Westgold secures Great Fingall gold mine

THE BOURSE WHISPERER: Westgold Resources has acquired a 49 per cent relevant interest in the Great Fingall Deeps from Great Fingall Mining Company.

The 49 per cent interest contains 52,000 ounces of Probable Reserves and 132,000 ounces at 9.1 grams per tonne gold of Identified mineral resource.

Westgold said it anticipated completion of the acquisition will occur within the next week.

The consideration for the relevant interest involves:

$150,000 in cash;

The allotment of three million fully paid ordinary shares in Westgold, of which one million ordinary shares will be subject to a 12 month voluntary escrow period; and

A deferred payment of $5 per ounce for all ounces produced from the Defined Area in the Great Fingall Farm-in Agreement.

 “This agreement is another step by Westgold to finalise its development plans for the entire Central Murchison gold project, and allows for the unencumbered development of all remnant and down plunge extensions of this quality high grade asset which has produced 1.9 million tonnes at 19.5 grams per tonne gold for an average production profile of over 1500 ounces per vertical metre,” Westgold Resources managing director Scott Huffadine said in the company’s announcement to the Australian Securities Exchange.

 

Great Fingall and Golden Crown Mines with proposed decline access. Source: Company announcement  

The Great Fingall mine produced 1.2 million ounces at a grade of 19.5g/t gold up until 1918 and, according to Westgold is one of the highest grade and most significant producing gold mines in the Murchison region.

The mine has not been the subject of any modern underground development.

Westgold considers that in conjunction with the proposed development of the adjacent Golden Crown mine it can achieve significant upside through the conversion of the remnant resources above the current reserves and additional exploration for extensions to the known mineralisation.