2026 MINERAL RESOURCE ESTIMATE AND ORE RESERVES
Westgold Resources Limited (WGX) has released its 2026 Mineral Resource Estimate and Ore Reserve Statement as of June 30, 2026. The company reported a 41% increase in total gold ore reserves, which now stand at 4.1 million ounces at a grade of 2.22 g/t Au. This growth was driven by the maiden Fletcher Ore Reserve at Beta Hunt, which added 1.1 million ounces.
Total gold mineral resources grew by 8% to 14.4 million ounces at 2.30 g/t Au, with measured and indicated resources now comprising 62.6% of the total inventory. The reserve conversion process was reported as highly efficient, costing approximately $27 per ounce based on roughly $42 million in expenditure for approximately 1.5 million ounces of gross additions.
Looking ahead, Westgold plans to spend between $50 million and $75 million on exploration and resource development drilling in fiscal year 2027 to further convert resources into reserves. At current group installed processing capacity, the reserve life is estimated at approximately 10 years. The company noted a conservative assumption in its Ore Reserve determination, using a maximum gold price of $4,800 per oz, which is significantly below recent realized prices and the $5,500 per oz used in prior definitive feasibility study (DFS) studies.
Westgold Resources Limited (WGX) released a reserve and resource update that aligns with expectations, following strong fourth-quarter FY26 production beats and ongoing drilling campaigns. The company reported a conversion cost of $27/oz, a figure that validates the quality of the Beta Hunt and Fletcher inventory.
The reserve determination utilized a gold price assumption of $4,800/oz, which is notably conservative compared to realized prices of approximately $6,000+/oz and prior definitive feasibility study (DFS) assumptions of $5,500/oz. This conservative pricing limits immediate net asset value (NAV) uplift and explains the muted market reaction.
The stock has already priced in the FY26 operational beats and divestment proceeds. The news reinforces the 10-year mine life but does not alter the near-term growth trajectory or capital allocation plan. The market’s prior move from approximately $2.80 to approximately $7.60 already reflected the strong FY25 and FY26 results and portfolio simplification.
Westgold Resources Limited (WGX) is a Tier 1 jurisdiction gold producer operating across Western Australia's Murchison and Southern Goldfields regions. The company’s portfolio includes four processing hubs: Fortnum (0.9 Mtpa), Meekatharra/Bluebird (1.8 Mtpa), Cue/Tuckabianna (1.4 Mtpa), and Higginsville (1.6 Mtpa, expanding to 2.6 Mtpa). Key operating mines include Big Bell, Bluebird-South Junction, Great Fingall, Beta Hunt, and Starlight.
The company has completed a comprehensive portfolio simplification, divesting Peak Hill, Chalice, Mt Henry-Selene, and spinning out Reedy/Comet into Valiant Gold (ASX: VAL). Westgold remains an unhedged, debt-free producer focused on organic growth and capital returns.