underwrites the viability of the substantial low-grade and historic tailings stocks that underwrite the early production ramps for the CGO.”

Concurrent to the ramp up at Tuckabianna is Westgold’s successful $80 million sale of its South Kalgoorlie Operations (SKO) to Northern Star, which has now been completed. Northern Star will use the additional capacity offered by the SKO mill to help achieve its annual production target in Kalgoorlie of 300,000oz/y of gold.

Northern Star executive chairman Bill Beament said the acquisition would deliver immediate benefits due to the increased milling capability, while also delivering longer term growth potential for the company as well.

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