• WGR says the funding will support upgrade control and infill drilling
• Updated scoping study expected to reflect improved economics due within weeks
• Company confident of commencing operations in Q4 2025
• Mining contractor SSH Group provides deferred funding facility for mining 

 

Special Report: Western Gold Resources has secured a 12-month $3 million secured non-converting loan facility from high-net-worth investors to advance the Gold Duke project in WA into production. 

The project hosts shallow free-milling ore, enabling rapid, low-cost open-pit extraction and early access to production and is just 46km from the Wiluna processing plant.

Back in June, the company secured a binding toll milling agreement with Wiluna Mining Corporation, allowing it to lock in stage 1 production, which involves the production of 447,000t at 2.55g/t gold for 34,000oz of gold from the Eagle, Emu, Gold King and Golden Monarch deposits.

This was based on the 2024 scoping study which assumed a gold price of $3500/oz, well below the current Australian gold price above the $5100/oz mark. 

Western Gold Resources (ASX:WGR) expects to release an updated scoping study this month.

In the meantime, the non-dilutive loan funding will be used to support the planned grade control and infill drilling program at Gold Duke – with the company confident it will begin mining operations late Q4 2025. 

 

Project will be in production this year

The loan structure is in keeping with the board’s objective of minimising shareholder dilution which WGR says is reinforced with preferred mining contractor SSH Mining’s (ASX:SSH) provision of a deferred payment facility to facilitate and start mining operations.

“The support shown for this loan facility speaks volumes to the quality of the Gold Duke project and is in keeping with our goal to ensure minimal shareholder dilution as we march toward expected commencement of mining operations in late 4Q25,” managing director Cullum Winn said.

“The timing is particularly favourable, coinciding with strong gold market conditions and we expect to capitalise on this environment with the release of our updated scoping study in the coming weeks.”

The study is expected to show significant improvement to the already impressive and robust project economics.

Plus, while stage 1 is underway, WGR will also be able to simultaneously develop stage 2 for potential extensions to the life of mine (LOM) such as Joyners Find and Bottom Camp.

 

 

This article was developed in collaboration with Western Gold Resources, a Stockhead advertiser at the time of publishing. 

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.