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Westgold Tunes Fender as Next Underground Mine

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THE DRILL SERGEANT: Westgold Resources (ASX: WGX) revealed the Fender gold deposit is set to become the company’s next underground mine in the Cue area.

Westgold Resources made the announcement following completion of positive development studies that indicated Fender was set to be developed as an underground mine that will be supported by surface infrastructure and technical teams available at the proximate Big Bell mine.

Fender is located approximately 3.5 kilometres south of the Big Bell mine and will become the third underground mine feeding Westgold’s 1.4 million tonnes per annum Tuckabianna processing hub.

Fender was historically mined by Normandy in the 1990s with Westgold completing a cut-back during 2020 bringing the pit to approx. 100 metres vertical depth.

Under Westgold’s ownership ore was trucked to the Tuckabianna processing hub.

“Fender is the next underground mine planned to leverage Westgold’s existing infrastructure in the Cue region,” Westgold Resources executive director Wayne Bramwell said in the company’s ASX announcement.

“It will initially produce at a rate of ≈300,000 – 350,000 tonnes per annum, is a simple and low cost development and will leverage the existing Big Bell infrastructure approximately 3.5 kilometres to the north.

“With Big Bell approaching full capacity we have an excess of ore sources that can feed our Tuckabianna processing hub.

With Fender coming online in FY22 Westgold can now sequence our project pipeline including Shocker – 1600, the Black Swan Group targets, Golden Crown and Great Fingall and begin to consider options to establish a fourth processing hub.

“Evaluation studies will commence in the new year as to the appropriate scale and location.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: perth.reception@westgold.com.au

 

Web: www.westgold.com.au

 

Westgold Lodges Bidder’s Statement for Gascoyne Resources Takeover to Lukewarm Response

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THE BOURSE WHISPERER: The battle for Gascoyne Resources (ASX: GCY) between Firefly Resources (ASX: FFR) and Westgold (ASX: WGX) entered a new chapter this morning with Westgold releasing its Bidder’s Statement.

Westgold presented its case, saying in its Statement that it, “is aware of the current Firefly Scheme with Gascoyne and presents this Offer as a value accretive alternative to join with a well-funded, debt free and growth orientated Western Australian gold producer.”

“Our Strategy and Offer Westgold’s strategy is to keep Dalgaranga running at full capacity, managed by the current Gascoyne operating team and contractors, to increase gold output by supplementing the ore feed with higher grade ore from our existing Cue mines.

“Westgold has three operating hubs across the Murchison and is seeking to expand its business by acquiring Dalgaranga.

“The combined company will become one of the top 5 Australian domestic gold producers creating a wealth of opportunities for stakeholders.”

Gascoyne informed the market that it had seen the Westgold Bidder’s Statement and that, “alongside its financial and legal advisers, are currently reviewing the Bidder’s Statement and Gascoyne expects to be in a position to issue its Target’s Statement by no later than 29 October 2021”.

“The Company continues to recommend that shareholders REJECT the Westgold Offer and take no action in response to all correspondence from Westgold.

Gascoyne also made reference to Westgold’s announcement to the ASX on 15 October 2021 which directed shareholders to a separate statement on its website, the “Westgold Statement”.

“The Westgold Announcement was indicated to have been made in response to Gascoyne’s announcement regarding a revised Business Plan for Dalgaranga (refer to Gascoyne ASX announcement of 13 October 2021),” Gascoyne said.

“Gascoyne considers that key aspects of the Westgold Statement are misleading and strenuously refutes the statements made by Westgold that the revised Business Plan escalates operational and financial risk to the Company.”

Whichever way this goes in the end, it is currently making for compelling observance.

 

TO READ THE FULL ANNOUNCEMENTS: CLICK HERE & CLICK HERE

 

Email: admin@gascoyneresources.com.au
perth.reception@westgold.com.au

 

Web: www.gascoyneresources.com.au
www.westgold.com.au

 

Gascoyne Resources Enters Trading Halt to Consider its Options

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THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) responded to Westgold Resources’ (ASX: WGX) taunt’s by requesting the ASX place the company’s ordinary shares in a trading halt with immediate effect.

Gascoyne Resources requested the trading halt saying it requires time to complete, “the finalisation and Board approval of a material update to its business plan”.

The company indicated that once the trading halt is lifted it expects to be able to provide additional information in respect of the Westgold Resources’ announcements regarding its unsolicited intention to make a takeover bid for the company.

“The Company requests that trading of its ordinary shares be halted until after the expected announcement of the update to its business plan is made or until the market opens on Wednesday 13 October 2021, whichever is the earlier,” Gascoyne said in its request to the ASX.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@gascoyneresources.com.au

 

Web: www.gascoyneresources.com.au

 

Westgold Resources Goes Bareknuckle in Gascoyne Resources Takeover Stoush

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THE BOURSE WHISPERER: Westgold Resources (ASX: WGX) called out the Board of takeover target Gascoyne Resources (ASX: GCY) in an announcement this morning comparing its offer against that of Firefly Resources (ASX: FFR).

Westgold declared it had received a good deal of incoming positive engagement from shareholders of Gascoyne Resources regarding its intention to make an off-market takeover offer for all the issued shares in Gascoyne.

Westgold’s offer is subject to the Firefly Scheme not proceeding and customary off-market takeover bid conditions including, inter alia, a minimum acceptance condition of 50.1 per cent.

Westgold intends to lodge its Bidders Statement with ASIC during the week commencing 10 October 2021.

“It has been more than a week since Westgold announced its intention to make a bid on terms that are far superior to Gascoyne’s proposed merger with Firefly,” Westgold Resources executive director Wayne Bramwell said in the company’s ASX announcement.

“Bemusingly, the Gascoyne Board has provided no guidance to Gascoyne’s shareholders nor to Westgold regarding the Board’s intentions on either the Firefly Scheme or the Westgold Offer.

“The silence from the Gascoyne Board in relation to our Offer is in stark contrast with the volume of calls and emails we are receiving from Gascoyne shareholders wanting our Offer to be considered by their Board.

“Westgold knows the Gascoyne Board is cognisant of its fiduciary duty to its shareholders and would expect the Board to dutifully and proactively act to ensure their loyal shareholders have the opportunity to evaluate and respond to our value accretive proposition.”

The company compared the details of each offer, saying that “Based on the Independent Expert’s Report contained in the Firefly Scheme booklet”, should the Firefly Scheme taken up the value would equate to 18.3 cents per Gascoyne share.

The Westgold Offer of one Westgold share for every four Gascoyne Shares implies a value of 44 cents per Gascoyne share.

The gloves were then removed:

“The Gascoyne Board must act in accordance with its fiduciary duties to its shareholders and take all steps necessary to terminate the inferior proposed Firefly Scheme,” the company stated rather firmly.

“At the very least, Westgold considers that the Gascoyne Board must postpone the proposed Firefly Scheme meeting to allow its shareholders the opportunity to consider the merits of the Westgold Offer, as compared to the dilutive Firefly Scheme.

“The Firefly Scheme structure denies Gascoyne shareholders any vote or choice on this value destructive transaction.

“Westgold considers that once given the choice, a Gascoyne shareholder’s acceptance of the Westgold Offer is in effect also a vote against the Firefly Scheme.

“Westgold encourages Gascoyne shareholders to demand that its Board act in its shareholder’s best interests and provide an opportunity for Gascoyne shareholders to consider and accept the Westgold Offer.

“Westgold is committed to ensuring that Gascoyne shareholders are provided an opportunity to consider and accept the compelling Westgold Offer and has appointed an advisory team of Argonaut PCF and HopgoodGanim Lawyers to assist with the preparation of our Offer.”

 

At the time of publication neither Gascoyne Resources or Firefly Resources had released responding statements.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: perth.reception@westgold.com.au

 

Web: www.westgold.com.au

 

THE DAILY ROADHOUSE

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Westgold Resources Recommences Sub-Level Mining at Big Bell

THE DRILL SERGEANT: Westgold Resources (ASX: WGX) has recommenced underground sub-level cave stoping at the Big Bell underground mine at the company’s Cue Gold Operations (CGO) in Western Australia.

Gateway Mining Identifies New Gold Corridors

THE DRILL SERGEANT: Gateway Mining (ASX: GML) has identified extensive new regional gold corridors outside of the main gold trend at the company’s 100 per cent-owned Gidgee gold project in Western Australia.

Encounter Resources Welcomes IGO in $15M Yeneena Earn-In Agreement

THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) informed the market that Independence Group (ASX: IGO) has elected to enter an earn-in and Joint Venture agreement.

Azure Minerals Enhances Loma Bonita Gold Credentials

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) reported new intersects of wide intervals of gold and silver mineralisation on the company’s 100 per cent-owned Alacrán project in Sonora, Mexico.

Alicanto Minerals Intersects Chalcopyrite Mineralisation at Wolf Mountain

THE DRILL SERGEANT: Alicanto Minerals (ASX: AQI) has completed the first two drill holes (DH 20-01 & DH 20-02) at the company’s Wolf Mountain copper-gold target area in the Bergslagen district of southern Sweden.

 

Westgold Resources Recommences Sub-Level Mining at Big Bell

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THE DRILL SERGEANT: Westgold Resources (ASX: WGX) has recommenced underground sub-level cave stoping at the Big Bell underground mine at the company’s Cue Gold Operations (CGO) in Western Australia.

Westgold Resources initiated the first mass cave blast on Monday, paving the way for a planned ramp up in mine output that targets steady-state production rates by the end of CY 2020.

Over the past three years, Westgold has progressively dewatered the Big Bell underground mine and rehabilitated historic access development to around 610 metres vertical depth.

All critical mine services including dewatering, surface infrastructure power reticulation, ventilation, pumping and emergency egress have been re-installed.

Access drives into all old mining areas have been also rehabilitated with new development extended to enable the extraction of remnant and new ore horizons.

“This is a major milestone for Westgold and a terrific achievement by our CGO team,” Westgold Resources executive chairman Peter Cook said in the company’s announcement to the Australian Securities Exchange.

“Big Bell has been idle and flooded since 2003 however before that it was one of the largest single mine gold producers in the Australian gold sector.

“After nearly three years of substantial capital reinvestment and hard toil, we are on the cusp of returning Big Bell to its former glory.

“Big Bell will become our largest single mine in the Murchison region and restarts with a 10-year mine life with excellent resource extension potential.

“Big Bell is key to Westgold’s plans as it represents the last critical piece in our Murchison strategy.

“Our dominant land position, three operating process plants, over nine million ounce resource base and our unique position as owner operator provides the strategic platform to underwrite more than 300,000 ounces of production per annum in the longer term.”

 

Web: www.westgold.com.au