Beta Hunt infrastructure investment enables 2Mtpa run rate

Westgold Resources Limited (WGX) released an operations and infrastructure update for its Beta Hunt mine in Kambalda, Southern Goldfields, on 20 October 2026. The announcement, published at 18:18 AEDT, followed the company’s Q1 FY27 quarterly report by three minutes.

Beta Hunt achieved a record annualised mining rate of 2Mtpa in September 2026, prior to the commissioning of its interim primary ventilation system at the end of that month. The company targets sustained production at this rate starting from the December 2026 quarter (Q2 FY27).

Infrastructure expenditure over a two-year period totals $33.3M, allocated across several key projects. This includes $10.3M for the long-life (LOM) primary ventilation fan station, $7.4M for the interim primary ventilation system, $2.5M for primary dewatering, $3.7M for secondary dewatering, $1.5M for water supply and services, $5.0M for surface power, and $2.9M for underground power.

The LOM 801-level fan station, a 2 x 1.7MW installation designed for approximately 500 m³/s, has experienced bearing and coupling failures. Additional bracing installed in Q4 FY26 did not improve reliability, and a recovery plan with the vendor is underway while alternative vendors are being assessed. Westgold stated the LOM system is not required for two years. In contrast, the interim ventilation solution in the 801-level return airway was delivered in three months from final investment decision (FID) and commissioned in late September 2026, ahead of the planned Q2 FY27 date.

Dewatering upgrades addressed a legacy network designed for approximately 12 L/s against a peak requirement of approximately 50 L/s. The company installed 12 WTX3 pumps, replaced 110mm poly pipe with 125mm, installed approximately 7.6km of pipework over six months, and added three WT107 pumps at the 801 level.

Power infrastructure improvements included addressing the B6 feeder cable, which supplies more than 50% of the mine and the primary ventilation system. The cable had degraded to a point of failure risk. A new service hole was drilled in early 2026, and a new Ring Main Unit was installed, with work completed in May 2026.

Mine design changes include consolidating declines from four to three and introducing multi-lift open stoping. Transverse mining has been adopted in the Western Flanks, involving higher upfront capital but lower unit operating expenses. Improved underground equipment servicing and refuelling areas are due to be completed by Q2 FY27.

Over two years, 85km of diamond drilling added 1.1moz of reserve at approximately $27/oz. Beta Hunt is now positioned to exceed Higginsville’s installed capacity of 1.6Mtpa. A mined ore stockpile will be built over FY27 to keep Higginsville filled.

Expansion studies for the Southern Goldfields region were completed in Q3 FY27, assessing two 4Mtpa scenarios. The first involves a new 4Mtpa hub closer to Beta Hunt, providing approximately 250kozpa standalone production and increasing total Southern Goldfields capacity to approximately 5.6Mtpa, with optionality over Higginsville’s future. The second scenario involves expanding Higginsville to treat 4Mtpa of Beta Hunt ore, also yielding approximately 250kozpa.

Currently, seven rigs are operating underground: six on Fletcher reserve conversion and one on the Mason resource extension.

Westgold Resources Limited (WGX) has demonstrated a 2Mtpa annualised month, a milestone that removes a primary bottleneck on the Southern Goldfields growth story and converts a previous plan into a demonstrated capability. However, the release also highlighted significant infrastructure challenges, including an unreliable $10.3M turnkey LOM 801 fan station that failed to perform as specified. An interim ventilation fix was implemented at a cost of $7.4M and is expected to have an approximate two-year life, contributing to a full infrastructure bill of $33.3M.

The company also outlined mine-design changes, including reducing the number of declines from four to three, implementing multi-lift open stoping, and adopting transverse mining at Western Flanks. Additionally, Westgold explicitly stated that Beta Hunt will out-mine Higginsville's mill.

Much of this information had already been telegraphed. The 2Mtpa achievement in September, the interim ventilation commissioning, and the $1.1moz Fletcher reserve at $27/oz were all included in the Q1 FY27 quarterly released shortly before this update. The "2Mtpa target" itself dates back to the March 2026 quarterly. Consequently, the market receives limited new price-setting information beyond the fan-station problem and the associated fix costs.

The stock had already adjusted to these expectations, falling from $6.06 on 9 September, the day of the FY27 guidance and three-year outlook, to $4.81 on 20 October, a 21% decline. This de-rated share price suggests the news lands into a defensive market sentiment rather than a complacent one. While Westgold described the achievement as establishing a "modern mining operation," the core substance remains that while capex has been spent and throughput capability exists, durable proof of sustained 2Mtpa operations is still one quarter away.

Westgold Resources Limited (ASX/TSX: WGX), an ASX 100 constituent, is a Western Australian gold producer and explorer that is wholly unhedged and holds nickel by-product resources at Beta Hunt. The company operates across two regions with four processing hubs. In the Murchison region, the Fortnum hub features a 0.9Mtpa mill fed by Starlight UG and stockpiles, while the Meekatharra hub includes a 1.8Mtpa mill supplied by Bluebird–South Junction UG, Fender, stockpiles, and third-party ore. The Cue hub comprises a 1.4Mtpa Tuckabianna mill fed by Big Bell UG, the recommenced Great Fingall UG, and stockpiles.

In the Southern Goldfields, the Higginsville hub operates at 1.6Mtpa, processing ore hauled from the Beta Hunt underground mine at Kambalda. Beta Hunt serves as the company’s growth engine and is the subject of the current release.

Westgold has completed its portfolio rationalisation, divesting Mt Henry–Selene to Alicanto for approximately $110M total consideration, which includes a retained ~19.9% stake. The company also sold Peak Hill to Great Boulder for ~$54M plus a retained 1.0% NSR royalty and an ore purchase agreement, and sold Chalice to Corazon for ~$12.6M upfront plus $11M deferred. Additionally, Westgold spun out Reedy's and Comet into Valiant Gold (ASX: VAL), which listed in March 2026 on a $75M IPO that was oversubscribed. Westgold retains ~44% of Valiant on a 24-month escrow.

Wayne Bramwell serves as Managing Director and CEO across the release set, and Simon Rigby, Chief Growth Officer, is Westgold's nominee on the Valiant board. No management changes are disclosed in the provided material.